Determine market penetration


Market Penetration calculates market penetration based on the number of customers within an area compared to a demographic variable such as total population.

Input Prerequisites

Customer data is required to adequately determine the market penetration.

Example Output

In the image below, customers and the values tied to each customer (such as dollars spent) are analyzed across an entire market and locally in each geographic boundary. This allows you to determine how well you are penetrating an area compared to other areas.

Market Penetration

Here are some observations for you to note: Area A and Area B both have high penetration rates (above 10% of the market); however, the customer base located in each is different. Area A contains 145 customers (nearly 19%) while Area B contains only two which is less than 1%. Although the penetration is high, there aren't many customers for which to market. High concentrations of customers in a given area don't always equal high sales. Market penetration helps identify how well each area is performing based on a customer value.

Market penetration rates

The columns and numbers they contain in the image above are described below:

Learn more about Market Penetration.