Less is More - Why Targeting a Niche Will Grow Your Profits

Uncategorized May 14, 2019

As an entrepreneur, you’re likely to want one key thing from your business: profit. To achieve this, most of the entrepreneurs I meet believe one thing: 

To sell as much as possible, you have to reach as many people as possible.

However, although this theory might work for businesses like Apple, Airbnb and Uber, unless your business is indispensable to your audience, it’s likely not going to be a good fit.

So, unless you’ve invented the new iPhone, or created a service people truly can’t live without, you’re out of luck. 

The sad truth is that for 99.9% of the services and goods on the market, only a small portion of that market is going to be interested. If you aren’t willing to understand and accept this, you’re taking a huge risk that could kill your business. 

Believe it or not, though, solving this problem is easier than you might think. 

You need to pick a niche.

In this article, I’m going to give you 4 reasons why picking a niche is truly essential to the success of your business and the key to attracting high-quality clients. Read on to find out more. 

 

1. Your Sales Will Increase 

Reduce your audience size in order to sell more? I get it – it sounds counter-intuitive. However, by focusing on only a specific part of your market, you’ll be able to set your sights on the right clients – the ones who are most likely to buy your products or services. By doing this, you’ll save a great deal of time and money and uncover the opportunity to fine-tune your messaging. 

In order to identify your target niche, ask yourself the following questions: 

  • What do they look like?
  • What are they doing?
  • Where do they live?
  • Where do they work?
  • What is their income level?
  • Why do they need your product or service? 

Once you have these answers, it’s time to adapt your service and messaging into a bespoke package that speaks directly to this specific group. 

You wouldn’t address a 20-year-old student in the same way as a 50-year-old executive, both in terms of content (the messages delivered) and form (the means of delivering them). Each audience has its own codes, it's up to you to adapt, not the other way around! 

 

Also read: Want to be Competitive? Increase Your Prices!

 

2. You’ll Improve Your Skills 

When you decide to focus on a customer segment, you have to package your service offer so that it matches precisely the demands of that particular audience. 

By doing this, we move away from the "bulimia" approach to settle for a certain simplicity. However, it’s by focusing on a well-defined offer (in other words, your solutions to their problems) that we can hope to position ourselves as experts in our field. 

Our responsibility is to continuously thrive to be best in the market we serve by acquiring the proper knowledge, skills, training and talents (internal or external). 

 

3. You’ll Optimise Your Marketing Strategy 

Today, data is everywhere and complex to compile effectively. As an entrepreneur, the better the data and information you get about your customers, the better your strategic decisions will be. By knowing your target audience inside out, you’ll have a tremendous opportunity to make an impact in the lives of your ideal clients. 

This will also have a huge impact on client outreach, because you’ll have the right content and the right message in the right places (Facebook, LinkedIn, print advertising, events, workshops etc.). 

The same goes for blog articles or other newsletters: by delivering messages that are perfectly adapted to your targets, you’ll make a significant impact. If you publish generic content with the hopes of making it accessible to everyone, no-one will identify with and relate to what you’re saying. Content marketing has shown us how important this is in business strategies, so this isn’t something you want to neglect.

 

4. You’ll Boost Your Customer Portfolio 

Again, you might think it’s counter-intuitive – how can you grow by restricting your range of opportunities? 

The answer is simple – by offering a service that’s so well adapted to your audience that it becomes truly indispensable to them. This will position you as the right person, the one who has been able and will continue to exceed their expectations. 

As a result, you will reach more people by targeting through the quality of your services. It’s the virtuous circle: 

Quality = expertise = recognition = recommendations = more customers!

 

Read more: 4 Little-Known Reasons Customer Experience is the Secret to Explosive Growth

 

AND NOW, ACTION! 

  1. Define your target audience precisely
  2. Adapt your service offering so that it corresponds precisely to the needs of your target audience
  3. Adapt your messages and materials (marketing tools) according to the same logic

 

Was this article useful to you? Share it!

Want to charge premium rates, 
but don't know how?

Watch my EXCLUSIVE 30 minute video NOW and determine:
HOW TO GROW YOUR BUSINESS AND FIND HIGHER PAYING CLIENTS

Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.