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Market penetration is a crucial indicator as to whether your marketing and sales strategies are working. Market penetration is the percentage of identified potential customers you have acquired.
Not meeting the desired penetration rate could be a strategic issue in marketing or sales, or it could be that Household penetration definition need to take the time with market development to expand the potential consumer base. Here's how you determine your penetration rate.
The penetration rate is easy to calculate if you know your target market size. To calculate the Household penetration definition rate, divide the number of customers you have by the size of the target market and then multiply the result by For example, if you sell auto insurance in a small town that has 25, licensed drivers and your book of business has 1, drivers, your company's penetration rate is 4.
The target market should be defined before any marketing campaign. In the auto Household penetration definition example, while there are 25, licensed drivers, you may only want drivers with a good driving record that have no tickets or accidents.
By filtering your research, you can refine marketing efforts.
There may only be 12, drivers in the town meeting your requirements. This increases the penetration rate of your desired target market to 10 percent.
Defining your market requires looking at demographic data and identifying your ideal prospects. You probably aren't going Household penetration definition sell tree-trimming services to people living in apartments, so marketing to them is a waste of time and money.
Instead, you identify homeowners in a designated area to see how big the market is. Most large industries have national averages for penetration rates.
Compare your results to averages to see if you are meeting or exceeding your competitors' Household penetration definition. Your local chamber of commerce or Small Business Administration office can help you with smaller geographic data you can use to determine how successful you are.