Gaining market share is essential for any business to succeed and stay ahead of the competition. There are a number of strategies that can be employed to increase market share, such as improving innovation, creating and consolidating customer loyalty, employing a dedicated and talented workforce, acquiring other companies, implementing effective advertising, and pricing products and services efficiently. Companies that can't use data as a competitive advantage will end up being left behind. The two areas to focus on initially are marketing strategy and product analysis.
The first allows you to understand where your customers are coming from so that you can attract more of your ideal customer profile, while the second helps you learn how to increase engagement and decrease customer loss. Let's say, for example, that consumers' buying activity as a whole is 100 tubes of toothpaste, and a certain toothpaste manufacturer sells 60 tubes. It implies that the company has a 60% market share. The calculation of market share takes into account the total sales of a company over a given period of time and the total sales of the industry in which it operates during that period.
Customers are increasingly aware of the quality of a product, in addition to its price. By ensuring higher quality standards, a company can increase its market share. Increasing market share can be achieved by focusing on attracting and retaining talented employees. This is because talented employees who feel appreciated in their work are often dedicated to the company.
This translates into lower costs related to hiring and training in the future. Plus, it goes without saying that a skilled team will help you achieve innovation, better products and services, sales, and higher customer loyalty rates. Capturing a dominant share in a market probably means enjoying the highest profits of all the companies operating in that market.1 It can also mean gaining the leadership, power, and glory that comes with that dominance. In addition, developing a strategy to acquire new customers and increase market share can also help prevent loss of market share.
While the holy grail is to increase market share, swapping the product for an extension risks alienating existing customers. This could involve launching marketing campaigns aimed at specific demographics, expanding to new markets, or even acquiring a competitor. Launching innovative brand and market campaigns can help attract the attention of new customers and further reinforce the loyalty of existing ones. It's essential to continually evaluate the competition and stay ahead of the curve with regard to offers and marketing strategies.
Market share can also be measured by analyzing the number of customers or subscribers a company has compared to its competitors. Focusing on a specific market is good, but there are unpredictable scenarios and you don't want to be caught off guard. Increasing a company's market share can indicate a company's success, as it shows that it is gaining more control over its industry. Since you're doing something good while increasing your market share, this is a win-win situation.
In general, gaining market share means staying on top of the market and being proactive in adapting strategies to meet customer needs and stand out from the competition. Innovation can consist of product innovation, innovation in production methods, or simply the introduction of new technologies to the market that competitors do not yet offer. Creating a strong brand image and a positive customer experience can help attract more customers and increase market share. The members of the Forbes Business Council offer recommendations on how entrepreneurs can increase the market share of current or future products.
There are several ways to do this, for example, through innovative technology, product improvements, or novel marketing techniques. An increase in a company's market share can allow the company to operate on a larger scale and increase profitability. Ultimately, it's crucial that companies continually evaluate and adapt their strategies to maintain and increase their market share.