TAM Prioritization is the process of segmenting and ranking your Total Addressable Market (TAM) to focus on the most promising accounts or customer segments first. Instead of trying to target every potential buyer, businesses use this method to allocate resources more strategically—based on factors like deal size, fit, intent signals, or likelihood to convert.
This is especially useful for B2B SaaS companies with limited sales and marketing bandwidth. By focusing on the best-fit markets or accounts, teams can drive more efficient growth and higher ROI.
Example:
A SaaS startup identifies a TAM of 5,000 companies. Rather than targeting all of them, they score accounts based on company size, tech stack, and buying intent. The top 300 are prioritized for outbound campaigns, resulting in higher conversion rates with fewer resources.