Create Your Own Niche Market to Boost Profits

Like it or not, we live in a time when prospects and customers demand specialization. They want to feel that they’re receiving the product or service they want and need from an authority or expert.

You MUST position yourself and your business as that authority or expert, and you CAN’T do that while trying to be everything to everyone.

Most entrepreneurs try to expand their product or service offerings, reasoning (incorrectly) that they’re casting a wider net that will catch more fish. In reality, they’re doing the exact opposite. Your prospects want to feel as though you’re focused solely on the things that are most important to them. If you try to be everything to everyone, you become nothing to no one.

The key is to discover what your ideal clients really want and make that your “niche” market.

A mere 20% of your current clients are producing 80% of your total business revenue. Those are your ideal clients, and they love what you do and what you provide for them. When you select the area that attracted them to you as your niche market, you immediately begin to attract this type of client in droves.

Your revenue and profits begin to skyrocket, and you will actually begin to work fewer hours. You will “play” at what you do instead of work at what you hate. If you fail to create a niche market for your business, the cost to you may be staggering…

  • You lose revenue and profit.
  • You work longer and harder.
  • You lose the chance to build a valuable business asset.
  • You will be forced to compete forever on price
  • You will never become unique or differentiate your business from your competition

These are the secrets entrepreneurs must know to effectively position their business in the proper niche market that will explode their revenue.

To determine your niche market, identify the physical and emotional profile of your ideal customer.

Physical Profile

Develop your ideal customer’s physical profile by researching at least 10 current customers that you consider ideal customers. Consider the following factors while going through this exercise:

  • Who are your most profitable customers?
  • Which customers have provided testimonials praising your service?
  • Which customers do you have no or least complaints?
  • Who has been most loyal to you?

Physical profile for a business customer must include details such as type of business, number of employees, annual revenue, location of business, industry vertical and title of decision maker. Physical profile for a consumer target must include details such as gender, age, marital status, income range, education level, related products they purchase etc.

Emotional Profile

Physical traits are only responsible for 10% of the business success equation. The remaining 90% of your success is determined by your target customer’s emotional profile.  The emotional profile identifies what it is that all of those available prospects in your universe. Their emotions are often referred to as “Hot Buttons”

  • Describe the problems, frustrations, fears and concerns that your prospects have when they buy what you sell.
  • Define the emotions your prospects are experiencing.

For example if you are a Cloud Service Provider, some of your customer hot buttons could be – Network availability, Service response times, Security and Losing control of operations.

Since your prospects buy based on emotion, they’re looking for the provider that will move them. That’s why the emotional profile represents 90% of your potential success.

The physical profile defines the prospects who have a logical NEED to use your product or services… whereas the emotional profile defines the prospects who have an emotional reason to buy… and they WANT your product or services.

Follow these tips to identify your niche market:

  • If you’re struggling to identify the hot buttons for your target customer… then try asking them directly.
  • Interview them and ask your current customers what they want from a service provider like yours… or ask prospective customer’s if you’re a start up and currently don’t have any actual customers
  • Ask them to tell you their biggest problem, frustration or concern they have when they buy what you sell
  • Then research who your direct competitors are targeting.
  • Is there a small niche that is being missed?
  • Observing the clientele of your competition can help to build understanding of your target market, regardless of whether it is the same or opposite.

If this is making sense, but you would like some help identifying your niche market to scale up your business, schedule your Complimentary Scaling Up Strategy Session.

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