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The Power of Niche Marketing
By Kevin Lawrence
©2004 All Rights Reserved
In the current atmosphere of the competitive, changing world of business, you may find yourself asking "What can I do to stay competitive, distinguish my services, and still be able to charge higher rates while at the same time attracting more, high quality clients?" The answer is simple: Become an "expert" by focusing on a specific field or market. Experts generally can charge higher rates, clientele seek them out and they rarely have to search for business. Today's society prizes and rewards experts very much because true experts are rare and valuable.
So then, why aren't more people becoming experts? In one word: Fear.
Many professionals and other business people are afraid that if they focus in on one specific niche market that they will lose business overall. It seems difficult for most people to understand how much business you will attract once you become known as an "expert." Niche marketing is effective because people tend to feel more comfortable dealing with someone who has a great deal of experience in their specific area of need. Despite the fact that they may be able to obtain similar results elsewhere, people will often tend to go to a person who serves a niche because of their belief that "experts" are better equipped to handle the task. For example: If you had to have heart valve replacement surgery, who would you choose to have perform the operation?
- (a) Your family Doctor;
- (b) A General Surgeon;
- (c) A Surgeon that specializes in the replacement of heart valves.
I'll bet you answered (c) to the question above. Perception is everything. It shouldn't surprise you that this surgeon likely does not look for business very often. Once you are recognized in your community as having a specific expertise, existing clients will refer new clients to you and you will likely acquire additional work from already existing clients who are in need of your specialized services.
Let's examine the referral phenomenon surrounding experts from another angle. Obviously, it is easier to handle a specific situation that you have dealt with many times before, regardless of its complexity. It thus makes sense that niche market experts are able to provide better service, charge higher fees and retain larger profit margins. Say, for example, that you were an accountant that focuses on providing professional services for dentists. Obviously, your job would become easier as you gained experience dealing with more dentists and became better acquainted with the industry in general. Furthermore, dentists talk to other dentists, which will in turn hopefully lead to more referrals for you. In fact, you might actually receive more general referrals simply because of others' heightened sense of your worth. Experts get a lot of respect and, consequently, praise - which is sure to lead to referrals.
You don't necessarily have to create a niche in a particular industry. An accountant, for example, can cater to the specific needs of businesses such as financial planning, business valuation, insolvency and bankruptcy. Be sure to remember that because you're creating a niche, that doesn't mean that you have to focus solely upon it - you are still able and more than capable of performing general work.
Keep in mind, that simply because you decide to focus on a specific industry, you are not guaranteed an endless flow of customers. The reality is that you still need to make your niche market aware that you are able and willing to assist them.
Following are six key points to remember when you create a market niche for yourself.
Six Keys To Creating A Profitable Market Niche
- 1. Pick an industry or area of business that you have particular interest, expertise or talent in, and master it.
- 2. Make sure your target market knows about your expertise, by telling them whenever the opportunity presents itself and by marketing yourself with an eye towards that group.
- 3. Be seen in your community and your profession as an expert. Write articles for publications in your target industry, host seminars, speak at conventions and meetings.
- 4. Expand your knowledge. It is very important to read industry publications, and to keep current on what's happening in the field you work or serve a function in. Sometimes, it might even be a good idea to take a course or two in this subject matter.
- 5. Network within your niche, where you're likely to meet your target clients. Attend breakfast meetings and other industry functions. Attend online meetings held by industry members. Get involved in associations, boards or other activities associated with your target market that will bring you in contact with other people in your niche.
- 6. Compliment your niche by developing strategic alliances. As a niche expert, you can become even more effective when you align yourself with experts in other areas in and outside of your field.
A strategic alliance inside an accountant's field would likely include other professional accountants with differing areas of expertise, such as taxation, computer consulting, or auditing. When a client has a specific need that another expert accountant could address, you will be well equipped to refer them to another expert, or to have this expert do the work for you. In the end, the client wins because he or she receives the best services available and you win because you have facilitated the client in acquiring these services.
Back to our dentist example, an accountant focussed upon serving dentists could develop external strategic alliances with a dental supplies representative, a tax lawyer, an investment advisor and an insurance agent. If each of these other professionals in turn works exclusively with dentists, then this networking group can easily help each other by cross-referring business. As a group, they will each attract more clients than they could individually while, at the same time, enhancing the value their clients receive. Sharing resources is very efficient and effective.
In the end, you have the potential to become a recognized expert in a chosen field - it's just a matter of deciding to take action. There will always be a demand for experts. You won't lose business or miss out on opportunities by appealing to a specific market. In fact, you'll only enhance your reputation while working smarter, not harder.
KEVIN LAWRENCE
is a Vancouver, BC based Business-Building Coach, Speaker & Author who works with Professional Financial Advisors (Investment/Insurance Advisors & Accountants) to assist them in building their businesses by increasing referrals and repeat business - the most efficient and profitable growth strategy in existence. Kevin also helps people find balance, accomplish long-term goals, increase personal fulfillment or achieve any other result they desire in life.
For a free copy of our report entitled, "Ten Critical Things You Need to
Know About Your Customers", call Kevin Lawrence at (604) 313-2229, or email
us at info@Kevin-Lawrence.com.
Sign up for Kevin's free email newsletters "Successful Life" and "Endless Referrals" at www.Kevin-Lawrence.com
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