Market Share¶

Definition¶

Market Share is the percentage of total sales or revenue in a specific market or industry that a company captures over a given period. It represents a company's relative size and influence compared to competitors.

Description¶

Market Share is a key indicator of competitive strength and category influence, reflecting how your revenue or customer base compares to total industry volume. It helps gauge where you stand—and where you're gaining (or losing) ground.

The meaning shifts by market dynamics:

In B2B SaaS, it reflects penetration within a niche or vertical
In DTC, it may relate to retail vs. direct channel mix
In platform or mobile apps, it measures user base vs. competitors

A rising share suggests brand strength or disruptive strategy, while a decline may point to competitive pressure or missed trends. By segmenting by region, product line, or customer profile, you can uncover growth opportunities, focus areas, and positioning gaps.

Market Share informs:

Strategic decisions, like market entry, pricing adjustments, or product pivots
Tactical actions, such as response to competitor launches or demand shifts
Operational improvements, including SKU prioritization or regional GTM focus
Cross-functional alignment, uniting leadership, product, and GTM teams to capture share and influence

Key Drivers¶

These are the main factors that directly impact the metric. Understanding these lets you know what levers you can pull to improve the outcome

Customer Acquisition Velocity vs. Competitors: Gaining or losing share depends on how fast you’re growing relative to others.
Brand Awareness and Category Differentiation: Strong brands pull more inbound. Weak positioning makes you invisible.
Geographic or Vertical Penetration: Dominating a niche segment can drive significant share before expanding horizontally.

Improvement Tactics & Quick Wins¶

Actionable ideas to optimize this KPI, from fast, low-effort wins to strategic initiatives that drive measurable impact.

If share is stagnant, focus campaigns on under-penetrated verticals or geos where you already have product fit.
Add comparison pages or switching stories to convert from competitors more easily.
Run a PR push or analyst outreach to boost share of voice in key categories.
Refine ICP targeting in outbound and intent-based campaigns to win faster against the field.
Partner with product to localize or verticalize features that can unlock new market share pockets.

Required Datapoints to calculate the metric
- Your Company’s Revenue or Sales: Total revenue or unit sales in the market during the specific period.
- Total Market Revenue or Sales: The aggregate revenue or unit sales of all competitors in the same market during the period.
- Timeframe: The period over which market share is measured (e.g., monthly, quarterly, annually).
Example to show how the metric is derived

A car manufacturer captures $50 billion in sales in a market worth $500 billion annually. Their market share is calculated as:
- Market Share = ($50B / $500B) × 100 = 10%
- To increase market share, the company launches a new affordable electric vehicle targeting younger buyers. After a year, their market share rises to 12%.

Formula¶

Formula

\[ \mathrm{Market\ Share} = \left( \frac{\mathrm{Your\ Company\ Revenue\ or\ Sales}}{\mathrm{Total\ Market\ Revenue\ or\ Sales}} \right) \times 100 \]

Data Model Definition¶

How this KPI is structured in Cube.js, including its key measures, dimensions, and calculation logic for consistent reporting.

CompanyRevenueMarketRevenueMarketShare

cube(`CompanyRevenue`, {
  sql: `SELECT * FROM company_revenue`,
  measures: {
    companyRevenue: {
      sql: `revenue`,
      type: `sum`,
      title: `Your Company’s Revenue`,
      description: `Total revenue of your company in the market during the specific period.`
    }
  },
  dimensions: {
    id: {
      sql: `id`,
      type: `number`,
      primaryKey: true
    },
    timeframe: {
      sql: `timeframe`,
      type: `time`,
      title: `Timeframe`,
      description: `The period over which market share is measured.`
    }
  }
})

cube(`MarketRevenue`, {
  sql: `SELECT * FROM market_revenue`,
  measures: {
    totalMarketRevenue: {
      sql: `revenue`,
      type: `sum`,
      title: `Total Market Revenue`,
      description: `The aggregate revenue of all competitors in the same market during the period.`
    }
  },
  dimensions: {
    id: {
      sql: `id`,
      type: `number`,
      primaryKey: true
    },
    timeframe: {
      sql: `timeframe`,
      type: `time`,
      title: `Timeframe`,
      description: `The period over which market share is measured.`
    }
  }
})

cube(`MarketShare`, {
  sql: `SELECT * FROM market_share`,
  joins: {
    CompanyRevenue: {
      relationship: `belongsTo`,
      sql: `${CUBE}.company_revenue_id = ${CompanyRevenue}.id`
    },
    MarketRevenue: {
      relationship: `belongsTo`,
      sql: `${CUBE}.market_revenue_id = ${MarketRevenue}.id`
    }
  },
  measures: {
    marketShare: {
      sql: `${CompanyRevenue.companyRevenue} / NULLIF(${MarketRevenue.totalMarketRevenue}, 0)`,
      type: `number`,
      title: `Market Share`,
      description: `The percentage of total sales or revenue in a specific market that a company captures over a given period.`
    }
  },
  dimensions: {
    id: {
      sql: `id`,
      type: `number`,
      primaryKey: true
    },
    timeframe: {
      sql: `${CompanyRevenue.timeframe}`,
      type: `time`,
      title: `Timeframe`,
      description: `The period over which market share is measured.`
    }
  }
})

