Many organizations spent 2020 scrambling to catch up on decades-old trends, such as working from home, online commerce, and virtual events. What had long been a priority had suddenly become the priority, and too many businesses found themselves unprepared. As things open up in 2021, other pre-pandemic trends are revealing their importance to post-pandemic success, including purpose, customer experience, and their combined role in driving growth.
It now seems every month a company previously known for dispassionate dedication to profit and efficiency launches a new and emotive purpose statement. Though these meticulously crafted declarations are on-trend with stakeholder capitalism, companies that don’t go beyond inspiring oohs and aahs of solidarity among customers, employees, and shareholders may be setting themselves up for a negative backlash — and missing their most significant transformational growth opportunity.
Besides being laudable and increasingly necessary, traditional approaches to profit through purpose — such as Patagonia’s 1% for the planet and Toms Shoes’ buy-a-pair-give-a-pair — have proven to be a good place to start for many. Consider Bank of the West, a subsidiary of BNP Paribas (full disclosure: both Bank of the West and BNP Paribas are Accenture clients). In 2018, the leadership team committed to un-funding industries like fracking, coal, arctic drilling, and tobacco; prioritized funding of renewable energy; and directly connected their financial products to specific causes. In the eight months that followed, according to company CMO Ben Stuart, they saw new customer growth of 37% — the strongest in their history — and sustained growth of 25% or greater.
But to fully harness purpose-fueled growth, it’s important to consider purpose more broadly than adopting social or environmental causes, sustainability practices, or pithy purpose statements. Companies significantly outperform competitors on growth, profitability, differentiation, category leadership, and long-term loyalty of customers and employees by considering three levels of purpose — company, brand, and customer purpose — and then optimizing their products, people, processes, policies, technology, operations, and metrics to deliver experiences aligned with those purposes. Here’s how to start.
Consider Three Levels of Purpose
Big-P Purpose (Company)
Big-P purpose describes the company’s role in the world. Communications giant Verizon’s purpose is, “We create the networks that move the world forward.” (Verizon is also an Accenture client.) These nine words describe not just what Verizon does, but why they do it. Employees can see the higher impact of their work, and customers can see a reason to choose Verizon.
Company purposes best galvanize customers when the stated purpose reflects one the company shares with them, not just what the company does for them. For example, my firm, Accenture’s, purpose is “to deliver on the promise of technology and human ingenuity.” This describes what our people and clients do together every day. It helps guide the decisions and actions of millions of employees (ours and our clients’) around the globe.
Medium-P Purpose (Brand)
Whereas big-P purpose depicts a company’s role in the world, medium-P purpose depicts its role in the lives of customers. Companies with only one brand may opt for company and brand purpose to be one and the same. Or they may opt to have distinct company and brand purposes, especially if they have multiple divisions serving different customer needs.
For example, Kimberly-Clark (also an Accenture client) has a distinct purpose for Huggies, its baby diaper brand: “Helping to navigate the unknowns of babyhood.” This statement perfectly reflects the unmet, perhaps unarticulated, needs of Huggies’ customers, which go beyond just diapers. And with this statement, first-time parents might feel Huggies understands them, leading to their confidence in — and ultimately choosing — Huggies. But this purpose would not fit Kimberly-Clark’s other brands like Kleenex, Cottonelle, Depends, or Kotex because those brands play a different role in the lives of customers.
Importantly, purpose statements like those above that elevate a company’s motives also elevate customer expectations. Purposes stated are promises made. So if a company doesn’t change how it operates to align with its stated purpose, it leaves itself vulnerable to accusations of virtue-signaling, green-washing, or generally being full of it if their actions don’t live up to their words. And with the velocity and reach of social media, company leaders can find themselves fighting a PR firestorm before they even know what caused it.
Many have learned this the hard way, including airlines, banks, drug companies, retailers, and social media companies themselves. Not only did their share prices and revenue suffer — which could be made up in future quarters — they also lost customer trust, brand equity, credibility, and future revenue potential, which might never be fully regained. Such injuries might have been avoided if those companies better aligned their practices and policies with their purposes and promises.
