What is SOM (Serviceable Obtainable Market)?
SOM (Serviceable Obtainable Market) represents the market share and revenue that can realistically be captured from SAM, considering current resources, capabilities, and competitive conditions. It indicates the most realistic and actionable market scope for short- to medium-term sales targets.
Definition of SOM
SOM (Serviceable Obtainable Market) represents the market share and revenue that can realistically be captured from SAM, considering current resources, capabilities, and competitive conditions. It indicates the most realistic and actionable market scope for short- to medium-term sales targets. SOM should be aligned with actual execution plans rather than strategic aspirations.
SOM Achievement Strategy
To achieve SOM, define clear differentiation points (price, features, service, speed) and focused targets, and specify channel strategies. Initially, focus on specific industries, regions, and digitally-savvy segments to build references, then take a phased approach to expand into adjacent segments. Adjust coverage through partnerships, resellers, and inside/field sales mix.
SOM Calculation Method
From SAM, consider competitor market share, customer switching costs, and internal headcount/budget to set realistic share targets (e.g., 3-5% within 3 years). Apply average contract value and sales cycle to reverse-calculate annual pipeline and lead targets, and build execution plans based on channel contribution assumptions. Setting targets by region and industry facilitates risk diversification and progress management.
Execution Roadmap and Operations
Set quarterly targets for lead generation, demos, proposals, and wins, and align capability expansion (hiring, partner contracts, localization) schedules. During the first 3-6 months, validate messaging and pricing in pilot markets, then templatize success patterns for replication in other segments. Share performance vs. targets transparently through dashboards to maintain organizational alignment.
Competitive Strategy and Differentiation
Analyze competitor strengths and weaknesses to clearly demonstrate unique value (specialized features, implementation speed, customer support, data security). Quickly accumulate trust assets like references, reviews, certifications, and security documents to reduce buying committee risk. Design flexible pricing and contract terms to accelerate initial penetration, and support market share growth with an upsell/cross-sell roadmap to increase LTV.
Monitoring and Adjustment
Track monthly pipeline generation, conversion rates, sales cycle, and competitive loss factors to adjust plans. If results lag targets, change segment or channel mix and test pricing/messaging to improve responses. Conversely, if growth is faster than expected in certain areas, reallocate resources and adjust SOM upward. Regularly incorporate market changes to update assumptions and targets.
Apply "SOM" to your global sales strategy
Rinda AI leverages concepts like SOM to automatically discover and reach out to the right global buyers for your business.