Build the TAM-SAM-SOM ModelModel

This tutorial video outlines how to set up a Lean-Case TAM-SAM-SOM model in 5 steps. We are using the following sample data

• TAM has size of 600M users
• SAM covers 2% of TAM users
• SOM covers 1% of SAM users - each with a revenue potential of $25 per user per month

The video outlines how to set up a Lean-Case TAM-SAM-SOM model in 5 steps using the sample data above.

1. Add Funnel Stream for TAM with forecast of users - A funnel stream allows you to model the market volume of users. Based on our example, enter a forecast of 6M users in the first month
2. Add Funnel Stream for SAM users  - The second funnel stream enables you to model the conversion of TAM users into SAM users 
3. Add ONE-TIME Conversion from TAM to SAM -  With conversion rules, you define the conversion of 2% of TAM into SAM users. A one-time conversion only happens at exactly one point in time, which is right at the beginning of the business case -  i.e. 2% of users are becoming SAM users immediately  
4. Add Revenue Stream for SOM revenue potential - A Revenue Stream allows you to model revenue streams for diffent types of revenues like subscription, one-time or pay-per use revenues. In our example, we assume subscription revenue per user of $25 per user per month
5. Add Monthly Conversion from SAM to SOM  - In the last step, we model that every month a small share of SAM users become SOM users which already generate revenues. In the example, we assumed that a total of 1% of SAM users would make up our SOM. To get to this number of users over time we assume that every month 0.03% of SAM users convert into SOM users. After 3 years, the number of SOM users has reached the 1% threshold (0.03% x 36 months = 1.08%) and continues to grow.