What’s one key thing you need to succeed in a niche market?
Focus.
Selling a niche product is an exciting challenge for those who know how to tackle it. You’re not simply hawking to a general audience; you’ve got something you know is special — something a highly select group of people want.
But getting that special product in front of those people and convincing them to buy it requires a laser approach to all aspects of the sales strategy.
Here are five areas in which you’ll need to get hyper-focused for niche sales success:
1. Research
Operating in a niche market means you’re starting with a limited number of buyers, so you need to get to know them intimately.
Do your homework on your customers: Who are they? What are their demographics? What are their buying power and buying cycle? The better your research, the better equipped you’ll be to meet their unique needs.
Consider Toyota’s Lexus line of luxury cars, for example. Toyota’s research found an untapped market in the U.S. for luxury cars. So Toyota designed a line of quality cars designed to communicate that though owners could afford any car, they were smart enough to choose one that was lower-priced and had excellent customer service. The line filled this unmet market need, and the car line found success.
Be clear on your product features so you can show potential customers that you understand their niche. They need to know exactly what you’re offering — the value proposition, the price point, everything. If you’re not selling from a place of authority, customers in these specific market segments will sniff you out.
Once you establish yourself in your niche and understand the market, you’ll see new sales opportunities emerge.
2. Marketing
When you’re selling to a limited consumer base, you need to ensure higher product margins. Once you’ve figured out who your potential customers are, it’s time to form a genuine, mutually rewarding relationship with them — otherwise known as “resonance marketing.”
Essentially, you have to show potential customers that you share in their values and that you’d like to help them by selling them your product.
A good niche marketing strategy achieves this in three ways. It’s based on a clear message that reinforces your brand identity, it tells consumers what differentiates you from the competition, and it tells potential customers that you’re more relatable than the competition.
Creating this type of marketing plan requires an in-depth understanding of your competitors, so have your team analyze other companies’ ads, marketing materials, and online strategies. Distinguish your brand and product, and you’ll establish authority in your niche. Building content through social media, blogs, and industry whitepapers is another great way to establish authority and increase brand visibility.
3. Testing
Because you’re marketing to a small, specific crowd, it’s important to make sure you’re getting the product and message just right.
Do this through promotional offers that will provide valuable information about customer response but won’t break the bank to execute. For example, give customers access to a free webinar or sample newsletter as a way to test their reactions to your product.
When you do launch, always be analyzing the results of different sales channels. Knowing which strategies bring the best returns is the key to refining your sales and marketing strategies and making sure they’re in line with your customers’ buying preferences.
Always be matching your results to your goals.
4. Feedback and Testimonials
Nothing is more important to your success than customer feedback. You may think you’ve nailed it in a specific market, but lackluster consumer response will tell you otherwise.
The product you initially offer may change significantly through the years based on customer feedback. In my company, we pivot certain aspects based on what we learn through surveys and customer calls.
Be sure to capitalize on positive testimonials, too. If someone is raving about your product or service, get it in writing. Ninety percent of people are influenced by online reviews, so be sure to incorporate positive testimonials in your company website and marketing materials.
Actually, the most common place to read a positive review is on Facebook, with 44 percent of consumers saying they often find positive information on the social network. Encourage your satisfied customers to leave positive feedback on relevant forums and social media pages.
5. Press
You can work a unique product to your advantage by playing it up to the media, angling for coverage through human-interest stories, or by the sheer novelty of what you’re selling.
Journalistic attention is a great way to gain free exposure. Have your communications team send out press releases to build media attention around the company. Customer testimonials can also come in handy here. If you can get those happy faces some screen time, people will likely take notice of what you’re selling.
You’ve been told since you were a kid that being different is a good thing, and that adage certainly applies to niche businesses. The more specific you get in your research and offerings, the greater chance you have of success. Focus on the key areas of product research, development, and marketing, and you’ll be able to create a winning sales strategy that makes you a leader in your market.