Sales Glossary

What is a Serviceable Addressable Market (SAM)?

A SAM is the list of potential customers within a specific market who are able to be serviced by a business. In other words, it is the list of individuals or companies that a business has the capability to sell their products or services to effectively.

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What are the benefits of knowing your Serviceable Addressable Market (SAM)?

1. Knowing your SAM can help you focus your marketing efforts on the most promising markets and customer segments.

2. It can also help you assess your competitive position in different markets and develop strategies to gain market share.

3. Additionally, understanding your SAM can provide insights into new market opportunities and help you make better decisions about where to allocate resources.

4. Ultimately, having a clear understanding of your SAM can help you achieve sustainable growth and profitability.

What are the different types of Serviceable Addressable Markets (SAM)?

1. Serviceable Observed Market (SOM): This is the total addressable market that your product or service can reach and that you have observed through direct or indirect means. This includes current customers, prospects, and even former customers.

2. Serviceable Attainable Market (SAM): This is the portion of the SOM that your product or service can reasonably hope to capture given its unique selling proposition, distribution channels, and other factors.

3. Serviceable Active Market (SAM): This is the portion of the SAM that is currently active and interested in your product or service. This may fluctuate over time, but should be relatively easy to measure.

4. Serviceable Available Market (SAM): This is the portion of the SAM that is both active and interested in your product or service AND has the ability to purchase it. This may be a smaller subset of the SAM, but is the most important one to focus on when setting sales goals.

Keep in mind that these are not mutually exclusive categories; there will be some overlap between them. For example, a customer who is no longer using your product may still be considered part of your SOM. The key is to identify which category is most important for your business at any given time and focus your efforts accordingly.

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