Learning how to increase market share starts with knowing your strengths and using them to stand out. For small business owners and entrepreneurs, this isn’t just about beating the competition; it’s about building momentum, reaching more of the right people, and creating long-term success. Growing your market share can lead to better brand recognition, stronger customer loyalty, and more stability in a shifting economy.
The good news is that you don’t need a massive budget or a big team to make it happen. With a clear strategy and a focus on what your customers actually need, you can carve out more space in your industry and grow with purpose. Let’s explore easy yet effective ways to increase market share and keep your business moving forward.
What is market share?
Market share is the percentage of total sales in an industry or market that your business earns compared to the competition. It’s a way to measure how your business is performing within its space. For example, if your landscaping company brings in $100,000 in a market worth $1 million, your market share is 10%.
Tracking market share can help you see how your business stacks up, identify growth opportunities, and evaluate the impact of your marketing efforts. It also helps you understand the size of your competition and how much room there is to grow.
Market share formula
The basic formula for market share is:
Your business’s total sales ÷ Total market sales × 100
Let’s say your dog grooming business made $75,000 in sales last year, and the total market for grooming services in your city was $500,000. Your market share would be:
$75,000 ÷ $500,000 × 100 = 15%
That means your business captured 15% of the local grooming market. This gives you a great starting point for growth.
Market share examples
Let’s take a look at real-world market share statistics:
- GoDaddy (domain name services): GoDaddy manages over 82 million domains and accounts for approximately 11% of the global domain registrar market.
- Coca‑Cola (non‑alcoholic beverages): Coca‑Cola holds approximately 40% of the global non‑alcoholic beverage market.
- Netflix (subscription streaming): Netflix holds the second-largest share of the U.S. subscription streaming market, with approximately 21% market share.
- Nike (footwear and apparel): Nike commands roughly 16% of the global sportswear market.
15 strategies to increase your market share
Growing your business means finding smart, practical ways to increase market share. These strategies are designed for small business owners who want to reach more customers, improve visibility, and strengthen their position in the market.
1. Focus on customer retention
Keeping current customers happy is one of the most cost-effective ways to increase market share. It’s generally cheaper to keep a customer than acquire a new one, and loyal customers tend to spend more over time. They’re also more likely to recommend your business to others, which helps you grow market share through word-of-mouth and referrals. Simple engagement efforts can go a long way in building long-term loyalty.
Example: A boutique clothing store sends personalized thank-you notes and offers a loyalty discount after a customer’s third purchase. This keeps buyers coming back and talking about the brand to their friends, giving the store a bigger share of local shoppers.
2. Improve product or service quality
Offering consistent, high-quality products or services helps set your business apart from competitors. Quality builds trust, reduces returns or complaints, and encourages repeat business. When customers know they can count on you, they’re more likely to choose your brand over others, helping you increase market share organically.
Example: A neighborhood bakery switches to locally sourced ingredients and improves its recipe quality. As customer satisfaction increases, so do word-of-mouth referrals and foot traffic.
3. Use SEO to increase your online presence
Search engine optimization (SEO) makes your business easier to find online when people search for products or services like yours. Showing up near the top of a search results page is a proven way to gain market share, especially in competitive industries. Good SEO improves your website’s visibility and brings in traffic without having to rely solely on paid ads.
Example: A local landscaping company partners with a provider for SEO services and optimizes its site with relevant keywords, updated content, and location-based pages. As they start showing up in more local searches, they attract new clients and improve their position in the market.
4. Offer exceptional customer service
Delivering great customer service can be a major differentiator, especially in competitive spaces. Responsive, respectful, and proactive service builds brand loyalty and can lead to more repeat business. When customers feel heard and supported, they’re more likely to stick with your business and recommend it to others.
Example: A hair salon trains staff to remember regular clients' preferences and reach out with appointment reminders. Customers appreciate the personal touch, leading to more referrals and a growing client base.
5. Launch targeted marketing campaigns
Targeted marketing allows you to reach the right people with the right message. It helps businesses speak directly to the needs and behaviors of their ideal customers without unnecessarily stretching their budgets. That precision can increase market share by pulling attention away from less relevant competitors.
Example: A pet supply store uses digital marketing services to target local dog owners with social media ads for grooming kits. Because the messaging is relevant and timely, click-through rates improve, and the store sees a noticeable bump in local sales.
