The Scalepath 4C TAM Framework™

The Challenge of B2B TAM

B2B technology companies often have a challenge identifying their true TAM, as many of the traditional hard market constraints don't look the same as they do for companies with physical locations. SaaS companies find it even more challenging, as they don't ship physical products.

But a good understanding of TAM enables companies to work from first principles as they drive strategic growth.

Whenever we're onboarding a new user with Scalepath, we use the 4C TAM Framework™ to help identify their TAM, SAM, and SOM. The 4C approach helps clients build a view of their market and drive conversations about where to invest for growth.

Here's a quick overview of the framework, and how it's an improvement on traditional approaches to TAM analysis for B2B companies.

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4C TAM Framework Overview

The framework covers four areas:

1. Custom Potential: At a high level, how many customers have the problem your solution solves?
2. Capture of Customer Value: How much value can you capture from each customer by solving this problem? The Customer Potential, multiplied by Customer Value, equals the Total Available Market.
3. Capabilities: What are your organizations capabilities right now to service the total market? This defines your SAM, or Serviceable Available Market. Understand how geo, language, deal size, and technologies impact your ability to service clients that come to you organically.
4. Constraints: What are your current constraints used to define your target market and growth opportunity? In other words, where do you have a defensible competitive advantage and referencable customers?

How to Use It

We've found this process so valuable that we're opening up our workshops to non-software users as well. If you're interested in running a workshop for your organization, connect with us here.