Small-P Purpose (Customer)
Despite its name, small-p purpose has by far the biggest impact on business performance and market leadership. Customer purposes are all the intents, needs, questions, or desired outcomes that might compel a customer to engage your company. Think anything that starts with something like, “I need…,” “I want…,” “How can I…,” or “Can you…”
These many needs comprise your customer purpose portfolio. It’s more important that teams have a deep understanding of your customer purpose portfolio than they do of your company’s product portfolio. Why? Because every time customers achieve their purpose, they generate value for whichever company enabled them to do so. That value may be in the form of revenue, share of spend, loyalty, advocacy, lifetime value, etc.
Every purpose in your customer purpose portfolio is the endpoint of a modern customer journey. Every purpose is the thing around which an experience is designed. Every purpose reflects an outcome that, every time it’s achieved by a customer, generates value for your business. A growing number of companies measure how well they’re enabling customers to achieve purposes — and increasing performance on business KPIs as a result — using Customer Performance Indicators (CPIs).
Define, Design, and Deliver Purpose-Led Experiences
Like purpose, another poorly defined business trend of rapidly growing importance is customer experience. Ask most leaders to describe what that means, and odds are “look and feel” will be mentioned. But experience isn’t how websites or apps or stores look and feel; experience is how customers react and feel when pursuing a purpose important to them.
If the company has done a good job of understanding a customer purpose and is making it easy for them to achieve it, customers will experience something like excitement, anticipation, joy, confidence, peace of mind, or satisfaction. If the company is not making it easy for customers to achieve their purpose, they’ll experience something like confusion, frustration, exasperation, or anger.
The veneer of pixels applied across digital touchpoints or printed on physical items — no matter how pretty — has little influence on what customers experience. What counts is whether customers can easily achieve their intended purpose.
Because your organization’s growth and success ultimately rely on customers achieving their purposes, start by understanding what matters most to them — in the world, in their lives, and in the specific context of what you provide — using exploratory ethnographic research (individual open-ended discussions, observation sessions, or customer journaling). Insights from that research will inform the creation of your company purpose, brand purpose, customer purpose portfolio, and CPIs, as well as new products and experiences.
Come Up with and Prioritize New Experience Concepts
Use the customer purpose portfolio you identified through research to come up with new experience concepts that enable customers to achieve their priority purposes. Generate as many ideas as possible, deferring judgement until you have at least 20–100 concepts to consider. Evaluate each individually based on potential impact for customers (CPIs) and for your business (KPIs).
Then identify the capabilities or dependencies each concept requires (data, technical, operational, organizational, regulatory, etc.) relative to your company’s current state. Many concepts will rely on the same capabilities or dependencies. So analyze the collective customer/business impact and the cost/complexity of realizing multiple concepts with shared capabilities/dependencies in order to prioritize them. (The most innovative and valuable concepts are often the most difficult or expensive; considering them with others that share the same dependencies helps rationalize the business case for them all.)
This generates several important outputs, including:
- New customer journeys designed around customer purpose, which are differentiated by the experience concepts they include.
- A future-state experience blueprint, a master view that synthesizes your new customer journeys, top experience concepts, required capabilities, CPI/KPI impact, and other key attributes all in the context of a future customer lifecycle aligned to customer purpose and business value.
- A staged investment and realization plan that provides a roadmap of when each concept and capability will be implemented (that balances impact and costs) and optimizes how internal groups across functions will orchestrate work over time to iteratively realize the future state.
These and related artifacts help focus employees and investments on what matters most to customers and the business. They enable initial value to be generated quickly and then successively each quarter as new capabilities and concepts are launched. This continually increases company differentiation and value generation — for customers, shareholders, communities, and any causes with which you’re aligned.
Align Employee Roles and Goals
The job of every team and employee and how their day-to-day work aligns with your stated purposes should be documented, communicated, and reflected in training, ongoing operating practices, and policies. Teams and employees should also be accountable for one or more metrics that reflect how their work has contributed to the realization of those purposes (CPIs can help here).
