SAM (Serviceable Available Market)

Introduction to SAM (Serviceable Available Market)

When you start or grow a business, understanding your market is key. One important market measure is SAM, or Serviceable Available Market. It helps you see the part of the market you can realistically serve with your products or services.

Knowing your SAM guides your strategy and helps you focus resources wisely. In this article, you will learn what SAM means, how to calculate it, and why it matters for your business success.

What is SAM (Serviceable Available Market)?

SAM stands for Serviceable Available Market. It is the portion of the total market that your business can target with its current products or services. Unlike the Total Addressable Market (TAM), which shows the entire demand for a product, SAM narrows it down to what you can actually serve.

For example, if you sell a mobile app only in English, your SAM excludes users who speak other languages. SAM helps you focus on realistic customers, not just potential ones.

• TAM: Total market demand for a product or service.
• SAM: Segment of TAM your business can serve.
• SOM: Share of SAM you can capture.

Understanding SAM is crucial for planning marketing, sales, and product development efforts.

How to Calculate SAM

Calculating SAM involves identifying your target market segment and estimating its size. Here is a simple step-by-step method:

• Define your target customer: Consider demographics, location, language, and needs.
• Analyze market data: Use reports, surveys, or tools like Statista or government databases.
• Filter TAM to SAM: Exclude customers outside your service scope.
• Estimate market size: Calculate the number of potential customers or revenue in your segment.

For example, a no-code app builder like Bubble might define its SAM as startups in English-speaking countries needing web apps. They exclude non-English markets or large enterprises needing custom solutions.

Using tools like Glide or FlutterFlow, you can also estimate SAM by focusing on specific industries or regions your app targets.

Why SAM Matters for Your Business

SAM helps you focus your efforts on customers you can realistically reach. It prevents wasting resources on unreachable markets. Here are key reasons SAM matters:

• Better marketing: Tailor campaigns to reachable customers.
• Product fit: Design features that meet your SAM’s needs.
• Investment decisions: Show investors a clear market opportunity.
• Growth planning: Set realistic sales and expansion goals.

For example, a startup using Zapier to automate workflows might focus its SAM on small businesses in the US. This focus helps them create targeted messaging and integrations that fit their market.

Examples of SAM in No-Code/Low-Code Ecosystems

Let’s look at how SAM applies in no-code and low-code platforms:

• Bubble: SAM could be startups and SMBs needing custom web apps without coding.
• Glide: SAM might be small businesses wanting mobile apps from spreadsheets.
• FlutterFlow: SAM includes developers and designers building cross-platform apps quickly.
• Make (Integromat): SAM covers businesses automating workflows with cloud apps.
• Zapier: SAM focuses on companies using multiple SaaS tools needing integrations.

Each platform defines SAM based on product capabilities, target users, and geographic reach.

How to Use SAM for Business Strategy

Once you know your SAM, use it to guide your business strategy:

• Focus marketing: Create campaigns that speak directly to your SAM’s needs.
• Prioritize features: Build product features that solve your SAM’s problems.
• Set sales goals: Estimate achievable revenue based on SAM size.
• Plan expansion: Identify new markets to grow your SAM over time.

For example, a no-code tool targeting education might start with SAM as K-12 schools in one country, then expand to higher education or other regions as they grow.

Conclusion

Understanding SAM (Serviceable Available Market) is essential for any business. It helps you focus on the customers you can realistically serve, making your marketing and product efforts more effective.

By calculating and using SAM, you can plan better, attract investors, and grow your business strategically. Whether you build apps with no-code tools or offer services, knowing your SAM keeps you grounded and focused on real opportunities.