Defining Your Serviceable Obtainable Market: Essential Insights for SaaS Founders

Identifying Your Serviceable Available Market: Important Tips for SaaS Founders

Every founder of a SaaS company wants to grow their business to have thousands of customers and a big share of the market. But before you can reach those goals, you need to understand a basic idea: your Serviceable Obtainable Market (SOM). The SOM shows the part of your market that your product or service can realistically target with the resources you have and the way the market is right now. Simply put, it’s the part of the Total Addressable Market (TAM) that you can pretty much get right now.

Why it’s important to define your serviceable achievable market

Finding the SOM is the first thing that many SaaS startups do to focus their efforts, make their product better, and make their marketing campaigns more effective. If you don’t know what your SOM is, it’s easy to waste time and money on markets that are too big or hard to reach. According to research, SaaS businesses that clearly state their SOM are 30% more likely to get funding and grow over time. You can make it easier to build a focused business model that brings in the right customers and grows quickly by narrowing down your target market.

The hard part is making sure that your SOM is correctly defined. How do you figure out which part of your Total Addressable Market your product can best reach? Let us break this down.

What’s Different Between SAM, TAM, and SOM

The Total Addressable Market (TAM) and the Serviceable Available Market (SAM) are not the same thing as the Serviceable Obtainable Market. These terms must be separated in order to understand it better. Here’s a quick list:

Total Market That Can Be Reached (TAM): This is how much people would want your product or service if there were no competitors, market limits, or other restrictions. This is the biggest market you could reach if you had unlimited funds.

There is a serviceable available market (SAM): Taking into account things like geography or technology, this is a more accurate slice of your TAM. According to SAM, this is the part of the market that might use your product, but not right now.

Market that is serviceable and obtainable (SOM): Lastly, SOM is the short-term market you can aim for. Based on your current skills, resources, and competition, this is the most specific and doable market for your product.

It’s important to know the difference between these terms because they help you make growth plans that are realistic, decide how to use your resources, and set goals that can be measured. You could waste too much time and energy on a market that isn’t ready for your solution if you don’t fully understand the SOM.

How to Figure Out Your Market That Can Be Satisfied

1. Look at the customers you already have

First, look at the people who already buy from you. What are some things they have in common? These could be things like age group, industry, company size, or common problems. If you don’t already have customers, you should focus on your ICP, which is the person or business that will benefit the most from your product. This can help you figure out your SOM by showing you the group of people who are most likely to buy.

2. Look at your edge over the competition

Your SOM should think about what makes your SaaS product different from others on the market. You should ask yourself what makes your product special so that you can reach a certain group of people. Technology, customer service, prices, or unique features could be on this list. A deep look into your competitive advantage can help you find a target market that fits with the strengths and unique features of your product.

Know if the market is ready and what people want.

You need to do more than just figure out who your target market is; you also need to see if that market is ready to adopt your solution. Does the market want what you have to offer? How much money do you think your target audience has to spend? Are there things that might make adoption hard, like problems with the law or limited technology? Your SOM should be based on markets where there is a clear path to conversion and where there is desire.

4. Check with market research

To make sure your assumptions are correct, survey, interview, and hold focus groups with possible customers. This information will help you figure out if your SOM is based on facts or is just a guess. It also helps you improve your message so that it hits home with your target audience better.

5. Set priorities and improve

After finding your SOM, the next step is to set priorities. Not every part of the market will be worth the same amount. There may be segments that need more resources and segments that can be won faster. By optimizing your marketing and sales efforts toward the most accessible and profitable segments, you can drive faster results.

Why Your Serviceable Obtainable Market Determines Your Growth Strategy

Defining your SOM isn’t just about identifying who you can sell to now; it’s about building a strategic growth plan. Your SOM will directly impact decisions such as:

Marketing Campaigns: Knowing your SOM allows you to create focused, effective marketing strategies that speak directly to the pain points and needs of your ideal customers.

Product Development: As you learn more about the characteristics of your SOM, you may find opportunities to refine your product to better meet the needs of this market.

Sales Strategy: A clear SOM will help you segment your leads and create more personalized sales tactics, increasing your chances of conversion.

By aligning your product, marketing, and sales strategies with your Serviceable Obtainable Market, you maximize your chances of success and growth. This focused approach leads to higher customer satisfaction, better resource allocation, and a more sustainable growth trajectory.

HubSpot: Unlocking Data-Driven Success for SaaS Founders

Once you’ve defined your SOM, the next challenge is tracking and optimizing your progress. This is where HubSpot comes into play. With its powerful analytics and CRM tools, HubSpot can help SaaS founders track the performance of their marketing campaigns, understand customer behaviour, and refine their strategies based on real-time data. The platform provides you with actionable insights that can guide your decision-making, helping you stay focused on the most profitable segments within your SOM.

By focusing on data, HubSpot allows you to segment your customer base effectively, automate your marketing efforts, and scale your business. Whether you’re in the early stages of growth or looking to optimize your existing processes, HubSpot’s tools empower SaaS founders to turn data into meaningful actions. Our HubSpot specialist, Ale, can walk you through how HubSpot can streamline your operations and help you maximize your Serviceable Obtainable Market.

At 9H Digital, we understand the challenges of defining and capturing your SOM. We offer comprehensive SaaS solutions, from market research to tailored marketing strategies, that align with your growth goals. With our expertise in HubSpot and data-driven strategies, we can help you optimize your customer acquisition and conversion efforts.

Ready to take the next step? Schedule a demo with Ale, our HubSpot specialist, to see how we can help you optimize your growth strategy and reach your Serviceable Obtainable Market more effectively. Book a call here.