Case Study
SERVICEABLE OBTAINABLE market analysisA Serviceable Obtainable Market (SOM) analysis allows you to drill down to more realistic market estimates to develop a targeted growth strategy.
Market Analysis
Evaluating Obtainable Market Potential to Prioritize Growth
Serviceable Obtainable Market (SOM) refers to the portion of the market that a business can realistically capture, considering factors such as competition, market share, and the business’s resources and capabilities. It represents the actual target market that a business aims to reach in the short and medium term and is critical for setting realistic sales and marketing goals.
SOM ANALYSIS
Analyzing Industry Sub-Verticals to Identify Markets to Maximize Growth
Challenge
An industry-leading SaaS company identified multiple possible industry sub-verticals in which to expand business. The sub-verticals were to be evaluated to estimate total possible revenue based on alignment with expected enhancements to the company’s service offerings. Treating each of these sub-verticals as a target market would help prioritize go-to-market strategies with the highest potential ROI over the next 18-24 months.
Solution
Parameters were designated to identify 5 industry sub-verticals that represented possible business customers of the company’s software. Once the sub-verticals were identified, key criteria for ‘ideal’ business prospects such as geographic location, estimated sales volume, and overlapping consumer services offerings in these sub-verticals were identified. Market revenue estimates were then calculated based on the number of potential business customers that aligned with upcoming enhancements to the company’s software product.
THE RESULTS
Research findings allowed the company to determine which industry sub-verticals represented the most potential revenue growth over the next 18-24 months. Usings foundational information, the company was able to build out marketing growth strategies for the two top ranking sub-verticals. In addition, research results helped priortize the rollout of planned product enhancements over the next 12 months.