If you are looking for a market sizing consultant to help you with your business, there is a lot to consider. With the right person on your side, they can provide insights and strategies that will have a huge impact on how well your company performs. But choose the wrong one, and you can waste money on a report that simply sits on a shelf.
The following blog post discusses three of the most important factors in hiring a market sizing consultant. We also discuss a new alternative: Scalepath's B2B market sizing and segmentation software.
A good market sizing consultant can help you understand your target market, determine what products or services to offer, and spot new areas of growth. Their insights can be used to tell a credible growth story to the board or investors, set a go-to-market strategy, or prioritize new geo, product, and vertical growth opportunities. In short, a good market sizing consultant can help give you the insights you need to make smart business decisions.
Make sure whoever you hire has experience and knows what they're doing. It's crucial to find someone who has actually worked in the industry and understands how market sizing works.
Look for someone with the right qualifications, too. They should have a degree in business, economics, or a related field. Because there's no certification for market sizing techniques, experience matters. The best market sizing consultants will have a strong grasp of the business along with a data-driven, analytical approach.
It's also important to find the right fit for your company. The consultant you hire should be able to work with you and understand your specific market. Experience in market sizing work for similar companies helps significantly here.
Without the right tools or process, it will take longer for a consultant to get through your project and there's no guarantee of accuracy or quality results. Understand how your consultant will approach your project: are they using survey data, your pricing, or generic PDFs? There's no universal right way, but make sure you're getting what you need from their methodology.
The right tools, such as market sizing software from Scalepath, can help consultants to do their work faster and with more accuracy.
Generally, a market sizing consultant will look to understand how many customers are in a given market segment, and how much they are willing to pay for a product or service like yours. In the simplest form, the market size is simply the multiplication of these two numbers: customers x price.
Market sizing consulting is customized to fit your needs, with costs and processes dependent on project complexity. A market sizing project for your current market potential in one country is very different from a global study with pricing surveys in multiple countries from a large consulting firm. Expect to pay anywhere from $25,000 to $300,000 or more. Market sizing projects are often rolled into larger consulting projects.
You have to ask the right market sizing consultant what they offer and how much it costs for them to help you out.
You may be able to find cost savings by limiting the geographic scope or using your own pricing data rather than an expensive pricing survey. If you have a sufficient number of customers, your pricing data is likely more accurate than a survey anyway.
If you're not sure what your needs are, contact us at Scalepath and we'll help you figure it out.
Scalepath takes a "software plus expert" approach to help B2B companies understand their market size, growth dynamics, and best opportunities to accelerate growth.
This approach builds on the Scalepath team's experience with market sizing in both corporate and consulting roles. Rather than relying on a consultant doing manual work, Scalepath's software allows you to quickly and easily build a view of your total addressable market, along with your serviceable (SAM) and obtainable (SOM) segments. Our team of experienced consultants are experts in market sizing and growth analysis, and leverage custom software to build traditional total addressable market studies in a fraction of the time of traditional market sizing. Further, leveraging software and massive data sets enables a new level of detail and accuracy.
This combination of technology and expertise results in the most accurate and usable market sizing projects. You can use the same model to present your growth story to the board and investors, determine the next products to tackle, and get down to the specifics of aligning state by state sales territories around market opportunities.
To see if Scalepath is a fit, sign up for Scalepath or contact us to chat.
