SEO
Why NAP & User Experience Are Crucial To Local SEO
NAP consistency is an important part of Google’s local search and Local Pack algorithms, which means that building citations with a consistent NAP on your Google Business Profile listing and other online directories and sites can influence your local rankings.
However, having a consistent NAP is also important to the user journey, as online directories and social bookmarking sites aren’t just used by Google – they’re used by humans, too.
Maintaining a high level of consistency and accuracy reduces the risk of mistakes being made by search engines mechanically processing the data.
It also reduces the risk of user friction should a potential customer trying to contact your business come across an incorrect phone number, store hours, or email address.
And, if Google comes across five different versions of your store hours, which one are they to believe?
Conflicting information can erode Google’s trust in your location’s data, which doesn’t equate to your listing being considered the best result for a relevant query.
Keeping track of where key business information is listed and how accurate it is can be a difficult job even for a single location.
When you’re managing multiple locations with multiple addresses and phone numbers, even with the use of enterprise software, it becomes increasingly complex.
This job is also changing, now that Google wants business owners to manage their Google Business Profile (GBP) from the Google Maps interface and larger multi-location businesses from the Business Profile Manager.
When The User Journey Starts
Many people consider the user journey and brand experience to start when the user makes the first inquiry by phone or email, or spends significant time on a company’s website.
However, the journey begins a lot sooner.
Google data shows that there are five touchpoints that, more often than not, lead to a purchase/affirmative site action:
- Used a search engine.
- Visited a store or other location.
- Visited a retailer website or app.
- Visited another website or app.
- Used a map.
The user journey starts when they first see your brand either in search results listing, in the Local Pack, on a map, or at your physical brick-and-mortar store.
This is where the consistent NAP becomes important because users need consistent information in order to progress in their journey.
Often, we assume that users find our local businesses and brands through our websites, our guest posts and outreach, and our Google Business Profile listings.
Users, however, find our brand through a variety of online portals, including the directories where we build our citations and listings.
Influencing The User Journey At A Search Stage
When users are performing their first searches, this is your first opportunity to make an impression and be a part of the user journey.
If you appear prominently in the Local Pack or within the SERPs, you want your users to click through to content that both provides value and satisfies their user intent.
Lazy Local Pages Help Nobody
In many cases, when a website “localizes,” it means the generation of local content and local pages.
These are executed with varying degrees of effort, care, and detail, but ultimately lazy local pages help no one.
A lazy local page is a doorway page; a thin page that offers little value to the user and is there for the sole purpose of trying to rank for local search terms.
Google doesn’t like doorway pages (due to them offering poor user experience) and rolled out a doorway page “ranking adjustment” algorithm in 2015.
The Possum update in 2016 also went some way to tackle poor quality and spam, but this is a tactic that has persisted. In many verticals, they are still effective (until something better comes along).
Google’s official support documentation defines doorways as:
“Sites or pages created to rank highly for specific search queries. They are bad for users because they can lead to multiple similar pages in user search results, where each result ends up taking the user to essentially the same destination. They can also lead users to intermediate pages that are not as useful as the final destination.”
Even if you rewrite all the content on these pages making sure they’re not duplicate but they all carry the exact same message with a different city targeted, they offer no value at all.
This is niche-dependent, however, and in some smaller niches, Google may still rank doorway pages through lack of competition and other viable options.
This boils down to two concepts that Google uses within its Quality Rater Guidelines document: the “beneficial purpose of the page” and whether the page is a “good fit for the query.”
Even if the business doesn’t meet the physical local aspects of the query but is providing content that suggests it does cover the physical location and provides value (and a positive reputation value proposition) to users looking for X in Y, when Google is void of other options that meet the physical location preferences, then Google will rank the content.
Creating Good Local Value Pages
Admittedly, it’s a lot easier for companies with physical brick-and-mortar stores in the locations they want to target to create local pages with high value.
But this doesn’t mean that it can’t be done for companies offering an intangible product or service with a local focus.
Google’s Search Quality Rater Guidelines define content in two parts:
- The main content.
- The supporting content.
This is the way you should look at local search.
When someone in London searches for [plumbers in london], Google has to break down the query into both main and supporting sections, as well as look for intent.
It can do this through the capabilities achieved in the Hummingbird and RankBrain updates.
