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What Is Total Addressable Market (TAM)? How to Calculate + Examples

Salesforce

Example 1: Software company Based on market research, this company finds that its niche software could serve up to 30,000 clients in North America. Because their average account value is $5,000 per year, they calculate their TAM revenue by multiplying 30,000 potential clients by $5,000, arriving at $150 million per year.

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Competitive Pricing: The Secret to Winning More Deals

Salesforce

This approach helps prevent losing market share and allows your business to concentrate on adding value, such as improving customer service or making your product easier to use. This strategy applies to almost any market, be it software or shampoo. The Pros It can help grow or protect market share.

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Business Apologies: What You Should (and Shouldn’t) Do

ConversionXL

Retain loyal clients. Pete Fader, Professor of Marketing at the University of Pennsylvania, shares why in his book Customer Centricity : Not all customers deserve your company’s best efforts. The company recovered 70% of its market share within five months and was back up to 90% a year after the incident.