ATAR is an acronym for awareness, trial, availability, and repeat. It is a structured technique with the purpose of assessing new products or services with regard to their potential adoption rate or sales numbers. Each of the letters in ATAR represent a stage of familiarity with a product or service from which the actual chance of a random person becoming a regular customer can be calculated. For instance, a certain percentage of the population must become aware of an offering prior to its initial use. Following this trial, a percentage of this group with access to the offering will make regular purchases. By estimating the percentages at each of these stages, potential market size can be predicted.
Using ATAR
Step 1: Determine the size of a population of potential purchasers. Calculate the percentage that become aware of the offering.
Step 2: Calculate the percentage of aware potential purchasers that decide to try the offering.
Step 3: Calculate the percentage of those who have made an initial purchase and who also have ongoing access to the offering.
Step 4: Calculate the percentage of those in the previous step with a favourable attitude towards the offering who are likely to make repeat purchases.
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