Market Share: Yours for the Taking
For many businesses locally (and nationally), the climate being created by inflationary pressures, housing prices, interest rates, and available labor market, is creating a large and sudden decline in their company’s revenue; a decline that could create opportunities for competitors to scoop up Market Share.
Why:
As conditions move from boom to doom for many businesses, they will begin to experience the inevitable panic that these types of swings bring. They’ll be asking: Are we going to be okay? What happens if revenue does not continue to increase? Are we going to have to let anyone go?
As these questions surface, management teams will inevitably start looking for costs to cut, line items to delete, and ways to save their salaries.
This contradiction— looking for ways to just simply survive rather than explore ways to continue growth through a rough business climate— almost always starts with cutting Sales and Marketing departments. The decision to cut marketing costs and downsize sales forces will inevitably shrink the exact thing businesses need: Revenue.
As revenues decline, businesses are forced to take another hard look at cuts. With the low hanging fruit already gone, companies will need to make harder decisions.
How:
The opportunity for an upcoming competitor lies in the space created for them by the shrinking brand awareness and lack of lead-generating activities of the company making cuts. To grow your own market share, you can essentially move into the gap created by their absence. I say “essentially” as there is a little extra work needed to get there.
To take advantage of this opportunity and ensure its success, we recommend you do 3 things before looking to fill the void.
- Strengthen Your Brand
Moving buyers to your camp relies on having a very strong brand that resonates with them. It’s not enough to say who you are and have your company values on your website. Your brand is much, much more than just a logo and a slogan. You need to walk the walk you talk. Then, focus on the marketing and sales activities that reinforce who you are as a company and
what’s important to you. - Double down on your Target Market
Many businesses make the mistake of trying to market to “everyone,” but the real power lies in zeroing in on your target market. By becoming hyper-focused, you not only save money on advertising but also attract the right prospects who are more likely to self-qualify before they even reach out to you (we know this reaction as, “Hey, it sounds like they’re talking about me!”).
Take the time to dive deep into demographic details like the geographic location, age and income of your audience, and don’t overlook psychographic information. Understanding the psychological reasons why clients choose you—often rooted in the emotional challenges you help solve—can make your marketing efforts far more effective. - Get Creative
Lastly, you need to get creative. Stepping into a Brand Awareness and Lead Generation void left by a competitor does not mean you do exactly what they did. Spend some time considering what you do better and how to give voice to that. Identify your advantage in the market and really press that advantage. Look for ways to be visually different. Use highly emotional content to get attention and make sure that the problem you are solving is somehow important to the viewers’ survival.
This is not a short-term play, although it may have some immediate gain. You should be planning an overall marketing and sales strategy to garner your competitor’s market share that spans 12 to 18 months.
As always, it’s important to set clear milestones and metrics, and to define your goals up front. Monitor your channels and campaigns at least monthly, and if any activities aren’t delivering results within 90-120 days, it’s time to move on.
As a newcomer, smaller company, or rising star, you only get so many opportunities to take large pieces of market share away from the established 20-year hometown competitor. Don’t miss this one.