Serviceable Available Market (SAM) is a term that refers to the portion of the total market that a company can realistically target and serve. SAM is defined by geography, customer type, industry, company size, and other relevant characteristics. The SAM represents the total revenue opportunity for a SaaS company if it were to capture 100% of the market share in the SAM.
Understanding the SAM is important as it helps identify the size of the market that can be targeted and how much revenue can be generated. By understanding the SAM, SaaS companies can focus their resources on the most promising market segments and develop strategies to capture a larger market share. This helps SaaS companies optimize their growth and profitability by ensuring that they are targeting the right customers with the right solutions.
