14 Top Strategies To Increase Market Share
Boost your business growth with these 14 top strategies to increase market share and strengthen your competitive edge.
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Market share matters. Companies of all sizes and in every industry face challenges when trying to increase their share of the market. You may discover that one of your competitors has recently made a larger sale to a customer you were pursuing. Or, perhaps your latest sales report shows that you're lagging in a particular sector. Whatever the case, there are proven strategies you can employ to boost your market share. This article will focus on how sales acceleration software can help you increase your market share.
Aomni’s sales intelligence software provides actionable insights to help you reach your objectives, including boosting your market share. With Aomni, you can identify the best prospects to target for faster sales, and uncover valuable information about their business to help you close the deal and expand your customer base.
What Is Market Share?
Understanding Market Share
Market share refers to the portion or percentage of a market earned by a company or an organization. In other words, a company’s market share is its total sales about the overall industry sales of the industry in which it operates.
Say a certain toothpaste maker sells 60 tubes. This implies that the company holds a 60% market share. Market share is calculated by considering a company’s total sales over a particular time period and the total sales of the industry in which it operates over that period.
Market Share Example
All multinational corporations measure success based on the market share of specific markets. China, for example, has been an important market for many companies, as it is still fast-growing. Companies like Apple Inc., use their market share numbers in China as a key performance indicator for the growth of their business. Apple's market share in China's smartphone market has varied over the years, as it vies with domestic companies there. For instance, in Q2 2024, it had 14% of the market, down from 16% in the same quarter a year earlier.
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14 Top Strategies To Increase Market Share
1. New Technology
Innovation is one method by which a company may increase market share. When a company brings to market a new technology its competitors have yet to offer, consumers wishing to own the technology buy it from that company, even if they previously did business with a competitor. Many of those consumers become loyal customers, which adds to the company's market share and decreases the market share for the company from which they switched.
2. Customer Loyalty
By strengthening customer relationships, companies protect their existing market share by preventing current customers from jumping ship when a competitor rolls out a hot new offer. Better still, companies can grow market share using the same simple tactic, as satisfied customers frequently speak of their favorable experiences to friends and relatives who become new customers.
Gaining market share via word of mouth increases a company's revenues without concomitant increases in marketing expenses.
3. Talented Employees
Companies with the highest market share in their industries almost invariably have the most skilled and dedicated employees. Bringing the best employees on board reduces expenses related to turnover and training and enables companies to devote more resources to focus on their core competencies.
Offering competitive salaries and benefits is one proven way to attract the best employees; in the 21st century, employees also seek intangible benefits such as flexible schedules and casual work environments.
4. Acquisitions
One of the surest methods of increasing market share is acquiring a competitor. By doing so, a company accomplishes two things: It taps into the newly acquired company's existing customer base and reduces the number of competitors fighting for a slice of the same pie. Shrewd executives, whether in charge of small businesses or large corporations, will look for a good acquisition deal when their companies are in a growth model.
5. Lowering prices
A company can also expand its market share by lowering its prices. Reducing prices will attract more customers and help widen the customer base, and increase sales, hence increasing the company's market share.
6. Strengthening customer relationships
By strengthening their existing customer relationships, companies protect their existing market and ensure no loss of the existing customer base owing to high competition. This also increases customer satisfaction, which in turn helps increase customer base through word-of-mouth.
7. Expand Your Reach
Expanding your market reach is a potent strategy to increase your business's market share. This could mean entering new geographical areas, tapping into different customer segments, or exploring new distribution channels. Starbucks serves as an excellent example of this strategy. From its humble beginnings in Seattle, Starbucks expanded globally by adapting its offerings to local tastes while maintaining its core brand values.
8. Build a referral program
It takes a lot of time and effort to acquire new customers, which is one reason why so many B2B businesses rely on referral programs. In one banking study, referrals were 18 percent more likely to stay with the company and generated 16 percent more in profits. Get these benefits, and increase market share in the process by implementing a referral program in your company.
