Step 3. How Big is Your Market Opportunity?
My last post focused on understanding how relevant your products are to your customers (Step 1 & 2), Step 3 below is about sizing your target market and quantifying what the current opportunity is. These are the key questions you need to consider as you work through sizing your opportunity.
Like Step 1 and 2 you’ll get more out of this step if you can get your sales, marketing and product teams working through these issues together. As a reminder all the Five Steps to Sales Growth are summarized here.
STEP 3: Current Market Opportunity
The level of quantification each business needs to size its target market will vary considerably depending on your sponsor’s and stakeholder’s requirements. In most cases I have found market sizing is a combination of facts, hypothesis and assumptions. Get comfortable with the level of ambiguity you will accept and move forward.
What are some of the challenges you have experienced in sizing your target markets, does any of the above sound familiar?
In my next post I’ll provide more examples and thoughts to help you tell your story – Step 4: How Are You Telling Your Story?.