So, you wrapped up 2020. How did it go? Did you accomplish your goals? Did you hit your revenue numbers? If you did, congratulations! If you didn’t, what do you plan on doing differently? Or, perhaps a more important question to ask is what will you change in your planning process to ensure better results in 2021?
When companies ask me to advise them on their go-to-market (GTM) strategy, what they’re really asking for is a data-driven process that helps them plan with confidence and consistently make the right business decisions. What they also want is market intelligence that is less subjective, more accurate, and easy for their revenue teams to operationalize. To develop this type of GTM intelligence, you need much deeper insights than what you’d normally find inside an analyst report, which is generally an estimate of a company’s total addressable market (TAM) or serviceable available market (SAM).
Fine-tuning your business plan and making realistic revenue projections requires more than just a TAM or a SAM. It involves a thorough understanding of your serviceable obtainable market (SOM), which represents the segment of the market you believe you can capture with your solution. And to get your SOM, you need detailed technology intelligence on what products your accounts or prospective buyers have installed and what they spend on those products.
How Knowing Your SOM Leads to Better Business Decisions
A SOM comprised of detailed technology intelligence is invaluable because it gives you exactly what you need to make better business decisions.
Pursue the Right Market Opportunities
To highlight the importance of a SOM, consider how you would make the decision between investing sales and marketing resources in two different countries like England or Spain. In a typical analyst report you might have the following data points and possibly a CAGR estimate.
Spain – $15 billion
England – $45 billion
On the surface, it would seem that the market in England was 3X the size of Spain, making it a more lucrative place for you to invest your resources. However, what if the majority of the English market was saturated by hard to displace competitors, while the Spanish market had very little competition?
Without a SOM containing detailed information about competitor product installations, you’d have no way of knowing this and might decide to Go-To-Market in a region saturated by competition you have very little likelihood of displacing. Think about how this would impact your revenue projections, not to mention the wasted budget from allocating staff and resources to fund the wrong market opportunity.
Alternatively, what if you were looking at different regions or countries and wanted to identify which situations represented the best growth opportunities for your business. Again, knowing the estimated market size in revenue isn’t going to help you much. But what if you knew what companies had budgeted to spend on your category of product by region, entity, or industry?
You could then compare these budgets to what companies are already spending with you to determine how much more of their business you could realistically capture (what companies call share of wallet), and which entities that growth would come from.
You could also see which industries were less saturated with your type of solution which might make them excellent new market opportunities for your product offering.
Summary: Your SOM is a Game Changer that Fuels Success
Many companies today will continue to rely on high-level market intelligence from analyst research reports to guide their planning. However, astute companies supplement general TAM and SAM information with detailed tech intelligence to find their SOM, as this helps them validate or dig deeper into market size numbers. Understanding their SOM helps de-risk market entry decisions, ensures resources are allocated efficiently, and is a critical component to accurate revenue projections.
Smart companies also know that granular technology intelligence is what makes market research actionable for their campaign teams. It’s what allows revenue teams to quickly find the right accounts to target and prioritize, deliver more relevant and effective campaigns, and meet or exceed their revenue expectations.
If you want to see how account-based technology intelligence can help you create the perfect Go-to-Market strategy, I encourage you to visit our Market Intelligence product page today!