Grow or die.
That’s always the focus of an Enterprise no matter the prevailing economic climate.
I often receive questions about marketing strategies, but there tends to be one question people focus on: how to increase market share.
From a high level, there are two directions organizations typically consider:
1) Expand into a new market with fewer competitors, referred to as a “blue ocean” or,
2) Move into a market that is rife with competition, called a “red ocean.”
The concept of seeking a blue ocean vs a red ocean doesn’t apply to all enterprises or business models. A blue ocean is a market with little to no competition; time and uniqueness are on your side. A red ocean is a market where you have to fight off the sharks of competition every day to gain new customers and retain current ones.
The central problem is that blue oceans attract sharks (and every other sea creature). So, eventually, you either have to learn to deal with a little red or eternally swim in search of bluer waters.
Before you head off into the blue ocean sunset, here’s three market share growth strategies to maximize your revenue streams from your current position:
1. Cut Operational Expenses
Business is a war between productivity and efficiency.
Productivity initiatives pump up revenue in the numerator while efficiency projects allow more of your current revenue to filter through into profits by shrinking costs.
There are several methods to reduce operational expenses including: lowering financial expenditures, identifying inefficiencies, and most recently, harnessing the power of artificial intelligence (AI) technology.
Leveraging AI for CRM data entry and repetitious tasks, for example, can reduce operating costs for sales and customer success teams while also eliminating human error. In fact, studies show that sales teams spend 20 percent of their week solely on manually logging sales activities.
Unlocking hidden efficiency improvements like this is an effective way to lower departmental operational expenses. These savings can be reinvested in marketing strategy and new customer acquisition tactics such as organizational discounts and experiential marketing to reduce churn and earn loyalty.
2. Maintain Market Share
The goal here is to avoid losing market share to disruptors and other market leaders.
Businesses invest an enormous amount of time, effort, and expense building and acquiring their initial customer base. Mark Irvine, Data Scientist at WordStream has found that the average lead for B2B companies costs $63.57 per lead, whereas the cost per acquired customer (CPC) can be in the hundreds, even thousands of dollars.
Without a strong focus on customer relationship and retention strategies, companies could be losing market share to their competitors from high customer attrition.
Customer attrition or churn can be a slow death and sometimes neglected metric for rapidly growing organizations. MarketingWizdom claims that “The average business loses around 20 percent of its customers annually simply by failing to attend to customer relationships.”
To combat customer churn, smart companies are turning to the power of AI and predictive analytics solutions like People.ai to automatically identify at-risk accounts. This is done by capturing all the interactions between your company and measuring customer engagement to understand the full 360-degree view. With this data, (otherwise impossible to compile or see in your CRM), companies are becoming proactive in their approach to servicing their customers.
Recognizing the signs of unhappy customers, and “turning up the love” at the right moment can be the difference between your company treading water or being able to gain market share for competitors.
3. Build Market Share
Yes, building and acquiring new market share is third on our list, and for good reason. Building market share is typically the most difficult of the three strategies, as well as the most expensive.
There are several methods to create higher market share including: market segmentation expansion, distribution innovation, and promotional and sales innovation.
Over the past several years, sales innovation through account-based marketing plans (ABM), and increasing the efficiency of sales teams have become the primary driver for most organizations to driving their higher market share.
Empowering sales teams with an AI-driven sales and marketing technology stack is no longer a “nice to have,” but rather a necessity in a competitive landscape. Company’s need to equip their sales teams with the power of things like prospect engagement insights, weighted attribution modeling, and automated activity tracking in order to efficiently build or acquire new market share.
These three points only scratch the surface of how to increase market share under difficult conditions.
In the years to come, expect new technology and problem-solving tools like AI to take on a bigger role earlier on in market growth strategies. In fact, a recent survey by PwC found that a majority of enterprise leaders tagged AI as fundamental to their growth plans, with 72 percent citing AI as “the business advantage of the future,” and will be investing heavily. It reinforces the idea that some problems are too complex for human brains alone, and this is one area you do not want to leave to chance.
This is why companies have been calling on solutions like People.ai to leverage the power of AI to help reduce operational expenses, hold on to loyal customers, and increase their market share.
Are you wondering how artificial intelligence can help you reduce operational expenses and sway market share advantage?
Find out how People.ai helps organizational leaders gain visibility into their sales and marketing teams, as well as increase the overall productivity of each sales rep by scheduling a demo of the People.ai solution today.