Niche markets means you’re working with a much smaller customer base but the market space is less congested that you can make your own brand stand out and shine.
Business operating in niche markets are surer of foot, able to adapt to their customer needs and requirements, know their customers and generally have a higher degree of customer loyalty, all dependent on excellent service. Therefore, it helps to consider some of the ways you can succeed in a niche market, as well as examining some of the companies that have done the same – and how they did it.
Do you know what your customers want, where they hang out, what their needs are, their best methods of shopping (route to market) and whether you’re equipped to deliver what they expect, you’re already halfway to staking your claim on a small market space. This also allows you to craft a brand that resonates with the segment of the population that is most likely to buy your products or services.
Consider the following questions:
- Can you identify prospects within the market that I can communicate with?
- Do these prospects need or have a strong desire for what my business offers?
- Is my offering suitably priced for this market? (If not, can it be?)
- Can I communicate a sales message to this market?
- Is this market large enough to support my business?
The more specialised your focus is, the better – customers will appreciate feeling that you’re fulfilling a specific need they have, and will be more likely to go back to you in future.
A benefit of operating in a niche market: the more business you do, the more you learn about your customers. Analysing customer data to find trends that can be used as springboards for future strategies is much less complicated when your customers are a small group who tend to share similar traits, rather than the populace at large.