How Getting Niche Specific Will Help You Grow
You have a great idea and you want to start a business. But, before you can go any further, you need to define your target audience. Find your market and who your customers will be. Who does your product/service appeal to? What do those people need? How can you fill that need? Do you find or develop a product for them? Is your target market consumer or business? Give yourself a sense of direction by answering these questions before you get started.
Aside from a giving you a sense of direction, marketing to a niche audience has many benefits. Our top three are as follows…
Market to someone not everyone
Focus on what you want to sell realizing that you cannot be all things to all people. While the idea of getting your product in front of everyone may seem like a good idea, it may have negative effects on your bottom line. One must figure out who you want to do business with. Your product cannot satisfy everyone, no matter what it is. When your marketing approach lacks focus and strategy, you can start to feel a little lost. This lack of focus can also end up costing you more money in the long run. The more narrow your target market is defined, the better.
Maximize your advertising dollars
When you are marketing to your niche group, you are targeting a small segment of people. If we use jewelry as an analogy, instead of placing ads in front of people interested in all jewelry, we would want to target those interested in statement jewelry. By targeting a specific versus broad group of people, you are able to spend your budget on those who are more likely to convert and make a sale. You will see better campaign statistics, less dollars spent, and more conversions.
When you define your niche market and understand how your product will suit your customers’ need, there will naturally be less competition. Keeping with our jewelry analogy, there are far more “jewelry stores” than there are “statement jewelry stores”; thus there is less competition for those who sell statement jewelry than those who try to sell jewelry to everyone. Less competition means less options for your potential customers, as well as lower advertising costs. A number of digital ad platforms are based on an auction principle and if there are less companies to drive the bids up, your cost per click will be cheaper. In the past people did not want their business to be ‘pigeonholed’, but, nowadays, that is exactly what you want to be.
If you try to create a demand, you will find it to be much more difficult than filling a demand or need. Find your ‘niche’. Research what your target audience needs and go from there. Taking the time to figure this out prior to finding or developing a product will save you time and money. Once you have done all your ‘homework’, then go for it! We wish you all the best in your next business endeavor.