WORKSHEET #9: The Components of Company Share Change
Note:
This worksheet draws on the results of customer data gathered using Analysis 2
and Analysis 66
. Please review these analyses for further information and context for the steps in this worksheet.
Step 1:
Create a sample of the company's customer relationships from an earlier period, say three years ago. You might choose to use the same sample of current customers that you developed for Step 2 of Worksheet #8: Company Volume Index on the Size/Role Matrix. However, this approach would exclude the sales volumes of customers that you had in the earlier period but lost in a Get Out event. The approach understates your Negative volatility.
Step 2:
Find the total purchases of each sample customer, both today and at the earlier period.
Step 3:
Find each instance of volatility, both positive and negative, in these sample customers over the last three years.
Step 4:
Follow the approach described in detail in Analysis 27 to arrive at the components of the company's market share change.