{"id":3130,"date":"2021-06-08T10:45:58","date_gmt":"2021-06-08T08:45:58","guid":{"rendered":"https:\/\/www.sortlist.com\/blog\/?p=3130"},"modified":"2022-01-25T12:22:48","modified_gmt":"2022-01-25T11:22:48","slug":"penetration-rate","status":"publish","type":"post","link":"https:\/\/www.sortlist-test.com\/blog\/penetration-rate\/","title":{"rendered":"Penetration Rate – Definition, Examples, and How to Calculate It in 2021"},"content":{"rendered":"

The penetration rate <\/strong>is an indicator expressed as a percentage. It makes it possible to determine what proportion of a population has a product\/service<\/strong><\/span>. It is therefore a key data to accurately assess the market coverage of a product or service. This is why it is also called “market penetration<\/strong><\/a>“.<\/p>\n

Penetration rate <\/strong><\/em>= (Number of consumers or users or customers \/ total number of people targeted) x 100<\/em><\/p><\/blockquote>\n

In this article, we will give you a definition of the penetration rate <\/strong>and explain how to calculate it<\/strong>.<\/p>\n

What is Penetration Rate?<\/h2>\n

Definition of \u2018Penetration Rate\u2019<\/h3>\n

The penetration rate<\/strong> is one of the best indicators for evaluating a market. As explained at the beginning of this article:<\/p>\n

Penetration rate<\/strong> is the percentage of people reached by an advertising campaign who have purchased a product over a given period of time<\/p><\/blockquote>\n

There are several indicators that can be used to analyse markets and estimate their development potential. There are also key performance indicators <\/a>to evaluate communication actions.<\/p>\n

But for a company that wants to know its place in a market, this rate\u00a0<\/strong>is the most relevant.<\/p>\n

How to Calculate the Penetration Rate? – Example<\/h2>\n

Here is the formula to use to calculate your penetration rate:<\/strong><\/p>\n

Penetration rate <\/strong><\/em>= (Number of consumers or users or customers \/ total number of people targeted) x 100<\/em><\/p>\n

This is the ratio of the number of users of a product or service to the total population that is targeted by that product or service.<\/p>\n

To put it another way, the calculation\u00a0<\/strong>makes it possible to calculate the ratio between the number of people attracted by a product and the entire population to which these people belong<\/strong><\/span>.<\/p>\n

This calculation gives an indication of the strength of a brand; its branding<\/a>. By calculating the ratio between the buyers of this brand and the total number of buyers of goods\/services similar to the brand, we can determine the popularity of the brand.<\/p>\n

High market penetration = high success of a product<\/p><\/blockquote>\n

Example of a Company’s Penetration Rate<\/h3>\n

Let’s take the example of a company that sells customised clothing. Assuming that its target market has 4 million potential customers, and that the company already has 1 million customers in that market, the calculation would be :<\/p>\n