Yes Virginia, There Are Riches in Niches
There are many reasons to narrow the focus of your business through niching:
You can’t build your business if you don’t stand for something in the consumer’s mind. Often the best way is to isolate a single word or phrase you can dominate or an attribute you can own.
Trying to appeal to everybody is a losing proposition. Unless you’re selling toilet paper, your offerings are NOT for everyone.
No matter how many strong selling points or expectations your business might have, you are better off choosing one and making it your sole focus.
Either you can choose to focus your business by niching, or you can choose to be me-too and be just another “catch all” business.
Niching can help you dominate relevant search terms for your website.
How to niche
Think of niching as slicing your market vertically. There are many ways you can focus
your offerings. Here are just a few ways you can niche your business.
Geography. A bottled water brand called Fred started by focusing only on a few hip boroughs of New York.
Income level. Hundreds of luxury brands from Lexus to Rolex to Neiman-Marcus take this approach.
Gender. DanActive yogurt is aimed specifically at women.
DMA (Demographic Market Area). Curves became a business phenom when it focused on small towns.
Price point. Walmart focuses on low prices while Williams-Sonoma is happy to take the other end of the scale.
Sales channel. Publisher’s Clearinghouse made a fortune by focusing exclusively on selling magazine subscriptions through direct mail channels.
Distribution model. Think of Dell computers originally selling direct, or Gevalia coffee selling exclusively through continuity programs.
Audience-driven offering. Think about something as simple as vegan pizza, focused on the narrow need of a specific audience.
Age. Consider all the products, for instance, that are targeted at the aging population, from the Clapper to Medic Alert services, and even a online dating service called Our Time.
I could go on, but you get the idea. Niching is where it’s at, no matter how you slice it!