With [plumbers] as the main part of the query, and from reviewing the search results page of [plumbers], Google sees a single dominant interpretation of the query, and that is someone looking for a plumber (service), and returns a combination of local business websites, aggregators, the Map Pack (local to my IP), and Google’s Local Services carousel.
[in london] is then the modifier.It’s a secondary signal to reinforce to Google the accuracy of results wanted.
Adding this modifier for me (using [plumbers in horsforth]), Google has given more weighting to aggregators listing multiple plumbing companies in the area and seemingly de-weighted individual company sites.
This makes sense from a user perspective as it’s giving me easier access to multiple options from a single click versus multiple clicks.
The main content of your website should reflect the product/services that you offer, with supporting content elements adding value and topical relevance around the location.
This can be implemented in a non-commercial way through the blog, as guides, or as additional resources.
NAP Consistency
As mentioned before, NAP consistency is important as the directory listings, and citations we build aren’t just used by search engines. Potential customers find these details, too.
An inconsistent or inaccurate NAP can lead to frustrated users and potentially lost leads.
Common Reasons For Inconsistent NAP
From experience, inconsistent NAP can be caused by a number of human errors and business changes, including:
- Changing the business address and not updating previously built citations, directory listings, etc.
- Having a different store address to the company registered address and using both online.
- Generating different phone numbers for attribution tracking purposes.
Not only can all of the above cause issues for your local SEO, but they can also cause a number of user experience issues – and poor user experience leads to loss of sales and damage to your brand.
User experience extends beyond the Local Pack and SERPs to your website, how the local journey is managed, and whether it can satisfy all local intents.
Being able to track and accurately report on the success of marketing activities is vital.
However, there is a case for “over reporting” and “over attribution” in some cases, especially when it comes to local SEO.
Google Local Pack: User Experience & Attribution
Google’s Local Pack runs on a different algorithm to the traditional organic search results and is heavily influenced by user location when making the search.
Google Business Profile has an attribution problem, and more often than not a lot of clicks from GMB listings are classified as direct traffic rather than organic traffic in Google Analytics.
The way around this is to use a parameter:
?utm_source=GMBlisting&utm_medium=organic
The parameter won’t cause NAP/citation consistency issues, so there is nothing to worry about there.
Having a consistent NAP means you’re more likely to appear within the Local Pack, and if you’re in the Local Pack studies have shown that you’re likely to get a high percentage of clicks on the results page.
If you’re likely to get a lot of clicks, it means you’re going to have a lot of users expecting fast loading pages and prominent information to satisfy their search intents.
Directory Attribution
This is a more common problem that I’ve come across working agency side, as well as one I’ve been asked to implement while working client-side.
To track marketing efforts, I’ve known organizations to generate unique phone numbers for every directory where they submit the business.
- The pros: You can fairly accurately gauge an ROI on your marketing efforts.
- The cons: You end up with a lot of published citations with an inconsistent NAP.
Also, a lot of directories like to generate Google Business Profile listings based off of the data you input, as a sort of “added service.”
This leads to multiple Google Business Profile listings being generated for individual locations, with different phone numbers and sometimes different map pin locations.
This is bad for user experience, as they’re faced with multiple choices for one location with only one being correct.
This is manageable by declaring that the false listings are duplicates of another and requested that Google merges them. See ‘How to Delete or Merge Duplicate Google Business Profile Listings’ to learn more.
Featured Image: Paulo Bobita/Search Engine Journal
SEO
Yoast Co-Founder Suggests A WordPress Contributor Board
Joost de Valk, co-founder of the Yoast SEO plugin, published an article calling for more equitable contributions from large WordPress companies, greater financial transparency, and a new board that represents the voices of contributors and companies.
Joost de Valk Supports Matt Mullenweg
Joost de Valk’s article is supportive of WordPress and agrees with Automattic’s CEO Matt Mullenweg that WP Engine should contribute more to WordPress. He praises Mullenweg and Automattic for the amount of contributions they make to WordPress, contrasting Mullenweg’s example against those who are financially benefiting the most from WordPress but don’t contribute on a level that’s reflective of their rewards.
He writes:
“I agree with Matt about his opinion that a big hosting company such as WPEngine should contribute more. It is the right thing to do.”
Joost writes that these aren’t just words to him, that they reflect his values and actions, sharing that his organization contributed so much time to the Gutenberg Project that it was literally at the expense of his own for-profit venture in that, while they “still made a lot of money” their revenue did experience a dip.
