Question

	Penetration Share	Share of requirements	Heavy usage Index	Market Share
2013	.40	.40	1.0	.16
2014	.50	.32	1.0	.16
2015	.57	.28	1.0	.16
2016	.64	.25	1.0	.16

Based on these data, what is the most important metric the manager should focus on going forward? Limiting your answer to the information provided in the question, provide the rationale of your selection.

Answer 1

From the given data,the most important metric the manager should focus on is Share of requirements.

Share of requirements also known as the share of wallet is defined as the ratio of number of units of a company products purchased to the total number of units purchased in the entire category .The share of requirements is constantly declining from the year 2013 to 2016 ,which indicates that customers are not preferring the company's brand and thus there is decrease in the customer loyalty.

Other metrics :

Penetration share : The penetration share has been increasing constantly from year 2013 to 2016.So,there is no need to focus our efforts on this metric.

Heavy usage Index:This is constant from the year 2013 to 2016.The manager needs to focus on this ,but not on priority.

Market share :Same as heavy usage index ,there is no growth in the market share during the analysis period.