“Jack of all trades. Master of none,” – this statement applies even to the world of marketing.
In a world of great connectivity, customers can easily find a wide range of brands in a minute. So appealing to a wide audience will mean you will fight with the big brands out there.
Thus, instead of being a generalist, be a specialist. Target a specific “Niche” or market.
By targeting a niche, you can stand out from the crowd. You can build loyalty and have higher profit margins.
This article will teach you all about niche marketing- how to find a niche, how to target your niche, creating funnel, content, and finally converting your niche audience into sales.
What’s Niche Marketing
Niche marketing is a marketing strategy that targets a specific market or niche. In a niche marketing strategy, marketers choose one or two segments of a very large market.
For example, the market for cookies is a broad market. Within this broad market, your business can target a specific segment– you can target cookie lovers who are vegan or cookies lovers who love all-natural ingredients. Each specific segment is a niche and by targeting one of these niches, you are adopting niche marketing.
Niche marketing gives your business the chance to stand out from the competition. It also gives you the opportunity to establish yourself as a leader in your niche. Moreover, you can garner the loyalty of your target market through niche marketing.
How to Find a Niche Market?
If you want to go ahead with niche marketing, the first step is to find a target niche. Then can you build a product or service and sell it to your niche.
The following are some examples of good niche marketing!
- Coke zero- by targeting the health-conscious subgroup of the population, coke zero expanded its market.
- Siberian Husky Kennel Bangladesh- this is basically a dream place for dog lovers and is one of a kind venture in Bangladesh. A perfect example of catering to an underserved niche.
- Lean Nation Eats- provides customized delicious balanced meals for weight loss prepared by food and culinary experts.
- Eco-friendly products like bags made of sugarcane- targets the environmentally conscious people and gives the business a green image
- Cruelty-free cosmetics – many makeup brands use their “no testing on animals” policy to create a special bond with consumers looking for ethically made products and differentiate them from the other cosmetic companies in the market.
- BTS merchandise- whether you are a BTS fan or not, you can not deny their sheer popularity. BTS keychains, mobile phone covers are perfect examples of milking a profitable fanatic.
To find a niche market, follow these four steps:
Step-1: Identify your niche
Identify a niche whom you can target your product or service at. There are many ways you can identify a niche:
1. Own passion and interests
What is the thing that drove you to start your own business? Your own passion and interests can help you find ideas for business. It can also help you find people who have similar interests. This way, you can build a niche.
2. Keyword research
Another way you can find a niche is through keyword research. Find search terms related to your business that people are searching for in Google. Use keyword research tools like Ubersuggest and Answer The Public to find keywords that are being extensively searched by users and those with low competition.
3. Search for passionate communities
A third way of finding a niche is to find passionate communities who might be facing an unserved need. You can find such unserved communities in the following ways:
- Most visited pages under “Hobbies” section of Wikipedia
- Active subreddits
- Community-based hashtags on Instagram and Twitter
- Facebook Groups
Step-2: Build a customer persona
Having found an idea for your niche marketing, it is time for you to identify your target customers. The main aim at this stage is for you to understand their behavior and their pain points. That way, you can position your product to solve the target customer’s pain points.
Document your customer identification process by building multiple customer personas. A customer persona contains details about the customer and his/her behavior. An ideal customer persona consists of the following details:
- Personal Information: Name, Place of residence, Age, Occupation, Income, Family size, Education background, etc.
- Beliefs and interests: Hobbies, interests, goals, and values for own life
- Challenges: Problem faced, pain points, and objections to using products intended to solve the problem.
- Source of information: Books, magazines, websites, events, etc. visited to learn about product offering to solve problems
- Buying behavior: Role in the buying process, possible barriers to buying a product, steps taken to buy, etc.
To find such information, use analytics tools like Google Analytics and Alexa.com. You can also carry out surveys to find the information.
Step-3: Research your competitors
In this step, you need to find out if your business will really stand out from the crowd. Use competitor research to find current offerings and unserved gaps that you can fill in.
You can use the following tools to research your competitors:
- Competitive research tools like Google Trends, Google Keyword Planner, and Clickbank
- Shopping sites like Amazon.
- Industry reports.
- Social media- to identify customer sentiments and problems.
Step-4: Define and evaluate your niche
The final step in finding your niche is to define and evaluate it. This will help you know whether your business will be profitable or not.
Define your niche using the following parameters:
- Product offering: Description of the product and its features
- Targeted Customers: Segmented according to demography, behavior, psychography, and geography
- Marketing Mix: Price, Place, and Promotion of your product
- Product benefits: Value proposition and differentiating factor
After defining your niche, evaluate the niche by comparing it against possible competitors. Search shopping sites or social media to see whether your niche is being served by others or not. If there are few to none competitors out there, you have a potentially lucrative niche!
