Several factors help businesses stay ahead of the competition, but market share dominates them all.
Market share means the percentage of sales a company holds in the market.
It is calculated by taking the current sales of the company and dividing them by total sales.
For example, eBay’s full market share is 19.7%, ranking right after Amazon, 56.1%.
Market share promises businesses success. The higher the market share, the higher the profitability ratio of the company.
A high market share indicates that companies have successfully met their customers’ requirements through effective marketing and strategic planning.
Companies with a high market share are likely to gain market power which means they can dominate the market by creating barriers.
Once a company dominates a market, it is known as a market leader, attracting investors and strengthening customer relationships.
A more significant market share also increases its chance of developing a cost advantage over its competitors.
It helps companies evaluate their competitive position and come up with effective strategies.
Companies operating on a grander scale can also benefit from economies of scale and increased sales.
Market share has the power of widening a company’s customer base and enhancing goodwill.
Market share also plays a crucial role in investment.
The market size and the proportion of its stake in the market is the first thing potential investors notice.
eBay, for instance, is a popular hub for investors.
However, it is vital to note that investors are not the same as sellers on eBay.
Sellers look for how to sell on eBay, while investors are more concerned about the company’s market share and its risks and rewards.
Even though market share is critical to business growth, people still underestimate its power.
Below, we have highlighted some key strategies which can help you grow your company’s market share.
Innovation is the most trusted strategy to increase market share.
It can be in the form of product development, technical advancements, or process innovation.
Innovation can help you stay a step ahead of your competition in wondrous ways. Google is an excellent example of being an innovative market leader.
It currently holds a 90.8% market share mainly because of its innovative strategies.
Over the years, Google has made browsing the web so incredibly easy, quick, and sufficient that it is almost unbelievable.
The introduction of various applications and platforms for searches helped Google monopolize the market.
An introduction of new technology by firms motivates customers to purchase from them.
It helps build customer loyalty and brand awareness.
Innovation plays a crucial role in expanding your market share but only when done correctly and mindfully.
2. Engaging with customers
Increased engagements with customers can ensure customer loyalty.
Customer loyalty is the most significant contributor to a business’s achievements.
With a solid and loyal customer base, a company can go a long way.
Engagements with customers can also help maintain a company’s current share and attract new customers.
You must make sure to use the most effective mediums and communication strategies to engage with your potential and existing customers.
Social media and emails are the most potent communication tools today.
They allow customers to post feedback and businesses to respond to any queries instantly.
3. Think out of the box
Exclusivity is the most attractive component of any business.
When you offer what no one else is, you fulfill a need no other company can address.
In short, you are coming up with your unique brand position.
Marketers must think out of the box and develop unique yet effective marketing ideas to promote a brand.
Brand image can play a crucial role in developing your firm’s market share.
Only coming up with ideas to market your brand is not enough.
Your marketing team should also develop strategies to communicate your new brand position wherever an opportunity arises.
4. Focus on niche marketing
Niche marketing means marketing to a smaller group of audiences.
Why would you want to sell your products and service to fewer people if you are looking to increase your market share? Marketing to a single niche market might be a bad idea.
Still, marketing to lucrative niche markets can be pretty advantageous.
It will yield higher profit margins, lower competition, and significantly decrease marketing and advertising costs.
Suppose you can successfully come up with an effective niche marketing strategy.
In that case, you can cater to local retails, small businesses, and other niche service providers.
Several small niche markets are capable of making one colossal market which can tremendously increase your market share.
5. Acquisition of competitors
Mergers and acquisitions can guarantee business growth.
Acquiring a competitor can expand your customer base and strengthen your customer bond.
It also reduces competition which increases the chance of your company dominating the market.
When you acquire a competitor, they provide you with products that are easily distributable through your channels.
Your economic productivity increases and your business earns more significant revenues.
All of it ensures a more substantial market share of your business.
6. Make use of referral programs
Mergers and acquisitions are a time-consuming process, but a referral program can help speed up the process for you.
A referral program is a process to reward your customers for spreading good word of mouth about your brand.
Many experts state that referral programs is the most beneficial form of advertisements with a high retention rate.
Retention rate means that there is a greater chance that customers participating in your referral programs will stay with you for long periods.
Referral programs also help attract new leads, which play a significant role in increasing your market share.
Referral programs are also a cost-effective strategy since driving new customers is much cheaper than pushing your marketing efforts for your existing customers.
A higher market share can take your business to new heights.
Apart from attracting new customers, a more significant market share can considerably increase revenues and sales.
Market share allows company heads to calculate market growth or decline and identify critical trends.
They later come up with strategies to improve their market potential and market opportunity.
However, to increase market share, it is essential to have a plan.
It would be best to focus on innovation, unique offerings, customers, etc., to yield better and quicker results.