Thursday 19 December, 2013
The golden rule of niche marketing, which is important for any ecommerce website or online business, is to specify. You can never target a niche too narrowly. The internet is the place to indulge your interests, no matter how obscure, and the more obscure the better.
Just think of the weight loss niche for example. It’s flooded with marketers hawking products great and small. How do you compete with all of them? The way to do it is to identify a small hungry market and offer that market exactly what it needs. This is true niche specialization.
Researching Your Market
The idea behind segmentation is to find only the most profitable potential customers – those that will definitely buy – and marketing to them, saving you time, money and energy. So, the first step is to find your market.
Traditionally, companies used direct market research methods like focus groups and surveys. The information direct methods yield is very good. But today, there are much more economical ways that are more suitable for online marketers. The internet provides a wealth of information about your customers if you only know how to look for it.
There are many ways to research a market online. You can do keyword research to see if a niche is profitable. You can look at online marketplaces like ClickBank to see what kinds of products are actually selling. But to identify your market, you need demographic information.
The Demographics of Your Market
Demographic information can include age, gender, income level, education level, racial or ethnic identity, marital status, size of household, number of children and geographic location. It should also include psychological factors like attitudes, beliefs, values and shopping habits.
Of course, you can come right out and ask all of this information. But an indirect way of gathering data like this is to connect with your niche online. Look for places where your target market hangs out.
For example, if you’re an ecommerce store that sells supplies for pet snails, you can join snail farming forums, read snail blogs and join snail-related social media groups. You can then look at the profiles of other members and interact with them. This is a good way to gain a wealth of knowledge without conducting surveys or asking questions.
The real segmentation occurs over time as you begin selling your products to customers. Once you start making sales, you’ll see what kind of people buy from you. You can then focus even more specifically on these sub-groups.
The most important information you can gather about your buyers is what concerns them. What problems do they face? What are they worried about? Why do they buy what they buy? If you know what’s important to them, you can deliver the solutions they’re looking for and find other ways to help. This is the best way to segment your market.