4 Niche Marketing Strategies for Improved Business
BY: DYLAN MORAN ON WEDNESDAY, JANUARY 25, 2017
If you run a business in a highly specialized industry, you may wonder how you can set yourself apart from the competition. Being a marketer in a niche industry might seem like a disadvantage, but it’s all in how you approach it. Here are 4 ways to enhance your impact and create your place as an industry leader.
1. Know your Customer
The fact that your product or service appeals to a narrow range of people means that researching your target market is even more crucial. Operating a business that provides a product with niche appeal can actually make it more difficult to determine who your customer is. Segmentation is vital to defining a smaller target market in a specialized industry. It’s simply not enough to be aware of basic demographics without an understanding of more specific attributes. The smaller your market, the better you will need to know your customers.
One company that knows its customers well is Lonite. This business markets cremation, or memorial diamonds. A cremation diamond is quite literally a diamond produced from cremated ashes of human remains. Cremation diamonds are physically, chemically, and optically the same as natural diamonds and are certified by GIA and IGI, just like traditional diamonds. As you may well guess, the target audience for this product is quite particular.
Lonite understands how important it is to become acquainted with customers, in an effort to meet their needs. What they’ve determined is the most significant factor for a buyer is quality. Several rival companies add carbon to their diamonds during the purification process, which dilutes impurities and speeds up the process. This makes the ashes-to-diamonds method cheaper and faster.
That’s not the way Lonite chooses to operate. By opting not to do this, they manufacture a more refined product that is a “purer” creation of your loved one’s remains. Though a purer cremation diamond means more ashes are required, a higher cost, and longer wait time, quality is the most vital factor to Lonite. In fact, based on research focused on quality and prices against other companies offering similar products, Lonite offers the best price-to-quality ratio on the market. This is something that draws customers to them, the desire to deliver a quality product that their customers will cherish for a lifetime.
2. Focus on Differentiation
In addition to being an expert within your niche market, it’s imperative to know how your product or service will fulfill a need not currently being met by another company. What sets your brand apart? Why is your business special and what is your unique selling proposition? Are you focused on taking care of your customers? Smaller markets are just as competitive, if not even more so, than for larger industries. Due to this, it’s essential that your business determines and then markets the element that separates you from the pack.
EverDear is another company that produces memorial diamonds. The factor that distinguishes EverDear from other cremation diamond businesses is that they offer newly developed technology that creates custom diamonds at a cheaper cost than its competitors, and the company passes the savings on to the customer. By developing state-of-the-art technology, EverDear is able to produce a high-quality product, at the lowest price on the market and set themselves apart from competitors. With an emphasis on producing a quality product at an affordable cost, EverDear chooses to forego working with affiliates. Though they may be able to cast a wider net if they worked with distributors, this ensures the customer doesn’t fall victim to third-party markups. The importance of offering reasonably priced products is also evident in EverDear’s price match policy. The company strives to be the lowest priced on the market. If you find a similar product to one it offers (size, color, cut, clarity, etc.) offered at a lower price from a competitor, EverDear will not only match, but beat that price. Also unlike competitors, they offer a family bundle that provides discounts for multiple diamonds ordered from the same ashes.
3. Rethink Your Marketing Approach
Niche marketing isn’t like regular, run of the mill marketing. You must adopt an entirely new approach to spreading the word about your business and what you have to offer. It’s imperative that you assess the strengths of all marketing channels in relation to your business.
LifeGem is a company that has capitalized on investing in and structuring a unique marketing system. They offer an attractive profit to sales agents and funeral distribution partners. As a result, they have over 5,000 funeral distributors and online resellers across the United States. By partnering with affiliates, marketing can occur on a larger scale, to a very specific target audience. Customers benefit in that they can place an order with nearby establishments, without worrying about shipping their loved one’s ashes.
Whatever the situation for your business, you must examine the potential return on investment of any marketing strategy to ensure you are communicating to your target audience in a cost-effective manner.
4. Connect with Consumers
The best marketing strategy is doomed to failure unless you’re committed to listening to your potential, and well established customers. If you aren’t leveraging the use of social media, you must absolutely begin now! Social media provides instantaneous feedback on your product or service by allowing you access to your customers. These connections keep you informed as to how well you’re doing at keeping your customers happy. If there’s a problem, obviously, it is important you do everything in your power to solve it as quickly as possible. Your business may be small, but that doesn’t mean you can become lax when it comes to addressing the needs of your customers. Listen carefully to what people are saying, and act immediately to rectify any mistakes that have been made.
If you’re a marketer in a specialized industry or field, we’d very much enjoy hearing what strategies have been working best for you.
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