Business Development · Business Strategy · Funded Sales and Business Development Support · Sales Innovation · Strategy

Why Not Exploring Niche Markets is Killing Your Bottom Line.

Your customer/prospect has 100% control over the sales process.

100%.

From the beginning to the end.

That has a profound impact on how you sell and how you market your product or service.

Many business as are fighting against it, spending like crazy to gain control over a process they don’t own.

Some businesses spend fortunes trying to compensate for this, sending mixed messages to their many markets and fighting price driven discount wars with their ‘me too’ competitors…

Just some businesses, not ALL businesses

Where’s the Opportunity?

Other businesses are embracing the opportunity to enjoy this new way of working and the new opportunities this climate provides.

Namely the ability to create super niches. Niches which are an inch across and miles deep.

Savvy businesses have decided to communicate directly with specific prospect/customer communities, communicate with high levels of relevance, greater levels of intimacy, frequency and directness.

They can do this because they know the specific needs and the specific problems of the niche they’re engaging with.

Reflected back is a marketplace that feels respected, listened to, understood, safe and in familial surroundings, accepted and therefore accepting.

What’s the impact on sales efforts and sales relationships in that scenario?

Characteristics of a Healthy Niche:

  1. It’s big enough to support the firm’s financial targets.
  2. It’s easy to define.
  3. It’s accessible
  4. It has an easily identifiable problem that is begging for a solution
  5. It has budget to spend
  6. It has a budget to spend commensurate with the size of the problem and therefore the value of the solution you provide to your niche
  7. You can demonstrate a robust ROI in this niche
  8. Has an adopter mentality
  9. You have a means of maintaining regular, direct, focussed micro messages with the niche
  10. You can identify their playgrounds – where they hang out
  11. Your competitors may be in there – but working a generic sales model, sales message and sales pitch
  12. They are responsive
  13. They have a jaded perception around current solutions
  14. They are waiting for something NEW that actually works
  15. They are curious, listening and prepared to be engaged

Misconceptions About Selecting a Niche

Here’s the biggest misconception regarding niches – niches are small.

Think again – niches certainly don’t mean small.

They mean focussed.

It’s a lazer like activity on a very specific group.

With a super specific message.

Select the right niche.

Size is a factor in that selection.

Size is relative…think about size in relationship to profitability.

But, most of all, understand that niche doesn’t mean small.

This is the key misconception that stops many organisations fully exploring niches…to their cost.

Other misconceptions are:

  1. I’ll have to change my product/service
  2. I’ll miss out on other sectors and therefore revenues because I pay less attention to some sectors
  3. Why should I do it if my competitors aren’t doing it? It can’t be a good idea if others aren’t doing it
  4. What happens if we run out of people/firms in the niche to sell to?

These are all statements I’ve heard made in a variety of boardrooms.

Obviously I can’t address every single one in detail here but suffice to say this in response to the misconceptions here, they’re not true.

Let me briefly explain:

You certainly don’t always need to change your product or service – sometimes it’s sufficient to simply change how you communicate your product/service and how you position it to your niche market.

Will you miss out on other sectors…well here’s the question I would like to ask you so you can answer this misconception for yourself…what’s more important to you…profit or turnover? Now you’ve answered that…you can decide for yourself if missing out on other sectors is really that important to you. Just think about the characteristics and profit profile of your ‘other markets’.

Plus, selecting a niche doesn’t mean you have to totally abandon other markets…

It’s great that your competitors aren’t doing it. That’s exactly the reason we want to go there…to that specific niche where your competitors haven’t thought to sell.

If you run out of people in your niche maybe you’ve selected the wrong niche or you’ve managed your product/service development badly…the chances are it will never happen, BUT even if it does…it may still have been worth it!

After all, it’s all about profit isn’t it?

Plus, an innovative firm will always respond to the increasingly complex demands of a niche market…service the problems of the niche and they’ll tell you what the next steps are in your product/service development…your offering will develop in the same way as your niche does, it’s a symbiotic relationship…if you want it?

So you can see, whatever misconceptions you have about working your niches, they’ve probably been voiced before…and the need to niche is still a must.

It’s a must because it’s where the highest level of profit is.

That’s the driver – it’s profit creation.

Niching is one of the fastest ways to do this.

Especially if your sales results have plateaued, hit a dive or you simply want to accelerate your sales growth.

For example:

I know it’s possible to have an average order value of more than 3 times the industry average simply by selecting the correct niche

and slightly altering the sales process (professional services firm), the product/service stayed exactly the same.

To find out more about niching here are three real life case studies, the industries, the strategies and the results – read for yourself the power of a great niche sales strategy on your sales efforts and sales results – hit the link here

Why You MUST Niche

  1. Profit – obviously
  2. Can reduce sales acquisition costs
  3. Creates critical market mass very quickly
  4. Reduced competitor presence
  5. Creates a stable sales arena
  6. Builds certainty and stability into the business
  7. Expert status is achieved very quickly
  8. Creates predictable revenue streams
  9. Supports higher level strategic partnerships
  10. Creates a loyal tribe that are super responsive to your messages
  11. Reduces marketing costs
  12. You can use a push and pull marketing position
  13. You reduce the fear and perceived risks associated in buying from you – which speeds up the sales cycles AND increases sales conversion rates.
  14. Much easier to fill the sales funnel
  15. Much easier to manage and expedite the prospect’s journey through the sales pipeline
  16. More accurate sales forecast

BUT, most importantly:

Niching supports profitable growth by creating predictable and stable revenue streams from a market place that is eager to have you solve their biggest problems.

Why Bother Creating Profitable Niches?

Creating a profitable niche is vital.

Creating several profitable niches is absolutely vital.

Niching has the very greatest power in these two scenarios.

  • Creating a profitable niche is even more important if you are in a highly competitive ‘me too’ price driven market where you and your competitors are in the unenviable race to the bottom to see who can sell at the lowest price to win the customers.
  • You should also take the opportunity to seriously think about your niches if you are in an industry where the level of differentiation available between you and your competitors is low.

You’ll wonder why you didn’t do it sooner.

What Next?
How to Create a Sales Niche - Beating the Competition and Building Your Business
Creating a Niche for Your Business – How to Remain Competitive for Improved Sales Performance

Contact me directly:

If you’d like to explore this subject further and understand how you can create profitable niches in your business you can contact me on the details here

Carol Griffiths

0779 002 1885

carol@mortonkyle.com

There maybe funding available for you to explore this within your business – just call me and we can discuss.

Alternatively you can download a free guide I’ve put together to help you avoid selling in a commodity based and price driven market place – here’s the link below – and you’ll get a copy sent to your email instantly.

Only Dead Fish Go With the Flow – Avoid the Commodity Trap by Creating a Competitive and Compelling Sales Pitch

Happy and Profitable Selling!

Carol

0779 002 1885

carol@mortonkyle.com

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