While employees often bristle at rigidly defined job descriptions or having their performance measured, seeing their work as something more than generating company profits or their own paycheck provides a greater sense of meaning that impacts employee retention and customer perceptions, as well as metrics like satisfaction, loyalty, and lifetime value.
Assemble Teams to Deliver on Customer Purposes
Organizing work by function (marketing, sales, service, etc.) or channels (web, email, search, stores, call centers, etc.) will get in the way of success. Instead, assemble teams around specific customer purposes or expressive customer segments. Have people from product marketing (potentially from multiple products that align to the same customer purpose or segment), sales, and service join experience designers and developers; content architects and authors; experts in digital media, email, and ecommerce; and representatives from other areas like stores or third-party distribution to operate as a single team.
Each cross-functional team owns the outcome represented by the purpose/customer around which they’ve aligned and is accountable for the relevant CPIs and KPIs. They develop a deep expertise in the purpose and customer segment(s) that share it and the similarities and differences among them. Teams define customer journeys that transcend channels and organizational boundaries as needed. They collaborate using agile methods to design, build, operate, and optimize experiences and content to enable as many customers as possible to complete their journeys and achieve their purpose — generating value for the business.
Transform Operations for Delivering New Experiences
Most company operations are optimized for efficiency, which often causes friction with customers or inhibits employees from delivering better experiences — all to the detriment of growth. You’ll need to rewire operating processes and technology platforms to scale your systems’ and employees’ ability to deliver the experiences on your blueprint.
Use data and artificial intelligence to tailor and personalize journeys and experiences to each customer’s preferences at scale. Accelerate progress and reduce cost through “headless” technology architectures and cloud platforms. So rather than being optimized for efficiency at the expense of growth, you’ll be optimized for growth as efficiently as possible.
Growth strategies that are purpose-led, customer-centric, experience-driven, data/AI-enabled, and technology-scaled require new mindsets far more than new toolsets or skillsets. But this transformation — of culture, operations, and outcomes — begins with a broader consideration of purpose. One that focuses not only on why you do business, but how. When you do that, customers will be happy to be your growth engine.
How to write product descriptions to increase sales
This post was originally published on June 24, 2019, and was updated on June 7, 2021.
When it comes to setting up and managing an eCommerce business, learning how to write product descriptions may seem like a relatively simple task. On the flip side, if you sell multiple products, it can feel monotonous and repetitive. However, product descriptions shouldn’t be glossed over or written in a hurry. They’re a small but mighty tool that can work wonders for customer interest and sales.
Research shows that 87% of shoppers say that detailed product content is important to their overall purchase decision. Moreover, eCommerce sales are at an all-time high with consumers spending $861.12 billion online with U.S. retailers in 2020, a 44% increase from the previous year. You can’t afford to miss a piece of that pie with lackluster product descriptions.
A successful product description requires the right balance of storytelling, rich content and SEO awareness. Use the following guide (with real-life examples) to learn how to write product descriptions that will boost your sales.
Learn how to write product descriptions that tell a story
As you write product descriptions, try to describe an experience, not just the product itself.
Focus on making the reader envision themselves using (and enjoying) your product.
If appropriate, go as far as describing a time or place.
For example, look at the description for the below Bumble and bumble hair product. There’s a tagline under the product name “Sweat fearlessly. Clean Instantly.” Immediately, you already understand what this product does. Then the description further explains how you feel post-workout with sweaty hair, and how it can combat that issue. The benefit icons are just the cherry on top! (More on benefits later…)
Product descriptions that tell a story are persuasive to potential customers, nudging them towards the “add to cart” button. The story doesn’t have to be all flowery language — it can also include informative details. In fact, consumers are 131% more likely to buy from a brand after they consume educational content .
Apple is the masterclass example of marrying storytelling with information within their product descriptions. Cameron Craig, who worked in PR for Apple, told the Harvard Business Review:
“Our mission was to tell the story of how our innovative products give customers the power to unleash their creativity and change the world.”
You can see just that in the product description of the latest MacBook Air. The copy immediately educates the reader on how this product will optimize their personal and professional lives. They also break down complex technological specs (like CPUs) and explain what that means for users in practice, i.e., you can complete more tasks and waste less battery.
