There are tens of thousands of businesses currently operating in every industry you can think of and the online market has never been more saturated. But, while this has its benefits, standing out among your competitors has become increasingly challenging. In order to attract more leads and increase conversions, you need to set yourself apart and one of the most effective ways to achieve this is through identifying your niche.
What does ‘niching down’ mean?
Niching down means identifying a smaller segment of your audience to target, so you can deliver a more specific and tailored offering that speaks to them directly, as opposed to a general offer that reaches a larger audience.
Consider a web designer that exclusively works with charity organizations. While they can design websites for any business, trying to get noticed in a vast expanse of different industries and specialisms is incredibly tough. By focusing on a smaller niche, not only can they tailor their services to those organizations more effectively, because they’ll understand the demands of that sector, but charities in need of web design services will know exactly who to contact.
A blanket approach may seem like it will result in more sales, but the reality is that what you’re selling may not appeal to a large percentage of that audience’s needs – you’re not going to stand out among thousands of other people all offering the same thing. Ultimately, in niching down, you’ll stand out more to a specific group of people who are looking precisely for what you’re offering. And, it provides many more benefits besides.
Connect and attract true customers
When approaching the topic of niching down, many business owners worry that by alienating a large group of customers, they’ll lose money. But actually, the opposite is true – instead of just using a blanket approach to a large group of potential customers, when you determine your niche, you increase the number of ideal clients.
These are people who are far more likely to convert, meaning your marketing efforts are stronger. In a podcast interview, brand strategist Pia Silva explains the value in connecting with targeted customers, stating, “It’s so powerful to clarify who you’re for. It turns on the light bulbs in people’s brains, they think of people to send to you that they wouldn’t think of if you’re not specific”. Your business becomes the go-to brand for your specific service or product, enhancing your reputation in your industry and attracting true clients.
Develop a stronger offer
When you narrow down your focus, you have a greater opportunity to understand the strengths and weaknesses in your sector. You’ll be able to gain clarity on the market and your competitors, and build an offer that’s consistent for your customers. Your message will be clearer and you and your customers will have confidence in what you’re offering because you’ll be the specialist in that area.
That’s not to say that every client gets the same solution. But, the framework and the structure of your offering will be the same because your clients will inevitably be in need of similar things. This, in turn, makes it easier to deliver high-quality products or services that are in keeping with what your customers are looking for.
Build trust and loyalty in your brand
When you’re speaking to a smaller audience, it’s much easier to speak their language specifically and talk to customers in a more personalized way. You’ll be communicating with like-minded individuals rather than trying to make yourself heard to everyone. This helps to build trust with your audience, as you’re creating something that’s exclusively for them. The result is that your audience feels understood and, in niching down, you’re showing that not only do you know your audience but you value their needs and requirements enough to tailor your business to them which goes a long way towards building loyalty.
Limit your competition
Two overriding benefits of finding your niche are that you instantly reduce your competition and rebuild your competitive edge in a saturated market. You’ll no longer be fighting against thousands of other businesses for the top spot. The pool of competitors will be much smaller, making it easier to achieve success. In fact, in cornering a niche market, you may even find that other businesses are less likely to take the risk which can be of benefit to you and your company because it leaves those opportunities available for conquering.
In summary
Instead of trying to solve everything for everyone, niching down enables businesses to focus on the services and products that their customers really need and are willing to pay for. It also offers the opportunity to really hone your expertise in a specific area and become a market leader for your niche, which can benefit your business in the long term.
By niching down, you become the go-to specialist which builds positive brand recognition and customer loyalty, as well as increasing conversions and staying one step ahead of competitors.
Cover image source: George Pagan III