Are you looking for a way to grow your small business? If so, you need to pay close attention to your market share. Market share refers to the percentage of total shares in your industry that come directly from your business. This is one of the best ways you can measure the success of your company. If you have a relatively small market share, you are probably looking for ways to help your company grow its market share. That way, you can acquire more customers, generate more revenue, and become an authority in your field. What are some ways you can increase the market share of your small business? There are several key tips you should keep in mind.
Calculating Your Market Share
First, you might be interested in learning how to calculate your market share. This formula is relatively straightforward. First, you have to take a look at the total revenue generated by your company. Then, you have to take a look at the entire revenue generated by the market. Finally, you convert this number to a percentage to figure out your market share.
As an example, if your company generates $5 million and the entire market generates $100 million, then your market share is 5 million divided by 100 million, or 0.05 (5 percent).
Even though you might have a specific market share you are trying to target, the most important thing you need to do is help your small business grow. What are a few ways you can do exactly that?
Invest More in Your Marketing and Sales Teams
The first thing you need to do is invest more money in your marketing and sales teams. That way, you can develop innovative products and services, letting your customers know about them in the process. Think about how customer perception impacts his or her decision. Then, figure out how you can protect a strong brand image that can attract more customers. Options include:
You may want to take a look at your competitors and see why they are so successful. Then, you might be able to copy them.
You should also think about ways to improve your customer engagement. If you can improve your customer service and communications, you can not only convert them but convince them to come back for future purchases.
Finally, you should evaluate your brand image regularly. If something feels stale or outdated, it may be time to adjust.
If you invest more money in your marketing and sales teams, you should see a greater return on your investment.
Take a Look at Your Target Market
You should also take a closer look at your target market. This means analyzing who your company should be targeting at who your current customers are. In order to do this, you need to take a closer look at your market segmentation. In this practice, you are going to divide your target market into several categories based on age, and income, behavior, personality, and more. In order to identify your target market, a few factors you should think about include:
Is there a specific age, gender, or educational background of your current customer base? Is this the same as your ideal customer?
What is the personality of your customer? What kind of lifestyle do they leave?
How do your customers behave when they interact with your company? What does this tell you about them?
Where do your customers come from? Is there a specific geographic background?
Once you identify your target market, you should be able to run a strong SEO campaign to target them. This means taking advantage of social media, optimizing your content, targeting the right keywords, and building strong backlinks that can help you direct traffic back to your website. If you are able to improve your search results rankings, you should drive more organic traffic to your website.
Consider Acquiring a Competitor
If you are interested in increasing the market share of your business, one of the most direct ways to do so might be to buy out one of your competitors. Even though it is true that this is going to take a significant amount of capital, you can directly increase your market share if you can combine the sales of one of your competitors with your own. Take a look at your competitors and see if any of them are currently struggling. You may be able to buy them out.
Invest in Innovation
Finally, one of the top ways you can increase the market share of your business is to invest in Innovation. This means improving the quality of your products and services. In order to innovate your business, you should take a look at the current pain points of your customers. What are some of the biggest issues they are currently having? Then, get to work brainstorming a new solution.
If you want to learn more about the problems our customers are experiencing, one of the most direct ways to do so is to simply ask them. Collect feedback from them. What do they like? What do they not like? Then, use this information to improve the quality of your products and services. This can go a long way toward increasing your market share.
Ed Moore, Red Sneakers Mobile Marketing