By Danny Gavin, AEM Communications Coordinator —
Members that participate in AEM Market Share Statistics gain access to the most comprehensive and proprietary reporting programs, as well as timely and accurate market data for the equipment manufacturing industry. But learning how to make the most of that data, and how to best leverage it for key decision-making, is up to each individual participant.
Hargrove Association Insights (HAI) Vice President and COO Todd Snell explains that many AEM members are unaware of just how far industry data can take them. During his presentation at the recent AEM Market Share Statistics Conference, Snell outlined the many ways that data-driven insights can be used to stay ahead of industry trends, and why it’s necessary to constantly monitor industry data.
“When managers monitor sales progress within their own company data, they may feel overly confident in their sales growth,” said Snell. “But company data without industry context can be misleading. You might think you’re growing, but the market is growing at a faster pace, or you are flat while the market is shrinking. Always judge your trajectory against the context of the aggregate industry when preparing for the future.”
Data: Driving Critical Insights
As manufacturers look to the future, they can compile an idea of what is to come by using business intelligence tools, referencing past sales data, and analyzing market share data to compare performance with industry peers.
Market share data provides the information that equipment manufacturers need to stay agile in the ever-changing industry landscape. But some may be surprised to learn that data can be used for far more than competitive benchmarking.
Snell explains that OEMs can use data-driven insights to help them with:
- Strategic location planning. Industry shipping trends can help determine where distribution centers should be built.
- Production planning. By evaluating industry changes, manufacturers can better decide whether production adjustments are necessary.
- Efficient and effective marketing spending: Industry data analysis can help companies decide how to best implement marketing tactics and make the most out of their marketing budget.
- Distributor and territory management. Data can help determine what sales channels are performing the best.
- Emerging market exploration. By identifying emerging market opportunities, companies can adjust product development to meet growing demand.
- Targeting customer marketing and/or segmentation. By evaluating segments with high industry potential and low market share, manufacturers can adjust marketing tactics to attract potential customers.
- Exhibitions and event planning. By looking at seasonal equipment sales, manufacturers can decide what trade shows and events may bring the most return on their investment.
- Product development. Benchmarking current products against the industry can assist in identifying current product performance and future opportunities.
- Incentive management. Factual data helps manufacturers optimize dealer incentives.
And while focusing on data-driven insights is clearly important, companies must also determine what specific factors trigger them into taking action. For example, if a manufacturer sees that there are consecutive periods of declining market share, they should be prepared with a solid strategy to address emerging patterns.
Learning how to make the most out of data is up to market share statistics programs participants, but companies would be wise to seek out data solutions to make smart business decisions and stay ahead of industry trends.
HAI powers AEM Market Share Statistics with iSTAT, a proprietary data exchange application that enables manufacturers to report and access valuable industry and market share data, which is included in AEM membership. Through iSTAT, member companies can create a standardized set of reports and dashboard for their data, which can be easily referenced and accessed.
Learn More
For more information on AEM Market Share Statistics, or the Market Share Statistics Conference, contact AEM’s Jacquelyn La Favor at jlafavor@aem.org.
