As the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other’s throats all the time for survival. It’s all about ‘survival of the fittest. To make sure your IT firm is the ‘fittest’, all you need to do is consider focused niche markets to market your services.
91% of Chief Marketing Officers think that data-driven choices are one of the biggest factors in a brand’s success. Niche-focused marketing will get your technology consulting company to leave its footprints in the market. To find a focused niche market, you need to figure out what industry is your technology company targeting. Use your data to help you with this.
Once you’ve established the specific industry you’d be targeting, you’re all geared to leverage a focused niche market.
What Is Niche Marketing?
Niche marketing is an advanced marketing strategy in which a company only focuses on a specific industry.
In niche marketing, your business hones in on a unique target market that is most profitable. Yes, this means that instead of using your marketing tactics on everyone, your company focuses on a specific group, also known as a ‘niche market.’ In a niche market, there are a set number of potential customers who are most likely to benefit from your company’s services.
A niche market differs from your traditional market in terms of geographical location, lifestyle, profession, style, culture, activities, behavior, demographics, and needs. A niche market is generally a smaller subset of a bigger market marked by differences. For example, your tech firm might only be targeting vets and their needs. Or, perhaps you are an ERP company with your target audience mainly from oil and gas companies.
Using niche marketing for your tech firms allows your company to stand out among your competitors. This helps in creating marketing strategies that make your target audience resonate at the same frequency as you. This also helps in retaining your existing clients and attracting new clients at the same time.
Benefits Of Using Focused Niche Markets For Your B2B SaaS Company
Using focused niche markets to market your tech or SaaS has great potential of increasing your revenue. Some of its prime benefits are as follows:
1. Decreased expenditure on marketing
It was calculated that digital advertising spending worldwide amounted to $378.16 billion in 2020. This is a huge amount, and businesses need to cut down their marketing expenditures. This can be done through ‘niche marketing.’ As you only target a selected subset of the mass market, the expenditure to put effective marketing strategies in place is far lesser.
By saving costs in marketing and advertising, your SaaS or Tech can allocate those amounts to improve your product value.
When you’re more efficient with your marketing plan, not only can you put that money towards other initiatives, but you’ll likely have a higher conversion rate. This is because when you narrow down your target market, your marketing efforts will be catering to the people that are most likely going to purchase from you.
2. Lesser competition in the market
By targeting a niche market, your tech firm only targets the customers that might actually be interested in your offerings. You serve a limited audience, and the chances are that you may find little or no competition. This way, you are targeting a few customers whose interests are aligned with those of your company.
Lesser competition means you don’t have to constantly fight for survival in the market, and this can result in great gains in terms of business. Being in a competitive market is good in moderation.
You want to make sure that your marketing strategy isn’t reaching out to every potential customer in the industry though. In order for your business to succeed, you need to reach out to your ideal customer that you can solve a specific problem for.
3. Greater profits
Using data to drive company choices may result in a 241% increase in return on investment (ROI). By using niche markets to get your message clearly to your potential customers, connects with them personally. And since you are targeting a specific niche market only, the chances are that those people might actually be in NEED of your services.
This means more sales and greater profits. It would help if you convinced those leads that they couldn’t possibly get similar services elsewhere.
This technique also helps in retaining those customers. This is because you’re only engaging with only a small part of the total audience. Offering them personalized tech services makes them feel connected with you and become loyal to your technology company.
4. Increased potential for lead generation
The customers who constitute a niche market usually have higher levels of interest in your product or service than the general population. Hence, it increases the chances that your software company will be able to generate leads from them and turn them into paying clients.
Additionally, because you are leveraging SaaS digital marketing techniques like content creation and search engine optimization (SEO) specifically for these niches, you can ensure better visibility on the internet and increase your chances of generating leads even further.
According to 85% of B2B companies, lead generation is the most important goal in marketing.
Narrowing your reach will naturally lead to a more successful sales cycle. Part of your SaaS marketing should involve targeting your efforts toward that particular audience and convincing them why they need your product. You’ll get a higher ROI if your SaaS marketing is fixated on a certain type of customer that will benefit the most from your product.
5. Improved credibility
Focusing on niche markets gives your business the benefit of establishing credibility quickly. As you only focus on a specific set of customers and serve their individual needs, clients begin to trust your tech firm for the services it offers. This credibility can be leveraged in other markets as well and help your business expand further.
If you cater to a bunch of different audiences, you’ll spread yourself too thin and therefore not gain enough trust to become a reputable source. Narrowing your reach allows you to build your reputation and as a result, increase customer retention.
It sounds great to reach a lot of audiences, but in reality, that will only hurt your business model. It’s best to establish yourself as a thought leader on a narrowed topic. That way, you can create supplemental content that educates your current customers and prospective customers. You’ll build their trust through this content and make yourself known as an industry expert.
