The Winnable Addressable Market
and why it matters
The Winnable Addressable Market and why it matters
A conversation with edgar baum,
Founder & CEO of Avasta
A conversation with Edgar Baum, Founder & CEO of Avasta
One of the world’s most respected experts in the field of business valuation, Edgar Baum, has been advocating that companies need to focus on their WAM (Winnable Addressable Market) to dramatically improve marketing, sales, and channel efficiency. Wanting to learn more, our Director of Brand Growth, Kyle Krajewski, interviewed him about what WAM is and why it matters.
One of the world’s most respected experts in the field of business valuation, Edgar Baum, has been advocating that companies need to focus on their WAM (Winnable Addressable Market) to dramatically improve marketing, sales, and channel efficiency. Wanting to learn more, our Director of Brand Growth, Kyle Krajewski, interviewed him about what WAM is and why it matters.
Edgar is the Founder and CEO of Avasta, a leading market intelligence and strategic valuation advisory firm based in Canada. A soft-spoken man with eyes that betray a keen mind, Edgar would be the last person to boast about his many accomplishments. In reality, Edgar is in high demand from companies worldwide for his expertise in the field of business valuation, including the fact that he is the primary author of two next-generation standards for measuring a company’s future value. Lucky for us, he is also one of Solid Branding’s Strategic Partners.
Despite his demanding schedule, Edgar made time to sit with our Director of Brand Growth, Kyle Krajewski to explain what WAM is and why it is becoming an important consideration for companies wanting to accelerate growth and valuation. Below is a summary of their conversation.
Edgar is the Founder and CEO of Avasta, a leading market intelligence and strategic valuation advisory firm based in Canada. A soft-spoken man with eyes that betray a keen mind, Edgar would be the last person to boast about his many accomplishments. In reality, Edgar is in high demand from companies worldwide for his expertise in the field of business valuation, including the fact that he is the primary author of two next-generation standards for measuring a company’s future value. Lucky for us, he is also one of Solid Branding’s Strategic Partners.
Despite his demanding schedule, Edgar made time to sit with our Director of Brand Growth, Kyle Krajewski to explain what WAM is and why it is becoming an important consideration for companies wanting to accelerate growth and valuation. Below is a summary of their conversation.
THE INTERVIEW
THE INTERVIEW
Edgar, can you explain what sets the Winnable Addressable Market (WAM) apart from traditional approaches like TAM, SAM, and SOM? And how WAM helps companies optimize their marketing efforts – which is especially important in today’s hyper crowded markets?
EDGAR:
EDGAR:
Absolutely. Traditional metrics like TAM (Total Addressable Market), SAM (Serviceable Available Market), and SOM (Serviceable Obtainable Market) are useful for estimating opportunities, but they often lead companies to chase broad market potential that’s not truly accessible or profitable. For example, keep in mind that most of TAM simply represents how much is being spent collectively, but only a fraction of it ever changes hands year to year.
WAM represents the intersection of your most valuable customers, those who drive the greatest brand equity and long-term profitability, and your most enthusiastic, winnable customers, those who are already seeking what your brand uniquely offers and are ready to engage and advocate. By focusing on this core segment, brands can optimize marketing efficiency, drive sustainable growth, and strengthen brand equity, all of which contribute directly to enhanced company valuation.WAM, on the other hand, zeroes in on the intersection of your most valuable and enthusiastic buyers—the segment you can actually win and sustain profitably. These are a combination of buyers seeking your value proposition, and, ideally knowing you exist.
By focusing on WAM, brands can dramatically improve marketing, sales, and channel efficiency by targeting the customers most likely to engage and buy, rather than spreading resources too thinly across less promising segments.
Absolutely. Traditional metrics like TAM (Total Addressable Market), SAM (Serviceable Available Market), and SOM (Serviceable Obtainable Market) are useful for estimating opportunities, but they often lead companies to chase broad market potential that’s not truly accessible or profitable. For example, keep in mind that most of TAM simply represents how much is being spent collectively, but only a fraction of it ever changes hands year to year.
