One of the signs that show that your business is growing is the rate at which its market share increases. Increasing your market share is one of the surest ways to measure the growth of your business and guarantee its longevity. Conversely, when you notice that your market share is shrinking, it is an indication that your competitors are outdoing you or you are simply lackadaisical about the survival of your business.
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To start with, what is market share? According to HubSpot, market share is calculated by taking the company’s sales over a certain period and dividing it by the total sales of the industry over that same period. Essentially, market share is how much you make as a company in the industry, and how that stacks up against others. So, to increase your market share, you need to make more sales than your competitors to increase your share in the industry.
There are several examples of companies that have increased their market shares over time, and you can learn a great deal from them. One of such companies is Apple Inc. According to HubSpot, today, Apple has a 50% market share in the mobile phone industry. This means that half of the phone owners globally own an iPhone. In this article, you will learn how to increase your market share in five ways.
Find Your Niche And Stick With It.
The first step towards increasing your market share is by being a category king in your industry. What does this mean? It means to grow into an influential brand, you must be known for one thing that you are excellent at. For example, Apple Inc. is a category king in mobile devices, iPhone and iPad, while Toyota is a category king in the automobile industry.
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When people see your logo or hear your company name, they should know what you stand for. This will also include having a distinguishing brand feature such as your logo which will easily help people identify your brand name. For example, Apple’s logo and sleek design are seen on Apple’s entire suite of products. Moreover, the greatest way to lead in the market share is by living up to the brand name by offering quality products and an amazing customer experience.
Understand Your Direct Competitors.
Another step towards increasing your market share is by understanding your market, by extension, your competitors. In the marketplace, one of the most important things to do is to study your competitors’ strengths and weaknesses and act accordingly. If you want to increase your market share, you have to do what your competitors aren’t doing or improve in the areas of their strengths. For example, if you are in the fashion business, there are possibilities that some classes are not represented in the fashion world by existing competitors. You can fill in the gaps to remain ahead.
Innovate As Society Does.
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If you look at leading companies that have remained ahead in their niche, at the core of their operation is persistent innovation. A good example is Sony. Sony’s PlayStation owns 68% of the home console market share. Since 1994, Sony has been discovering ways to innovate and update their video game consoles faster than their competition. These innovations are necessary to stay current in the industry and increase market share. There are various ways to innovate. You can add new features to existing products, and remodel existing signatures such as logos and taglines, and even colours.
Engage With Customers
Customers are your biggest informants as long as market share is concerned. They are the ones that know what and what needs improvement. As Bill Gates rightly said, “customers are always right”, you need to be in touch with customers to understand their pain points.
A carefully crafted survey sent out to loyal customers with questions about design, updates, and features can help you envision substantial ways to enhance your product or service, and in turn, increase your market share. Apart from using surveys, you can engage customers using social media, such as an Instagram story, which works as well.
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