Post by alicebapary717 on Feb 15, 2024 7:16:15 GMT
Increase sales thanks to current customers and adjust further marketing activities. In the article, we will tell you how to calculate and apply indicators. What is penetration? Why define it? Trade penetration determines the share of your goods from the total purchase volume of one buyer. The higher the value, the more space your product takes up in the cart. penetration formula The metric is calculated for: determining the needs and capabilities of the target audience; expanding the current assortment and increasing the average check; forecasting and planning; evaluation of the results of marketing activities.
It is important to distinguish! Penetration shows the percentage of specific goods that can be calculated even for 1 buyer. Market share is a more global concept. It indicates the percentage of the company's total revenue in its industry. penetration formula Read Poland Email List also : Top 10 services that will help to return the client and increase the conversion of the online store How to collect data for analysis and calculate penetration? The calculation requires the quantitative indicators of the basket within one customer: divide the goods of one brand (company) by the total and multiply by 100%. Goods can be measured in pieces, kilograms, liters and other quantities. The true way to get information is to survey the target audience. It is done independently or the service is ordered from an agency.
During the survey, it is necessary to take care of impartiality. Buyers should not know which brand is collecting the metrics to avoid error. For a general idea, you can also use the statistical data of marketplaces, retail networks, etc. This will allow you to assess current trends and general trends in your industry, but it is impossible to know the exact figure this way. Read also : Which Ukrainian companies entered the international market during the war? — Forbes research Which businesses need to calculate penetration? The indicator is important for companies that want to know the level of penetration in a certain trade segment. Calculations will be especially useful for essential and widely used goods. This includes food products, household chemicals, stationery, medicines, personal hygiene products, clothes and cosmetics of the "mass market" segment.
It is important to distinguish! Penetration shows the percentage of specific goods that can be calculated even for 1 buyer. Market share is a more global concept. It indicates the percentage of the company's total revenue in its industry. penetration formula Read Poland Email List also : Top 10 services that will help to return the client and increase the conversion of the online store How to collect data for analysis and calculate penetration? The calculation requires the quantitative indicators of the basket within one customer: divide the goods of one brand (company) by the total and multiply by 100%. Goods can be measured in pieces, kilograms, liters and other quantities. The true way to get information is to survey the target audience. It is done independently or the service is ordered from an agency.
During the survey, it is necessary to take care of impartiality. Buyers should not know which brand is collecting the metrics to avoid error. For a general idea, you can also use the statistical data of marketplaces, retail networks, etc. This will allow you to assess current trends and general trends in your industry, but it is impossible to know the exact figure this way. Read also : Which Ukrainian companies entered the international market during the war? — Forbes research Which businesses need to calculate penetration? The indicator is important for companies that want to know the level of penetration in a certain trade segment. Calculations will be especially useful for essential and widely used goods. This includes food products, household chemicals, stationery, medicines, personal hygiene products, clothes and cosmetics of the "mass market" segment.