What is Market Share?
Market Share represents the Market’s Total Sales, or the percentage of industry, earned by a company over a definite period of time. Basically, Market Share is calculated by analyzing the company’s sales in a period and divide it by the total sales of the industry in that same period. This calculation gives a general idea of the size of the company into the market and its competitors.
In simple words, Market share of a company is the portion of its total sales with respect to the same industry in which it operates. The market share works in terms of B2B and B2C i.e. Business to Business and Business to Customer industry.
How to Increase Market Share?
For the success of a business, Market Share is the biggest indicator. Market Share can effectively define a companies revenue generation plans. It can explains whether the Marketing Campaigns, Branding Initiatives, or CRM programs are going as planned or they require any modification or a mid-course adjustment.
To scale up and focus over the profitability of the company, increasing the market share is very necessary. And here are the few important points how top companies do it:
- Technology and Innovation: Many small business lose market share due to lack of innovation and technologies. To sustain in this competitive market, it is very evident to advance your technologies. After a definite period of time innovate your skills and marketing strategies to attract customers easily. Being a responsible service provider or a marketer, you need to understand that customers require something fascinating to attract them and hold the customer for a long period. As a result, the relevant innovation in business lets your customer believe that you are a leader in industry. As well as, assure them that there is no need to look into the competitive market.
- Customer Satisfaction: To build any long-term business, customer satisfaction is the priority for any business owner. Developing a cordial relationship with the customer, will definitely lead to customer satisfaction and resulted into good market share. For Example: If you are providing a service and mentioning a message that you will get back in 24 hours. So, always try to reach customer on or before time. This will give a good impression over customer and make him to give good feedback. Along with this customer always notices good, cordial, and quick service response and suggests others too.
- Ask for Feedback: On frequent intervals always reach to your existing customer for their feedback. Ignoring the fact, you are a startup or an experienced business owner. Their feedback can be very beneficial for you to improve your business and services. As well as, increase the customer satisfaction and improve the market share. Always welcome the words or feedback of customer. Along with that assure them to work over it and make points of improvement and exercise over it.
- Hire best Staff: A good, efficient, and a dedicated team can do wonders in a short span of time. As well as, help in establishing the business with a wonderful market share. While hiring a qualified and experienced staff in customer service, product and service development, human relations, marketing and social media can increase market share to go head in the competition.
- Strategic Acquisition: Strategic acquisition of a competitive company, is one of the fastest ways of increasing the market share. Acquiring the company will automatically give you the most of the customers of the acquired company. However, an intelligent and strategic acquisition is very important so it won’t lead to the loss of finances.
- Funding Plan: To develop a business and improve the market share, the planning of expenses is very important. In this direction, you can even consult to the financial expert. He can guide you in a manner where you are, and where you want to be after a definite period of time. Maintianing finances and expenses are always very important for a business to grow and increase its market share.
The Market Share always depend on your location. While keeping in mind all the above points, always take a thorough look at your location as well. If you are providing any service which is contrast to its demography. Then it would cost you a lot in establishing the business and sustaining in the market. So, always learn about the demographics of your area. This help in using the information as an advantage to incorporate it in your customer base.