He thus envisions creating a board that’s representative of stakeholders as a way to encourage a healthy sustainable open source ecosystem with greater transparency and community representation.
Business Success Informs His Opinion
His idea for cultivating a health self-perpetuating open source community has been his guiding principle and is what he credits for his business success. In a 2013 WordCamp presentation he shared his experience of spending many years contributing to WordPress and creating a wildly popular plugin while not yet making any money. He reached a point where he had a day job to support his WordPress hobby and had to decide how to flip that so that they hobby became his day job.
In that presentation (The Victory Of The Commons) he described two ways of thinking about his situation, one in which he just goes all-in and focuses on doing what’s best for him and another path where he does what’s best for him and the WordPress community.
Joost credits his wife with suggesting to solve his problem by looking at it within the framework of the Tragedy Of The Commons. The Tragedy Of The Commons is a concept of how individuals can decide to either manage a shared resource to create a sustainable living for the community or behave in self-interest and eventually deplete the resource, thus harming the entire community.
He shared the following in that 2013 WordCamp presentation:
“So, if everyone in the WordPress community, if we all looked at it like this, we can make money and make sure that we reinvest that money, we’d grow.”
He said that creating something and giving it away is not necessarily good. He said it’s better for everyone to make “piles and piles of money” with the work but giving some of that back supports you and the community in a self-sustaining circle. He insisted that reinvesting “in the pasture” was paramount to working within the WordPress open source community.
“Reinvest some of that profit into all of our main pasture, WordPress. We all benefit.”
New WordPress Foundation Board
One of the solutions that Joost suggests is the creation of a board that provides representation to those who contribute to WordPress. Joost uses the analogy of taxation with representation as the basis for a WordPress Foundation board so that those who contribute can also be heard as part of the decision making process.
What he envisions isn’t a governing board with decision making power but one that serves in an advisory position that can participate as part of a dialogue within the decision-making structure.
He writes:
“I think this could actually help Matt, as I do understand that it’s very lonely at the top.
With such a group, we could also discuss how to better highlight companies that are contributing and how to encourage others to do so.”
The three main points he makes are:
1. Representation Of Stakeholders
“In my opinion, we all should get a say in how we spend those contributions. I understand that core contributors are very important, but so are the organizers of our (flagship) events, the leadership of hosting companies, etc. We need to find a way to have a group of people who represent the community and the contributing corporations.”
2. Facilitation Of Transparent Discussions
“Now I don’t mean to say that Matt should no longer be project leader. I just think that we should more transparently discuss with a ‘board’ of some sorts, about the roadmap and the future of WordPress as many people and companies depend on it.”
3. Encouragement And Recognition Of Contributions
“With such a group, we could also discuss how to better highlight companies that are contributing and how to encourage others to do so.”
Transparency With Money
One of the points that Joost brings up is somewhat separate from the creation of a contributor board and it’s about the payments made to Automattic for trademark deals. He says that thing mingling of money creates a situation where it’s uncertain how much of it is used by Automattic as contributions to WordPress.
He writes:
“…let everybody see how the money flows.
Currently the way it works is that the money for trademark deals flows to Automattic, but we don’t know how much of the contributions Automattic does are paid for by Newfold, whom we now all know are paying for the use of the trademark. Maybe the money should go directly into the foundation? If not, I think we should at least see how many of the hours contributed by Automattic are actually contributed by Newfold.”
WordPress May Be At A Crossroad
WordPress may be at a historic crossroad that could lead to different outcomes. Joost suggests doubling down on open source by engaging with the entire WordPress community, returning to the ideal of reinvesting in “the pasture” to create a sustainable system that allows everyone to make “piles and piles of money” and achieve the goals users are working toward.
Featured Image by Shutterstock/Shutterstock AI Generator
SEO
WordPress Gives WP Engine Users A Reprieve
Matt Mullenweg posted on WordPress.org that WP Engine users have been granted a reprieve from the block on the WordPress plugin and theme repository until October 1st, allowing them to access updates as usual.
WordPress Versus WP Engine
Matt Mullenweg and popular web host WP Engine have been locked in a conflict for the past week over a commercial licensing fee that other web hosts pay but WP Engine does not. The issue between them stems from the frustrations on Mullenweg’s side with the perception that WP Engine is not giving back enough to WordPress in the way that they should. Prominent figures in the WordPress industry like Joost de Valk agree with Mullenweg that companies, including WP Engine, should give back more to WordPress.