As for referrals wherever you can, including on your:
- Website
- Social media
Ask for names and email addresses, and then reach out to these new leads. When you do, tell them how I got their information. Otherwise, your message may read like a cold call, discouraging them from following up. Some customers may be happy to provide referrals, but others may need additional motivation. Offer an incentive for every new referral that places an order. A discount on a future purchase is a good motivator, as is an entry into a drawing to win a vacation or a cash prize.
9. Develop a unique brand position
Market share is impacted by several factors, including the ability to address a need in a way no other company can. If your company can stake out a unique brand position in the marketplace. Define this position and carry it out in everything your company does to maintain and increase your current market share over the long term.
So, how do you define your brand position? Unique products and services are only the first step. It also requires your marketing team to create a distinct look, tone of voice and brand personality and a plan to communicate your new position at every opportunity. This brand will encompass everything your company delivers to customers, making attracting new customers looking for the same experience easier.
10. Stay ahead of your competitors
Some of the largest companies in the world achieved their current positions because they offered something bigger or better than the competition. Others got there by offering it first. If you want to grow market share, make innovation a part of your marketing strategy.
Innovation comes in many forms:
- New products
- Customized solutions
- Service delivery models
- Customer support
Look for a way to distinguish your offerings from those of other companies in your field, and you’ll be seen as a leader and a company worth staying with over the long term. Innovation is important for growth, but don’t just do it for the sake of doing it. Innovate to address a customer need, even if customers aren’t aware of the need. This will keep customers around but also help you follow the next step to increasing market share online.
11. Increasing quality
Your product(s) should offer exceptional quality and user satisfaction, setting the cornerstone for expanding market share. Prioritizing product excellence influences how your offering is perceived in the competitive landscape and can lead to natural advocacy through word of mouth. To consistently improve your offering, it’s crucial to incorporate customer feedback and stay attuned to evolving market trends.
High-quality products not only meet customer needs but often exceed expectations, fostering a faithful consumer base and drawing in new patrons who are persuaded by others' positive experiences. A focused commitment to quality can distinguish your brand and fuel its growth trajectory.
12. Creating targeted marketing campaigns
Effective advertising is a great way to gain market share. Launching innovative branding and targeted marketing campaigns can help attract new customers’ attention while reinforcing existing customers’ loyalty. Successful advertising compels consumers to take notice and remember the brand amidst a crowded marketplace.
Attention-grabbing ads should convey the unique value of the company’s products or services and resonate emotionally with the consumer. With an astute strategy and adequate resources, a talented and skilled team can craft and deploy advertisements that generate immediate interest and build and sustain brand identity over time, yielding long-term growth for the company.
13. Market to niche audiences
At first glance, this might seem like a bad idea if you’re trying to increase market share. After all, a niche market is smaller and more specialized. One niche market is —marketing to several niche markets can help you gain market share by developing larger footprints in smaller segments of the marketplace.
Suppose you sell accounting software. Many businesses want it, but they could buy it from dozens of other companies. Why would they want to buy it from your company? With the right niche marketing strategy, you can position it as a suitable product for:
- Local retailers
- Start-up businesses
- Small companies
- Niche service providers.
Each market is small — but when combined, they create a huge market and, therefore, a larger market share for your business.
14. Provide Better Customer Experience
Digital business strategies that are not adequately planned may generate long-winded results. The digital space offers endless openings for customer interaction and product development but in the absence of appropriate planning and implementation of well-defined and well-thought-out:
- Decisions
- The benefits may not come through
- Be minimal
Taking advantage of automation and Artificial Intelligence and what they can do for the firm and its customers is something that an executive must always realize. With AI and creative user interfaces freely offering automated and instant responses to customers, they are the most effective front liners when interacting with customers. They provide support, checking and simulating several options for clients.
Benefits Of Strategizing To Increase Your Market Share
When a company increases its market share, it can operate on a larger scale, resulting in lower costs and increased profitability. Over time, this can translate into economies of scale, allowing the company to produce more goods at a lower cost and improve its efficiency and profit margins.
