Finding Growth in “Highly Penetrated” Markets

Finding Growth in “Highly Penetrated” Markets 

Every sales leader has heard some variation of the following: “My territory did $10M last year, there is no way I can hit $12M (or 20% YoY growth) this year.” The problem is that most sellers only look at the all-up macro data and end up missing the growth opportunities that remain. Instead of looking at total sales by territory, market share should be broken-down by segment and industry, as well as by product. Sales leaders must provide sellers with the insight and tools needed to capitalize on these micro-market growth opportunities (e.g., whitespace analysis).

For example, breaking down market share by customer industry within a territory is an effective way to find new growth opportunities. First, you need to determine what industry is associated with each customer and customer target. Second, what percentage of market share do you have in each industry within the territory? In some industries you may have 60% while in others you may have 10%. Third, in the industries where you have low market share, how can the company’s product or service be more effectively positioned to meet industry-specific needs?

Breaking down market share by segment, industry, etc. creates a new view of the business by translating insight into targets. It also helps identify new areas of growth before the competition. Business and sales leaders then must remain flexible when allocating people and resources. While both average and macro numbers have their place, using a broad brush approach to sales planning often leads to leaving money on the table. Always ensure that your market has been fully exploited before claiming you are “highly penetrated.”

All contents copyright © 2012, Josh Lowry. All rights reserved.

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