WP Engine has offered their side of the story have gone as far as to send a formal cease and desist letter for what they perceive as an unfair attack on their business.
Regardless of who is right or wrong, WordPress users on WP Engine are caught in the middle of this conflict, with their businesses disrupted by Mullenweg’s decision to block WP Engine from accessing the WordPress.org plugin and theme repository, preventing them from updating plugins and themes.
Temporary Reprieve
Mullenweg posted on WordPress.org that he has heard from WordPress users and has decided to give the WordPress users a chance for WP Engine to set up a solution so that they won’t be inconvenienced. WP Engine has until October 1st to engineer a workaround.
He wrote:
“I’ve heard from WP Engine customers that they are frustrated that WP Engine hasn’t been able to make updates, plugin directory, theme directory, and Openverse work on their sites. It saddens me that they’ve been negatively impacted by Silver Lake‘s commercial decisions.
WP Engine was well aware that we could remove access when they chose to ignore our efforts to resolve our differences and enter into a commercial licensing agreement. Heather Brunner, Lee Wittlinger, and their Board chose to take this risk.
…We have lifted the blocks of their servers from accessing ours, until October 1, UTC 00:00. Hopefully this helps them spin up their mirrors of all of WordPress.org’s resources that they were using for free while not paying, and making legal threats against us.”
Read more at WordPress.org:
Featured Image by Shutterstock/Vladimka production
SEO
How to Estimate It and Source Data
Total addressable market (TAM) is an estimation of how much you could earn if you could sell your product or service to every possible customer in your market.
The basic formula for calculating TAM is:
TAM = (Total Number of Potential Customers) × (Average Annual Revenue per Customer)Understanding TAM helps you figure out the size of your market and the amount of money you could make if you captured all of it.
TAM is also a key metric for startup investors. It shows whether a business idea has a big enough opportunity. Investors often look for a TAM that is “just right” — not too big or too small. A TAM that’s too large might mean the market is crowded with tough competition, while a TAM that’s too small could mean limited room for growth.
In this guide, you’ll learn how to estimate TAM using three methods, where people often make mistakes, and how to refine your estimations to make them plausible to investors or stakeholders and actionable for your business.
There are three approaches to calculating TAM. Depending on the available market data, your business model, and your stakeholders/investors, you should consider using the top-down, bottom-up, or value theory approach.
1. Top-down approach
The top-down approach starts with broad market data and narrows it down to estimate the market size for your specific product or service.
This approach is useful when there’s reliable, broad industry data available.
How to use
- Estimate the overall market size in which your product operates, usually obtained from industry reports or research.
- Apply a percentage that represents the portion of the market your product can realistically capture.
Example
If the global smartphone market is valued at $500 billion, and you are launching a new smartphone accessory, you might estimate that your product could target 5% of the market, which gives you a TAM of $25 billion.
2. Bottom-up approach
The bottom-up approach builds the TAM by starting with specific, individual data related to your business and scaling it up.
This method is great when you have detailed knowledge of your customer base and pricing. As far as I know, investors prefer this method, which offers the most accurate and actionable TAM estimation.
A few birds in the hand is worth billions in the TAM. Early-stage (pre-Series-B) startups shouldn’t worry too much about calculating a precise TAM. As long as it’s in the right ballpark for their thesis, investors care a lot more about the traction you can show with paying customers. That’s why bottom-up is far more convincing than hand-wavy top-down methods that only rely on finding a big enough pie to claim as your market.
How to use
- Estimate how many potential customers there are in your target market. You can do this by using sources like industry reports, census data, or research from trusted organizations (more data sources at the end of the article).
- Multiply this number by the average revenue you expect to earn from each customer (ARPU – Average Revenue Per User).
Tip
To calculate ARPU, consider the pricing of your product or service, how frequently customers will purchase, and the churn rate.
For example, if you charge $100 per month for a subscription service, your monthly churn rate is 5%; on average, a customer might stay subscribed for around 6-7 months, meaning your average revenue per customer would be around $600-700.
Example
Let’s say you have subscription-based software that helps small businesses manage their finances. You identify that 2 million small businesses could benefit from your software. If your ARPU is $600, your TAM would be 2 million customers × $600 = $1.2 billion.
