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TERM
Penetration
Percentage of households that buy in a period.
Definition
Penetration equals number of buying households divided by total households times 100.
How to Calculate
Divide buyer count by household universe and multiply by 100.
Why it Matters
New buyers drive long-term growth.
Key Advantages
Comparable across brands and categories.
Example
Brand reached 12 percent penetration this year.
Use it to
Calculate the percent of households that bought in the period to measure reach. Compare across markets and banners to direct growth efforts where household reach is lowest.
