Benefits of Niching-down for Local SEO

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What is Niche-down?

Niching a business is one of the most important decisions for business owners.

Niche-down a business means you are categorizing your business under specific categories. It will limit your target market as well as the audience. Niching a business enables your reputation to be impenetrable in the market. Niching makes business competition easier in the market.

This article will discuss the benefits of niching down your business. We will also discuss steps to niche-down a business for a successful local SEO campaign.

7 Benefits of Niching Down When Doing Local SEO

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1. Scarce Market Competition

One of the main gains of niching down is less market competition. 

You provide services to a business-specific audience when you niche down your business. Hence, targeting the right market audiences is imperative when you niche down a business. 

Scarce market competition will help your business have the necessary edge over your market rivals. Your target audience becomes more inclined to be your loyal customers without any unique marketing strategy.

Let's look at some of the tools and tips to benefit from scarce market competition.

• QuickSprout is a market audience management tool. You can use it to monitor the market and target your audience through social media platforms. 
• Google Analytics as a native Google platform to conduct market analysis. It helps set up a business-specific audience. It offers insights on what are your audience's major interests. 

• Coohawk is an AI-based social media tool to suggest a target audience as per your business niche.

Less market competition will help your business get ranked higher on local SERPs. It will help boost your regional SEO strategy.

2. Improved Market Visibility

Niching down your business will narrow down the target market audience. You will be left with high-value and business-specific market prospects to deal with. It will help your business brand get exposed to relevant prospects.

Your brand will have improved market visibility due to fewer competitors in the market.

Improved market visibility will help drive more organic prospects to your business website. It will help achieve a better on-site customer experience. It will improve your brand loyalty among your customers.

Word of mouth marketing will help attract more potential prospects due to higher market visibility.

Let's look at some tips to take advantage of improved market visibility.

• You can acquire high-value prospects with higher market visibility.
• High market visibility leads to higher customer engagement and sales.
• You can use social media platforms for retargeting your niche-specific market audience easily.

Here’s an example from a SaaS niche.

Hence, it is crucial to niche-down your business. Take the help of surveys and online polls to find your business-specific niche and its profitability.

3. Economically Viable

Niching your business setup will save you money and time. Niching filters out a business-specific audience for you to offer services.

Offering a limited set audience takes less capital than serving the general market audience. You can invest your savings in more critical aspects of your business set-up, such as marketing and promotions.

Make sure you track the profitability of your niching strategy whenever you are niching your business setup. 

Carry out a general audience poll or email surveys in the market. Make sure you analyze and discuss the response with your webmaster—Curate a niching strategy as per the target audience’s needs.

Let’s Look At Some Tools To Curate A Niching Economic Strategy For Your Business.

• Facebook Business is a platform where you can take audience polls to get organic responses for your business niches. This is easy to create, as shown in the screenshot. 

• You can use the free SEMRush Architecture Tool to revamp website architecture and security to engage potential high-value prospects.

4. Improved Brand Reputation

Brand reputation is vital for any business to sustain itself in this competitive and dynamic market. Business owners are experimenting with different local SEO strategies to improve their brand reputation in the market. 

Brand reputation helps a business convert visitors into organic customers.

Niching down your business will have a long-term effect on your business's brand reputation in the market. It will boost your brand's credibility among your niche-specific audience in the market. It will help engage potential prospects and make more sales. Apple is the best example of it. 

When the audience thinks of quality phones, desktops, lap, etc., they think of Apple. 

Let’s Look At Some Tools And Tips For A Better Market Reputation For Niched Businesses.

• Consider market reputation as a metric in your SEO audit to know the degree of the feasibility of the current local SEO strategy.
• A niche-specific business should invest in PPC campaigns to make its brand known to more people. 

5. A Stronger Business Base

Niching down helps you become a product-specific business rather than offering all things to everyone.

Narrowing your target market and the audience will help you fine-tune your brand and its image in the market. It will leave your business better placed for financial success in the long run.

Transitioning to a niche-specific approach to your market will leave your business far better suited to reach your target prospect. For example, when people are looking for sportswear, Nike is one of the brands that come to their mind as their products are designed for it. 

 These prospects most likely become your lasting clientele. You will have your set of competitors depending on the niche you choose your business to be in. Specialized searches are now in trend, so it's the perfect time for a product-specific business setup.

Benefits Of Having A Stronger Business Base.

• A stronger network will benefit your sales and long-term business goals in the market.
• Credibility and reputation come from a business with stronger networking and a loyal customer base.
• SEO metrics such as site traffic, UX, and lead conversion rate improve with the niche-specific customer base.

