Niche markets are far more difficult to target since there is a smaller customer base. Even the slightest miscalculation can cost your business thousands of dollars in unsuccessful marketing campaigns. Amidst this risk, however, are the several advantages unique to a niche market. For instance, a business that can successfully target and accommodate the needs of their niche market often end up knowing their customer base so well that they can command higher prices as opposed to other businesses that only occasionally sell to this said niche. Here are five tips on how to be a sharpshooting entrepreneur when targeting your market:
Solve a Problem Worth Solving
Businesses are created from the need to solve a specific problem. But since you’re accommodating a smaller market and customer base, you need to make sure the problem you’re solving is big and common enough that it’s worth solving and that enough people care about it being solved. If only a few dozen people really consider it a problem, then this will affect your sales and revenues over time. Are there no other companies in your respective market that are providing solutions to the identified problem? If there are existing solutions to the problem, what does your product or service bring to the table that separates it from competitors?
Identify Your Ideal Customer
Small, dense niche markets are just as competitive as their bigger, staple counterparts. For this very reason, it is vital that you take an honest look at your customer base and prioritize their needs more than anything. Who are you creating and designing the product or service for? Answering this question with “everyone” won’t suffice. Not knowing you your ideal customer is and trying to market to everyone can result in your business taking a sharp and fast nosedive as you burn through your financial runway fast. For instance, if you are selling a very niche product such as native forest coconut milk powder, it’s best to focus your marketing efforts to consumers who follow new diets or have dairy allergies.
Validate Your Market on Social Media
Before committing to a full-on launch, you’d want to make sure there is a market waiting for your products and services on the other side. Validate that you have a market and that there are applications for your business idea. Since it’s a niche offering, it’ll be more difficult to validate it compared to launching a business that sells household basics, like laundry detergent or soap. Use social media to test the waters. Facebook, Instagram, and other social networking sites are optimal platforms for validating your idea through poll voting, direct consumer messaging, group and organization outreach, etc.
Focus on what you want to sell and execute. Acknowledge the fact that you cannot do all things or accommodate the needs of everyone. Moreover, remember that smaller can actually have a bigger impact. Your niche market is different from the field or industry that encompasses that niche. For instance, a retail clothing company is a field, but a company that sells comfy and hip maternity clothes is considered a particular niche. Focus by listing all the things you do best and the strengths that they imply, your previous achievements, and patterns that reveal your personality and style when it comes to solving technical problems. An in-depth look at yourself and your experiences and interests is needed to be able to find and target the right niche.
Take the Leap
All the prep work you’ve done so far is useless if you don’t act on it eventually. Once you’ve done your research and you’ve validated your business idea, it’s time to implement and bring it to market.
Targeting your niche market accurately requires sufficient data. Research exhaustively about your current industry as well as your prospective customer base. Look for opportunities in the form of problems that are yet to be solved or currently costs too much to solve.
by: Mikkie Mills