Keeping track of a specific market segment is one of the most important things when it comes to marketing and sales. This is because tracking the market will help you stay on the top of the trend – and will also give you an advantage in targeting specific areas of sales. Although keeping track of everything is important, knowing the exact numbers and ratio come first.
The calculation for the sales growth by market segment is simple but takes a little time to figure out every number. And the formula is quite long, as well.
Sales Growth by Market Segment Formula
The formula will sound as follows: first, subtract the value of sales acquired in the previous period on a market segment form the value of the sales acquired in the current period. You can find the latter in the same segment. Then divide the result to the value of the sales acquired in the current period for the same segment. After this, multiply the final result by 100 – and you will get a ratio.
Feeling confused? For a much simpler approach, the formula will look like this: [(Value of sales acquired in current period for a particular segment – Value of sales acquired in the previous period for the same segment) / Value of the sales acquired in the previous period for the same segment] X 100 = Sales Growth by Market Segment.
Now that we know the formula is time to know how to increase the sales by market growth. Let’s have a look below.
How to Increase Sales by Market Segment
First, you will need to define the segment in which you’re going to increase the sales in. this market segment will be much more complex. The segment may even cover part of demographic, business activity and population. Increasing sales in a certain segment or micro-segment come with its challenges – so if you’re not sure about increasing the sales there, study the market a little before engaging and taking measures.
Gather information from other companies that did well in that particular segment or micro-segment – since it is a strategy to see what can go wrong there. Gathering info is a life saver when it comes to marketing and sales, so be sure to grab a piece of paper and write down everything you can find about the other companies.
Another trick is to see what products and brands did well in the market segment – so you can do the same thing and climb up the ladder of success. However, there’s a catch: if you don’t read the customers’ feedback and disregard the information from the salespeople, then you might come up empty-handed. So be sure to do these things to be able to determine a growth potential in the market segment.
To conclude the above statements, the sales growth by market segment is a piece of calculation that you should not miss. It is like putting a bet on a market and the “playing” with your products. The sales team is the best at doing this – and if the team is highly trained, then your predictions and bets are spot on.