WAM represents the intersection of your most valuable customers, those who drive the greatest brand equity and long-term profitability, and your most enthusiastic, winnable customers, those who are already seeking what your brand uniquely offers and are ready to engage and advocate. By focusing on this core segment, brands can optimize marketing efficiency, drive sustainable growth, and strengthen brand equity, all of which contribute directly to enhanced company valuation.WAM, on the other hand, zeroes in on the intersection of your most valuable and enthusiastic buyers—the segment you can actually win and sustain profitably. These are a combination of buyers seeking your value proposition, and, ideally knowing you exist.
By focusing on WAM, brands can dramatically improve marketing, sales, and channel efficiency by targeting the customers most likely to engage and buy, rather than spreading resources too thinly across less promising segments.
Can you provide more detail about how WAM can be used
to optimize brand and marketing strategies?
EDGAR:
EDGAR:
When you align your brand and marketing efforts with your WAM, you’re not just optimizing spend – you’re able to tailor your messaging and value proposition to resonate with the audiences who are seeking what you’re selling the way you’re selling and delivering it. When done well, this approach leads to higher conversion rates, improved customer loyalty, and ultimately, stronger brand equity. It’s about delivering the right message to the right customer at the right time, based on deep buyer insights and market intelligence.
When you align your brand and marketing efforts with your WAM, you’re not just optimizing spend – you’re able to tailor your messaging and value proposition to resonate with the audiences who are seeking what you’re selling the way you’re selling and delivering it. When done well, this approach leads to higher conversion rates, improved customer loyalty, and ultimately, stronger brand equity. It’s about delivering the right message to the right customer at the right time, based on deep buyer insights and market intelligence.
Let’s talk for a minute about a project that we worked on together,
the rebrand of Mountz Torque – which is a good example of what you’re describing.
EDGAR:
EDGAR:
Yes, we’re very proud of that work. It’s a textbook example of WAM in action and a great reminder that a rebrand isn’t just about aesthetics—it’s about business growth and market relevance. We identified which customers were most likely to purchase Mountz’s products – and their decision drivers, in other words we delivered their WAM.
By leveraging these insights along with additional research about the company’s history, you were able to craft a narrative that resonated remarkably well with their core audience. The research also influenced how the Go-To-Market (GTM) strategy communicated Mountz’s new brand positioning to their most valuable audience. Additionally, the findings also triggered the launch of Mountz’s first ecommerce site. As a result of all of this, Mountz’s market share grew, and so did their revenue and their profit margins. Best of all, within two years Mountz was acquired by Snap-on, the global tool leader in a deal that has created significant global expansion opportunities for Mountz. All in all, a great success story.
Marketing execs in the tech sector are under tremendous pressure
to show measurable results. Can you provide some insights on
why
focusing on WAM is so important for tech brands?
Marketing execs in the tech sector are under tremendous pressure to show measurable results. Can you provide some insights on why focusing on WAM is so important for tech brands?
EDGAR:
EDGAR:
Tech companies need to be uber efficient and move at lightning speed to address competitive threats. Identifying their WAM can help executives target the most receptive and most profitable prospects in the near to medium term. With these insights creative teams can develop GTM campaigns that are specifically tailored for those key audience segments. This will optimize their marketing investments, accelerate adoption, and enable them to see faster returns – rather than diluting resources across less promising audiences. But be aware it takes time! In B2B tech especially, buying cycles are 6-60 months! Sales closing a deal in 2 months is an illusion. 70-90% of the buying cycle is taken up without ever talking to a salesperson.
Tech companies need to be uber efficient and move at lightning speed to address competitive threats. Identifying their WAM can help executives target the most receptive and most profitable prospects in the near to medium term. With these insights creative teams can develop GTM campaigns that are specifically tailored for those key audience segments. This will optimize their marketing investments, accelerate adoption, and enable them to see faster returns – rather than diluting resources across less promising audiences. But be aware it takes time! In B2B tech especially, buying cycles are 6-60 months! Sales closing a deal in 2 months is an illusion. 70-90% of the buying cycle is taken up without ever talking to a salesperson.
