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Household penetration definition

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Market penetration is a crucial indicator as to whether your marketing and sales strategies are working.

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Market penetration is the percentage of identified potential customers you have acquired. Not meeting the desired penetration rate could be a strategic issue in marketing or sales, or it could be that you need to take the time with market development to expand the potential consumer base. Here's how Household penetration definition determine your penetration rate.

Household penetration definition penetration rate is easy to calculate if you know your target market size. To calculate the penetration rate, divide the number of customers you have by the size of the target market and then multiply the result by For example, if you sell auto insurance in a small town that has 25, licensed drivers and your book of business has 1, drivers, your company's penetration rate is 4. The target market should be defined before any marketing campaign.

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In the auto insurance example, while there are 25, licensed drivers, you may only want drivers with a good driving record that have no tickets or accidents. By filtering your research, you can refine marketing efforts.


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