Write product descriptions that highlight your unique value proposition
What makes your product different from the rest? Your unique value proposition (UVP) is your product’s differentiator, it’s what makes it noteworthy, and also worth buying. You should include your UVP near the beginning of your product description to quickly convince customers.
If you aren’t sure what that might be, do a little competitor research to see what other brands say about similar products and figure out why yours is different.
For example, refer to GoPro’s description of their latest Hero9 camera. They highlight that the device takes 5K video and has 7x more resolution than typical HD content.
Not only do they speak about their best selling points but they also explain why this version is better than the previous iterations. The copy describes the benefits of Hypersmooth 3.0, the latest update to their stabilization technology.
Master product descriptions that consider your target customer
As you explore how to write product descriptions, think not only about your target customer, but also how they will use the product.
While features are important and have their place (more on that later), benefits create compelling copy that convinces the customer why they need the product.
When thinking about the product and customer, ask yourself:
- How will it make their life easier?
- What problem will it solve?
- What advantages will it provide?
Those are the types of benefits you should highlight first and foremost in your product description.
Read the first two paragraphs in Goop’s description for a skincare product. It immediately dives into what the product will do for the customer’s skin, describing, in detail, all the results users can expect.
Use product descriptions that match your tone to your buyer persona
When you write a product description, you also want to consider your target customer so that you can speak directly to their buyer persona.
One way to accomplish this is by matching the tone of the product description to your ideal customer.
For instance, if your audience is millennial consumers and you’re selling a lifestyle product, you can inject humor and frivolity to catch their attention.
On the other hand, if you sell professional-level tech products targeted toward business buyers, you’ll want to keep the tone more serious and detailed.
The perfect example of tone is Dollar Shave Club, a brand that made a name for itself with irreverent humor. Notice how their product description reflects its overall brand voice (and matches the tone of their audience) with tongue-in-cheek jokes.
Make your product descriptions concise and scannable
The above-the-fold section of your product page should contain the best copy. Remember that every word matters. Potential customers can scroll or click for more information if they’d like. That means your initial product description should be concise and to the point.
Whether you offer an expandable description or tabs below the fold with more features and details, the idea is to make the first product description scannable to hook the customer.
Scannability is also crucial for mobile customers so that they can see product descriptions easily on their phones.
Make sure to keep mobile-friendliness in mind as 79% of smartphone users made a purchase on their mobile device in the past six months.
Many brands use bullet points to help with scannability in their product descriptions. Notice how Home Depot includes bullet points in both its initial product description, as well as the expanded product overview.
Include multiple high-quality images with product descriptions
Holding a product is vital to certain consumers. Even with the eCommerce boom from the pandemic, a recent survey found that 46% of people still prefer to shop in stores. And 33% say it’s because they want to see, touch, feel and try out items.
You don’t necessarily need to hire a professional photographer to take product pictures (although if you have the budget, it can be worth it). High-res camera phones with portrait mode make it increasingly easier for eCommerce business owners to DIY product images.
When possible include images of the product in use, like someone wearing a piece of clothing, a customer using a tool — or even a screenshot of a digital product. These types of images help contextualize the product in action, which makes it seem more real and tangible.
Note how Thrive Market overcomes the issue of selling spices (becasue it’s essentially just a ground-up powder, it’s tough to really spotlight in an exciting way). But they still use pictures to their advantage, showing the packaging, so customers know what to expect. They also incorporate an image of a meal that uses the spice, helping to put the product into context.
Incorporate customer testimonials with product descriptions
User-generated content (UGC) is a powerful tool in driving sales for your eCommerce business.
Customer testimonials and reviews are the best types of UGC to include in product descriptions.
Reviews help to provide social proof that other satisfied customers purchased and used your product, which goes a long way to encourage potential buyers.
Recent research confirms that UGC influences the consumer purchase decision process.
Depending on the layout and format of your eCommerce site, you can include a link to the product review page, or have native reviews underneath the product description.
