Why You Need to Niche Down to Become More Profitable
Ever been told to "niche down"? Who hasn't right? Whether we like it or not, some things became cliché for a reason, and niching down is one of them. In short, it's all about narrowing down who you speak to so that your business can be more profitable. Stated like that, it doesn't sound like a bad deal. It's also not an idea that's just for solo entrepreneurs. B2B SaaS companies have turned passions into fortunes by niching down and it's you need to keep reading.
The reason people don't like hearing the phrase is that it's often vague and doesn't provide any insight on its own. That said, if your sales team can niche down it's message, it becomes an instant strength and will lead to a lot more sales.
Finding the Right Niche is Important
Niche is actually more of a marketing term, and classically, the process of niching down followed the STP model: Segmentation, Targeting, and Positioning.
If you have become an expert in your area, then doing these three things should be easy, but also transformational. Briefily:
- Segmentation is the process of identifying your ideal customers and what they need
- Targeting helps you focus on the smaller groups in with your target customers (i.e. niching down)
- and Positioning is how present your brand to that niche. It's also how you stand out amongst your competitors.
Three Ways of Niching Down: Segmentation, Targeting, and Positioning
Start with Segmentation
Online businesses fail because they don't know who their ideal customer is and what their pains are. Without knowing "who" your team is selling to, none of the tips and tricks of the trade are going to work.
Unfortunately, most marketing strategy doesn't know this answer and it's why they are not getting prospects in front of your sales team. Before you even begin selling, getting your brand to speak to the right target audience can make or break the whole process.
Once you start speaking the right language, start to profile and segment your audience.
Your segments are going to be the foundation of the niching down process. Always remember, it's often the little things that impact your ROI (Return on Investment) the most. Put in the work up front and you'll see the fruits in the long run.
Targeting is the Niching Down Process
To make niching down a little easier, we want to share some questions to get you thinking and filtering down your niche.
What problems do the people in your segments have that you're solving with your product or service?
Starting with the pain of your niche is a great place because it helps inform the sales process also. You'll find that by thinking critically about this early on the whole journey becomes easier.
So let's put this into practice. Sports is a general market and industry. A large segment would be football or basketball, but that's still pretty general. This is where you start asking the pain questions. Doing so will help you think about a specific need in your segment and that will be your niche.
Positioning Brings it All Together
Once you have a niche you're selling to, it's time to align the process and make sure that your brand and sales strategy actually communicate the message.
This starts with things like your elevator pitch. If you can't tell the people you're targeting what you do in a few seconds then you will lose them, and the work you did to start won't matter.
Now, this is not easy, and there's a reason why consultants specialize and make a lot of money doing this work. But here are a few things to know when you work on your positioning and message. A key thing to remember is to share things with clarity. You want to be clear over clever. Always.
Finding Your Niche and Nailing Down your Ideal Client Profile are Musts
If you want to be successful in business, you need to find your niche and nail down your ideal client profile. This means figuring out what it is that you do better than anyone else and then targeting your marketing efforts toward the type of person who would benefit most from your services. Once you've found your niche and ideal client profile, you can start to build a marketing strategy that will help you attract more of the right kind of clients and grow your business.