Using Data to Define Market Share and Vertical Strategy

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This blog post aligns with the themes of our Growth Evaluation; an intuitive tool which allows you to quickly uncover the areas of strength and weakness in your sales & marketing organizations. Click Here to learn more or take the Growth Evaluation. 


Contributed by: Michael Krzywicki, Analyst 

Businesses today are in the midst of a data surge. Never before has more data been analyzed and applied to the day-to-day operations of businesses across the world. Companies are continuously crunching numbers, slicing market data, and scrutinizing market research like never before – all in an effort to create new forms of competitive advantages that can drive business growth.

Data and Market Share: The GrowthPoint Approach

You may ask, in an effort to build an effective growth strategy, how can I utilize raw data to best identify sales trends and target opportunities?

At GrowthPoint, we look to leverage our clients’ data to build an effective plan that will allow them to surgically target the market and maximize top line revenue growth. Two approaches we often utilize in pursuit of growth include: 

  1. Customer Segmentation
    • Allows us to build multiple customer profiles and better understand our clients’ customer bases
    • Guides the building of activities and processes, based upon a customer’s propensity to spend
    • Provides insights to create customized product offerings and enhanced customer experience
    • Improves customer retention due to focused view of customer bases’
  2. Market and Opportunity Analysis
    • Utilize best-practice tools to scope and identify market size and market value data
    • Build addressable market size model and revenue projections for growth

A Practical Example

A client of ours in the digital marketing space, was challenged in targeting the correct market opportunities. Some symptoms of these challenges were decreased salesperson activity efficiency, and a weaker grasp on their market. Quite simply, there was no systematic approach to determining their most valuable accounts, and the communication process needed to effectively engage them. Furthermore, there existed a high customer churn rate due to ineffective account management, lowering year-over-year profitability and growth rates; they were bleeding.

Applying a rigorous analytical framework to their customer and opportunity data, we were able to model and identify the most valuable geographic segmentations and concentrations for this company to target. Building on this, we also determined the specific product offerings that could be tailored to the various customer segments depending on the different scenarios established. No longer would ineffective processes limit the potential for this company to grow their market share. Over time, the company began to distill the insights and trends in their data points, ultimately translating to the development of improved processes for better market capture.

By continuously and precisely utilizing best-in-practice data analysis methods and customer segmentation models, a natural progression in strategy begins to develop, resulting in a clearer roadmap for building market share.

Effectively Building Your Business Data Analysis Capabilities

CIO.com states that “data is essentially the new oil”, in that, it is the raw material upon which all business infrastructure, decision making and processes will be based on. Ensuring you are well-positioned to utilize the data available will be critical to future continued revenue growth.

Below are some strategies for you to consider to align your firm with the best-practice data analysis approaches being used today:

  1. Practice clean data processes – Ensure your company’s daily processes are structured and rigid to a level that builds an accurate and thorough database; you do not want poor quality data to impede your analysis, leading you to conclusions and insights that are not representative of your business
  2. Start simple – Quickly building a large data analytics team to identify deep-rooted and complex trends in your business is often not feasible for many companies. However, you can begin by exploring less complex problems and utilizing basic analysis tools to provide you with insights that can drive smarter decision making in a short amount of time. Alternatively, GrowthPoint can assist you in identifying underlying pain points through our Strategic Assessment process, or by taking our 3-minute Growth Evaluation.
  3. Build a data culture – Promote the value of data across your organization. Building a culture that is based on informed decision making will prime your company to evolve and drive greater return on what could possibly be one your most valuable assets – data. 

 


Michael Krzywicki, Analyst 

Michael’s financial analysis foundation is an asset to the GrowthPoint team, providing clients with in-depth, and newfound views of their unique situations. Michael works as part of the consulting team at GrowthPoint, building financial growth models, recommendations and solutions that accelerate our clients’ year-over-year revenue growth.

This blog post aligns with the themes of our Growth Evaluation; an intuitive tool which allows you to quickly uncover the areas of strength and weakness in your sales & marketing organizations. Click Here to learn more or take the Growth Evaluation. 

 

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