In the world of marketing and life, it’s often thought that bigger is better. The belief is that the bigger the marketing campaign, the more business you’re going to get. If you market to an audience of 1,000 people, you’re likely to get more customers than if you market to an audience of 100 people. But there’s a term in marketing that goes against this idea of bigger is better. Niche down.
What is niche down?
According to the Alexa Blog, “Niche marketing is an advertising strategy that focuses on a unique target market. Instead of marketing to everyone who could benefit from a product or service, this strategy focuses exclusively on one group — a niche market — or demographic of potential customers who would most benefit from the offerings.”
There can be a lot of ways that this will happen. For example, maybe you target customers in a specific state or city. You might look at people who have a specific hobby, like water skiing. Or pick a small subset of your audience and you focus down on them.
You niche down.
What is the benefit of the niche down strategy?
As you’re defining your marketing strategy, it may be useful to you to consider the niche down approach. After all, there are multiple benefits to a niche down strategy.
Quality Sales Leads
For one thing, it may help bring in more quality sales leads rather than a quantity of them. By focusing on a small group of people that really need your services, you’re likely to yield a higher rate of conversion.
Get the Most for Your Money
It also makes your marketing campaign less costly. As The Balance Small Business points out, you can make your marketing budget go further by choosing a niche market.
“You can maximize your marketing budget by targeting your defined niche market… Know exactly where to advertise… Where to look to find blogs and related sites that are catering to your market,” said The Balance.
Niche Market Authority
For another thing, the niche down strategy may help you establish yourself as an authority figure. As the Alexa Blog explains, “The benefit of niche marketing is that it allows brands to differentiate themselves, appear as a unique authority, and resonate more deeply with a distinct set of customers. Rather than blend in with the many other brands that offer the same type of product or service, a brand can use niche marketing to stand out, appear more valuable, reach its growth potential, and build a stronger, longer-lasting connection with its ideal audience.”
How do I know if I should niche down?
There are a lot of indicators that you should choose to niche down your marketing strategy, but here are some of the most common ones.
Geography Demands It
Think about it this way. You sell mattresses and have a physical mattress store. There are plenty of people nationwide that want a new mattress. However, how far are they willing to drive to get one?
Are you more likely to get more quality sales leads if you target your marketing campaign to people within a 50-mile radius of your business or if you target anyone in the country that wants a mattress?
In this instance, the product you sell has a geographic restriction. Someone needs to live nearby to buy your product. If they don’t, they’re likely to go somewhere closer to get what they need.
You’re Ready to Target the Right Client
When you’re starting your business off, you’re looking for clients. You’re not as picky about who you choose because you want your business to become a success. As you work harder and build your business, you find that some of those clients just aren’t a good fit for your company.
Maybe the work that you do for them isn’t what you like doing. Perhaps they’re too demanding. They may not pay as quickly as you like. Whatever the problem, these are clients that you’re not happy working with.
That’s where the niche down approach may help your business. When you niche down, you’re focusing on the type of client that you want to attract. You’re okay with a lower sales conversion rate because you have already established a base of clients. Now you’re looking to add the right clients.
Just One in an Overcrowded Market
You Google yourself and you don’t even show up on the third search page. You’re targeting the right type of customers, but you’re not gaining much traction. Maybe a niche down strategy is what you need to get yourself noticed.
Think of it this way. Lawyers don’t just put up a website that says “lawyer”. A lawyer will put up a website that lists his or her specialties. Corporate law. Tax attorney. Divorce lawyer. The smart ones will even make themselves stand out in those areas. For example, a tax attorney that specializes in dealing with the IRS.
The niche down strategy may make it easier for your future clients to find you.
The niche down strategy isn’t for everyone, but it’s certainly something that small businesses should explore if they feel they aren’t getting traction in the normal marketing channels. It can help your sales and your business in the long run.
If you liked what you read, be sure to check out our previous posts.
Written by Erika Towne