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Entering a New Niche
By Ken Varga | April 17, 2008
Ok. Believe it or not, I’ve got a large number of insurance people as subscribers so here goes to one of them.
He listed three problems:
- Launce my national fax broadcast to my niche market restaurant business insurance.
- Develop another niche market for personal lines insurance upgrading his website and generating via SEO (Search Engine Optimization).
- Develop a third niche market for commercial lines yet not sure which of the 3 to pick… automotive industry, office buildings, vacant office Buildings.
I’ll answer the first and 3rd questions in this post and answer the question about the website and SEO in a separate post later. Here are some of my thoughts…
This applies to everyone. You must educate your prospects and customers. This even applies to the ice-cream example above. Educating your prospects and clients about what they get when they own your product, or deal with you, differentiates you from your competition. Remember the example of how Schlitz beer differentiated itself from the other beers by telling its story of how its beer was made? If you’ve forgotten that example, re-read the Marketing Tip of The Week issue that related that story.
The first thing I did when I created another company was to determine how I was going to bring that potential customer into my funnel. What this means is that I wasn’t thinking about how I was going to approach and then get that potential customer to respond to something I offered. Instead, what I did was offer something educational.
So for the restaurant insurance, you need an incentive to offer them in the fax and/or whatever method you are currently using to get them to your site, to get them to go there. Try to create an offer they can’t refuse.
Figure out what your prospects want to know and educate them about that. As you provide value, they will flow into your funnel over time. Since restaurants always need to be bringing in more customers, maybe you can educate them on that. Send them free tips or free reports. This way you’re creating value for them, instead of asking them to buy. If you create value and relationship first, then you build trust. If they trust that you have their best interests at heart, then it’s easier for them to buy from you.
You could create a report on the Top Ten Mistakes Restaurant Owners Make When Buying Insurance. Or you can distribute a report on trends in restaurant insurance. Most restaurant owners are working so hard, they don’t have time to follow the big picture. A trends report is a good one because as the trends change, it gives you a good reason to keep contacting the restaurant owner. Or you could do a report on how to survive the deepening recession.
Until you create these tips or reports, you are welcome to offer my “Ten Marketing Mistakes that Steal Your Cash” to your restaurant prospects, or you can offer to give them access to my Marketing Tip of The Week. You could simply let them know that you are always looking for helpful resources to refer to your clients and that you believe the report and newsletter will be very useful for them in growing their business. This could be done in various ways, like by a tip on your website, in your newsletter, in a flyer, in a postcard, or by any means you use to stay in touch and offer value to your prospects and clients.
Or you could also provide a hard copy of the report to them, and put “Courtesy of (YOUR NAME) on the front cover. If these ideas appeal to you, let Reggie at our office know, and he can help you set things up, by phone or email, to get the report and the tips to your prospects. You can reach Reggie at reggie@kenvarga.com
This offer also applies to anyone reading this post. For instance, the ice-cream company mentioned in my first post could gift the report to the various stores that sell its ice-cream.
Now regarding question number 3 above regarding developing a 3rd niche, the question you need to ask yourself is: Which of the three industries you mentioned has the greatest numbers? In other words, choose the industry that has the largest number of prospects for you to go after. In your example, I’d assume office buildings, so go after them first. But you should do as much research to confirm the numbers before you start.
Remember, you must think and create ways to get your potential customer into your funnel first by offering them something they are hungry for, then develop the relationship with them. And remember, treat them like your best friend. I hope I’m doing that for you with this Blog.
Topics: Growing your business, Niche Development | 1 Comment »
April 25th, 2008 at 4:47 am
With less than a year under my belt as a full-time realtor I understand that finding my niche market will greatly improve my income. Your comments regarding developing niche markets are excellent! Your examples are easy to understand and make total sense. I will spend more time reading and participating in your blog.
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