What are some of the key metrics to measure market share and growth?

Through revenue tracking you can measure the growth of your business. Revenue share helps identify how much the business has gained against the total revenue value in the market. It is best and suitable to evaluate in %tage. That helps you align your business growth to its objectives in a competitive business environment.

- ?? Revenue share is a key metric, representing the percentage of total market revenue your business captures. - ?? Calculate it by dividing your business revenue by total market revenue, then multiplying by 100. - ?? This metric helps compare your market share with competitors and assess market position. - ?? Example: If your revenue is $10 million and the market revenue is $100 million, your revenue share is 10%. - ?? Use revenue share to refine pricing strategy and evaluate business performance in the market.

I learned a long time ago that presenting a simple narrative to the executive team when discussing category opportunities is not a good idea. For example, "The total market is $500M, and if we get just 1% of the market share, that is $5M in revenue." This approach is not all that effective as it oversimplifies the situation. Instead, I recommend that a more detailed and complex analysis should be conducted, starting with a SWOT analysis and comparing it to competitors. Then, focus on trends and consumer shopping habits, for example, using Nielsen data, and work through each step of the process. I prefer to map out the strategy visually to ensure it is well-organized and easy to understand.

Relative market share is a crucial metric for assessing competitive advantage and market dominance. By comparing your revenue share to that of your largest competitor, you can gauge your position in the market. For instance, if your revenue share is 10% and your competitor's is 20%, your relative market share is 0.5, indicating you hold half their market share. This metric not only helps benchmark performance but also provides insights into areas for innovation and profitability, guiding strategic decisions effectively.

In the dynamic world of business, market penetration holds an undeniable allure. It's the metric that screams success, a quantifiable measure of reaching that coveted target audience. As a business strategist, I view market penetration not just as a celebratory number, but as a powerful strategic tool. Market penetration empowers us to ask the right questions. It's a compass guiding us towards sustainable growth. By analyzing this metric, we can refine our approach, identify areas for improvement, and ultimately, conquer a larger share of the market.

No all customers are equal, there will be Heavy, Medium and Light buyers of the category, so there is a quality lens to penetration also. Having high penetration of light buyers potentially has less value than low penetration of heavy buyers.

Market penetration is not just a number; it's a reflection of your brand's vitality in the marketplace. It's crucial to understand that a low market penetration could indicate untapped potential or a need for strategic pivots in marketing and product development. Conversely, a high market penetration is a testament to your brand's resonance with consumers. Remember, it's not just about reaching customers, it's about making an impact that keeps them coming back for more. Keep pushing the boundaries and strive for that 100% - it's a journey worth taking! ???? #BusinessGrowth #MarketPenetration #KeepPushing

To go a step further, there is value in considering how you choose to define your market. There are a few key metrics which can offer insightful lenses on which to view market penetration: Total Available Market (TAM), Total Serviceable Market (SAM), and Serviceable Obtainable Market (SOM). TAM is the total market that demands a particular good or service. SAM, however, is a segment of that market that you are well equipped or specialized to capture. SOM is the portion of the SAM you could expect to capture, based on your market share. Here's some general calculations to attach a Market value to each metric: - TAM = Total # of Customers * Value per Customer - SAM = Total # in a segment * Value per Customer - SOM = Market Share * SAM

To take this a step further, I have found analyzing same store growth rate incredibly valuable in CPG. Market growth rate will look at total volume but can potentially mask underlying issues in your existing accounts. It's great to see growth through new distribution but if your established business is in decline or hemorrhaging, you have a much bigger problem on your hands. You can only see that through analyzing same store sales growth/decline over time.

You want to make sure you are comparing like to like period. Holiday or any special event should be taken into account - the growth needs to be normalised

Dive into the depths of Customer Acquisition Cost by segmenting it across various channels and customer demographics, unveiling which avenues yield the most efficient conversions and spotlight areas ripe for innovation. Amplify the metric's insight by tracking the CAC to Customer Lifetime Value ratio, enabling a dynamic evaluation of long-term profitability and strategic adjustments to fuel sustainable growth. Harness advanced predictive analytics to forecast future CAC trends based on market dynamics and competitive activity, empowering proactive shifts in marketing strategies to seize market share before competitors catch wind.

Segmentation is an important aspect to consider when using CLTV (customer lifetime value). You can segment based on customer size (Small, Medium, Large), customer type (consumer, B2B), and region. Customers will have different LTVs based on their segment and it is important to monitor CLTV over time by customer segment. CLTV is a key component of your LTV (Life time value)/CAC (customer acquisition cost) ratios, your LTV/CAC ratio is a key indicator of the health of your acquisition funnel.

One more metric to add is the market share in volumes (in equivalent units if applicable), that will give a clear view of the penetration of the product and the position in market. This metric can be combined with revenues market share to draw conclusions on pricing strategy and market positioning

Reduce your customer acquisition costs by tracking [i.e. abandoned carts] and offering personalized incentives... An easy way to recover lost sales and increase revenue without high advertising costs.

Additional to the quantitative metrics, I would recommend to have qualitative metrics to understand better the customer market such as brand reputation, the perception of value and the potential of the market based on customer needs & competitors