Having a highly focused niche market in which you operate your business is by far your most valuable asset, as it reduces the cost of marketing dramatically, increases your prominence within your marketplace and can lead to you being viewed as a leader in your field and the go to expert within your particular niche category.
The thing with niches, is that they are highly focused on solving one (or at most a handful) of problems for a reasonably narrow audience, unlike generalist providers that are positioned to help everyone, niche providers purposely exclude segments in order to meet the specific needs of their exact target audience.
Businesses don’t need everyone to know about them, they are not Walmart or Nike, the fact you might never have heard of http://www.altium.com/ for example is not a concern to the business owners behind this brand – as they are marketing to a very specific audience that have a particular challenge for which they offer a perfectly crafted solution. In contrast, companies like http://coca-cola.com spend billions on advertising in order to be known and consumed by the masses.
This article explores why having a niche might be your most powerful asset in the year ahead.
WHY HAVING A NICHE IS IMPORTANT
As a small business owner that wants to make your business boom, one of the core challenges you face is that of people finding out about you in such a crowded space. Indeed, you could run multiple ads but these are costly – to the point some bloggers take out an unsecured loan in order to launch their blog via popular channels such as facebook ads; but without a very specific focus on a subset of a particular audience, you can end up wasting a lot of money this way.
If we were to think of this from a marketing spend perspective you want to get the greatest return on investment possible, and in spending money on digital marketing the cost per click for an advert relating to something broad like “dog food” is going to be much higher than something more niche such as “organic dog food” because the search term is less competitive.
It also means that the person clicking on your advert is a more relevant customer that is actively looking for your particular solution rather than just browsing through marketing blogs. Realistically, you don’t want thousands of people clicking on your adverts – as that would cost you a fortune; you only want qualified prospects – and the more niche focused your marketing is, the better the conversion rate will be meaning the higher the return on your investment.
Moreover, it means that your audience are going to be more interested in what you have to say or, perhaps more importantly, what you have to sell… because they have a natural affinity and alignment with the nature of the topic that first hooked them into your site.
In summary, the key advice is to focus on a particular audience group and solving their problems incredibly well – rather than being a generalist provider that has mass appeal to everyone… as unless you have an extremely well funded marketing budget, focusing on a niche is a much more viable way to make it big.