Some brands opt to cherry-pick positive reviews or testimonials and include it as a quote in their product description.
Make product descriptions searchable with SEO
If you want more customers to find your product with organic search (via search engines such as Google or Bing), write product descriptions with SEO in mind.
Each individual product page on an eCommerce site is another opportunity to include high-quality content that’s indexed by search engines.
When product descriptions are optimized for search engines, those indexed pages will ideally rank for your target keywords. In other words, a potential customer types in a query related to your product/brand, and your site appears as a top result in the Search Engine Results Page (SERP).
If you haven’t already, do some basic keyword research, so you know what terms and phrases to include in your product description. Keywords are terms that directly relate to your product that a potential customer might type into a search engine when looking to find it.
Make a list of keywords and naturally include them in product descriptions, details and anywhere on your product page.
Don’t forget about long-tail keywords— these represent longer phrase/question searches rather than specific two- to five-word keywords. To give you an idea, instead of the keyword “cleaning supplies,” a long-tail keyword would be “affordable organic cleaning spray solution.”
Google tells us more and more consumers use conversational search queries. Searches with “do I need” grew in popularity by 65% — these are searches like: “what size generator do I need?”
Their advice on using this to your advantage? “Lock down keywords and phrases typically associated with [your] businesses and then consider natural language search phrases that customers might be using to find them.”
Make product descriptions that include useful and technical details
After you craft and hone your initial product description, include technical and specific product details. As you’ve seen in the examples above, the product details section typically comes below the fold and under the initial product description.
However, that doesn’t mean it’s not as important.
Consumers have specific needs and concerns when it comes to purchasing a product, and details can be a make or break when it comes to conversion. Just think: what if someone has a skin allergy and can’t find the materials for a clothing item?
Your goal with product details should be to answer any question before a customer asks it, and provide useful information to help them on their buying journey.
A good example is Macy’s — they include the height and clothing size of the models in their product pictures. These details give the buyer additional insight into how items fit on an actual person, for example where a dress hem might fall.
A/B test your product descriptions
Once you nail down how to write product descriptions, don’t stop there. A/B test descriptions against one another to try out different tactics and find the best options. You can formally A/B test with marketing tools such as Google Optimize, Optimizely or Visual Website Optimizer.
Alternatively, you can do informal A/B testing by using different versions or formats for descriptions on similar products to see which sells better over a certain period of time.
Every eCommerce business is different, and there’s no-one-size-fits-all formula when it comes to product descriptions.
Testing your product pages will allow you to improve your descriptions to increase traffic and sales.
Make sure to check in with all product pages, if one seems to be selling better than the rest, try to repurpose that description on the low-selling products. Remember that data and metrics will help you refine your process.
Editor’s note: With dedicated product pages, GoDaddy Online Store makes it easy to update your product descriptions.
Learn how to write product descriptions to drive more sales
Product descriptions have the power to increase sales for your eCommerce business dramatically, yet large and small companies alike can struggle with them. Whether you have 10 or 10,000 products, it can be challenging to write unique, customer-attracting descriptions. But trust us, when you put in the effort, using the above tips, you’ll see the ROI!
The main takeaway? Don’t get disheartened when setting up your eCommerce store. Follow this guide, and with a little creativity, strategy, and persistence, your product descriptions will increase conversions for your online store.
This article includes content originally published on the GoDaddy blog by Erik Deckers.
The post How to write product descriptions to increase sales appeared first on GoDaddy Blog.
What Is a Niche Market and How to Find Yours
Jeff Bezos had a vision to build an “everything store”—an internet company that sold nearly every product type all over the world. In 2020, it’s safe to say he was successful, as Amazon sells everything from web services for startups to Nicolas Cage pillowcases. But when Bezos launched Amazon 25 years ago, it was simply an online bookstore.
Amazon’s origins are a fitting case study in niche marketing. One of the best ways to launch a business is by identifying an underserved segment of the market and tailoring your products or services to them. We understand finding a niche market can be difficult, which is why we’re here to help. In this guide, we’re going to explain the benefits of niche marketing and show you how to find a niche market for your business. But first, let’s establish exactly what niche marketing is, and provide you with some examples of how it’s done.