6. Diversify your product or service offerings
Expanding your offerings can help you attract new customers and better meet the needs of your existing customers. This strategy works especially well when you add complementary services or products that make sense in relation to what you already do. The more value you offer, the greater your chances of growing market share.
Example: A neighborhood coffee shop adds breakfast sandwiches and plant-based milk options to its menu. This draws in early commuters and customers with dietary restrictions who previously went elsewhere, giving the shop a larger piece of the morning crowd.
7. Optimize your pricing strategy
Pricing can influence buyer decisions more than you think. Offering competitive rates while maintaining profitability is a key way to gain market share, especially when your prices reflect the value you deliver. The right pricing also helps your business attract budget-conscious customers.
Example: A small electronics store reviews its product pricing strategy and adjusts rates slightly below big-box competitors for popular accessories. It also introduces bundle deals to increase sales without sacrificing profit margins.
8. Reach new customer segments
Tapping into new customer groups can unlock fresh growth potential. Think about who else could use your product or service — different age groups, industries, or lifestyle segments — and how you can position your brand to appeal to them.
Example: A mobile car detailing business begins offering services to busy parents by advertising at daycares and schools. This new focus helps them gain market share outside their usual customer base of car enthusiasts and professionals.
9. Collaborate with other businesses
Strategic partnerships let you expand your reach without increasing your advertising spend. Working with other businesses that serve a similar customer audience can help you tap into each other’s customer base and boost brand visibility.
Example: A local dog walker teams up with a pet bakery for a referral program. Customers who use one service get a discount on the other, resulting in more new leads for both and a stronger position in the local pet care market.
10. Increase brand visibility
Being more visible in your market makes it easier for customers to remember and choose you. Some common ways small businesses increase visibility are local event, club, or sport team sponsorships, donations, and maintaining an active social media presence. The more places your brand shows up, the more chances you have to enhance market share.
Example: A handmade candle business sets up a booth at seasonal farmers markets and regularly posts behind-the-scenes videos on social media. This increased visibility brings in more foot traffic to their website and helps them grow market share in their niche.
11. Invest in customer education
Teaching your customers things related to your products or services adds value and positions your business as a trusted resource. Education builds credibility, increases brand loyalty, and can make your offerings feel more essential. It’s also a way to differentiate yourself in a crowded space.
Example: A bike repair shop offers free monthly workshops on maintenance and tune-ups. Attendees become regulars, and the shop becomes known as the go-to place for repairs and advice.
12. Monitor your competitors
Keeping tabs on your competitors helps you stay proactive. You can learn from their wins and mistakes while identifying areas where you can do better. This intel helps you adjust your own offerings to stand out and capture more of the market.
Example: A local florist notices a national chain raising delivery fees. In response, they launch a free local delivery campaign and promote it heavily on social media, resulting in a jump in orders and new customer acquisition.
13. Track and adjust your strategies
Market dynamics change quickly. Regularly reviewing your performance and making smart adjustments using analytics, customer feedback, and competitor data can help you maintain momentum and grow market share more effectively.
Example: A home cleaning service monitors which promotions bring in the most new clients. After testing different ad types, they focus on social media ads with before-and-after photos, doubling new signups over the next two months.
14. Improve your break-even point
Understanding your break-even point helps you make smarter financial decisions as you grow. Lowering your costs or increasing efficiency can enable you to take more calculated risks and capture market share without putting your business at risk.
Example: A T-shirt printing shop negotiates better supplier deals and invests in faster equipment. With lower operating costs, they’re able to offer limited-time discounts that attract more customers while still turning a profit.
15. Encourage referrals and reviews
Happy customers are your best advocates. Encouraging them to share their experience can bring in new business at no extra cost. Referrals and reviews are an easy way to gain market share through trust and social proof.
Example: A family-owned HVAC business sends follow-up emails after every job with a link to leave a Google review and a $25 referral bonus. Over time, this leads to more visibility online and steady growth through personal recommendations.
Use market share as a metric for growth
You don’t need extensive resources to increase market share. From improving your online presence to building stronger relationships, small changes can create big opportunities for growth. Keep testing, learning, and refining your strategy as your business evolves.
Ready to take action? Explore GoDaddy’s digital marketing services and SEO services to help your business reach more people.
