It is impossible to target your products or services to everyone, and that’s why it’s so essential that you have a well-defined target market to increase sales.
There are five quick tricks that you can do right now that will correctly pinpoint your ideal target market.
Many businesses make the mistake of trying to be “all things to all people.” You’re better off choosing the markets you want to target and then focusing exclusively on serving these segments better than anyone else. It is important to specialize and not generalize.
Choosing niche markets that are both easily identifiable and accessible is the key to success.
You need to carefully examine the results you’ve achieved up to this point in your business.
Chances are, the 80/20 rule, also known as the Pareto Principle, comes into play here. This concept states that 80% of your business comes from just 20% of your customers. Run the numbers and see if this idea is accurate in your experience.
In most cases, it is. The next obvious step is to review 20% of customers who account for 80% of your business.
Do they fit into a particular niche that’s identifiable and accessible?
Perhaps the top 20% of your customers live in the same neighborhood, a characteristic not shared by the other 80%.
Or, it could be that the top 20% fit into specific occupational or special-interest groups. When you select a single target audience, all your communication will relate to one person.
You need to understand where your customer is coming from indeed. This is not just knowing the needs and wants of your ideal customer, but understanding who they are, how they live, who they associate with, what their general attitude to life is – AND, more importantly, what are the underlying emotional conditions driving the actions they take.
Look at what others are doing and do something different. Avoid the niches that most companies in your field cater to.
Go after the markets that others consider “too small” or “too insignificant” to worry about. Just make sure that it’s a large enough demand to make your efforts profitable. Your flexibility and adaptability enable you to expand and grow with a changing and constantly evolving marketplace.
Here are five simple tricks you need to follow to increase sales when seeking target niches. It will help if you are looking for niche markets that:
1. Share common problems and have similar “wants” so that you can, in effect, “package” solutions that serve many, rather than customizing solutions to individual, specific requirements
2. You can reach quickly and affordably.
3. Are easily identifiable by those who are under-served by others in the market
4. Can quickly pay for your products or services
5. Show a history of buying related products or services in the recent past, where the dollar volume of each purchase is close to or more than the cost of your product.
You are seeking target niches that you can reach easily and affordably will help you determine the most lucrative and productive areas in which to concentrate your marketing efforts.
If you need help in defining your niche market that will quickly increase sales, we invite you to book a FREE Quick Wins Growth Session!