Drew Yancey is a business strategist and founder of Teleios Strategy, with extensive strategy consulting and executive leadership experience across multiple industries, helping solve challenging problems at the nexus of growth, strategy, and innovation.
According to Yancey, choosing a niche is now necessary and no longer optional – and the top reasons these kinds of businesses are successful including:
- Enhanced Marketing Efficiency: By targeting a specific group, businesses can tailor their marketing strategies to resonate more effectively with that audience. This targeted approach often leads to higher conversion rates and more efficient use of marketing resources.
- Product or Service Specialisation: Specialising in a niche allows a business to develop products or services that specifically address the unique needs and preferences of that segment. This specialisation can lead to a stronger competitive advantage.
- Customer Loyalty and Brand Advocacy: Customers in a specific niche are more likely to develop loyalty if they feel that a product or service caters specifically to their needs. This loyalty often translates into word-of-mouth promotion and brand advocacy.
- Reduced Competition: Operating in a niche market can mean less competition, as the business may be catering to needs that are not being met by mainstream providers. This can lead to a dominant position in that particular market segment.
*Opinion, as shared by Drew Yancey with Bank & Entrepreneur Africa