When smaller means better
“Success is becoming known as the leader in a small niche market, not lost in the angry sea of competition.”
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When smaller means better
Many new business owners have been tempted to try and sell to as wide a customer audience as possible. However, this strategy of ‘everyone is my market’ is unwise. A more successful strategy is to identify a small, well-defined set of customers who have a common problem, need, or desire that your product or service can solve.
A simple example of a niche market strategy would be to imagine if you were a new mother, with a keen interest in the environment and a past career in fashion: instead of becoming a “clothing manufacturer” (broad customer target) you could use your experience to build a specialist eco-friendly babywear brand. Using your own new mother networks, you could develop deep insight into their wants and needs, test & improve new products before expanding to become established as a niche brand that owns the space for ‘African-inspired Eco-friendly Babywear for today’s working mother’.
The benefits of a clear and focused niche market are that we can:
- Create a more personalized and tailored offer that meets the needs and preferences of our niche market customers.
- Establish ourselves as a recognised authority and a leader in our specific field and build trust and loyalty with our customers.
- Reduce our marketing costs and increase our conversion rates, by targeting our ideal customers more effectively and efficiently.
- Differentiate ourselves from our competitors and avoid competing on price, as we can offer more value and quality to our niche market.
- Discover new opportunities and innovations, out of the feedback and suggestions of our niche market.
Identifying a niche market is not an easy task, but it is worth the effort. We need to do our research, analyse our competitors, and understand our customers. We need to ask ourselves: What problem are we solving? Who are we solving it for? How are we different from others who are solving the same problem?
Here is a thought-provoking question for the week: How could you narrow down your target market even further, and create a sub-niche that you can truly ‘own’ and become the leader in?
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