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Serviceable Addressable Market (SAM)

What is a serviceable addressable market (SAM)?

A serviceable addressable market (SAM), or serviceable available market, is the potentially acquirable section of the total addressable market (TAM). Regulatory, pricing and geographical market differences create SAM. To calculate SAM, companies can multiply the target segment of TAM (number of potential customers) by the annual contract value (targeted customers’ average annual revenue).  

Why are serviceable addressable markets (SAMs) important to healthcare?

Serviceable addressable markets are important because they can help healthcare organizations identify the addressable market sections with their current business model, sales channel, distribution channel and product. Using SAM, healthcare organizations can also calculate the serviceable obtainable market (SOM) to determine which portion of the market is actually obtainable.