So you have been told to identify your niche, as that is where your sales will flourish? I know that many of the business owners and sales professionals that I meet have been told exactly this. What’s more, many claim that this is exactly what they have done. Well there is one thing believing in the value of mastering your niche, but it is another thing to do this successfully. Have you really identified your niche and are you capturing this value? And why is it so important to identify your niche and how do you go about developing this?
Firstly why (and to keep it simple I have bullet pointed the top 3 reasons):
- New customer acquisitions cost about 5 times more than retaining existing customers. This is a massive incentive to keep your existing customers. If you are effectively dominating in your niche, then you will see that customer retention is significantly higher than not niching.
- Effective niching allows you to offer your product and service to the more exacting needs of your customer, and the more you get this right so too does the loyalty of your customer increase and your corresponding margins and profits.
- Creating fans, or raving customers is not only great for your customers but also for you and your employees. You will find that acquiring and retaining top performing employees is easier as their intrinsic rewards kick into play. Everyone likes success and so do your employees: this is super important when one of the top three identified challenges in the NZ business has been identified as a skills shortage.
If you would like further input about how to identify your niche, then please just reach out and send me a message 😊