Riches in Niches | When small means better

“Success is becoming known as the leader in a small niche market, not lost in the angry sea of competition.”

Many new business owners have been tempted to try and sell to as wide a customer audience as possible. However, this strategy of ‘everyone is my market’ is unwise. A more successful strategy is to identify a small, well-defined set of customers who have a common problem, need, or desire that your product or service can solve.

A simple example of a niche market strategy would be to imagine if you were a new mother, with a keen interest in the environment and a past career in fashion: instead of becoming a ‘clothing manufacturer’ (broad customer target) you could use your experience to build a specialist eco-friendly babywear brand. Using your own new mother networks, you could develop deep insight into their wants and needs, test and improve new products before expanding to become established as a niche brand that owns the space for ‘African-inspired Eco-friendly Babywear for today’s working mother’.

The benefits of a clear and focused niche market are that we can:

  • Create a more personalized and tailored offer that meets the needs and preferences of our niche market customers.
  • Establish ourselves as a recognised authority and a leader in our specific field and build trust and loyalty with our customers.
  • Reduce our marketing costs and increase our conversion rates, by targeting our ideal customers more effectively and efficiently.
  • Differentiate ourselves from our competitors and avoid competing on price, as we can offer more value and quality to our niche market.
  • Discover new opportunities and innovations, out of the feedback and suggestions of our niche market.

By Catherine Wijnberg – Founder and CEO of Fetola

Please follow and like us:
Social Share Buttons and Icons powered by Ultimatelysocial