Most businesses feel like selecting a niche will cause them to lose opportunities. I argue that selecting a niche helps a business gain more opportunity because they can communicate to the specific group of people the offer is intended.
Using my industry as an example, take a look at the following two statements (keep in mind, consumers subconsciously ask, what is it, is it right for me, and can I trust it. In this exercise I’m not concerned with trust):
Statement A: I help businesses with digital marketing.
Statement B: I help online educators attract the right students and sell more courses.
Statement A communicates everything digital marketing for every business. It doesn’t grab your attention and assumes the audience knows how digital marketing will help.
Statement A does a poor job of answering the consumer questions:
Consumer: What is it? Message: Digital marketing Consumer: Is it right for me? Message: help businesses
The consumer is left wondering do they need digital marketing, what is digital marketing, and what kind of business is it for.
Statement B clearly defines a specific group of people and communicates two challenges the group has: (1) attracting students and (2) selling cores.
Contrast Statement B consumer questions with the previous:
Consumer: What is it? Message: It attracts students, sell more courses Consumer: Is it right for me? Message: Online educators
In this scenario, the consumer is left with a clear understanding of who it is for and what the result will be.
Selecting A Niche
Here are some guidelines to select a niche:
If you have existing customers, consider the people you’ve worked with and find commonality among them (e.g. worked primarily with attorneys, or primarily with creatives).
If you are selling a new product/service, what problem does it solve? What is the outcome of the product/service? Make a list of all people who can benefit.
When selecting a niche, you don’t want too wide or too narrow. Use the following suggestions to as select the right size:
At least 10 – 200 competitors in the world
At least 2,000 – 10,000 prospective customers in the world
Can buy a business list to reach people (proves the market is big enough)
Affinity with the market – types of people/personality you enjoy
Identifying a specific audience will allow you to craft better marketing messages, that will, in turn:
Attract customers quicker because the message clearly identifies who it is for.
Create brand loyalty with select people – if you are everything for everyone, you are special to no one.
Spend less time selling to the wrong people.
The best marketing messages resonate with a specific group of people and ignite their interest.
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This article is from September 2018 in our weekly newsletter Sure Digital Marketing Tips. The newsletter focuses on actionable, fundamental marketing and digital marketing tips.