How To Increase The Market Share Of Your Business
In business, profit goes to the company with a sizable chunk of the market. In most cases, this is usually the companies in the top 3 position; first, second and third. This position is not determined by a regulatory body, but by their market size – the number of customers these business serve on a consistent basis. Market share is a numbers game. You are only as profitable as the number of client/customers patronizing your business.
I have often said this, if your business is not a force to reckon with in the particular industry or niche you belong, you are as good as dead. When your industry or niche is being mentioned, which companies come up as reference points? Is your company among them? Is your company a threat to your industry or niche? If your answer to this question is NO, then there’s much work to be done. Let’s get down to business!
What is a market share?
In very simple terms, market share is the number of loyal customers your business or company has been able to retain over a long period of time.
The key word in this definition is LOYAL.
Without this word [loyal], you can’t say you’ve got any market share. After all, a share of anything is that portion which you can confidently call your own by virtue of title. Meaning, you don’t own a share of something without an evidence or proof of ownership. In the business world, your proof of market share ownership is the number of repeat [loyal] customers patronizing your business per time. When it comes to market share, first time customers are irrelevant.
The criteria is not how many people who bought from you, but rather how many people regularly buy from you. The focus is on retention and not attraction alone. It’s about bringing them and keeping them. In other words, market share is about creating fans, followers, believers or addicts of your company, business, product or service. These are not just people who buy from you, these are people have bought into you. Meaning, they have been converted from mere customers to disciples of all that your business represent. Your proof of ownership is their continuous patronage [loyalty].
If you have ever seen a football fan of a particular club, say Chelsea, Arsenal or Manchester, you’ll better understand this concept of market share. These fans don’t just like football, their love for football has transcended from the general game of football to a particular kind of football -the games played by their favorite club. This level of interest is not accidental, it is not coerced, it’s a choice. Market share is all about preference; choosing to give your money repeatedly to a particular company or business over a long period of time based on certain factors that appeal to you personally.
Market share is intentional, people choose you instead of others because there’s something SIGNIFICANT [unique, unusual, extra-ordinary, different, special] about you. Market share is people identifying with your business, company, product, or services. It doesn’t come by chance; it can only be intentionally created.
Creating Your Own Share of the Market
You are not going to have them lining up behind your business as followers, so don’t bother waiting for them. Your best bet is to create followers by becoming a leader yourself. Here is how to achieve this;
1. Differentiate your business
The first step to creating your own share of the market by becoming a leader people want to follow is to differentiate your business. Differentiating your business means being able to clearly define the specific value creation processes of your business and deciding the particular area you want to specialize on.