You’ve heard the advice a hundred times before. “Your business needs a niche to compete.” But you may have reservations. Isn’t that just limiting my customer pool? How is a limited range of potential customers going to help me and my wellness business?
Limiting your customer pool is a counterintuitive strategy, but that’s partially why it works. No matter what your business is — whether you’re a part-time yoga instructor looking to have fuller classes or an online supplement boutique — this article is for you.
What is a niche?
Before we dig into why you need a niche and how to find one, let’s first define that term. A niche as defined by the Oxford Dictionary is “a specialized segment of the market for a particular kind of product or service.”
I prefer to look at it in terms of its application. A niche essentially means that the unique things that make you and your business special are the exact things that your customer is looking for. Your uniqueness is your selling point.
Why do you need a niche?
We tend to start out thinking that the best strategy is to be there for everyone. Deciding that the best way to help as many people as possible is to stay open and generic. But what ends up happening is that we ultimately reach no one. Let’s explore why that is.
Connect with your customers on a deeper level
When shopping yourself, you tend to search for companies that align with you. You don’t feel moved by Walmart athletic wear. Instead, you may see brands like Fabletics, Alo Yoga, Nike, Under Armour, or Lululemon as more your style.
Why is that? Because they have a niche, and that niche includes you and your interests. Essentially, they told you that they specialize in athleticwear for you, and you felt that difference.
Walmart is everything for everyone. Alo Yoga is athletic wear for you.
Your customers are looking for the same thing in your business. They don’t want a yoga teacher who walks them through the same sequences as everyone else. They’re not looking for a supplement store that offers the same products as Amazon.
They’d rather have you, the yoga teacher who connects with them on a deeper level because you specialize in their injury.
They’d rather shop at your boutique that specializes in sustainably sourced vegan supplements because you and your products have earned their trust.
Price yourself higher
Back to the Walmart example.
Now you may protest and say, “but I do buy my athletic wear from Walmart. It’s most affordable!”
To you I’d say, you’ve made my next point for me.
A niche is what pulls you out of the race to the bottom over price. Walmart can be generic because they’ve decided that’s their strategy — race to the bottom over price. That is their differentiating factor — their niche.
I’m going to guess that you’re not looking to compete in the same way with your business or side hustle, so don’t borrow their strategy.
Become an expert
Finally, a niche gives you a chance to become an expert.
This expertise is what allows you to connect with customers or students on a deeper level and drives your ability to compete on something other than price.
Generic means that you’re decent at a lot of things. A niche means you’re an expert in one space.
Who would you trust and want to listen to more, a generalist or an expert? Who would you be willing to pay more?
To summarize, a niche:
- Allows you to become an expert and authority in a segment of the market.
- Affords you rights to premium pricing because it gives you a non-pricing angle to compete in the market.
- Builds a customer base that trusts you and connects on a deeper level.
A niche is what will fill your yoga classes with people who are excited to be there and learn from you. Or how you’ll get customers excited and sharing about your supplement store.
“A niche is what pulls you out of the race to the bottom over price.”
Lavendai Creative
