There’s a lot to consider when you’re deciding if you should niche down or not in your business. But deciding to niche down on your focus can have a ton of benefits - especially when it comes to how you’re marketing. Practically speaking, niching down is choosing to focus on a small, well-defined segment of your market. That means you’re excluding any markets that aren’t in your niche by default. The prospect of ignoring the majority of the potential market can seem counterintuitive to many small and medium sized businesses. It doesn’t make sense to ignore the majority of the market, right?
Well, not exactly. Unless your business is a multi-million dollar corporation, total market saturation is extremely unlikely. A small, locally owned convenience store isn’t going to have the market saturation of, say, Walmart or Target. That isn’t to say that the locally owned convenience store can’t still do exceptionally well - they may even experience growth. The key to success is often found in niching down. But knowing where to start can be difficult. We’ll take a look at why niching down can be important to your success and also look at how you can start defining your niche.
Why Should You Niche Down?
Defining a niche industry may seem like a bad idea at first. But there are many benefits to focusing on a particular niche instead of trying to market to a whole or to multiple industries. This is especially true for entrepreneurs or small and medium sized businesses because they have fewer resources and want to make sure that their marketing is as effective as possible. Here are some of the best reasons to niche down your business and marketing message:
- Cost effective - As we mentioned earlier, niche marketing allows you to make the most out of your marketing dollars. Narrowing down your niche allows you to define your target demographic. The more parameters you have for your target audience, the better you’ll be able to create specific marketing materials that will speak to your ideal audience - and no one else. This will make sure that for every dollar you’re spending on marketing, the audience who sees it is much more likely to be interested in your brand than if you placed more general ads. Niching down makes your marketing budget stretch further.
- Cultivate loyal customer base - Niching down will also help you cultivate a customer base of loyal enthusiasts. Whatever you’re selling - be it an experience, art, generators, or consulting services - niching down will help you discover the customers who not only need your brand, but will connect with your brand. When you niche down, you carve out your unique place in the market. When you begin marketing in your niche, you’ll find the customers who really love or need your product.
- Stand out in your industry - Once you define your niche, you’ll be able to focus all of your efforts on that field and establish yourself as an expert. Your efforts won’t be spread thin over a wide variety of tasks, so you’ll be able to hone your skill set in your field. Niching down allows you to practice your skills and will give you a depth of knowledge and experience that you wouldn’t have if you were doing unrelated tasks or projects all the time.
For example, if you owned a bakery, you could niche down by having a smaller menu focusing on a few specialty items that are incredible - as opposed to having a huge menu but most of the items are mediocre. You can save money, time, and energy by developing fewer specialty recipes and eliminating recipes that are good, but distract from your key items. Identifying your niche gives you the opportunity to stand out in your field and will help you grow in the long run.
It saves you money and resources when you narrow your focus and invest in your particular strengths. And it helps you connect with the customers who will connect with your brand and remain loyal customers. Now that you’ve decided that niching down is a good choice, let’s take a look at some factors to consider when you’re choosing your niche.
Choosing and Marketing Your Niche
Choosing your niche can be overwhelming, especially if you can imagine a wide array of people and audiences who could benefit from your brand. But when you narrow down your focus, it will help you better articulate what it is that makes your brand unique. When you’re deciding on your niche, consider these factors:
- Identify your talents - Whether you’re starting a new business or niching down an existing one, there are definitely things that you excel at. Find those skills that set you apart and focus on them.
- Find your perfect customer - Imagine your ideal customer. Think about different aspects of them, including income level, geographic location, interests, lifestyle, religion, political leanings, and more. Get as detailed as you can about your ideal customer and develop a marketing strategy based off those details.
- Research your niche - Research your niche ideas and make sure that the market isn’t oversaturated. Find other keywords that are frequently used in your field. Learn about what your competition is doing, both for ideas and to see which gaps you can fill. Doing market research will help you decide which aspects of your brand to highlight and help you know how to best differentiate yourself from competition.
- Find & use your voice - Don’t be afraid to be bold and use your unique voice. Find what makes you unique and use that in your marketing. Using a unique voice in your branding and marketing content will help set you apart and will help clarify your position as a leader.
Once you’ve chosen your niche, incorporate everything you’ve learned into your marketing campaign. Make sure that your content is optimized for SEO and that you’re using the parameters you defined as your ideal customer when placing paid ads. Niching down may seem risky. What if you lose customers or miss out on opportunities because you’re only focusing on a small segment of your field? Won’t you miss out when you ignore other industries? Rest assured that deciding to narrow your focus is actually a smart business decision.
Niching down will help your business become more effective and can actually set the stage for further growth down the road. Niching down doesn’t necessarily mean you’ll only focus on one niche forever. But it allows you to focus your brand and develop your voice. It will give you the opportunity to define who your brand is and earn a solid reputation. When you niche down, you’ll develop a core group of loyal customers who will choose your brand because they connect to it, not just for your products.The benefits are clear and will help your company be poised to experience true growth.