Successful companies produce products and services that the general population want and need. But that could mean many things – perhaps your product solves a problem consumers didn’t even know they had. Perhaps you are creating a service they already use but at a better rate than what the consumer is already paying. It’s all about sales. But how do you increase market share?
What is market share exactly?
Market share is the section of the market that is controlled by a specific company or product. A company can calculate this by calculating the percentage of sales (or units) a company or business has in relation to the market.
For example, say your company has $5 million dollars in sales for the term. If your industry’s total sales in the market is $500 million, then your company accounts for 1% of the total market. Your industry’s market could also be based on units sold. If you sell 20,000 units for the term in a 2 million per year market, then your company makes up 1% of the total market. Does that make sense?
Higher market share companies obviously have more volume, which can increase their buying power (more volume more power!). Companies can also receive cheaper or better rates from suppliers as well.
So, how do you create a higher market share? Here are some tips on how to increase market share for your company.
Enhance Customer Relationships
It is important to keep your customers engaged in your product or service. What do your customers want? What do they need from you? This is something to consider continually as you grow your customer base. Make sure the individuals on your sales team are trained properly in enhancing and strengthening the relationships with customers.
When a customer has a positive interaction with a business, they are likely to share their experience. They can tell family, friends, and coworkers who are inquiring about your particular service. This builds your customer base as well. When you have happy customers, they are more likely to stay onboard, as opposed to jumping ship for a new business or product that may be similar.
What if a customer isn’t interested in your company? Ask them why. Engaging with customers (or potential customers) is the core of what sales is all about. If you can understand why someone is not interested in your product, perhaps you can create a conversation around the central problems to better execute business plans for the future. It’s all about quality customer service.
It is important for a business to continually research what is happening (and more importantly, what is selling) in their industry. If there is new technology you are not familiar with, educate yourself. A business should continually gather information about how their industry is changing.
This easily relates back to the first point – enhancing customer relationships. If your company can understand the consumer trends (and their wants/needs), you can create a better and more effective customer experience. Look within the news (print/digital) to get a better grip on interpreting consumer trends. Social media is your friend to see what’s trending now.
Continue to be knowledgeable about what your competitors are offering and if possible, at what rate. Additionally, when you create a product or service that hasn’t been introduced to your industry yet, you are more likely to gain a new following.
Hire the Best
…employees that is. Successfully trained employees will generate the most sales for the company. More sales for the company = more cash flow = increase market share. Your company creates a great customer experience if questions, concerns, and problems are addressed effectively and promptly. That’s what creates a loyal customer base.
Better yet, if you have skilled employees who stick around, this greatly reduces the expenses needed in relation to training new ones. High turnover directly affects costs. Furthermore, these costs that should be dedicated to the central values of building your business.
In conclusion, research what constitutes as a competitive salary and benefit package within your industry to appeal to the very best employees. If your company is able, perhaps you should look into telecommuting for certain positions — flexibility within a work schedule is attractive to all.
We hope our tips on how to increase market share was valuable to you. Feel free to ask us any questions in the comments, and we would be happy to reply!