Whether you have a niche or mass business, product, service or audience … there’s pros and cons to being niche I’m sure you’ve considered.
We’ve always struggled with niching. If we’d specialised in supporting the tourism or hospitality industries, we would have been in a pickle when Covid hit. But our clients, rather than being industry-specific are targeted by personality traits. We really do only work with clients who are ambitious, good communicators, respectful, resourceful and outcome-focused, because in working with these people we know we can shine and do our best work.
So not having a market or industry niche helped us through this period. That said it hasn’t always helped, which brings me to the point of this post, exactly what are the pros and cons of being niche?
The Pros of Being Niche
- Being able to target your marketing strategy
- Easy to streamline your products or services
- Focused research and development
- Less competition
- Industry expertise
The Cons of Being Niche
- Depending on the niche, opportunities to scale may be limited
- There is risk associated with dependence on a single market
- Likely to attract competition if successful
- Vulnerability to market changes
Remember, niching down doesn’t mean alienating other potential customers; it’s about focusing your efforts and resources on a specific group with whom you can create strong connections and add significant value. Over time, a well-executed niche strategy can lead to increased customer loyalty, better brand recognition, and improved overall business success.
Forbes published an article well worth reading, “Considering Niching Your Business? Weigh Up These Pros and Cons.”
One Action To Get Started: Market Research
We asked ChatGPT for a step by step framework to researching your niche. Here’s an action you can start today to get clarity on your future direction.
One action you can take to niche your market is to conduct thorough market research to identify a specific and underserved segment within your industry. This involves gaining a deep understanding of the target audience, their needs, preferences, and pain points. Here’s a step-by-step guide on how to do it:
Analyse Current Customers
Start by analysing your existing customer base to identify any patterns or common characteristics among your most loyal and profitable customers. Look for trends in demographics, interests, behaviours, and purchase patterns.
Identify Unmet Needs
Research the broader market to find potential gaps in products or services that are not adequately addressed by your competitors. These unmet needs represent opportunities for niche market targeting.
Segment the Market
Break down the market into smaller, distinct segments based on various criteria such as age, location, lifestyle, interests, or buying behaviour. This segmentation helps in identifying which segment aligns best with your offerings.
Evaluate Segment Viability
Once you’ve identified potential niche markets, assess their size, growth potential, and profitability. You want to make sure that the segment is large enough to support your business and offers reasonable growth opportunities.
Understand the Target Audience
Dive deep into the needs and preferences of your chosen niche market. Conduct surveys, interviews, or focus groups to gain insights into their specific pain points and what they value most in a product or service.
Customise Products or Services
Tailor your products or services to meet the unique needs of the niche market. This might involve adding specific features, packaging, or marketing messaging that resonates with the target audience.
Create Specialised Marketing Strategies
Develop marketing campaigns that directly address the concerns and aspirations of your niche audience. Use language, imagery, and channels that appeal specifically to them.
Build a Community
Engage with your niche audience through social media, online forums, or other channels where they congregate. Creating a community around your brand and niche can foster loyalty and word-of-mouth referrals.
Establish Thought Leadership
Position yourself as an expert in your niche by sharing valuable content, insights, and knowledge related to your industry. This helps build credibility and trust among your target audience.
Monitor and Adapt
Continuously monitor the performance of your niche marketing efforts and be prepared to adapt your strategies as needed. Stay responsive to changes in the market and customer preferences.
If you see the benefits niching could offer but don’t have time for the research, let us help. Simply click on the project brief form button and we’ll come back to you with a done-for-you price.