Can you share some examples of tech companies that have seen
the benefits of focusing on their WAM during a rebrand?
EDGAR:
EDGAR:
Below are a few examples of tech companies that have successfully used the idea of WAM – they weren’t our clients. I’ve summarized what stood out for me in their rebrand strategies and the outcome of their approach.
Below are a few examples of tech companies that have successfully used the idea of WAM – they weren’t our clients. I’ve summarized what stood out for me in their rebrand strategies and the outcome of their approach.
So, if tech CMOs want to replicate this success, what process do you recommend?
So, if tech CMOs want to replicate this success, what process do you recommend?
EDGAR:
EDGAR:
First of all, I would hope they reach out to us to help them with the process, as we can certainly add a great deal of value. That said, here a few a practical steps that we consider to be essential:
First of all, I would hope they reach out to us to help them with the process, as we can certainly add a great deal of value. That said, here a few a practical steps that we consider to be essential:
1. ANALYZE YOUR CURRENT WINS
1. ANALYZE YOUR CURRENT WINS
Start by looking at where you’ve consistently won deals and retained customers. Segment your customer base by industry, company size, use case, and buying behavior to identify patterns – especially how long they are in your marketing/channel partner/sales ecosystem before they become a customer. This helps narrow your focus to the segments where you have a clear advantage. Trust me, the patterns are there if you look at the data objectively and thoroughly.
Start by looking at where you’ve consistently won deals and retained customers. Segment your customer base by industry, company size, use case, and buying behavior to identify patterns – especially how long they are in your marketing/channel partner/sales ecosystem before they become a customer. This helps narrow your focus to the segments where you have a clear advantage. Trust me, the patterns are there if you look at the data objectively and thoroughly.
2. DEFINE FIRMOGRAPHIC AND TECHNOGRAPHIC CRITERIA
2. DEFINE FIRMOGRAPHIC AND TECHNOGRAPHIC CRITERIA
Use firmographic data (industry, size, geography) and technographic insights (technology stack, digital maturity) to filter the market and hone in on your most winnable segments.
Use firmographic data (industry, size, geography) and technographic insights (technology stack, digital maturity) to filter the market and hone in on your most winnable segments.
3. UNDERSTAND PURCHASE DECISION DRIVERS
3. UNDERSTAND PURCHASE DECISION DRIVERS
Dive deep into what motivates your target audience. For tech buyers, efficiency, productivity, profitability, and the ability to address specific business needs are often both top priorities and table stakes. Also, consider the influence of vendor reputation, technical expertise, and peer recommendations. Segment your audience further by identifying early adopters (who value innovation) and pragmatic buyers (who seek reliability and ROI)
Dive deep into what motivates your target audience. For tech buyers, efficiency, productivity, profitability, and the ability to address specific business needs are often both top priorities and table stakes. Also, consider the influence of vendor reputation, technical expertise, and peer recommendations. Segment your audience further by identifying early adopters (who value innovation) and pragmatic buyers (who seek reliability and ROI)
4. MAP THE PATH TO PURCHASE
4. MAP THE PATH TO PURCHASE
Identify who is involved in the decision-making process, what triggers their search for a solution, how they evaluate their options, and what outcomes they’re seeking. This helps you tailor your messaging to address the right pain points at each stage of their purchase journey.
5. DO A COMPETITIVE ANALYSIS
5. DO A COMPETITIVE ANALYSIS
Evaluate the competitive landscape, focusing on your unique differentiators –making sure that these products, features or qualities are relevant to your core target audience in addressing their pain-points. As part of the analysis, we suggest looking at a wide range of factors, including pricing models, distribution channels, partnerships, reputation, etc. It is also helpful to evaluate their brand identity approach and their marketing messages. The more you know the better. Having this be done by an objective third party is crucial – after all, we’d never call our own creation ugly.
