Market share, another question of Quantity Vs Quality

Market share is probably the most commonly used non financial measure, almost everyone uses it who can access even basic market and competitive data.

The rub comes when you consider who is in the share.

A simple share number can disguise high customer churn, high costs to service, and significant investment in customer acquisition to counter the churn, all of which costs money.

The same share made up by a loyal customer base will deliver much better profitability, so having a way of discriminating between customers with differing levels of profitability should be a crucial underpinning of marketing activity.

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Marketing, Sales and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s