What is Market Share and How Can You Increase It?
As a business person, you must have often heard the word ‘market share’, even it has been used in today’s business activities. However, what is market share?
Through this article, AdIns will explain the definition of market share that every business person must understand. We will also provide information on how to increase the market share, which is beneficial for your business.
What is Market Share?
So, what exactly is market share? Market share is the sales figure obtained by your business that has been compared with sales results from competitors with the same target market.
As an illustration, you sell the boba drinks franchise in region A. Then, how many business people sell boba drinks in that 1 area? How many sales do you and other business people get from selling the boba? The data obtained will be compared, and the final result becomes the percentage of market share you get.
This market share search is necessary. You can have the right indicators to help your business. You can use these indicators later to develop the right sales strategy and serve as a parameter in conducting business evaluations.
Read also: The Importance of Measuring Company Performance Routinely
How to Increase Market Share?
Besides understanding what “market share” is, you need to know how to increase market share. In the following, there are five ways you can increase your market share, namely:
1 . Improve the Quality of Products and Services
The first way to increase market share is to improve the quality of the products and services. Customers will certainly feel satisfied if you offer better quality products.
When customers start to trust the quality of the products you sell, they will certainly come back again to buy these products. Moreover, customers can do promotions for free. They possibly tell their closest people about your products so that there is an increase in the percentage of your market share.
Read also: 5 Strategies to Attract Potential Customers Easily
2 . Continuously Innovating
Innovation is the thing needed in running a business. You must continue to create new products or new variants that can make customers curious and want to try every product offered.
3 . Lowering Sales Prices
In business competition, price plays a huge role in increasing market share. Therefore, you must find complete information regarding the selling price given by competitors to customers.
Read also: How to Increase Your Consumers’ Loyalty Effectively
It’s important to note that you don’t always have to use this method to increase your market share. If the percentage of the market share you get is above average, then please use other ways to develop that percentage.
4 . Conducting Promotional Activities
Promotional activities such as giving discounts can help you increase your market share. You can also give cashback if the customer wants to pay with a specific digital wallet.
Read also: How Can Push Notification Increase Customer Engagement
5 . Doing Target Market Analysis
The last way to increase the market share is to identify your target market first. Thus, you can create an effective and targeted sales strategy.
To find out who your target market is, you can use Profind, one of the flagship products of AdIns. Profind can help find out who the target market profile you want to target is based on the business you run. Therefore, for more information, you can directly contact us now.