In a culture that celebrates doing all the things, the idea of focusing on a niche might seem counterintuitive or even a little crazy. I mean, won’t limiting your client base squash your firm’s growth potential? The truth is, concentrating on a specific niche, or target market, may actually help you come out ahead.
Here’s how narrowing your niche focus can expand your bottom line:
Reduce your overall marketing spend.
If you choose to market your services to select industries or audiences, it’s likely you’ll spend less than you would if you were to take a blanket approach. You’re not trying to be everything to everyone. And this means you won’t have to worry about every marketing channel. If you’re a CPA firm that focuses on serving, say, private medical practices, you might limit your advertising spend to publications that serve these types of clients.
Improve the quality of your clients—and your service.
Part of narrowing your niche focus is identifying exactly whom you want to serve—i.e., your ideal client. A good place to start this process is to think about your value proposition. What do you do, and whom do you help? By homing in on this group, you’re able to learn more about their needs, their challenges, and their goals—and how you can make a difference in their businesses. It’s win-win: you’re able to work with your ideal clients, and you’re able to serve them exceptionally well.
Increase your return on investment.
We’ve all heard that it typically takes eight instances of contact, or “touches,” to engage a cold prospect, but in today’s media-inundated world, some say the requisite number has nearly doubled. Because of this, your sales cycle may be much longer, especially if opportunities for connecting with your prospects are few and far between.
Focusing on a niche can help, as it’s easier to connect more frequently with a smaller group of like-minded individuals. Say, for instance, your accounting firm decides to target quick-service restaurants. If you take the relatively simple step of joining the industry’s trade association, you could potentially build your credibility through activities such as volunteering, speaking, and networking—and move prospects through your sales cycle in no time.
Leave a lasting impression.
When you’re a generalist, it’s hard to stand out. But when you have a niche focus, it can be easier to demonstrate how you differ from your competitors. That’s because you won’t be doing the same thing as everyone else; you’ll be honing your messaging, services, and approach to meet the specific needs of your target audience. If you’re looking for more information on how to articulate your message, read our blog post here on develop and deliver your elevator speech.
Yes, making the call to focus on a niche can be daunting, especially if you’ve positioned yourself or your firm as a jack-of-all-trades. But saying “no” to certain clients can help you make the most of your marketing budget and even enhance your bottom line. Best of all, it can lead you to say “yes” to new opportunities that align with your values. When this happens, the sky’s the limit.
If you’re wondering what a niche marketing plan might look like in your firm, let’s talk! Or feel free to view our webinar on “How to Identify and Build a Niche for Your Practice” if you’d like to learn more on this invaluable strategy for your business.