What Is an Industry Analysis and Why Your Business Needs One
As a business, you want to reach and sell to as many customers as possible. The problem is that it takes resources to connect with prospects and potential customers. Your company only has a limited amount of those resources, which means you have to make decisions about who to target with your marketing and sales efforts, because you can’t target everyone.
The key is to go after those people who are most likely to work with you, and who have the potential to produce the most value for your business. That’s where an industry analysis comes in.
What is an industry analysis? The basics
At Zintoro, we conduct your industry analysis by looking at Standard Industrial Classification (SIC) codes that are represented in your company’s existing customer list. SIC codes essentially tell you which industry a particular company is in. By analyzing the customer count, sales volume, revenue, number of potential customers, and other metrics for every industry SIC code in your list, you can understand the market potential for each segment of your customer base.
Knowing which segments of your existing and potential customers produce the most value for your company will help you recognize which industries have the best revenue potential. Armed with this information, you’ll understand how much value different customers and segments of customers can produce for your company, which can inform your decisions on which new prospects to target. You can then focus your time and resources on increasing your market share in the industries with the most potential.
How to take advantage of an industry analysis
In order to gain the most value from an industry analysis, you have to understand which industries are represented in your current customer list and how valuable each of those industries is to your company. This analysis will determine your marketing strategy and help you place your resources where they are most likely to benefit your business.
Once you know which industries you should be targeting, you can then tailor your sales and marketing messaging to match those industries. For example, if you sell excavators and find out that the majority of your current customers exclusively handle demolition jobs, then you can target more demolition companies by highlighting the aspects of your products that are most useful to them.
By focusing on your company’s target industries, you’ll waste fewer resources and be much more successful in growing your customer base and increasing sales.
Want to better understand your customer base and achieve stronger growth? Contact Zintoro for an industry analysis today!