Analysing Your Current Data
Before you begin looking for other market segments it is a good idea to first look at what markets you are currently serving. This is done by analysing your current customer or sales data.
If you are an existing business that has been trading for a number of years, then it is a useful exercise to look at this data to see which of the markets that you serve offer the most value to you.
For instance, you may uncover that you currently serve 3 major segments of your market, with a 60, 30, 10 per cent split. You may find that the latter segment (10%) is one that you are currently spending most time and resources on. Likewise, you may find that the segment currently providing you with 30% of your customers is a fast-growing market, and so if you were to focus more time and resources on this market instead it would quickly increase both sales and profits.
Without analysing your current customer or sales data and researching market data such as industry market reports (growth rates, trends, and drivers), you are at risk of missing out on ‘low hanging fruit’ and an opportunity to easily increase your sales performance.
By completing this exercise, you will begin to build a picture of what markets you are operating in, which are taking up most of your time and resources, and which appear to be most beneficial to you. In the following articles we will look at using the information you have identfied here to research the growth rates (CAGR) of these markets so we can use them as a benchmark as we look to increase company performance.