May 5, 2021 4 min go through
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When you start out there in the business globe, instincts tell you to sell your product or support to everyone. It's easy to understand — why would you deliberately choose to exclude a portion of possible paying customers?
But I want to challenge that notion and explain why niching down makes everything else you decide to do in your business much clearer.
What is niching down?
A concept made popular by two Harvard professors, called the Blue Ocean Strategy , explains the value of niching down. Where you're in a saturated market , you're in a cut-throat space fighting for the same customers, creating a bloody red ocean. For instance , in a sea of numerous online electric bike stores, you have to do something that sets you apart from the rest. You can slash prices, but once one store does it, it’s a race to bottom where nobody wins.
On the other hand, if you can find a corner of the market that isn't served, you can take that market all for yourself and have your very own blue ocean.
Who, not what
When you decide to try to be everything to everyone, your message is generic. You can't talk to 20-year downhill racers the same way you would to a boomer trying to keep up with their grandchildren in the park. But if your message stays generic, you don’t get noticed.
Preserving the electric bike scenario, there are plenty of ways to niche down. Think of who uses electric bikes. You could target adventurers going off road for action packed rides, retirees looking to stay active, people looking to reduce their carbon footprint or simply commuters that do not have an hour to sit in traffic in the morning.
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Let’s say you decide to go with retirees. Now you can provide a clear message with laser-focused marketing .
You can target your audience with retirees on bikes enjoying life, or product descriptions that highlight how an electric bike will help to stay active and maintain up with grandchildren on those Sunday park rides.
You see? Being laser focused will attract your clients because you speak directly to them. You are no longer a generic-sounding website saying the same thing as every other store. You have your blue ocean.
How to choose your blue ocean
When choosing to niche down, you need to be sure there are enough people to serve.
If you've been attempting to sell to a broader audience until now, you could dive into your sales history and see who buys from you the most and look for trends. For example, if you discover there are 100, 000 searches monthly for ‘ebikes for boomers’ then you know you won’t run out of customers.
Related: How to Market in a Niche Industry
Once you have identified your ‘ who’
Since you know who you want to serve, so it’s time to arrive at work. Everything on your website should speak to your new tribe. The content you produce should be about them, their pain points and their challenges. When you have this valuable content, go to where they hangout on line and share the content together.
Don’t sell to them. As an alternative, be there, engage in their forums, offer advice, answer their questions and be their go-to person, so that yo'ure top of mind when they are ready to buy.
By positioning yourself as the expert within the space that doesn’t push for the sale, your new tribe will come to you. And when they're ready, they know who understands their needs and requirements most readily useful.
It can be daunting to deliberately eliminate 90% of your possible client base, but when you niche down and truly serve one corner of the market, you can dominate it. Most of your competition will be too scared to help make the same call and they’ll continue to swim around in a red ocean, competing with every one else.
When you no longer try to be everything to every one, you truly can serve and provide real value to people.
Related: How to Thrive in Niche Markets