3. Value theory approach
The value theory approach estimates TAM based on the value your product provides to customers and how much they might be willing to pay for it.
This approach is especially useful if you’re introducing a product or service that disrupts existing markets; traditional market size calculations may not accurately reflect the potential.
How to use
- Assess the value or cost savings that your product delivers to the customer.
- Estimate how much customers would be willing to pay for that value and scale it across the entire market.
Example
Suppose you have developed a new energy-efficient lighting system that saves companies $10,000 per year in energy costs.
If 100,000 companies could use your lighting system, and each is willing to pay $5,000 for it (because they’ll save $10,000), your TAM would be 100,000 companies × $5,000 = $500 million.
There’s also a fourth option — a middle ground mentioned by quite a few people who offered their insights for this article.
I’d say the best method to estimate TAM is usually a combination of top-down and bottom-up approaches. The top-down method gives you a big picture view using industry reports and market research, while bottom-up lets you build from the ground up using your own data and customer insights. This combined approach helps balance out the weaknesses of each method.
You may encounter the TAM, SAM, and SOM terminology and need to apply it if an investor requests it.
People who prefer this approach treat TAM as a “pie in the sky” number and further refine it with SAM and SOM portions of it.
- TAM (Total Addressable Market) is the total market if you could sell to everyone, everywhere. Your biggest possible opportunity.
- SAM (Service Addressable Market) is the portion of the TAM you can actually target based on where you operate and who your product is for. For example, if you’re a local coffee shop in New York City, your SAM might be coffee drinkers in NYC, not every coffee drinker worldwide.
- SOM (Service Obtainable Market) is the realistic piece of the SAM that you can actually win over, considering the competition and your strengths. Continuing with the coffee shop example, your SOM might be the number of customers you can realistically attract in your neighborhood, given factors like nearby competitors, your unique offerings, and marketing efforts.
TAM is typically used to make a compelling story about the potential for growth, so it’s easy to be over-optimistic and make mistakes that could make your TAM look better.
Here’s an example. I used a tool that calculates TAM automatically based on a URL to find the market size for netflix.com. The tool told me that there are 7B people who “need it (…) even if they’re not willing or able to make a purchase” and 6.3B ready to make a purchase. Something that I find hard to believe since there are an estimated 5.3B people with internet access worldwide.
Also, the way that the tool defines my potential customers doesn’t sound convincing to me, either, let alone logical.
Other mistakes you should avoid:
- Falling into the “everything trap”. This is when businesses assume that their product or service could appeal to everyone in the market, leading them to calculate TAM based on an overly broad audience.
- Sizing the problem instead of the market. This happens when businesses focus on the total number of people who might benefit from their solution without considering how many are realistically willing to pay for it.
- Overlooking market trends and dynamics. The market can grow or contract, consumer preferences can change, government regulations can influence the market, etc.
The basic data sources for TAM calculations are industry reports you can find on platforms like Statista and census data (like the US census data). However, there are other places where you can look for more detailed data.
Explore the market using search data
Search data is information about what people are looking for online. It can help you understand what customers want, where interest is growing, and what regions are most active.
Google Trends provides some of that data for free. For example, you can check if interest in a plant-based diet is still strong and where in the US you could find the most customers.
But that’s how far this tool goes. You don’t know what terms are “inside” the topic or how popular a keyword is (the numbers in Google Trends are relative). Also, sometimes Google won’t have the data, just like for the term “baby food subscription”.
Alternatively, you can use Ahrefs. I’m sure you’ll find more search terms there and a lot more data points. Let me take you through three examples.
Gauge demand with search volume
Search volume is an estimation of the average monthly number of searches for a keyword over the latest known 12 months of data.
High search volumes suggest a larger potential market. Low search volumes, suggest a smaller market (or that you will need to be more creative to find customers).
For example, while Google Trends didn’t have any data on “baby food subscription”, Ahrefs’ Keywords Explorer shows that there are an estimated 1.2K searches per month in the US of that term. Plus, it shows you the forecast for that keyword.
If you’d be planning to start a new business in this niche, you’d need compelling arguments to justify a high TAM estimate, because the current demand for this type of service appears to be relatively low.
Learn what people want and how they look for it
Keyword research can tell you what people want in which countries. All you need to know is a few broad terms related to your product.
For example, for plant-based products, you could just type in “plant-based, vegan” and then go to the Matching terms report to see the popularity of certain types of products. You can also see if the demand for these products has grown or fallen over the last three months.