What is a niche market?
A niche market is a subset of a market on which a particular product or service is focused. The market subset is usually based on five different market segments: geographic, demographic, firmographic, behavioral, and psychographic.
Geographic segmentation splits a market based on its geographical boundaries, and is based on the assumption that our location informs what we buy to some degree. Demographic segmentation identifies markets based on demographic information such as gender, age, and income level.
Firmographic segmentation separates a market based on company or organization attributes, such as industry location, headcount, and revenue. Psychographic segmentation is about finding a market based on attitudes, aspirations, and values. Finally, behavioral segmentation is based on observed actions, such as usage rate or purchase preferences.
Niche marketing examples
A niche market is typically composed of a combination of different market segments and will inform the features, price range, and quality of the product or service. Examples of niche markets include:
Owners who like to dress up their dogs (demographic, behavioral)
Parents of children with an upcoming bar/bat mitzvah (demographic, psychographic)
Actors/actresses in need of SEO services in New York (firmographic, psychographic, geographic)
Each of these examples is based around an established industry (pet care, party planning, and SEO) and narrowed down to cater to a specific need identified within the market.
A niche market can be broad (i.e. soccer fans, people in need of legal help). However, it behooves small business owners just starting out to have a niche market that is as focused as possible (i.e. fans of the soccer club Manchester United, car accident victims in Philadelphia). As the business grows, it can broaden its niche to cater to new opportunities.
It’s important to note that a business can also serve a broader audience than just its niche market. A law firm, for example, can do more than just work with car accident victims in Philadelphia. A niche marketing strategy is simply a way to leverage your expertise in one area to stand out from your competition.
A few examples of actual niche marketing companies include:
Square: This point of sale company offers simple software to many small businesses that were unable to process credit card payments or needed an easier way to handle these transactions.
Lululemon: This popular athletic and athleisure brand caters to women and men looking for trendy fitness apparel or comfortable loungewear.
Zen Courses: This online course-building company targets entrepreneurs and business owners who want to create their own workshops and courses, but aren’t sure how to get started.
Why you should find your niche market
As a small business owner, tailoring your business to meet a specific demand in the market has several key benefits, including:
While it may take time and money to drill down and find your specific market, working within and marketing to a niche market is usually cheaper and less time consuming than trying to appeal to a broader audience. This is because it takes less time and money to develop and market a product or service and provide customer service that caters to a smaller group of people.
“You can achieve brand saturation within a niche market in a way that you never could within a broad market without spending billions of dollars,” says Gerard Boucher, founder and CEO of social media marketing agency Boucher + Co.
A niche market is a niche market because it is underserved. Therefore, if you identify a niche market, there shouldn’t be a lot of competition. Reduced competition can be good because it allows you to run your business the way you want without having to worry that you are being undercut or outmaneuvered by a rival.
However, if you find a niche market with little competition, one of two things are likely to happen: You’ll foster competition by finding success in the market, or you’ll realize that there is no competition because the market is not lucrative enough (we’ll talk more about finding a lucrative market in the next section).
Because niche markets are small, businesses can more easily build brand loyalty by focusing on the quality of individual customer relationships. This can be done through more direct customer interactions, such as sending personalized emails and thank you cards, accommodating special requests, and offering custom services.
These types of actions foster repeat business, which is key to survival for any niche business.
If your business has a digital presence (and it should), niche marketing allows you to be hyper-focused on a few very specific keywords. This will help you rank highly in search engine results, which can be an enormous driver of traffic and sales. To help you get the most of your niche market from an SEO perspective, consider publishing content related to your niche.
Remember: Getting in front of the right people is better than getting in front of a lot of people who may not be interested in your business.
Highly targeted marketing
We mentioned that it is cheaper to market to a smaller number of people, but it is also more effective. That’s because the members of a niche market are more similar to each other, meaning it is possible to craft marketing content that will resonate with a larger segment of the desired population. A smaller market also makes it easier to judge the impact of your marketing efforts.
