How Numbers Guide Market Strategy

Marketers are known as the creative, personable types. They are the people who put together ads, brochures and other catchy creative pieces. They plan events and have a supply of branded giveaways. However, most people don’t realize that marketers are also numbers people. Numbers and data are the foundation of solid market strategy. From analyzing your client base to digging into your pipeline of opportunities to understanding your market share, these figures hold opportunities for growth. Numbers make great baseline data from which you can measure success, but they also illuminate future strategy.

Market Share

Does it make more sense to focus your efforts on City A or City B? Should you push Industry Y or Industry Z? While there are a lot of factors to consider, marketers want to know the potential for revenue. Let’s assume that City A and City B have a similarly sized market. If you have 50 percent of all business in City A and only 4 percent of the potential business in City B, where should you spend your time? The numbers tell you that you have the most potential in City B. Now, things are not always that simple, but strategic decisions are easier when you take the time to calculate market share. Once you have the overall big picture, take your calculations a bit deeper. Break it down by industry within geographies or within sub-segments of an industry or by any numerous data combination. Use this data to then develop a list of prospects to target.

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Building Niches to Drive Revenue

If obtaining new clients is a top area of focus for your firm, you’re not alone.

According to the 2015 PCPS CPA Firm Top Issues Survey, bringing in new clients is an issue for firms of all sizes. As firms look for sources of new revenue, many consider strategies successfully implemented by other firms. And the formation of niches – industry or service line specialties – is a tactic at the top of the list.

Implementing a niche strategy is one way firms can differentiate themselves from their competition. While it’s difficult for one firm to claim it does better work than the CPA firm down the street, it can say it has an area of expertise the competition doesn’t. Firms with niches bring something extra to the businesses they serve. They can translate sound experience into better advice; hence, specialization demands a higher fee than compliance work.

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