In this article I’m going to explore how you can analyse market share within your market(s) within both FastStats & the Indigo Excel Application. Allowing you to place your organisations performance into the wider context of the market it operates within.

When analysing the performance of your organisation, it is important where possible to apply this within the context of your market. For example, your organisation may be growing donation income by 2% each year. But without context we don’t know whether this is a weak, average or strong performance. For example if the market as a whole is growing by 10% each year, 2% growth isn’t very good at all. However if the market as a whole is declining by 2%, 2% growth is actually a strong performance.

Within the context of GDII, Market share represents the percentage of an market’s total donations, that are generated by a particular organisation over a specified time period. Market share is calculated by taking the organisations donations over the period and dividing it by the total donations of the market over the same period. This metric is used to give a general idea of the size of a organisation in relation to its market and its competitors.

So, if organisation A has donations of $100 million within 2016 within market X, and the total value of donations in market X in 2016 is $200 million, organisation A will be classified as having 50% market share of market X in 2016.

Tracking changes in market share over-time is a useful indicator of how effective your organisations fundraising strategy is, with drops in market share indicating that a refinement within your strategy is required.

How do we calculate market share within FastStats?

The first step within FastStats is calculating your market share within your market, is to create a new selection, only selecting information from your market. In this example I have selected “DEU – Germany” and set the level of the selection to gifts. (Note that I am using the training system, so you will see different values on the live system to what I have here).

 

Selecting Germany Gifts

Once I have made my base selection, I now need to drag a cube visualisation on top of the base selection. This can be achieved by left-dragging the “cube” icon from the toolbar on top of the base selection.

On the vertical “Drop your Variable here” tab, left drag the variable charity. On the horizontal “Drop your Variable here” right-drag the variable “Gift Payment Date”. The reason I right-dragged this variable across, rather than left dragging is that it allows me to choose how the data is banded. For example we can show a breakdown in this case by full gift date, we can also break it down by month, quarters, years etc. We can also break it out by Month of Year, Day or Week etc, this can be useful for spotting seasonal trends.

In this example we are going to look at market-share over time, by year. So in this case select “Years”.

Date Banding Options

If we run the cube, by pressing the green “play” button, we get a crosstab breaking out the number of gifts, by charity and by year of the gift.

Cross-Tab – Gifts by Year, By Charity

Now, this crosstab on it’s own gives a reasonable clue as to who is the market leader, and what share of the market they have. However we are still missing some important information, mainly the value of these gifts. For example charities with lots of regular givers will have more gifts than an organisation which has predominantly focussed on single giving, even if the overall value is the same.

Therefore the next step is to bring revenue into the analysis, this can be done by dragging the “Gift Payment Amount (Local Currency)” onto the cube as a statistic. This can be done by left-dragging the variable from the system explorer into onto the centre of the cube.

Market Share – Value Added as a Statistic

This has now added the total value (in the local currency) for that market into the cube. However this could be presented in a slightly better way. If we move the Sigma Σ sign, off the horizontal, and place it below the “Charity” break variable. The cube will be presented that a cube for the gifts will be presented first, then a following cube below, will be presented for total values.

Cube – Adjusting the Layout

Cube – Statistics Rearranged

Now, we are really starting to understand the breakdown of the market. We can see for each year, the total value generated for each organisation. The final step is the add in a percentage breakdown. We can do this by first clicking on the “Σ Statistics” table at the to of the cube.

This will bring up a new window, on this window click on the “Add Statistic” Button.

This will bring up a new dialogue box which allows you to define further a specific statistic. If you change the checkbox menu to “Specific other Table, Variable, Selection or Expression”. This is because we are going to create a column % of the value and not the number of gifts.

From the System Explorer drag the variable “Gift Payment Amount (Local Currency) on the the white box which states “Drop your Table, Variable, Selection or Expression here”. This is to define that we are going to use the local currency value. Finally change the dropdown box from the default “Value” to % Column.

One you click OK the cube will be updated to present the column %’s or Market Share, over time for your market. In this case we can see that in 2012 “Children Without Families” was the market leader with 38.81% of income, however by 2016 we can see that “Save The World” have taken top spot with a market share of 40.79%.

Further Templates

To access a pre-made template to establish your organisations market share, you can find this on FastStats within the following path within the “Folder Explorer”.

My Discoverer Folders / Public / Standard Templates / Blog / Market Share

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