SOM (Serviceable Obtainable Market)

SOM (Serviceable Obtainable Market): What It Means and Why It Matters

When you start a business or launch a product, understanding your market is key. You might have heard of terms like TAM, SAM, and SOM. Today, we'll focus on SOM, which stands for Serviceable Obtainable Market. It helps you figure out the realistic portion of the market you can capture.

Knowing your SOM guides your strategy, helps with funding, and keeps your goals clear. Let’s explore what SOM is, how to calculate it, and why it’s important for your business success.

What Is SOM (Serviceable Obtainable Market)?

SOM is the part of the market you can realistically reach and serve with your product or service. It’s a subset of your Serviceable Available Market (SAM), which itself is a subset of the Total Addressable Market (TAM).

Think of it like this:

• TAM is the total demand for your product worldwide.
• SAM is the segment of TAM you can serve based on your business model and location.
• SOM is the share of SAM you can capture considering your resources, competition, and marketing.

SOM is often called the “realistic market” because it reflects what you can actually win in the short to medium term.

Why Is SOM Important for Your Business?

Understanding your SOM helps you set achievable goals and avoid overestimating your market potential. Investors and stakeholders want to see a clear SOM because it shows you understand your market and have a plan to grow.

Here’s why SOM matters:

• Focus: It helps you target the right customers and channels.
• Resource allocation: You can plan budgets and teams based on realistic market size.
• Investor confidence: Shows you have a clear, data-driven growth plan.
• Competitive edge: Helps identify where you can win against competitors.

Without a clear SOM, businesses risk chasing unrealistic goals or spreading resources too thin.

How to Calculate SOM Effectively

Calculating SOM involves research and realistic assumptions. Here’s a step-by-step approach:

• Step 1: Define your TAM by identifying the total market demand for your product or service.
• Step 2: Narrow down to SAM by focusing on the segment your business can serve based on geography, product features, or customer type.
• Step 3: Estimate your SOM by analyzing your market share potential within SAM. Consider factors like competition, marketing reach, and sales capacity.

For example, if your SAM is 100,000 potential customers and you expect to capture 5% in the first few years, your SOM is 5,000 customers.

Tools like surveys, competitor analysis, and industry reports help refine these numbers. No-code platforms like Bubble or Glide can help you build MVPs to test market interest and validate your SOM assumptions quickly.

Real-World Examples of SOM in Action

Let’s look at some examples to understand SOM better:

• Startup launching a fitness app: TAM is all smartphone users worldwide. SAM narrows to fitness enthusiasts in English-speaking countries. SOM focuses on users reachable via social media ads and partnerships, estimating 2% market capture.
• SaaS company offering project management tools: TAM is all businesses globally. SAM targets small to medium businesses in North America. SOM estimates 10% market share based on current sales channels and competitor presence.
• E-commerce brand selling eco-friendly products: TAM includes all online shoppers. SAM narrows to eco-conscious buyers in urban areas. SOM is the percentage of those reachable through influencer marketing and local events.

These examples show how SOM helps focus efforts on the most promising market segments.

Tools and Strategies to Improve Your SOM

Once you know your SOM, you want to grow it. Here are some ways to do that:

• Use no-code tools: Platforms like Bubble, FlutterFlow, or Glide let you build and test products fast to attract more users.
• Automate marketing: Tools like Zapier or Make help automate campaigns, reaching more customers efficiently.
• Analyze competitors: Understand their strengths and weaknesses to find your niche.
• Focus on customer feedback: Use surveys and reviews to improve your offering and increase market share.
• Expand channels: Explore new sales or distribution channels to reach more customers within your SAM.

These strategies help you increase your SOM by improving reach and customer satisfaction.

Conclusion: Mastering SOM for Business Growth

Understanding your Serviceable Obtainable Market is essential for realistic business planning. It helps you focus on customers you can actually reach and serve, making your goals achievable.

By calculating SOM carefully and using modern no-code tools and marketing strategies, you can grow your market share steadily. This clarity boosts investor confidence and guides your team toward success. Keep refining your SOM as your business evolves to stay on track and win your market.