Mind Share vs Market Share: Which Is Better For Your Business?
Mind share is a term (a business philosophy really) I've been talking about for the past few years. I dedicated a section of my book to mind share but also want to use this platform to talk about, what I believe, is one of the most important things to consider when building your reputation and business.
Most business people are familiar with a term “market share,” but it’s rare I come across someone forward-thinking enough to think about what I like to call, “mind share.”
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I'll be honest. When one of my friends or family members has a question about business, I want them to think about coming to me first. I want them to immediately ask, “oh, I wonder if Ellory knows the answer to this question…”
That's mind share.
When someone's first thought is about whether or not you have the solution, you've won. If that person is a client or a prospect, you've earned their mind share and you've successfully integrated yourself into the very fabric of their thought processes.
Forget about market share, mind share is what you need! But let's back up for a quick minute.
What is Market Share?
Market share is the percentage of total money your clients and customers spend with you versus with your competitors.
For example, if you have $10, and you choose to spend 3 of them at Walmart, then Walmart has a 30% market share. Using the same analogy on a larger scale, if there are a million people and 300,000 of them regularly get their products from Walmart, then Walmart has a 30% share of the local market.
While this math is fine for some companies, it shouldn’t be fine for you. Yes, having thirty cents of every dollar spent with your business would be nice, but that’s not what we’re going for.
If you want to build a business and think like a savvy entrepreneur, think about mind share instead of market share.
What is Mind Share?
Mind share is the percentage of time your clients and prospective clients spend thinking about you or your business as a means of alleviating their pain or meeting their needs.
For example, where electronics are concerned, Best Buy has almost a 100% mind share for my household (though Amazon's Prime Now service is making a solid case).
Whenever we need something electronic, nearly 100% of the time, we think about going to Best Buy to get it. It doesn’t matter if they have the product or not, there’s a good chance I’m going to bestbuy.com to at least see if they offer it.
One example of a high mindshare business could be your family doctor who you’d never leave and always call first for advice.
Another example could be the reliable mechanic who has never let you down and has always been able to fix your vehicles. You simply wouldn’t trust anyone else. Even if your doctor and mechanic can’t fix your issue, they know who can and are able to make a reliable referral.
When you can get to that point in your business, where you’ve inserted yourself into the daily routines of the lives of your clients, you’ve won.
Think achieving mind share is impossible?
How to Build Mind Share
Earning mind share is done one client at a time. It’s achieved by offering the best information possible, even if that information doesn’t lead to a sale, or, that information leads to a sale for someone else.
When you become a trusted advisor to your customers and clients, they’ll come to you first, even if they aren’t sure if you can help them.
Establishing a reputation as a trusted advisor was one of the strategies that contributed to my incredible success during my time at Dell. My customers knew I’d give them an honest answer every time, even if it didn’t help me.
Being honest and focusing on growing my mind share with my customers helped me exceed my quota year over year, and generate somewhere around $60 million in revenue.
If you treat your customers the same way, you’ll earn their mind share. They’ll keep coming to you as their source for information, and they'll keep coming back to spend money.
As you begin to plan how you’re going to market your business, always keep in mind how you can increase your mind share with your customers.
If you sell cars, share information relevant to the types of tires, windshield wipers, or motor oil your clients may need. If you sell sports equipment, consider reviewing popular local or travel destinations your customers could visit and use the gear they bought from you.
Build a network of partners you can rely on when your clients come to you for trustworthy information. Ask yourself, “What else will my clients need?” and begin building your extended team to help you answer the question.
What company has your mind share? Why?