How to Grow Your Profits in a Niche Market You don't have to give up your goals of big profits because you have a selective following.
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The 2021 Mercari Reuse Report projects the secondhand goods market will increase to $354 billion by 2030. though this market attracts a specific audience, it's a ripe environment for innovative entrepreneurs.
If you're selling something that falls into a niche category, you can't afford to stay stagnant. You need to embrace marketing, sales and other tactics to ensure your expansion. Otherwise, you'll miss out on scaling opportunities and the profits that accompany them.
To give your narrowly-focused company the growth spurt it deserves, consider the following strategies.
Related: 5 Pitfalls to Avoid When Growing (or Scaling) a Business
Expand your product lineup
One of the most reliable ways to earn more revenue is by selling more items to your current customer base. In fact, your existing customers might be 50% more likely to invest in a new product than non-customers. Your job is to make sure that your newest offerings align with what your loyal customer base wants.
A recent poll conducted by Cricket Wireless, revealed that two-thirds of parents surveyed thought their kids will have access to tech no matter how strict they were with and found that the average youth received their first smartphone at 10 years of age. As a result, Gabb Wireless, a cellular network company that concentrates on selling kid-specific cellphones established that parents wanted their older elementary-age children to stay in touch but didn't want them too much screen time exposure. As a result, they created a new smartwatch to augment its lineup for customers.
Look for gaps by examining customer feedback. Conducting surveys or speaking with your sales and service agents can show you areas of potential growth.
Related: 5 Goals New Product Prototype Development Will Help You Achieve
Go for personalized "feels"
PwC's 2022 Customer Loyalty Survey showed that four out of five customers want personal experiences. In exchange for those experiences, they're willing to share private data. This should be exciting news for you and your marketing team since it presents a chance to promote loyalty and repeat visits.
When you have a deep, niche market, you want to maximize every touch-point with the people buying from you. AI-driven marketing software can be a huge help. The right type can allow you to provide personalization at scale. For instance, an AI-driven system could predict when a customer might need to repurchase an item. Or, the system could use historical trends to determine when to push individualized email, text or app notifications to customers.
With an effort to personalize all engagements, you can create a much "stickier" buyer bond. Remember that customers who are loyal will be more apt to talk up your company online. Ninety-three percent of consumers say they put greater stock in brand suggestions from friends and family. Consequently, your personalization initiatives could help you win more of your niche total addressable market.
Become an expert
Nothing has quite the cache as being known as an expert in any market. No one has any doubt that Oprah is a go-to guru of daytime talk shows. Similarly, who would deny that Elon Musk has figured out how to bring EVs into the mainstream spotlight? Owning the title of thought leader in any industry can help your reputation — and your sales — increase.
Here's the most wonderful part: You don't have to know it all to be seen as a confident, trustworthy expert. According to a study conducted at the University of Pennsylvania's Wharton School, participants were favorable toward experts who admitted uncertainty. In other words, saying that you're not sure about something is fine, you just have to keep learning, growing, and sharing your expertise.
Work hard to ensure your company is the definitive leader in your market. Then, use your knowledge to create valuable content that you can share with your target community. Ultimately, your brand may start to become naturally associated with your niche product. Case in point: Kleenex became such a leader that most consumers now use "Kleenex" to refer to all tissues.
You don't have to feel limited, even if your products or services only appeal to an exclusive target audience. Your company can keep getting bigger year after year despite your niche. You just have to listen to customers, deepen your relationships with buyers, and dominate your industry through expertise.
Related: 4 Marketing Personalization Tips for Digital Businesses