Evaluate the competitive landscape, focusing on your unique differentiators –making sure that these products, features or qualities are relevant to your core target audience in addressing their pain-points. As part of the analysis, we suggest looking at a wide range of factors, including pricing models, distribution channels, partnerships, reputation, etc. It is also helpful to evaluate their brand identity approach and their marketing messages. The more you know the better. Having this be done by an objective third party is crucial – after all, we’d never call our own creation ugly.
6. TAILOR MESSAGING AND VALUE PROPOSITION
6. TAILOR MESSAGING AND VALUE PROPOSITION
Craft messaging that speaks directly to the identified needs and decision drivers of your WAM. For early adopters, emphasize innovation and exclusivity; for pragmatic buyers, focus on reliability, measurable outcomes, and real-world applications. It all depends on the company’s relevant differentiator and the customer’s pain-points. What’s most crucial though, is minimize making assumptions, and validate your WAM from the outside-in. Anything else is an opinion.
Craft messaging that speaks directly to the identified needs and decision drivers of your WAM. For early adopters, emphasize innovation and exclusivity; for pragmatic buyers, focus on reliability, measurable outcomes, and real-world applications. It all depends on the company’s relevant differentiator and the customer’s pain-points. What’s most crucial though, is minimize making assumptions, and validate your WAM from the outside-in. Anything else is an opinion.
7. DEVELOP A TRULY DIFFERENTIATED APPROACH
7. DEVELOP A TRULY DIFFERENTIATED APPROACH
We see too many companies that don’t fully understand the need for clear differentiation that speaks to who in their TAM would fit into their WAM. In a crowded marketplace audiences are inundated with a plethora of choices, often with similar messages or forgettable identities. It’s what is known as the “sea of sameness”. To stand out you need to be truly different for your WAM – you don’t need to be different for your TAM. That’s why finding a great creative partner is important. Great messaging needs to be transformed into amazing headlines. To stand out, your brand identity must be unique and innovative, while also relevant and appropriate to the audience. Doing all of this is not easy, and internal teams are not always equipped to bring the necessary creative experience to the table
8. TEST, VALIDATE AND ITERATE
8. TEST, VALIDATE AND ITERATE
Use data from pilot campaigns, customer interviews, and win/loss analysis to validate your assumptions. Refine your WAM definition and messaging based on feedback and results. Today there are many ways to test campaigns and mitigate the risk of investing in an approach that ends up not working. In our data-driven business climate, CMOs can certainly understand the importance of this step.
The steps outlined here can help CMOs make sure that their rebranding efforts are laser-focused on the segments where they can win, and that their communications resonate with the specific priorities and motivations of their most valuable customers. I hope this is helpful.
Thank you, Edgar!
Great insights and extremely helpful suggestions.
I look forward to collaborating with you and the Avasta team more often.
I look forward to collaborating with you and the Avasta team more often.
– – – – – – – –
– – – – – – – –
ABOUT EDGAR BAUM
ABOUT EDGAR BAUM
Edgar is the Founder and CEO of Avasta Incorporated, a market intelligence and strategic valuation advisory firm providing business leaders with data-driven insights to improve corporate strategy, competitive positioning, financial forecasting, with the goal to foster profitable growth and optimize enterprise value.With a career spanning over two decades, Edgar has extensive experience in corporate and brand strategy optimization, and financially measuring intangible assets like brand value and intellectual capital.
Edgar is the primary author of two next-generation business measurement standards: one focusing on financially measuring a brand from the customer’s perspective and another on reporting the future value of intellectual capital and intangible assets to boards of directors. His contributions to the development of modern standards for measuring a company’s future value makes him one of the world’s most sought-after experts in the field of business valuation.
And, he’s also our valued go-to Strategic Partner whenever we need to identify the WAM for companies interested in building branding and marketing programs that achieve measurable results.
Learn more at:
AVASTA.COM
Are you ready to take
your brand to the next level?
We help companies reimagine their strategic positioning, as well as their brand identity systems, to address changes in market conditions. We deliver comprehensive branding programs designed to build awareness, elevate brand perceptions and drive sales…ultimately creating tangible bottom line results.