As the company produces more units, it can spread its costs over a larger number of goods, reducing the cost per unit. Increased market share can help a company develop a cost advantage compared to its competitors. As the company grows, it can secure better terms from suppliers and access advanced technologies that improve operational efficiency.
Sales Surge: Why Increased Market Share Boosts Sales
An increase in market share helps boost a company’s total sales. Many consumers are influenced by others' preferences when making purchasing decisions.
When potential buyers notice the brand loyalty of most of their peers, they are also driven to purchase that product. As a company’s market share grows, it becomes more visible to potential customers, who are likelier to trust the brand and ignore competing products.
Expanding Your Customer Base Through Increased Market Share
Gaining market share helps a company widen its customer base. When most of the consumer base is loyal to one brand or product, the rest may follow. This phenomenon, known as social proof, is a psychological occurrence where individuals copy the actions of others in an attempt to undertake behavior in a given situation. The larger a company’s market share grows, the more customers will:
- Trust the brand
- Resulting in increased sales
- A broader customer base
Improving Your Company’s Reputation with Market Share Growth
An increase in market share helps enhance a company's reputation. A good reputation, in turn, helps boost sales and broaden the customer base. Increased market share signals to prospective buyers that the company’s products are popular among other consumers. As the company’s sales grow, it will also have more resources to improve its operations, further increasing its appeal to potential customers.
Dominating the Industry: How Gaining Market Share Boosts Your Competitive Advantage
An increase in market share increases a company's dominance over its industry. This can improve the organization’s overall performance and sustainability. As a company gains a competitive edge, it can also secure better terms with suppliers and business partners, further improving its operations and market position.
Leverage the Power of Bargaining with Increased Market Share
With increased market share, a company starts to dominate an industry. With increased dominance over the industry, a company can exercise certain powers such as greater bargaining power. The company enjoys an upper hand and can negotiate to its advantage with suppliers and distribution channel members.
How Is Market Share Calculated?
Understanding Market Share and Its Importance
Market share is a company’s portion of total sales about the market or industry in which it operates. It’s important because it helps to understand a company's competitiveness within its industry.
A larger market share often indicates a company’s dominance over rival firms and can lead to higher profit margins.
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Preventing Market Share Loss
Businesses should prioritize product innovation to prevent market share loss. No product is immune to becoming outdated as market dynamics shift. Stay informed about new technologies and incorporate them into your offerings, aligning with customer feedback on their needs and desires. Alongside product evolution, keep an eye out for market gaps—emerging needs not yet met by existing products.
Act Fast to Fill Market Gaps
Be prepared to introduce new solutions or brands to fill these voids before competitors do. In extreme cases where market situations intensify, confrontational tactics such as:
- Aggressive marketing
- Price reductions
- Critiquing competitor products might be employed.
While not always advisable, these strategies are part of the competitive landscape and can sometimes help defend market share.
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Try Our Sales Intelligence Software for Free Today
Aomni is an AI agent platform designed specifically for B2B sales intelligence software. Our solution empowers enterprise and strategic account executives to execute account-based sales and marketing strategies with unprecedented efficiency and effectiveness. Our key features include:
- AI-powered prospect and account research
- Comprehensive account mapping and planning
- Data-driven sales strategy development
- Automated call preparation
- Personalized AI agents for sales optimization
- AI chat interface for streamlined sales processes
- AI-assisted Account Based Sales/Marketing campaign execution tool
Aomni addresses critical pain points for sales managers whose Account Executives, Account Managers, and Customer Success Managers must perform better and include quotas. By leveraging our advanced AI technology, sales professionals can significantly enhance their preparation for customer conversations, leading to the following:
- Larger deal closures
- Increased promotion opportunities
For individual sales professionals, Aomni provides the tools and insights needed to:
- Elevate their performance
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- Accelerate career progression
Our platform transforms the way B2B sales teams operate, ensuring they enter every customer interaction:
- Fully prepared
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Try our sales intelligence software for free today!
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