Business people tend to worry that they will lose revenue if they choose to focus in on specific products and services; in fact the opposite is true. Focusing your mind on a niche or two has a dramatic impact on company resources; not least your time and energy and on your finances too.
Everything else to do with marketing becomes that much easier because instead of trying to be all things to all people (for fear of turning away potential business), it allows you to nurture your ideal clients; who by the way are most excited about working with you.
Niching is a marketing tool; it helps us to target our market and speak their language. Whilst there’s nothing stopping us from taking on other types of customers if we want to, it’s actually the easiest and cheapest way to differentiate ourselves and gain expert status in our field.
What’s more, if you niche well you decrease the risk factor involved in general marketing and increase the likelihood that the promotional activity you do engage in will result in a positive response.
Niching does require some research and a little effort on our part; to avoid the assumption that our target market needs what we have to offer because we think it’s just the ticket. Several times in the past I have submitted a proposal for a programme of work, where I could see there was a gap in competence and believed I had the perfect solution. Not surprising that those proposals weren’t taken up because the company didn’t see the problem as I saw it. In fact they didn’t recognise they had a problem at all.
Now I find that enquiries match the niche services we offer and therefore our conversion rate has risen dramatically. So what can you do with this knowledge?
My invitation is that you look at the spread of your current business revenues and ask ‘how much work is being generated outside of your core area of expertise?’ You may find that it’s not a lot.
Next identify the core product or service that reflects the passion you have for the business (or did have when you first got involved in this venture) and explore what more you can do with that.
Only then ask “What is the problem or challenge that our product or service will help this person or company overcome?”
We can take it for granted that competition is high and so we must carefully consider what outcomes we feel passionate about delivering against; and where we can make a real difference to our clients.
Niching is the art which helps you to do that.