Imagine this scenario: You’re a strategic planner for a healthcare organization and you discover that your facility has gained market share in your service area. Excited, you put the trended market share into a colorful graph and show it to your executive team.
“Great!” they say, “But, so what?”
Wait, isn’t increased market share desirable? It certainly is, but it also only tells part of the story. In order to gain true strategic insight, you must look at multiple data points. And to do that effectively, you must have access to the right software.
Addressing Market Data Holistically
Noticing one area of growth is certainly a great sign, but to make it share-worthy, you need to dig deeper. Furthermore, to create a strategy for building on that growth, you must use data available all around you.
In the case of this example, market share growth could lead to different conclusions, a few of which may be:
- If your volume increased at a greater rate than total market volume increased, this means your increase in market share reflects the fact that your growth outpaced market growth. So, not only is there more market demand, but you are capturing more of it.
- If total market volume decreased at a greater rate than your volume decreased, you would still see an increase in market share, but only because your volume loss was not as severe as total market volume loss.
- If you see that your absolute volume has held steady, but that total market volume has dropped (meaning that your market share has increased, but only because the total market has fallen), then maybe you need to brace for an impending drop in demand.
Without looking at all the angles, you’ll miss the full story. And that could lead to a strategic mistake.
The Importance of Software in Finding and Displaying the Right Data
Once you realize you need robust data, it can be difficult to find. Visiting more than one spreadsheet, contacting several analysts, or digging through more than one database is a discouraging process, not to mention ripe with the potential for error.
Luckily, the right software tool can streamline things by housing all your critical market data in one location. Having a tool specifically designed to streamline the process of accessing a holistic market picture will allow for easier organization-wide alignment around your intelligence and create space for the development of a cohesive strategy. You will also have the time you need to focus on next step initiatives that you determine are necessary based on the insights you uncover.
While it can be exciting to focus on data that highlights apparent growth trends, without a complete picture of what’s really happening, your enthusiasm could be misguided. The most natural and efficient way to access multiple data sets in one place is with a tool that can easily show a big-picture overview of your organization’s market standing.
Additionally, without a software tool that can house all your critical market data in one location, your work will be disjointed and you may face challenges in keeping your whole team up-to-date. Consider onboarding the right software tool that can keep up with your data analysis needs.