86% of consumers will decide which brand to support based on their authenticity. What better way to be authentic than to focus on a specific demographic’s needs rather than try to sell to everyone. The more specific you are towards a certain niche audience, the more authentic you will appear to be. For this strategy to work, however, you have to become intimate with that niche audience. You have to consistently find better ways to meet those consumers’ needs to win their brand loyalty.
Decrease Costs
As well as increasing profit, a niche audience will allow you to spend less on marketing efforts. Targeted lists of clients lead to the creation of sales and marketing that’s personalized which attracts consumers. In addition, instead of spending lots of money to reach a wider group with fewer conversions, you can spend less money reaching a specific niche audience that actually wants your product.
Ask The Questions
It’s not rocket-science, but a good old-fashioned brainstorm on how to find that niche audience:
- How old are they?
- Where do they live?
- What professions do they work in?
- What are their hobbies or interests?
- Do they have children?
And so forth. These can help identify those who are benefiting from your product or service the most, and whom you can build a niche audience around.
Forget Traditional Demographics
Instead of focusing on gender, age, location, income and education, try to focus on consumers’ needs and values. Mix up demographics that are specific to your brand. Is organic origin an important factor? Free-range? How about “cool-factor”? It may take a bit more digging to find this information, but when you do it becomes more invaluable to your marketing and sales efforts.
While ultimately you want to target a niche that your competition hasn’t dug into, it’s very beneficial to research how your competition is targeting niche audiences, especially if you’re at the beginning of starting your business. Take a look at their engagement and see who they are targeting. How are they keeping them engaged? How is the audience responding? With some thorough research and planning, you can decrease costs by putting a lot more stock and value in niche audiences than before.