Metrics & KPIs
SAM
Serviceable Addressable Market - the portion of TAM targeted by your products within geographical reach.
Full Definition
SAM (Serviceable Addressable Market) is the segment of TAM that your products and services can actually reach. It accounts for geographical, regulatory, and practical limitations. SAM is more realistic than TAM and helps founders focus on achievable market segments. It's calculated by applying relevant filters (geography, customer segment, etc.) to your TAM.
Formula
SAM = TAM × Percentage of market you can serve
Examples
- 1If TAM is $5B globally but you only operate in the US, SAM might be $1.5B
- 2A B2B tool for restaurants has a smaller SAM than its TAM due to technology adoption rates