With netRivals you can monitor prices automatically as higher market share places companies at an aggressive competitive benefit. Companies with an excessive market share regularly obtain higher fees from suppliers, as their large order volumes increases their search for power.
In this respect, tools like netRivals help retailers in very competitive environments to have a more detailed view of what is going on in the market with their most direct and stronger competitors, either pure-players or omnichannel stores.
Understanding Market Share
To have a full grasp of market share, it is calculated by measuring the percentage of sales in the standard market. Using the percentage of income approach, if a store has $1 million in annual sales and the total sales for the 12 months in its industry are $100 million, the company’s market proportion is 1%.
Under the percentage of unit method, an enterprise that sells 50,000 devices yearly in an industry where 5 million units are sold within 12 months additionally has a market share of 1%. Also, improved market share and greater manufacturing go hand-in-hand with the latter decreasing a company’s cost to supply an individual unit due to economies of scale.
Increasing Market Share
By increasing your competitiveness and optimizing your pricing approach you can get to increase your market share. When an e-commerce business offers products at a better price for value, users whose purchase decisions are greatly influenced by price are more willing the buy from them than from their competitors. If such an online store maintains its competitiveness in the market, there is no doubt that users looking for competitive prices will end up emerging as loyal clients, which adds to the business market share and decreases market share for the rival from which they switched.
In this sense, the price intelligence platform of netRivals helps increase market share by strengthening purchaser’s relationships, and preventing modern customers from leaping ship whilst a competitor rolls out a new offer. Businesses can also develop market share using the equal simple tactic, as happy clients often communicate their high-quality experience to friends and household who then end up becoming new clients.
Gaining market share through word of mouth increases a corporation’s revenues without concomitant increases in marketing costs.
Maintaining Market Share
We believe that by implementing the best platforms or solutions for your team reduces costs associated with turnover, and permits businesses to devote greater resources on their core competencies and abilities.
The use of platforms that help your team save time and develop a great retail strategy becomes a real asset for your business. By automating monitoring processes you can help your team save time for what really matters to your business: redefine your market strategy and optimize your pricing so that you can make decisions that work better for your business and help you achieve higher conversion rates for your online store and win the competitive race against your direct rivals in the market.