How important is a Niche market to you?
In simple words, a niche market is a specific group of individuals and businesses that could benefit the most from your product or services and could afford to pay for it. Choosing the niche market is however not as straight forward and could require considerable experience and understanding your customers in order to decide the right niche for your business.
Some may argue that by only focusing on the niche market, one would be limiting their exposure of targeting a wider market. It may be true but is it better to diversify your resources on a wider market or use all your resources to target a small number of well chosen segments?
You can either choose to spend £1 per 10,000 of wider audience or £10 per 1000 of a well chosen segment. In the end, your cost will remain the same at £10,000. As you are targeting smaller numbers, the same amount of money you were previously using to acquire customers is spread across a smaller number, and therefore you have more to spend on each prospect than you would if the market was bigger.
This leads to a thought that how would it be better to target less than more? As per my experience, by focusing on a niche market, you limit the wastage of your resources and in return could spend time on quality prospects that could result in a higher return.
Is it better to have 10% of £1000 (£100) or 50% of £500 (£250)?
It is given that if you focus on a smaller group you may reduce your chances of getting business from outside the target group. However, what actually happens is you increase the amount of business you receive from the target group(s) or niche(s), which is what the core purpose of marketing is.
The prospect businesses see you as an expert in the chosen niche, an expert that better understands their situation. They may see you as their promised Messiah to turn to as no other company may specifically meets their needs and therefore you may be one of the few logical companies to deal with that specialises in a particular niche.
I could use an example of the accountancy industry. Lets say you are a small building company and looking for an accountant. You were referred to 2 accountant’s website, one that say, we provide the usual accountancy services and one that say we only work with builders. Which firm do you think you would choose to act as your accountant?
In this highly competitive business environment, choosing your business should be a no brainer from a customer’s point of view, if you are one of the not many who are experts in the specific industry the customer require the services.
We want a burger, do we go to McDonalds or would we go to a Lebanese restaurant?
If you can create this bond between you and your niche market(s) we guarantee you’ll grow your business to unprecedented levels. That's the power of niche marketing. By concentrating on specific groups, you can achieve very high market shares in that particular segment because people automatically come to you.
A decent pitch to your niche market could result in an average outcome. A great pitch to a wider market could result in a poor outcome.
What’s your pitch?
About Nasir Shaikh
Nasir Shaikh is the director of Hoffman & Cohen, an award winning firm, based in Knightsbridge, London. Nasir Shaikh has over10 years of experience in dealing with SME’S and has also been classed as one of the top 200 accountants in Sunday Times. Nasir Shaikh has been a guest speaker in numerous business shows and was a keynote speaker in a seminar organized by Barclays Bank. Nasir Shaikh has been involved in a number of businesses in the capacity of their accountant and has the desired skills and knowledge to assist SME’S with their business growth.
About Hoffman & Cohen
Hoffman &Cohen is an award winning modern and forward thinking accountancy practice. We adopt the latest technologies and business practices ensuring greater efficiency and effectiveness. Our stress free approach to handling your affairs and no surprise fixed fee packages will help you budget effectively and use our services without hesitation, like an extended finance arm of your business.
T: 0207 993 4061