The Benefit of Targeting an Industry Niche

Targeting an industry niche is a very effective, yet underutilized, marketing strategy in any service industry. Let’s start with my definition of targeting an industry niche: Targeting an industry niche is positioning yourself as an expert in a target industry as it relates to your products or services, and then leveraging that expertise and reputation with appropriate marketing techniques so people in the target industry will think of you first –and refer you first. Marketing is all the activity that makes the sale possible. Marketing makes people aware of your product or service and puts them in a position to meet you so the sale becomes possible. Marketing is what gets you to the client’s door in the best possible light.

Remember the often repeated statement ‘Birds of a feather flock together.’ People associate and communicate with other people like themselves. For instance, people in the same type of business or profession join together in an association. The advantage is that by segmenting your marketing into niches in this way, you can reach out to prospects that associate and communicate with each other.

There are at least three compelling reasons for targeting an industry niche:

1. Word of mouth is easier to create because people within industry niches have specific formal and informal ways of communicating with other – conferences, newsletters, trade publications, industry associations, etc.

2. Referrals are easier to obtain. People within industries usually have many friends and colleagues to whom they can refer you. When they know you are concentrating your efforts on their industry, they are usually more willing to help you extend your influence.

3. Cold calling within an industry niche is usually a much warmer proposition. Once your reputation is established, there’s a good chance your prospect may have heard of you. If she doesn’t know you, it’s still easier to warm up the call because you know her challenges, speak her language, are an expert in her industry and you truly have more value to bring to her than someone with no specialty.

Practicing these principles of niche marketing is like trying to move into a different lane while waiting at a traffic light. If you begin to inch over, trying to squeeze your car into the small space between neighboring vehicles, you may not get in. However, if you just catch the eye of the driver of the car you wish to cut in front of, he or she will almost always wave you in. Establish some recognition, and you’ll be let in. The same is true in sales. If people have heard of you, even if they’re not sure from where they heard it, you can get past the gatekeeper and your voice mail messages get returned. A widespread reputation overcomes barriers.

Targeting an industry niche is all about added value. When you target an industry niche, both your perceived and actual value increases. When you get to know an industry, you can bring more value to the relationship with a new prospect more quickly than if you know little about his or her industry. When you target an industry niche, reputation is everything, so you need to go the extra mile. And you can’t burn bridges, because word-of-mouth spreads faster within specific industries. Every transaction, every encounter, has to be handled with the utmost professionalism. Within the niche, everyone is always a prospect, at least in the sense of helping you build your reputation. If a company or individual doesn’t fit your profile, you still must maintain an attitude of service. Even people in your target industry who aren’t prospects should be treated with professionalism and dignity.

There is no better time to re-evaluate your current situation than the present. Jeff Moore is president of JM GetMoore Insurance & Financial Services L.L.C. He can be reached at
(956) 928-1811 or by e-mail: jeff@getmooreinsurance.com. Don't forget to visit his website http://www.getmooreinsurance.com for further information as well as read some insightful articles.