Market share is basically the total percentage of control a company or
business has in the market for its products and services. It refers to the total conversions a business has had in terms of loyal fans and customers.
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According to
Investopedia, ‘market share is calculated by measuring the percentage of sales or percentage of units a company has in the overall market.’ Practically, market share is the total number of sales a business is able to record for its products.
Inasmuch as a business tries to add value to society and solve people’s problems in diverse ways, the business is also out to make money. And money cannot be made unless there is a large market share.
The purpose of all the
investment in advertising, promotions, expansions and quality improvements is to ensure that the business garners a large market share, gains loyal customers and makes more money. However, some businesses, especially small-scale businesses, find it difficult to scale their businesses and increase their market share.
Here are the things you need to know:
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Innovation
At the centre of increasing your market share is innovation. People are attracted to new technologies and innovative ideas. As a business owner, you will do your business much good by developing new initiatives and ideas that can push your business out there. Innovation helps you compete favourably with your competitors. Explore new things, new methods and strategies on how to serve your customers better. This will go a long way to increasing the interest of people in what you have to offer.
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Targeted Marketing
You cannot talk about increasing your market share when no one knows you or what you do. You need to project your business to your potential customers. Invest in marketing, and while you do this, make sure you are targeting the right audience and not just shooting marketing campaigns amiss. Find out the marketing strategy that works best for your business and the platform to use.
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Price Optimisation
One great way to pull customers to your business is to reduce or optimise your price. Make it reasonable and affordable. Have you noticed that people are naturally drawn to products or services that are affordable while giving them value for the less they pay? This is one trick many companies use to pull customers to themselves. You can try this too and see where it gets you. It will certainly increase your market share.
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Engaging With Customers
Creating an effective customer feedback mechanism is a great way to engage with your customers. Get reviews, send emails and engage with them across your social media platforms. This strategy will not only help in securing your already existing customers, but it will also bring more people to your funnel. Hence, increasing your market share.
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Quality Improvement
By the time you must have gotten reviews on your products or services, you might have discovered certain areas of your business that should be improved on. Your customers want to see what you have up your sleeves; the better dish you have to serve them. Don’t disappoint them. Continually improve the quality of your products or service delivery. In no little way, it will prompt your loyal customers to remain loyal and inspire others to join the train.
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Branding
Branding is one subtle strategy to increase market share. It doesn’t require so much action, but for you to maintain a particular posture for your business. What do your customers know you for? What is the general feel they have when they come in contact with your product/service? What is the pattern of the creative content you put out there? These questions and more should be answered by you. And once you get it right by maintaining your unique brand, more people will want to identify with your business, as they will perceive it as being stable and having integrity.
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Acquisition
This strategy could be a bit tricky. So, you must be sure that you are really prepared for it. Some companies increase their market shares by acquiring a competing company that is open for acquisition. They tend to also buy the already existing customers of the acquired company while increasing their visibility to other customers. If this works for your business, you can as well try it out.
So, here are some strategies to increase your market share. Which one of them have you tried? And which one are you willing to work on?
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