One of the most important steps you need to take before launching your business is niche marketing: understanding where your startup is most needed and how you can bring value to your future customers.
The value you can provide to your clients is one of the best indicators of business success. But to provide real value and achieve success, you need to narrow down your business focus.
Why? Let’s say that you want to start a website. There are almost 2 billion websites online. How can yours stand out if you take on a general market? Similarly, if you want to start an online store, you’ll need to compete against 12 million eCommerce websites. That’s why it’s important to choose the right niche market.
What is a niche market?
A niche market is a part of a larger market that is recognizable through certain characteristics. These can include things like product price or quality and audience demographics, psychographics or geographic characteristics.
How to choose a niche?
To choose a niche, explore the markets you’re interested in and find an in-demand submarket that has the potential to be profitable and face limited competition. For example, a market with barriers to entry might be a good opportunity for a niche business.
Benefits of choosing a niche market
Here are the main benefits of niche marketing:
- Lower competition: Choosing a niche market comes with the automatic advantage of having to deal with fewer competitors. If your product or service is meant for a very specific audience and has distinctive features, it’s less likely that many companies will have a similar offering.
- Enhanced customer loyalty: When you have a very specific target customer, you can tailor your marketing messaging to them. By using a single, specific customer persona, you can leverage personalization and customization to gain loyal customers.
- Lower marketing budget: At the same time, if you have a single buyer persona to target through your marketing activities, you can focus only on the channels they use and on the strategies they are more receptive to. That will significantly lower your marketing spending.
- More chances to get noticed: If you choose a booming niche that many people are interested in, you have a good chance of being noticed — especially if you don’t have many competitors. You could even pitch your product to news outlets.
- Higher authority: Finally, when you’re one of the few players in your market, you’re likely to be perceived as an authority and gain trusted followers.
When done right, niche marketing can be the key to startup success. To learn more about finding the right niche, along with examples of trending niche markets, check out the infographic below.