Many people have the misconception that the bigger your marketing budget and the more people who see your brand, the bigger your ROI

This, however, is not always the case. Casting a larger net does not always mean you are catching the right fish. 

However, a smaller and more focussed approach can bring in exactly what you are looking for.

Keep on scrolling because media update's Saads Abrahams is breaking down how niche marketing drives a better ROI for your brand!

Before we dive into why niche marketing can better your ROI, let's break down exactly what niche marketing is.

What is niche marketing?

Scenario time: You want to throw a party… but not just any party — a party specifically for people with bulldogs — the people who make owning a bulldog their entire personality

This is what you call a niche. Now, your job from a marketing perspective is to find out how to find these very specific people and make sure that they come to your bulldog-obsessed party.

Niche marketing is zoning in on a specific target group and making sure that the right audience is looking at your brand. According to The Economic Times, "Niche marketing is defined as channelling all marketing efforts towards one well-defined segment of the population."

How to reach a niche market

First things first: How do you reach your niche market? 

Well first, you need to narrow down your market to a niche market if you haven't already done so. 

For example, your original market is for moms; now you need to narrow that down to working moms and you go even further to work-from-home moms.

Now that you have your niche market, how do you reach them? You first need to do some major research on your target market and find out the following:

  • What problems are you solving for this group of people?

  • What can you offer them that a competitor can't?

  • What are their passions and values

  • Does your brand align with their passions and values?

How can you find out all of this information? There are a few methods you can make use of, such as:

  • focus groups

  • finding and following online communities for these groups

  • finding and following people in your target market on social media platforms, and

  • checking out your competitors' websites and social pages to learn from them.

With all of this information, you are able to ensure that your tailored marketing strategy has a higher success rate.  

Benefits of niche marketing for your ROI

Being a niche marketer is like being a specialised surgeon — you don't try to treat the entire body and all its problems, you focus on mastering one specific area. And by just focusing on one very specific group, you have a greater chance of having a higher ROI

Knowing who your target audience is makes it easier to create tailored content because you know exactly what this audience is looking for and what they will respond to. By building your marketing strategy for them, you are building long-lasting relationships with this audience

By creating specific targeted content for a specific targeted audience, you do not have to fight for their attention like you would normally have to when you are trying to reach a wider audience. 

Having a niche market means that they know what they want, and so do you. This generally means they are ready to buy what you are selling — but only if you do it right! 

You may not have a lot of competition when marketing to your unique audience, but because they have a lot of knowledge of what you are selling, you cannot pull the wool over their eyes with any questionable marketing tactics.

Having a smaller market means that you will have better analytics and insights compared to having a broader reach. Having a smaller audience will provide you with loaded data. These insights can then help you refine your campaign and messaging to improve your ROI.

One of the major benefits of niche marketing for having a higher ROI is that your marketing costs will be significantly lower. This is because you know exactly who your audience is, where they are and what they want. So, you will be spending less time and money on your marketing efforts out of surety.  

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Looking for marketing tips? Take a look at Why having a strong USP is crucial for marketing triumph.

*Image courtesy of Canva