Market Penetration
The share of the total potential customers in the target market that your product or service has reached.
Strategic IndicatorsTerm 44 / 81
Formula
Market penetration = Current customers ÷ Total potential customers in target market × 100
In practice
How you define the market denominator determines this ratio; define it too broadly and penetration always looks low. As penetration rises, growth shifts from new customers toward deepening existing ones.