Before you start creating your strategies for growth, it’s important to know where your business stands in the local market. Do you even have room to grow? Have you saturated the market? Understanding your coverage locally will help you make informed decisions and data-driven business plans.
Understanding Your Coverage: MicroMarket Analysis
A MicroMarket analysis aids in understanding your coverage in the market. Data scientists will analyze your customer data and layers of geographical data. This study is to determine the density and propensity of your customers and marketing campaigns. Essentially, what is your market penetration? Do you have room to grow in your current market or have you saturated it?
Growing Your Market
After the geographical study has been done, you can easily see which areas have a strong potential for growth and which ones do not. Another important factor to look at is responses by geography. Are you repeatedly targeting areas that have had zero responses over the last several marketing cycles? If so, you may want to remove those unresponsive zones from your marketing list and reduce your marketing waste. You could also try changing up your marketing strategy for those areas.
If you have room to grow, the next step is to create a MicroModel. It takes your current customers, analyzes them and your unique geography, and builds a statistical data model for your company. It can build national, regional, or even individual store models. Once the model is built, your prospect data is scored and ranked from those most likely to least likely to make a purchase. Select the top scoring prospects and create a campaign just for them.
Next Steps for Saturated Markets
If you have saturated your markets, it’s time to make some changes. Either you can expand into new territories that look like your current market, or you can adjust your strategies. If you want to expand into new areas, data scientists can analyze your options and identify how many potential prospects are in each one, so you can see which market has the greatest chance for success.
Ideas for Switching Things Up:
- Reinvent Existing Products: Introduce new features, improve functionality, or create limited editions to differentiate your products and increase the demand in your current area.
- Develop New Products or Services: Take what you learn from your customer analysis and create new products or services that would meet their needs or wants.
- Identify New Customer Segments: Divide your target market into smaller, more specific segments and tailor your offerings for each segment.
- Introduce New Marketing Channels: Increase response rates by using a multi-channel marketing approach where each channel helps build momentum for the overall campaign.
- Enhance Customer Experience: Offer additional services or benefits that differentiate your products or services from competitors.
- Create Partnerships or Collaborations: Partner with other businesses or influencers to create new products or limited-edition items and expand your reach to new audiences.
Understanding Your Coverage: Next Steps
By understanding your coverage, you can make strategic decisions for how to grow and put an informed plan together. If you want to learn more about your market penetration, let’s connect. Our team loves helping business thrive and grow.