Creating A Niche Market For Your Technology Company
To make the marketing strategy of your tech company more potent both in terms of cost and efficacy, you need first to establish a niche market. This is where you will be diverting your marketing expertise. Hubspot shares some great examples of how companies target a niche market
Identify your target audience
Identifying your audience is the glorious first step towards establishing a niche market. Currently, only 11% of marketing decisions are made as a result of data analysis. As this rate is growing, now would be a good time to use it for your benefit before others follow suit.
Use your internal list of customers and surveys to do this. You can also use your research to find out more about the pool of people who would be actually interested in your services. Once you’ve found out your target audience, it’s time to dig into their details. Study their preferences, demographics, and personalities.
Get the know-how of the industry
Knowing about the industry always helps. Notice how your competitors are marketing their IT services and analyze your competition. Also, look for threats in the industry that might restrict your growth.
Industry trends are a critical resource that provides useful insights that you can apply to your content marketing strategy. This strategy allows you to keep up with the ever-changing dynamics of these markets.
Leverage social media
Social platforms are one of the best ways to create strong connections with your prospective customers. Decide which channel works best for your brand, and experiment with your content marketing strategy to figure out the best selling tactic for your target audience.
You can also partner with affiliates establish your reputation online through them since they will advocate for your business. Social media can be extremely helpful for B2B SaaS businesses when done correctly.
Analyze your current strategies
If you can’t find anything wrong with your current marketing strategies, hire a third party to do it for you. Knowing where you lack is the first step toward growth. Having another perspective come in and analyze your current marketing efforts can also open new doors to ideas that you may not have thought of.
Figure out the right media type for your niche audience. Then, frame your content strategy around those mediums.
Plan your resources
You’ve now created a niche market. Great! But do you have the necessary resources to market your technology services to your filtered audience? Plan the use of your resources beforehand. When you have acquired the right resources, only then continue to spread the influence of your expert marketing techniques.
These resources include marketing channels, employees, funds, and expertise. For instance, if you’re targeting a specific type of customer, use platforms like social media or search engine optimization (SEO) to reach them.
Add a personalized touch
It’s vital to provide an exceptional customer experience that caters to the specific needs of your target consumer. In fact, 88% of customers say the experience a company provides is just as important as its products and services. Your interactions and digital marketing strategy should be designed to effectively sell to the audience that you’re solving a problem for.
If your marketing team doesn’t have a strategy that is aligned with your sales cycle and your conversion goals, then you won’t gain many new customers. Sales and marketing come hand in hand, so the interactions each of those teams have with your customers should have a personalized touch. Email marketing is one channel that provides endless possibilities when it comes to customization.
Why Niche Markets Are A Successful Path In Marketing
Using a focused niche market can be great as it is conducive to communicating your message effectively to the target audience of your technology company.
The personalized SaaS marketing technique bred from niche marketing can help your tech company get a greater profit, more brand loyalty, lesser competition, lesser marketing expenditure, and the opportunity to specialize in a specific niche.
- Targeted Communication:
Utilizing a focused niche market facilitates precise communication, ensuring that your marketing message resonates well with the specific target audience of your technology company.
- Increased Profitability:
Niche marketing, coupled with personalized SaaS marketing techniques, opens the door to better profitability by aligning your offerings closely with the needs and preferences of a select group of potential customers.
- Enhanced Brand Loyalty:
By addressing the unique needs of a specific niche, your tech company can build stronger relationships and foster greater loyalty among its customer base.
- Reduced Competition:
Operating within a niche market can significantly reduce the level of competition, allowing your company to dominate in that space and enjoy a larger share of the market.
- Cost-Efficient Marketing:
Niche marketing allows for more targeted and therefore, cost-effective marketing campaigns. By channeling your marketing efforts towards a well-defined group, you can get a higher return on your marketing investment.
- Specialization Opportunity:
Focusing on a niche market provides an excellent opportunity for your company to specialize in a particular area, establishing your brand as an authority and thought leader in that domain.
- Improved Customer Retention:
Offering tailored solutions and engaging in meaningful interactions with your niche audience can result in higher customer satisfaction and retention rates.
- Better Understanding of Customer Needs:
A narrower market focus allows for a deeper understanding of your customers’ needs and preferences, enabling you to fine-tune your offerings and marketing strategies accordingly.
- Effective Lead Generation:
The high level of interest and engagement within a niche market can lead to more effective lead generation and conversion strategies, ultimately driving more sales.
- Strategic Growth:
With a solid footing in a niche market, your company can explore expanding into adjacent markets or broadening its niche over time, paving the way for sustainable growth.
- Innovative Solutions:
The close interaction with a specific customer base can spark innovative solutions, catering to the unique challenges and requirements of your niche market.
- Community Building:
Niche marketing can also foster a community of engaged users who share a common interest or need, creating a valuable network and support system around your brand.
By embracing focused niche marketing, B2B SaaS companies can achieve a harmonious blend of effective communication, increased profitability, and customer-centric growth, setting a strong foundation for sustained success in the competitive tech landscape.