So, if you find that the demand for most vegan products has increased, you could assume that your TAM is going to expand in the near future because more people seem to be interested.
You can also use the tool to automatically translate these keywords and see what search terms people use to find the same products around the world and how popular they are.
And if you’re unsure what keywords people could use to find a product or service like yours, just use the AI suggestion feature.
Learn from your competitors
By studying the keywords your competitors are targeting, you can uncover untapped niches or areas where demand is high but competition is lower.
For example, say you’re a SaaS company offering a project management tool. If you used Ahrefs’ Site Explorer, you would find that one of your competitors ranks for terms like “engineering project management software”. This could indicate a niche market with unique needs, where there’s considerable demand but less competition.
While you’re at it, go to the Organic Competitors tab to see who else competes for the same audience. Chances are, you may find some new potential competitors.
Use S-1 filings and quarterly reports from public companies
Public companies’ quarterly reports (10-Q) and S-1/F-1 filings offer rich data for estimating TAM. They provide detailed breakdowns of revenue by product line, geographic region, and market segment, along with insights into market share and growth potential.
For example, if a company generates $500 million from a particular service and claims 10% of the market, you can estimate the TAM at $5 billion.
Both reports can also provide guidance on future growth trends, helping forecast your TAM’s evolution.
You can use AI like ChatGPT to analyze the documents for you (they can be quite complex). Here’s a sample analysis of an over 500-page F-1 filing by an Esports company.
Interview potential customers
While reports give you big numbers, talking to real people gives you the practical insights needed to adjust those estimates.
- By speaking directly to customers, you can gauge whether they actually need your product and how likely they are to adopt it.
- Interviews help you narrow down the customer segments most interested in your solution. Maybe not everyone is a fit, but if certain industries or company sizes show more interest, you can focus your TAM on those segments.
- Asking customers what they’d actually pay for your product gives you real data. If you know what your target customers are willing to spend, you can multiply that by the number of similar customers to estimate your revenue potential and refine your TAM.
Use PitchBook for investment and market data
PitchBook offers broader market data and investment trends. It provides reliable information on market valuations, funding rounds, and industry growth, which helps you gauge the overall size and growth potential of a market.
PitchBook also helps identify key players, making it easier to estimate how much of the market is currently being captured and what remains untapped.
For example, based on Stripe’s post-valuation of $152 billion and an assumed 30% market share, Stripe’s TAM would be approximately $506.67 billion (TAM = valuation/market share).
Other tools for SaaS companies
If you’re in SaaS, there are a couple more sources of data you may find especially useful: BuiltWith and Latka SaaS Database.
BuiltWith is a tool that shows you what technologies websites are using. This tool is great for identifying your ideal customer because you can see which companies use certain tools or platforms that align with your product.
Sidenote.
The Ideal customer profile (ICP) is a detailed description of the type of company or person who would benefit most from your product or service. It’s helpful mostly for a bottom-up approach to calculate market size, as it helps you focus on the specific segments of the market that are most relevant to your business.
Enter a competitor into BuiltWith, and look for the list of their customers. For example, here are some of the sites that use Salesforce. You can sort the list by employees or traffic to find the size of the company you think you could get on board.
The next one is Latka SaaS Database. If you can’t find a SaaS company on PitchBook or BuiltWith, there’s a chance you will find it on Latka. It’s a SaaS-specific database that tracks metrics like revenue, customer growth, churn rates, and funding for thousands of companies.
Knowing your competitors’ revenue and the number of customers they serve can help you better estimate the size of your potential market.
- Use competitors’ ARPU or ACV (Annual Contract Value) to estimate your own future metrics.
- Use the competitor’s revenue or valuation and apply a market share estimation to calculate TAM.
Final thoughts
Remember, TAM is ultimately an estimation. It’s natural to be slightly off, and you’ll probably need to reevaluate every year, after significant changes in the market or after introducing new products.
Generally, TAM calculations are not very accurate. At best, you’re relying on partially known variables (number of potential customers and average lifetime customer value). Industries also change so quickly that TAM calculations can become irrelevant within a matter of months.
What’s perhaps more important than the exact number is the methodology behind your TAM calculation. A well-thought-out approach demonstrates how seriously you take the business and the effort you’ve put into understanding the market.
Got questions or comments? Find me on LinkedIn.
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