4 reasons to have a laser focused target market
this is my site written on January 19, 2010 –

As Featured On EzineArticles

are you finding you are spending too much time trying to convince potential clients to choose your services? do you realize that time spent prospecting is not only costing you this time but also the lost revenue, or opportunity cost, of not being with your actual clients? further, how many hours do you spend prospecting or trying to back-fill vacancies because you have a high client turnover? do any of these scenarios describe your situation? as a small business it is critically important that your efforts are focused on the right things. in this article, we’ll explain the four most important reasons why small businesses should have a laser focus to target their chosen niche market.

a niche is a chosen market segment that is defined by certain common characteristics such as industry sector, client profile, demographic particularities, geographic location, etc. a laser focused niche is a particular segment defined by a cross section of one or more of these characteristics. for example, a personal trainer in a suburb of Montreal might choose to target middle-aged, self-employed men in the area who want to lose weight and regain their former athletic physique before their 50th birthday. this is not to say that this trainer will exclusively target this niche, or maybe they may if the market is big enough, but they must ensure to understand the needs of their chosen market and exploit that focus to attract as many clients as they can from that niche. the following reasons illustrate why this is so important.

it is impossible to be all things to everyone. By maintaining a laser focus, small businesses can ensure their service offering is fine tuned to correspond to the particular needs of that niche. such a strategy then becomes one of differentiation as it will be difficult for potential clients to find other competitors who are so ideally suited to their needs. if our trainer tries to cater to too many types of clients at the same time, their differentiation disappears and they become just one more among so many other trainers out there.

with differentiation comes expertise. a corollary benefit to focusing on a specific niche is the expertise that is perceived, and developed, as more and more target customers are serviced over time. as word spreads of this expertise, clients will come to you and it will be easier and easier to establish and maintain relationships with these clients because their needs are so accurately met. this is the cornerstone of an attraction marketing strategy.

the sales process is much simpler, and shorter. with a laser focus, client’s needs are well understood and catered to. this is easily recognized by the potential new clients and consequently less effort is required to take them on. they are already primed and ready, and may even be willing to pay a premium for such specialized service. In addition, they will likely return for more as it is a relative certainty that the service offering so precisely corresponds to their needs. we all know that it is much easier to retain a satisfied client than it is to attract a new one.

for small businesses, time is a rare commodity. by focusing efforts on a particular client profile, everything takes less time. less time spent on marketing, less time on sales, less time trying to understand and satisfy your customers, and less time trying to retain them. this means that more time is actually spent actually servicing these customers and generating revenue. consequently, your bottom line improves.

these four reasons illustrate how strategically important it is for small businesses to ensure they focus on a very targeted niche. as a result of this laser focus, small businesses will be more profitable and clients will be more satisfied. these are winning conditions for longevity and growth. in addition, with a laser focus and attraction marketing, the small business owner ensures they are spending more time doing what they love rather than trying to sell their services and wasting their efforts on the wrong clients.