Businesses and organizations can increase their market share in a variety of ways – namely through innovation, demonstrating flexibility, and strengthening relationships with their customers. Enabling your business to benefit from an increased percentage of overall market share puts you at a competitive advantage within your industry.
For vehicle and equipment dealerships, increasing market share is closely linked to not only your businesses ability to engage with and communicate with its customer base, but how easy and accommodating it can make the purchasing process. When companies make buying easy, customers will be hard-pressed to shop elsewhere. One effective way to do this is through financing programs.
Market Share 101
In a nutshell, market share is the percentage on an entire industry or markets total sales that one particular business or organization is able to earn in a specific amount of time. It’s calculated by dividing your business’s total sales by the industry’s total sales during the same time period. Market share is used to provide companies with an accurate picture of how they stack up against their competition in the marketplace.
It’s important for businesses to take stock of their market share because it can signal increases and decreases in efficiency, effectiveness of your current marketing and execution processes, as well as measures how competitive your business is. Market Share can be increased by some pretty simple means – it’s all about listening to customer ideas, staying up-to-date, and openly communicating with your preferred customer base. On top of everything else, adopting new principles and remaining flexible is key to increasing market share – being the preferred business within your market means opting for openness and adaptability.
A crucial principle behind increasing your market share is through spotting new trends ahead of your competition. Keeping an ear to the ground in your marketplace, and having the foresight to act on new and emerging conversations and technologies can very well change your industry as a whole. Consider how Spotify and other streaming music services nullified the retail music industry, or how Netflix effectively ended the video rental market.
Keep an open channel for intercepting the ideas of your customers. They contribute valuable insight to how they’d like to be treated by a dealership, what makes things easy for them, and incentives they’d like to see implemented. One of these ideas may be the next big thing for your business. Further, respond to them quickly. Communication is two-way street, so instead of getting back to them the next day, go out of your way to respond to customers as quickly as possible – because people are inclined to do business with whomever reaches them first. If you don’t, your competition surely will.
Be flexible. Both to your employees and customers. Market share grows when company policies, programs, and ideas can flow freely. Offering flexibility in how people can conduct business and make purchases can help businesses gain serious ground in terms of how they’ve perceived by the market.
Financing is Attractive to Buyers
Being able to give your customers financial options, and demonstrating transparency and openness to new payment structures is a great way to increase perceived advantages over your competition.
Opening the doors to new customers who could only make a purchase with the assistance of a financing plan not only increases your potential client base, but gives those buyer’s incentive to further investigate the benefits of doing business with your firm. Financing is appealing to buyers because it allows them to tailor a plan to their own unique situation – and a business that’s invested in being able to make that happen scores an ‘A’ on the customer report card.
Keeping your eye on new emerging financing trends is a great way to begin implementing a reliable financing program that serves both your business and your customers.
Make your financing plans accessible. Investigate innovative ways to help your customers pay – like self-serve mobile payments apps, e-cheques, and automated phone payment channels. The likelihood that payments will be received on time greatly increases when payments are visible and accessible. Convenience plays a large role here as well. While innovation may come with a pricetag for your business, its ability to positively impact your market share will more than offset the costs of convenience.