What is my account TAM/ICP?

What is an Account TAM vs. Account ICP?

1. Account TAM (Total Addressable Market)

  • Definition:
    TAM is the entire universe of companies that could theoretically buy your product or service — regardless of whether they’re ready, qualified, or interested today.

  • Purpose:
    TAM tells you the full size of your opportunity. It answers: "If we sold to everyone possible, what is the maximum revenue potential?"

Example:

If you sell identity governance software to enterprises with >1,000 employees, your TAM might be every large company worldwide that fits that employee size filter.

2. Account ICP (Ideal Customer Profile)

  • Definition:
    ICP is the subset of your TAM that is the best fit for your product — companies where you’re most likely to win deals, retain them long-term, and generate high ROI.

  • Criteria for ICP Accounts:

    • Firmographics: Industry, size, revenue, location

    • Technographics: Tech stack, maturity level

    • Buying Signals: Hiring trends, intent data, security or compliance initiatives

    • Strategic Fit: Companies with problems your product solves right now

Example:

Within your TAM of 50,000 companies, your ICP might be 3,000 banks, fintechs, and insurance companies in North America with >$500M revenue and a strong need for access governance.

Using Account TAM & ICP in Advertising

For TAM (Broad Awareness)

  • Programmatic Ads: Target broadly by firmographic filters to build awareness.

  • Top-of-Funnel Messaging: Education-focused ads that teach the problem space, not just your solution.

  • Lookalike Audiences: Use TAM attributes to create broad reach campaigns in LinkedIn, Google, Meta.

For ICP (Precision Targeting)

  • ABM Campaigns: Focus ad spend on named accounts that fit ICP criteria.

  • Role-Specific Ads: Deliver tailored messaging to decision-makers, influencers, and end users within those accounts.

  • Budget Optimization: Concentrate ad dollars where your win rate and deal size are highest.

Using TAM & ICP in Marketing Programs

  • TAM → Market Sizing & Prioritization: Helps allocate sales and marketing resources across regions, industries, or verticals.

  • ICP → Program Focus:

    • Build webinars, whitepapers, and case studies for your ICP’s specific problems.

    • Sponsor events where your ICP buyers gather.

    • Align SDR outreach and marketing content to speak their language.

Using TAM & ICP in Nurture Campaigns

  • TAM Nurture (Exploratory):
    Send broad, educational drip campaigns to TAM accounts to turn them into MQLs over time.

    • Example: “Beginner’s Guide to Identity Governance”

  • ICP Nurture (Accelerating Pipeline):
    Provide deeper, personalized nurture paths for ICP accounts.

    • Case studies, ROI calculators, and security validation guides.

    • Trigger campaigns when ICP accounts show intent (site visits, webinar attendance).

Why It Matters

  • TAM = Market Coverage: Ensures you aren’t missing opportunity whitespace.

  • ICP = Market Efficiency: Ensures you’re spending money and time where you have the highest chance of winning and delivering value.