Another benefit of catering to a niche market is that people with similar interests tend to be in contact with each other. For example, fans of the television show “Game of Thrones” discuss their interest in online web communities. If you’re doing a good job, people in your niche will spread the word to others, which is the most powerful form of marketing there is.
Focus your efforts
Focusing on a niche market affords you the opportunity to become really good at one specific thing. The better you are at what you do, the more you are considered an expert or leader in your market. This becomes a self-fulfilling cycle, as more customers will want to buy or work with the most experienced or well-regarded business in the market.
Establish a foothold
Finally, if you’re just starting out, you’re focused on establishing your position in the market. By finding a niche, you are guaranteed at least some demand for your product. This can help you establish an identity and build the foundation to eventually expand into a larger market.
How to find a niche market
Now that we know the benefits of finding a niche market, let’s explore niche market opportunities for your business. If you’ve already launched your business, you may have considered some of these factors. If you’re looking for business ideas, identifying a niche market can be a great starting point.
1. Choose from your interests
No matter what type of business you want to launch, it helps to start by asking yourself what you are interested in. Take a piece of paper and write down all of your hobbies, passions, and skills.
Once you have a list, consider your most important personal achievements and life lessons, and your approach to solving problems. Also ask yourself who you want to do business with, and where you want to do business.
How do these things apply to each item in your list of hobbies, passions, and skills? Ideally, your idea will arise naturally when you look at the combination of these factors. For example, you may love clothing and care deeply about the environment, so you decide to launch a line of eco-friendly leisurewear.
Considering all these things will ensure you choose a direction that you will be truly invested in. This is important because you will be spending a lot of time and energy in this niche, and your passion for the business will be your main motivating factor. In addition, if you don’t care that much about your niche, your customers will sense it, and you will be seen as a phony.
2. Explore the potential market
Once you have discovered a niche that you are interested in, you need to determine if enough other people are interested in it that it can support a business. A great way to do this is by evaluating the internet and social media traffic around keywords related to your niche market.
There are several tools you can use to evaluate search volume for specific keywords:
Google AdWords Keyword Tool
While doing keyword research, keep in mind related terms that pop up, as these provide insight into other interests within your niche market. AdWords and UberSuggest also show you how competitive each keyword is. If there is a lot of competition, your market might not be as niche as you thought. Also keep in mind the popularity of keywords over time, as this can show you if interest is rising, falling, or seasonal.
Boucher says that if a keyword has under 500 searches per month, you are facing an uphill battle in terms of demand. “Ideally you want between 1,000 to2,000 searches per month. With a number like that, you can test your product without burning through cash,” he explains.
Checking social media websites like Facebook, Pinterest, and Reddit can also provide a window into the interest in a particular niche topic. Check to see if there are a significant number of people posting about your niche, and if there are online groups where people discuss topics related to your niche. These people make ideal targets if your business decides to launch a social media marketing campaign.
Another approach you can take is asking people who you think would be prospective customers what their impressions are of your business. This can help you refine your idea and make it more market-friendly.
Finally, if there is any competition in your niche market, research them. How do they rank in search results? Is their marketing effective? What can you do better than what they are doing? Answering these questions can help solidify your business idea.
3. Determine profitability
Once you’ve found a niche market you’re interested in and confirmed there is an audience, you need to determine if you can actually make money focusing on that market. Online this can be done by checking Amazon bestseller lists, affiliate marketplace product lists like ClickBank and ShareASale, and dropshipping marketplace bestseller lists.
Each of these platforms informs you of the popularity of specific products, as well as what they sell for, which can be valuable in determining your own price points.
Another approach you can take to determine your price point is through digital marketing. Boucher recommends launching a targeted social media marketing campaign featuring posts with different price points and comparing the engagement on each post.
“These online focus groups can inform you of which price is most palatable, as well as general consumer interest,” says Boucher. “And it can all be done for a few hundred dollars.”
4. Promote your product or service
Finally, you need to market your product, collect feedback based on your marketing, and re-tool accordingly. Fortunately, because your market is so small and specific, you shouldn’t have to go through many variations of your marketing because the audience already has a lot of similar interests.
