Knowing your niche is key to delivering a great omnichannel experience. Regular contributor, Dakota Murphy, breaks down her advice.
Being a successful business owner encompasses many factors, but understanding where you fit in the market is arguably the most important. Without knowing your niche, you risk missing your target market and losing potential sales. Nothing drives growth more than satisfying your customers, but if you haven’t found your niche, how can you make your mark in the sea of online competition?
What is a niche?
A niche is a subset of the market that relates to a certain demographic, product type, or perhaps price. It is a place in the market where there is a particular demand but a low supply. This means for businesses that there is less competition and more chances to sell your products to the right people.
Fashion is a hugely populated industry and being able to identify a pocket of the market on your own can provide several benefits, which we will examine later. When you couple that with the fact that there are billions of sites online, standing out in every way possible is essential for lasting success.
What are the advantages of a niche?
A fashion niche increases brand loyalty and can also encourage higher purchase rates. Since you already have your target customer there, you don’t need to spend so much time trying to attract people to your business – you’re ready to make sales from people who are already interested in what you’re looking for. sell. Customers love brands that have a clear and consistent message and brand image, and understanding what your niche is can make that much easier.
Assistance with customer acquisition
One of the main benefits of a niche is that it helps you find your ideal customer. Whether you’re driving customers to your website or trying to grow your social network, making it clear to potential customers what your brand is all about will drive interest and ultimately loyalty. Once you have finished clarity on the identity of your primary customer, it is easier to increase sales and see the success of your marketing efforts because they will be tailored to those particular customers. Customer acquisition can be handled in different ways for fashion start-ups, from email advertising and organic content on social media and AdWords.
Improves visibility and influence in a crowded digital landscape
The web and social media are crowded, but when you’re building a fashion business, you can’t avoid social media and the importance of having an online presence. With a niche, it’s much easier to appeal to a condensed market and differentiate yourself as a designer.
There are huge payoffs to digging your heels into the digital landscape, carving out a place for yourself, and moving on as each platform evolves or a new trend emerges.
Thanks to their huge online following, Influencers (or “Content Creators”) inhabit a very special digital space for fashion brands. Influencers have burst onto the digital landscape and established themselves in fashion with extraordinary audacity and success. Today, they continue to prove vital to fostering trends at an unprecedented rate.
Via social media, an influencer’s relationship with a fashion brand is extremely beneficial and valuable for the fashion niche, visibility, sustainability and growth of your brand. In addition to opening up new revenue streams, fashion brands instantly connect with millions of potential customers through a fairly simple and solid marketing plan. Influencers are powerful social media personalities, but can be considered serious opinion leaders in the fashion fields they occupy. Their reach and audience value is immeasurable and can only be compared to the success of gaining celebrity endorsement online, which targets your niche audience and, by association, adds immense value to your brand. and your digital presence.
A website is your other digital storefront, so having a design that appeals to your brand image and what customers can expect from your style helps you stand out for all the right reasons. A niche helps your audience find you more easily, differentiating you from your competition.
Increased profits for specialty items
If you sell the commodities, you will only ever bring in average prices. But as a niche designer, it’s much easier to charge higher prices, which will increase your profits. Customers expect to spend more on a specialty item that you can’t find anywhere, especially in terms of fashion because everyone has a unique style and way of presenting themselves. Positioning yourself as a specialist retailer in your niche makes it easier to promote yourself to shoppers and dramatically increases the chances of them making the decision to buy.
How to Find and Use Your Clothing Niche for Success
Finding your niche can take some time but, as we’ve explored, the benefits make the time and effort incredibly worthwhile.
Know your main customers first
When designing for a niche market, ask yourself what the demand is, if that demand has fluctuated over the years, and how many companies are already tackling that market. Is there a problem you want to solve for your customers? Why do you want to design for the market and are you passionate about your designs? Authenticity is key: you need to know why before you can grow your business to be successful online, otherwise it’s easy to lose focus.
the Pareto principle suggests that 80% of your business comes from just 20% of customers, so have a clear view of who that 20% is. Important customer metrics for measuring retention include customer lifetime value, repeat purchase rate, and refund rate. But you should also look at upsell ratio, customer loyalty index, and repurchase ratio to identify loyalty.
Segment your audience
Personas are not a new concept, but they can be very effective in evaluating web analytics and putting that data to good use. With analytics, you can identify your audience by gender, age, location, and more, including what devices they’re likely to use, what interests them, and what they’re looking to buy. With this information, you can create audiences based on these exact characteristics and retarget them once they have visited your site, providing them with content, offers and products that are more likely to resonate.
There are several forms of segmentation, such as life stage segmentation which examines where your customers are in their lives. Are they young students or married with children? Where are they located? what is their sex? It’s useful to segment customers in this way because you can customize offers for those customers to stay relevant to them and resonate with your audience. Similarly, lifestyle segmentation looks at the types of products your customers buy the most.
RFM segmentation dives deeper – it represents recency, frequency, and monetary value. In other words, when a customer last bought, how often did they buy, and how many sales did they provide to your business. This type of segmentation provides the most value and it can all be found in the POS transaction master data.
Know your niche
Knowing your niche allows you to deliver a consistent message, which is essential when it comes to deliver a great omnichannel experience. From website to social, desktop to smartphone, customers will be able to more easily identify your brand and enjoy consistency across devices and platforms. A niche in a market as saturated as the fashion industry is essential if you want to stand out, increase your profits and build customer loyalty. Finding your community of customers who appreciate what you offer and are likely to return to your business again and again comes down to knowing what you offer that sets you apart from the competition.