Create a funnel for each segment
The marketing funnel is the stage customers take in their buying journey. It is called a funnel as one goes down the funnel, the number of customers reduces.
When you market your product online, there are marketing tools that provide you with numbers and metrics on each stage of the funnel. Most of the time, the results will be shown for the entirety of your customers- there will be no segmentation.
However, it is necessary to view the results on each stage of the funnel based on segments. This is because different segments behave differently. So their actions will also be different.
Fortunately, the marketing tools will provide you with features to segment your funnel and see results based on the segments.
Here are some categories you can use to segment your customers at each stage of the funnel:
- Age: Segment into age groups like 18 to 25, 25 to 40, 40 to 60, 60 and above, etc.
- Interest: Segmented into visitors who just viewed your web homepage, who scrolled through pages, who visited web sections, etc.
- Location: Segmented into region, cities, area, etc.
- Device: Phone, Computer, iOS, Android, etc.
- Others: Educational level, like pages, etc.
Reach Your Niche Market
You have discovered your niche. Now it’s time to reach your target niche.
1. Test your product/service
It’s time to test the waters. Release your product/service to your niche on a small scale. Use this release to understand whether your product/service is liked by your niche or not.
Build a simple website of your business and a shopping channel. You can offer a trial period or a free sample to your customers. You can also invest in ads on a small scale at this stage.
Pay attention to the response you get from your customers. The results will help you improvise.
2. Invest in targeted ads
Based on your research and niche definition, invest in advertising targeted to your specific niche.
Most online advertisement platforms have an audience targeting section when you create a campaign. You can filter your target audience based on demographics, psychography, behavior, geography, and interest.
The way you have defined your niche previously can be used to filter the target audience.
3. Connect with your audience
Don’t just reach out to your target niche, connect with them on a personal level. Build a community centering around your product or service.
Join the conversation your niche is having on social media. Join community groups, subreddits, and invest in hashtags used frequently by your niche. You can also host live physical events.
Initiate discussion with them. Listen to their thoughts and concerns. This way, you can know your customer perception of your business.
Craft your content according to your niche audience
Being in a niche market allows you to be an authority in your segment. Thus, your niche will look towards your business for information. That is where content marketing comes to play.
However, your content should not be seen as an avenue for selling your product or service. Your content should be seen by your audience as something for helpful information.
Although as targeting a niche, you might expect the customers to be loyal to you. And you can expect them to be sold at the moment. But when you target a community, people expect you to be as human as possible who fosters human conversations, not some cold sales.
Craft your content based on your customer persona. Use the parameters you have created back in the niche definition stage to make content based on audience interest.
Moreover, craft your content based on the medium you are placing on. For example, content on Instagram and Snapchat are image-based. On blogs, however, your content will be a mixture of text and images.
Do keyword research when you craft content. Use the keywords in your content so that your target audience can easily find you during
Use the customer persona to create content and promote on media where your customers will more likely search for information. So that you can reach the maximum number of customers at a given time.
Convert them into your customer
No marketing is successful if you can’t make your leads into sales. The same is true for niche marketing. Even if your business has a lot of brand awareness among a particular group, it will not be successful if you can’t translate the awareness into sales.
Here’s three ways on how you can convert your niche audience into customers:
1. Easy to read content
Unless you are in the B2B market, use simple layman terms in your website content.
You want your prospective customers to have a smooth buying experience. If they see your content filled with terms that are confusing, chances are they are going to abandon you.
Although you can expect the audience in niche marketing to know some industry-related jargon, try to keep it to a minimum.
2. Customer testimonials
Studies have shown that people are more likely to buy a product or service based on previous customers’ testimonials. The more favorable the reviews are, the more likely people will buy the product or service.
However, testimonials from ordinary people will not make much a difference in niche markets. You need to find influencers or experts in the niche to get reviews.
If you are in the business of fitness center, use a fitness model for reviews. If you are an online shop selling products for first-time mothers, use celebrity moms for testimonials.
3. Simplified buying page
As you have seen in the “Create a funnel for each segment” section, the funnel gets narrow as one advances to the next step of the buying journey. This means that very few of your site visitors will actually convert to end buyers.
Since you target a very specific audience, the quantity of your conversion will be quite low. However, you can improve the quality of your conversion by providing a smooth buying experience for your customers.
Offer the buying process as simple as you can. Guide your customers throughout the process. You can offer chat services to guide your customers during this process.
Hey, It’s Your Turn!
Let me know if you excited to try this in your business or if you already implement it.
Which one do you think is the best example of niche marketing done by a Bangladeshi company?
Please leave a comment below to let me and the other readers know your thoughts!