Note: This is a reference implementation and should be used as a starting point. You’ll need to adapt it to match your own data model and schema

Positive & Negative Influences¶

Negative influences

Factors that drive the metric in an undesirable direction, often signaling risk or decline.
- Customer Churn Rate: High churn rates can decrease market share as existing customers leave, reducing the company's sales volume relative to competitors.
- Price Competitiveness: If a company's pricing is not competitive, it can lose market share to competitors offering better value for money.
- Product Quality Issues: Frequent product defects or quality issues can lead to customer dissatisfaction and a decline in market share.
- Supply Chain Disruptions: Inability to meet demand due to supply chain issues can result in lost sales and reduced market share.
- Negative Brand Perception: Poor brand reputation can deter potential customers, leading to a decrease in market share.
Positive influences

Factors that push the metric in a favorable direction, supporting growth or improvement.
- Customer Acquisition Velocity vs. Competitors: Faster acquisition of new customers compared to competitors can increase market share by expanding the customer base.
- Brand Awareness and Category Differentiation: Strong brand recognition and clear differentiation can attract more customers, boosting market share.
- Geographic or Vertical Penetration: Dominating a specific geographic area or industry vertical can significantly increase market share within that segment.
- Product Innovation: Introducing innovative products can attract new customers and increase market share by differentiating from competitors.
- Customer Loyalty Programs: Effective loyalty programs can enhance customer retention and increase market share by encouraging repeat purchases.

Involved Roles & Activities¶

Involved Roles

These roles are typically responsible for implementing or monitoring this KPI:

Executive
Marketing
Product Marketing (PMM)
Activities

Common initiatives or actions associated with this KPI:

Brand Positioning
Lead and Demand Generation
Competitive Benchmarking

Funnel Stage & Type¶

AAARRR Funnel Stage

This KPI is associated with the following stages in the AAARRR (Pirate Metrics) funnel:

Revenue
Acquisition
Type

This KPI is classified as a Lagging Indicator. It reflects the results of past actions or behaviors and is used to validate performance or assess the impact of previous strategies.

Supporting Leading & Lagging Metrics¶

Leading

These leading indicators influence this KPI and act as early signals that forecast future changes in this KPI.
- Product Qualified Leads: Product Qualified Leads (PQLs) are a strong early indicator of future sales momentum and customer acquisition, enabling forecasting of future increases or decreases in Market Share since higher PQLs typically convert to new customers and revenue.
- Monthly Active Users: Growth in Monthly Active Users signals increased product adoption and market penetration, often preceding gains in Market Share as a larger active user base reflects a growing share of the addressable market.
- Win Rate: A higher Win Rate in sales deals directly forecasts future revenue wins against competitors, acting as a leading predictor of Market Share gains by signaling improved competitive performance.
- Activation Rate: A rising Activation Rate shows more users are experiencing value and are likely to convert to paying customers, supporting future Market Share growth as more activated users typically translate into retained and monetized customers.
- Brand Awareness: Increased Brand Awareness in target markets is a critical leading indicator of future demand generation and customer acquisition, which ultimately translates into higher Market Share as brand recognition drives preference and purchase intent.
Lagging

These lagging indicators confirm, quantify, or amplify this KPI and help explain the broader business impact on this KPI after the fact.
- Revenue Growth: Revenue Growth quantifies realized business expansion and, when compared to market peers, directly explains recent changes in Market Share as faster revenue growth than competitors means Market Share is increasing.
- Customer Churn Rate: Customer Churn Rate helps confirm and quantify Market Share losses by showing what proportion of the customer base is being lost to competitors, thus validating decreases in share after the fact.
- Net Revenue Retention: Net Revenue Retention (NRR) amplifies Market Share trends by reflecting not just retention but also expansion/contraction within the base, explaining overall Market Share impact from both churn and upsell/cross-sell.
- Contract Renewal Rate: High Contract Renewal Rates confirm strong customer loyalty and retention, supporting Market Share stability or growth after the fact by showing existing customers stay, reducing share loss to competitors.
- Share of Voice vs. Competitors (By Channel): Share of Voice by Channel confirms and quantifies market presence relative to competitors, helping explain Market Share changes by showing shifts in brand or product visibility across key channels.