Actual Vs Potential Consumption Report

The Actual Vs Potential Consumption report uses customer consumption counts to help identify the level of potential for detail-level analysis areas within your analysis area. The analysis is based on the concept that you can plot the ratio of each analysis area’s actual consumption index and market demand index on a grid whose four quadrants each represent one of the following market strategies:

  • Invest – Indicates that you should invest for growth. If your actual consumption penetration is less than or equal to the average and the potential is greater than or equal to the average, your actual performance is below opportunity.
  • Dominate – Indicates that you should continue to dominate and protect these areas. If your actual and potential consumption penetration are greater than or equal to the average penetration, your penetration is high and so is the opportunity.
  • Maintain – Indicates that you should maintain your investment but not expect further growth. If your actual consumption penetration is more than the average and the potential is less than average, your actual performance is exceeding the expected opportunity based on the area’s demographic composition.
  • Innovate – Indicates that you should minimize your efforts or consider marketing a different product. If your actual and potential consumption penetration are both less than average, this indicates that the opportunity is low.

One of these strategies is recommended for each analysis area in your market area.

The consumption profiles show how often or how much a segment uses and/or consumes a selected product or service.

Below are the common uses of the Actual vs. Potential Consumption report:

  • Compare actual consumption to potential consumption to identify gaps.
  • Identify the analysis areas in which households use a product or service by selecting one or more consumption profiles.
  • View each analysis area’s consumption data for a single profile (household counts, consumption frequency, market share, and calculations).
  • Compare the frequency with which each analysis area consumes different products.
  • Create an analysis area based on consumption data for the selected profile and geosummary. You can use the new profiled analysis area for further research and reporting.

After you create the report, options are available to change the report view, save the report, and export the data.

To generate the Actual Vs Potential Consumption report, you need to perform the following:

  1. Select a segmentation system and a base.
  2. Select profile(s).
  3. Select variable(s).
  4. Select a geography or an analysis area and the level of detail to include in your report.
  1. Specify a report output type and the report name.

To Learn More:

Actual vs Potential Consumption Report - Interpretation & Calculations