Let’s start by introducing what a Niche market is. Niche marketing is focusing on a very specific section of a market, that a business does very well at by catering their products to very specific people.
For example, let’s say your target market is pet owners, your niche market could be pet owners who own Parrots. Your business would then focus on supplying these parrot owners with all the parrot accessories you could ever need. If you’re a , your niche market could be professional athletes, celebrities, military candidates, etc.
having a niche market has several advantages and benefits when it comes to marketing.
1) Less Competition
A Niche business has a lot less competition than brands that “go broad”. The vast majority of businesses, more so small business have a very small part of a large market. On the other hand, niche marketers have a very large share of a small market.
A big reason for this is because a lot of businesses realize it’s not viable to compete with niche marketers. The reason for this? Niche Marketers have a clear competitive advantage in their market as they are considered the “specialists” in their niche business. This comes from their specific expertise in what they do.
They also see niche marketers have a large portion of the market share in what they do, and should a business enter their market they will have an uphill battle against an established brand with tons of credibility.
For example, there may be tons of beer companies selling your typical lager, or pilsner. Shock Top saw an opportunity to bring flavored beer into the market offering many different flavors for customers who are tired of the status quo.
So you need to ask yourself, “what is my niche?” Once you find your niche you can really start to corner the market, and attract people to what YOU specialize in. This comes back “finding your unique selling proposition. Set yourself apart, and let the people come to you by offer people a unique, special product.
2) Better customer relationships
The need to be specific with niche marketing can enhance customer relationships. When you’re a niche business, you’ll be engaging with a very different kind of customer. These people are very specific, and you’ll only be engaging with a small customer base. It does have a lot of benefits though.
The smaller the audience, the more personalized your business can become. Through getting more personal you can really build brand loyalty. By having a small specific customer base, you can also really personalize your email campaigns, special offers, and even your offerings.
Niche businesses almost always let their customers have personalized orders and take special requests to suit special needs.
For example, if you’re a nature trail guide, and the customer wants a personal tour without other people you may accommodate that. If you’re a farm to table restaurant, you may supply catering to those who ask (even if it’s not on the menu.)
Niche marketing allows you to be more detailed with your campaigns, leading to customers having a better understanding and connecting with your offer. Also, the more specific you are with your marketing, the more connected your customers feel to your brand.
You would also be able to build stronger relationships with your customers. As niche businesses bring in repeat customers who crave your specialized services, it gives you time to really build a relationship. You can get on a first name basis with your customers, and get really invested in their lives and needs. Niche businesses really end up treating their customers like the individuals they are, unlike larger businesses,
One reason why it can increase brand loyalty is that you are offering a specific product to a specific market that needs it. The more you provide them with exactly what they are looking for, the more they are inclined to keep coming back to you.
The second reason is that the competition level is low, meaning not a lot of generic places will have the same products/services you offer. Since it’s hard for your consumers to find what you offer anywhere else, they become more dependent on your brand. These niche businesses need to work hard to keep these people engaged with them as well. Get people opting into your mailing list. Send them personalized email newsletters offering them the latest news on the specialty services you offer.
3) Save money on advertising
With niche marketing, you do not have to spend much money to reach as many people in a market as possible. The more specific the market, the better you know how to reach them.
For instance, if your niche market is considered people who are only interested in the Toronto Raptors basketball jerseys, it is easier and less costly to reach them, rather than everyone who has an interest in basketball.
With niche marketing, you have a higher chance to reach your market and get higher conversions because you know when, where, and how to reach your niche.
Knowing when, where and how to reach your target audience allows you to only spend ad money where your target IS, not where they may be. An effective way for these niche businesses to reach their customers is to target them on Facebook and Instagram.
With highly targeted ads, and audience creation we can really speak to these people from the heart. Facebook’s amazing targeting capabilities, paired with digital marketing expertise lets us find those who have engaged with your brand online, and retarget those people with personalized ads.
People in niche markets trust each others word.
On top of saving money, you get free advertising! People in niche markets communicate with others in the same niche market as them. They give each other recommendation, talk about their experience, etc.
Example: if you are a personal trainer and your niche market are new moms, new moms talk to each other, they meet together, go to the same kid stores, grocery stores, etc. If they enjoy your training and they see a difference, chances are they are going to tell other new moms they encounter.
Whether you have a niche market or not, chat with us by filling out the form below and let us know how we can help with your digital marketing needs!