Must-Know Market Share Metrics

Highlights: Market Share Metrics

  • 1. Market Share Percentage
  • 2. Relative Market Share
  • 3. Market Share Growth
  • 4. Market Share by Volume
  • 5. Market Share by Revenue
  • 6. Market Segment Share
  • 7. Market Share of Customer Wallet
  • 8. Market Penetration Rate
  • 9. Share of Voice (SOV)
  • 10. Brand Share

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In today’s fast-paced business landscape, understanding market share metrics is more critical than ever. As competition continues to grow fiercer, companies must be armed with the knowledge of their standing within the specific industry, and the ability to not only maintain but actively grow their market share.

This blog post delves into the vital topic of market share metrics, examining their significance, best practices for measuring and analyzing them, along with actionable insights for improvement. Let’s embark on an eye-opening journey into the world of market share metrics, empowering your business to strategize, adapt, and ultimately thrive in the relentless game of market domination

Market Share Metrics You Should Know

1. Market Share Percentage

This metric shows the proportion of a company’s total sales relative to the total sales of the specific market or industry it operates in. It is calculated by dividing a company’s sales by the total sales of the market, then multiplying the result by 100.

2. Relative Market Share

This metric compares a company’s market share to that of its closest competitor. It is calculated by dividing a company’s sales by the sales of the closest competitor, with a larger ratio indicating a stronger market position.

3. Market Share Growth

This metric measures the change in a company’s market share over a specific period of time. It can be calculated by comparing the difference in market share between two periods and dividing the result by the initial market share.

4. Market Share by Volume

This metric measures a company’s market share in terms of the total number of units sold compared to the total units sold by the market. It is calculated by dividing a company’s unit sales by the total unit sales of the industry or market.

5. Market Share by Revenue

Market share by revenue is a measure of a company’s total revenue compared to the revenue generated by the entire market. It can be calculated by dividing a company’s revenue by the total revenue of the industry or market.

6. Market Segment Share

This metric measures a company’s market share within a specific market segment or sub-category. It is calculated by dividing a company’s sales in that specific segment by the total sales in that segment for all companies.

7. Market Share of Customer Wallet

This metric assesses a company’s share of its target customer’s spending in a specific market or industry. It is calculated by dividing a company’s revenue from the target customer group by the total spending of that customer group in the market.

8. Market Penetration Rate

This metric measures the percentage of potential customers that a company has reached within a specific market. It is calculated by dividing the total number of customers served by the company by the total number of potential customers in that market, then multiplying the result by 100.

9. Share of Voice (SOV)

This metric indicates the proportion of a company’s advertising and promotional activities compared to the total advertising and promotional activities within the market. It is calculated by dividing a company’s advertising spend or publicity by the total advertising spend or publicity of the industry or market.

10. Brand Share

Brand share measures the percentage of sales or revenue attributable to a specific brand within a company’s portfolio, as compared to the overall market. It helps to determine the relative strength of various brands within the market.

Market Share Metrics Explained

Market share metrics are crucial for businesses to understand their position within an industry, as well as how they perform compared to competitors. Market share percentages reveal a company’s contribution to the overall sales within the industry, providing insight into their dominance in the market. Relative market share, on the other hand, compares a company’s market share to its closest competitor, offering a clearer view of competitive positioning. Market share growth tracks changes in a company’s position over time, while market share by volume and revenue measure the company’s share in terms of units sold and generated revenue, respectively.

Market segment share assesses a company’s presence within specific niche markets, and the market share of the customer wallet evaluates a business’s share of target customers’ spending in the industry. Market penetration rate quantifies the proportion of potential customers reached by the company, while the share of voice (SOV) showcases a company’s advertising and promotional exposure. Lastly, brand share ascertains the relative strength of various brands within a market, providing valuable information for portfolio management and marketing strategies.


In closing, market share metrics provide crucial insights for businesses looking to maintain a competitive edge and gauge their success within the industry landscape. By examining data and trends, companies can identify areas of strengths, weaknesses, and opportunities for growth, while also informing strategic planning and decision-making processes.

In an ever-evolving global market, it is essential for businesses to prioritize understanding their market share to ensure they remain adaptable, impactful, and ultimately, successful.



What is market share and why is it important for businesses to track this metric?

Market share is the percentage of a company's total sales within a specific market in relation to its competitors. Tracking market share is important because it helps businesses understand their position within the market, identify areas for growth or improvement, and evaluate the effectiveness of marketing campaigns and strategies. It also allows companies to gauge their competitive advantage and business performance over time.

Which are the key market share metrics that businesses should monitor?

The key market share metrics businesses should monitor are dollar market share (total sales divided by total market sales in dollars), unit market share (the number of units sold by a company divided by the total number of units sold in the market), relative market share (a company's market share as a proportion of its largest competitor's market share), and market share growth (the change in a company's market share performance over a period of time).

How can businesses calculate their market share?

To calculate market share, businesses can use the following formula (Company’s Sales Revenue / Total Sales Revenue of the Market) x 100. This formula computes the percentage of the company's sales related to the entire market sales. Companies can obtain their sales revenue from their financial records, while total market sales revenue can be collected from industry reports, market research, or governmental data sources.

What strategies can businesses implement to increase their market share?

Strategies for increasing market share include offering competitive pricing or promotions, improving product quality or variety, investing in marketing and advertising, expanding sales channels or distribution networks, enhancing customer service, targeting new customer segments or markets, and conducting market research to identify opportunities in the market.

Can a company's market share decline, and what are the possible reasons for such a decline?

Yes, a company's market share can decline due to various factors, such as increased competition, changes in consumer preferences or needs, market saturation, economic downturns, ineffective marketing or pricing strategies, supply chain disruptions, or company-specific issues like mismanagement, product recalls, or negative publicity. It is essential to regularly monitor market share metrics and develop strategies to address these challenges and maintain a competitive edge in the market.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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