Boucher recommends marketing initially on social media as it allows for greater targeting and the ability to test multiple iterations of the same ad. As with any marketing campaign, it takes multiple impressions for a consumer to have brand recall. However, with niche marketing, it is common for a larger segment of the market to convert once they have brand recall.
“A niche market could have 5% to 10% of consumers with brand recall convert, compared to 1% to 3% in a broader marketing campaign,” says Boucher.
The bottom line
In 2008, Wired Magazine co-founder Kevin Kelly popularized the idea of 1,000 True Fans. In short, the idea states that to be successful in any line of work, all you need is 1,000 loyal customers who will buy anything you produce. If you generate $100 profit from each fan, you will earn $100,000 annually.
When put into the context of niche marketing, this means identifying a profitable market and working to reach peak brand saturation within that market. If you can do this, 1,000 true fans is within reach, and possibly many, many more.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
New to Networking? 10 Steps to Ensure You’re Making Long-Term Connections
What’s one step you can take to ensure you’re making long-term connections at networking events? Why is this a good tip for new entrepreneurs?
These answers are provided by Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year, and have created tens of thousands of jobs. Learn more at yec.co.
1. Invite People to Dinner
I think so often people go to networking events and see these new relationships as business. But some of the best business relationships blur the line into personal relationships. Consider inviting people to parties, events, dinners, etc., that are ostensibly casual and friendly and use some of that time to just build a stronger relationship.
2. Find Common Ground
The best way to build meaningful connections when attending networking events is to find common ground with the people around you. Business owners within the same industry often have conflicting views on how things ought to be. Instead of focusing on your differences, finding common ground can lead to productive conversations that eventually lead to long-term partnerships and friendships.
3. Treat It Like a Normal Conversation
Treat the networking event like a normal conversation. People can sense if you view them as a means to an end, which makes you appear inauthentic and insincere. Don’t focus on what you want to get out of the interaction. Rather, focus on the humanness of the event. After all, successful businesses don’t treat people like transactions; they treat people as valued human beings.
4. Transition to Social Media
Transition these relationships to social media and LinkedIn right away. Ask to take out your phones and say something like, “Let’s follow each other so we can stay in touch after the event. Which social network do you use for networking?” It’s that simple. If you take the initiative first and follow or friend them and then engage with them, you have a much better chance of sustaining the momentum.
5. Add Personalization
Adding personalization to your conversations will take you much further than putting on an act while speaking to others. Calling someone by their name shows that you’re paying attention to them and want to hear what they have to say. Genuine actions make others want to do the same for you and keep the connection alive.
6. Attend Events Often
It’s important to attend networking events as often as you can and to increase the frequency with which you engage with your connections. When people see you and talk to you more often, they develop familiarity with you. This makes it easier for you to develop long-term connections.
7. Find Out How You Can Help
Invest some time with each of these connections and be helpful. Invite them to a brunch and connect with them. Find out how you can be helpful to them as well as how they can be helpful to your business. Whether it’s giving referrals or doing business with them, helpfulness is the key here. Also, make sure you exchange contact information with the connections you would like to stay in touch with.
8. Learn to Listen
If you want to make long-term connections at networking events, you have to learn to listen to other people. When you don’t give other people time to speak, you’re going to lose interest. In other words, engage in two-way conversations and ask questions. You’ll find that this will help you build long-term meaningful connections.
9. Research and Prepare Questions
Research who will be there and have a few questions ready to ask people about their business. They’ll remember you for already knowing them and their work and will be keen to keep in touch. Introduce yourself, be friendly, get their contact info and follow up afterward, emphasizing that you enjoyed your chat and would love to go for coffee to talk further about XYZ that you touched on at the event.
10. Follow Up With Intention
Collect the business cards of the people you want to connect with. Then, about a week after the event, reach out to each person separately and explain briefly how you met at the event and that you were very impressed with their work (use an example). Then ask them if there is anything you could do for them, even if it’s just an introduction to someone else. Just offer value. Dig the well before you’re thirsty.
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