To niche or not to niche? That is the question. Some branding experts state that casting your net deep and niching down your services helps your clients see better results. Others say that if you generalize and cast a wide net in your market, you can offer more benefits to your clients. Niching down your services does have its pros and cons. Consider the advantages and disadvantages below to help you decide.
Advantages of Niching Your Services
Better Relationships and Better Results
Nicole Pereira says that Deep Root Digital started out offering a wider range of inbound services then refined their offerings over time.
She says this refinement has benefitted her company and her clients. By specializing, Deep Root Digital has seen an increase in demand for their services. The company has also experienced a deeper connection with the clients they serve. As for the clients, they see better results from the specialized services, which therefore increases customer satisfaction.
John Leutermann, owner of Big Rock Marketing LLC, has also seen better relationships with clients by offering specialized services that he feels passionate about. Clients can sense when a company is passionate about what they do and this creates a positive business relationship.
Improved Customer Loyalty and Referrals
When a company offers specialized services, customers are more likely to bring up their experience in conversations with others. If someone mentions they are having an issue in an area, it is natural for a person to mention how they solved that problem, or refer them to someone who can help. By showing a company is an expert in one specific area, they can increase the number of leads they receive, which can help reduce marketing costs.
Disadvantage of Niching Your Services
Turning Prospects Away
Part of niching your services includes turning away prospects who you believe you can’t help. Not all business owners are comfortable with that concept. John Lincoln, CEO of Ignite Visibility, believes that offering additional services is a natural part of company growth. As his company grew, he added other services that naturally paralleled existing offerings. He believes that if you don’t offer all the services that clients need to be successful, they will go somewhere else.
Another option for companies who don’t like the thought of turning away business is to create a network. John Leutermann has created a close-knit network of consultants who specialize in providing services he doesn’t offer. He did this to help those he must turn away. In return, those consultants refer prospects to him as well. This way, limiting services doesn’t have to mean losing viable business.
Making your Market Too Small
You do run the risk of losing viable business if you niche is too small. One mistake companies make is to niche their service offerings too far. If the market you select is too small, this can prohibit company growth. Therefore, it is important to research your market to refine your service offerings and not restrict them.
Refining your service offerings helps you to narrow your focus and to be more productive. If you need help niching your services, download my free 6-step system today, I call it The Niche Focuser Tool. It’s my 7 minute shortcut to start getting more cool, high-paying clients.
Chris Rudolph is a husband, father of 3, and a Freedom Business Coach for Digital Marketers. He specializes in working with those who are underpaid, hustling around the clock or missing out on valuable family time build their own Freedom Agency. He helps them grow their income, scale with a team and enjoy more time with their family.