The importance of focusing on a Niche


A niche is an ultra-specific group of companies (market segment) with similar characteristics that will allow us to carry out homogeneous recruitment actions.


Important: The main characteristic they have in common is THEIR PROBLEM and their MOTIVATION to solve it.


To clearly define a Niche, we must be able to clearly answer these questions:


  1. Who is my customer?
  2. What is your current status (what activities are you doing now) and where do you want to go?
  3. What are the problems, in order of importance, that prevent you from reaching that state?
  4. Do you have a budget to reach that state? How much?


There is no classification that works for everyone, nor is there a single classification for a company.


We are aware that you can sell to different Niches but we have to simplify it and look for homogeneity in the messages so that the marketing and sales actions are more effective.




Benefits of starting with a niche

1) Optimized effort



Credits: You can find these graphics and the like on thetwitter account

Visualize Value, which is a real gem


Focus your efforts on understanding well the problems of a niche will give you an enormous advantage over your possible competition. 


Being a specialist in something for someone will allow you get to grips with core problems much faster and you will be able to adapt your offer and product to the detected needs.


2) Less Competition

Less Competition = + Earnings


Niche does not mean small. Niche means PROFITABLE.


When you target a similar customer base, and are aligned with their need, you can really resonate with them and create trust. Customers can feel your authenticity and that you really understand them.


When creating your solution, you have to seek to become in the best or only option on the market That's why don't try to compete in saturated niches, try to find problems that are little "attacked" by your competitors (although your solution/mechanism is the same).


3) Vision as an expert = Increased confidence

If you have a company that does "only one thing" and you are doing well (you have success stories) your positioning will be enough to add value.


Example:


You want to sell to ecommerce:


A) "Hello, I'm a 360 digital marketing agency, I do SEO, SEM, Social Media and analytics. Let's talk and I'll tell you how we can help you?"


B) "Hello, I am an agency that increases 30% on average sales for ecommerce with more than 1,000 orders per year. Shall we talk and tell you how we can help you?"


Example B) will get more meetings within its niche, without even saying how it does it!!! (its mechanism).


4) More effective marketing = Lower costs

Your CPL and your CAC will be reduced by creating more direct messages (you will avoid attracting poorly qualified leads)


Strategy

NicheThat you decide on a Niche does not mean that you will not grow, what we seek is to be the best option of each niche using the knowledge obtained in the previous one to have greater credibility for the next one.



Example:


Suppose you start your strategy with a service that helps to better organize the work of agencies.


Once you exhaust that niche and have a large market share/penetration, You can choose to open the strategy to other similar companies, consultants, insurance brokerages, law firms to which you solve the problem in a similar way but for which you will have to adapt your message.


The advantage is that you will have success stories that will make it easier for you to enter the new NICHE, that is, more credibility with tangible results.


  1. "Physical" characteristics: Size, number of employees, billing, geography, sector, industry...
  2. They are usually simple data to discover from the usual databases.
  3. Causalities: We define them as "common circumstances" such as "Entrepreneurs without previous experience", "Companies with many employees working remotely", "very traditional companies with little online presence"... This classification is difficult to find when it comes to to make a Database, don't worry about that now, if you detect any characteristic of this type you should write it when defining your Target Persona since it will help us in the marketing messages.


We will create these Niches based on the intersection of the two classifications.


Don't think about it too much now, just internalize the approach, we will come back to this concept when defining your Person Target.