In today’s competitive environment, increasing market share is vital for companies to thrive and grow.
In this issue, we’ll explore effective tactics you can use to boost their market share and outshine their competitors.
What is Market Share?
Market share is a crucial metric indicating a company’s market position. It represents the percentage of the total available market that a business or product serves.
You divide your sales by the total market sales to calculate market share.
For instance, if a company generates $5 million in annual sales in a market worth $20 million, its market share would be 25%.
Ways to Increase Market Share:
There are several ways to increase market share, and below are some of the most effective strategies:
Win over Competitor’s Customers:
You must develop differentiated sales and marketing strategies that convince people to switch to your product. This approach increases overall sales while maintaining the value of the total available market.
Convert Inactive Prospects into Customers:
You can also increase your market share by identifying inactive prospects and converting them into customers. Many marketers overlook this group, but they are essential to the total available market (TAM).
You can target inactive prospects with tailored marketing and sales campaigns, thereby growing your market share without changing the total available market value.
Another way to increase market share is to acquire a competitor’s company and merge their sales with yours. This approach does not change the total available market value but increases your overall market share.
Tactics to Boost Market Share:
Here are some tactics to help you expand your market share and outperform competitors:
Niche Marketing Strategy:
Developing a highly targeted and contextual niche marketing approach can help you generate qualified leads from customers wanting to switch from competitors and convince non-participants to join the market.
Collecting competitive intelligence can help you understand why you are losing deals. You can gain insights to develop a go-to-market strategy and take market share from your competitors by performing a competitive gap analysis.
And conducting market and competitive research can improve your research and development activities, enabling them to develop better products that are competitively priced.
A sales training program can help your sales team identify, persuade, and close deals more effectively.
Sales Force Effectiveness (SFE):
Using SFE to adjust your sales team’s location, reach, and frequency can help maximize their impact and effectiveness.
Favorable Terms and Conditions (T&Cs):
Offering better T&Cs than your competitors can help you attract more customers. For example, offering longer payment terms than competitors can be an effective way to gain market share.
Finding a way to assume and manage more product or operational risk than competitors can help your offer unique value to customers.
Special Offer Marketing:
Creating a special and limited-time offer for customers to switch from competitors or participate in the market can be an effective way to grow market share.
Using pricing strategies such as pricing at cost, switching from CAPEX to OPEX transactions, or offering performance contracting can help you attract more customers and grow your market share.
Joint Technology/Collaboration Agreements:
Partnering with customers or prospects in joint research and development can help lock them into your products (stickiness) and grow market share.
You sign master agreements, simplifying the contracting process. You lock customers into long-term contracts. Or, reduce your customer’s negotiation costs by agreeing on T&Cs and pricing. You can offer discounts or rewards programs within your master agreement.
There are many more ways to increase market share and beat the competition. Almost too many to list. But, with these ideas, there’s no doubt you’ll develop a great strategy to crush the competition.
I hope this issue helped generate some ideas on how to increase your market share. As always, feel free to reach out with any feedback or questions.
Take care, and have a wonderful rest of your day.