Will you lose customers if you niche?
Over the past 5 years, I have really noticed a shift with businesses that we have worked with. How much more successful they are when they niche down, really know who they are as a brand and exactly the type of people they are targeting. Some of the big brands in my opinion that do this well are: Nike, Country Road, Lush, Ikea & Domino’s Pizza.
The businesses that haven’t niched, just don’t have the focus on their customers. Resulting in less customer loyalty and basically leading the business to eventually close down, as they cannot retain their customers or meet their customers needs.
For example, I remember working with a boutique cafe 8 years ago, they came to us with a clear vision of the customers they wanted, and what they would provide to achieve this. Although, when they started they kept changing their business to suit the customers (hang on hear me out)… Yes you do want to evolve and change for your customers - but only if it is inline with your brand, your vision and your goals.
So what happened to this cafe? Unfortunately they ended up closing after 2 years of trading because they lost their identity. They became known for nothing special as they offered everything and anything. This left the owners frustrated, miserable and lacking motivation to be there anymore. They let their customers dictate their business and in the end, it didn’t serve them.
How did this happen? If a customer asked for donuts, they then got donuts in. The next week they were doing sandwiches, then the next week they had milkshakes and so on. They did not get return customers as nothing was distinctive, this gave people mixed messages diluting who they were as a brand.
So, if you are thinking, but Saffron… I want lots of people to purchase from me. I want everyone to feel welcome in my shop, cafe, online community… I get it. But right now, with so much, so so so much competition online and in the retail world, you need to stand out as the business that your ideal customer sees, feels instantly connected and becomes your long term loyal customer.
For example, we all have a friend or it might be you that has a favourite coffee shop… why? quite simply they like the coffee? but more importantly they feel welcomed and connected to the place, they like the vibe and feel like they fit in. So much so, they tell their friends about it, they might even make it their new go-to place to catch up.
What are some of the problems that can happen if you don’t niche?
Loss of customers, resulting in less profits.
Loss of loyalty and referrals.
Not being known for anything in particular. Not being a go-to brand that specialises in anything.
Unhappiness for you, the owner. Loss of identity and the purpose of why you started your business in the first place.
Too much money spent on targeting everyone, with little conversions.
What can you do to change this?
Sit down and write out a list of why you started your business, remind yourself of your vision.
Think about your favourite customer that spends the most amount of $$$ and just gets your business.
Think about how your business could attract more customers like this.
Ask yourself if your business could sustain this and how you could implement this.
How could your business be of more value to this person.
By niching down and putting your customer in the spotlight, you can look at your business through the eyes of your customer and make the whole experience that much better for them. Domino’s Pizza know that their ideal customers are teens, and how do teens predominantly order takeaway? by using an app that is simple to use, remarkets to them at peak times of the week and also during national holidays/sporting events. Why? because they know their customers.
I specialise in brand strategy, and a main part of this is working out your ideal customers so that you have a strategy for your business.
If you would like to get in touch with me to chat how we could help you, book in a brand strategy workshop or just need more advice on one or more of the points above, click here to message me.
Thanks Saffron, :)
