How to Increase Market Share of Your Business?
Learning how to increase market share of your business is a crucial step towards strengthening your market position against your competitors. But before you try to answer this question, you need to learn what market share is and how is it calculated.
In a nutshell, an increase in market share means relatively increasing market revenues against your competitors.
To increase market share you need to analyze the following to be able to gauge your current business situation:
- Where a business sources its revenue from
- What is the market size
- Are there any further growth opportunities in the market?
- How many competitors are you competing against?
This knowledge is very important for you to be able to make informed decisions to gear your business towards success.
Following are some important ways through which you can increase your market share. Do note that this is not an over-night process, and should be looked at periodical basis (bi-annually or annually).
- Improve your relationships with your customers and suppliers for a chance to gain more business on WOM
- Invest in marketing efforts to create more visibility for a higher probability if landing more customers
- Try to up-sell services to your existing customers to be able to drive more volume
- Watch out for weak competitors in the market and try to win over their customers by capitalizing on their weaknesses
- Many businesses often increase market share by acquiring their competitors
- Look at vertical acquisition can also help to increase market share, where a business buys off its suppliers or retailers. Both type of acquisitions can give your business an edge over competition.
- Another way to increase market share is to try and grow the business category by introducing new product variants, offering new services, or driving category innovation. This results in gaining new customers in the market that are more receptive to potential new offerings than the existing ones.