6. Lower Customer Acquisition Rate

Niching down helps you target only niche-specific audiences in the market. A niche-specific target audience is relatively smaller than the general audience in the market. Hence, the acquisition cost per customer will drop, boosting your local SEO strategy.

Let’s Look At Some Tips To Lower Your Niche-Specific Audience Acquisition Cost.

• Make sure you are targeting a prospect with high value. Use Google Analytics to analyze the demography of your site visitors. It shows which age and gender group audiences are most interested in your brand. 

• Use AI and ML environments to analyze and influence user behavior while on-site.
• Use Drift to analyze each customer's acquisition cost through individual ROI data.

Niche-specific audiences have a higher lifetime value than the general market audience. It makes it even more important to keep the cost of converting a marketing audience low. 

It will save your money and offer you opportunities to divert those savings into other beneficial aspects of your local SEO strategy.

7. Improved Client-customer Relationship

Client-customer relationship is one of the building blocks of a successful SEO campaign. Niching down your business will narrow down your target customers in the market. It will open up ample opportunities to have direct connections with your customers.

More prominent brands have their customer relations department. Niching down a business provides similar facilities for small-scale businesses at a lower margin. 

Improved customer relationships will influence your brand perception in the market. It will improve the credibility and demand for your products in the market.

Let’s look at some of the tools and tips to improve your business’s existing customer relationship.

• Hubspot CRM is one of the best CRM tools for small-scale businesses. The free version has excellent tools to upgrade your business’s customer relationship. It will even guide you on deploying and using it effectively at your end. 

• Facebook Business allows business owners to reply and resolve customer feedback and queries.
• Instagram Business allows business owners to be in touch with clients and collaborate with influencers directly.

Read: 15 Pointers to Boost Customer Retention Rate of Ecommerce Businesses

5 Tips to Niche-down Your Business

1. Identify Your Business Goals

The first step to niche-down a business is to have defined business goals. Identify your business goals. Do an SEO audit to learn about the market and the audience you aspire to target. 

Create a checklist of business-specific milestones. It will help you analyze business-relevant local SEO metrics. You can also ask your mentors and close acquaintances for valuable suggestions before determining your business goals. 

Having a defined business goal makes it easier to find a relevant niche in the market. 

Let’s look at some of the tools and strategies you can use to identify your business goals.

• SWOT Analysis stands for Strength, Weakness, Opportunities, and Threats. You can use this strategy to identify both short-term and long-term business goals. Here’s an example of a SWOT analysis of an ecommerce business. 

• Theory of Change (TOC) identifies long-term business goals and their profitability.
• Use the PESTLE Analysis tool to learn about various external and internal factors influencing your market presence and sales.

2. Align The Business Goals With Target Market Demography

Identifying your business-relevant target audience is the next major step in niching your business. Target the right set of audiences in the market after you have decided on your short-term and long-term business goals. 

The target audience can determine your brand's sustainability in a niche-specific market.

The next step is to align your target audience and market with your business goals. It will streamline your niching strategy. It will also help you curate a solid local SEO strategy for your business. 

Once you have set a target audience, you can set a defined budget for their conversion and acquisition.

Let’s look at some of the tools you can use to analyze and define your target audience.

• Audisense is an excellent social media management tool to monitor site traffic. It helps set the right audience for your business setup. It provides insights on top competition, audience location, demography, top influencers in your niche, etc. 

• Google Analytics and Google Search Console can help you analyze your target market demography.
• Facebook Business analysis tool will help you track on-site user behavior.

3. Research the Market Rivals

Research and identify your market rivals after aligning your business goals with your target audience. Be sure about the space you are occupying in the market. 

Researching your market rivals will help you develop a new business idea. You will be able to allot a defined budget for your marketing when you have an idea about your market competitors.

Competitive research allows you to determine your niching strategy and local SEO strategy. It will help you find ways to outrank your competitors. Hence, knowing your market competitors and their strategies will help niche-down your business.

Let’s look at some of the tools to research and analyze your market competitors.

• Google Trends is an excellent tool to do competitive market research. It allows you to keep track of your market rivals' rankings and brand reputation. You can just type their brand, product, service type and see how the trend is floating. 

• Google Keyword Planner enables you to monitor your business rivals' long-tail keyword performance and local rankings in the market.

4. Define a Business-specific Niche and Its Profitability

After all the above steps, you can decide on a business niche as per your business goals. You can dedicate your workforce and capital to target your niche-specific audience in the market. 

Make sure you dedicate your resources to a niche that can perform better in the market. Keep a close eye on your market rivals and strategies while finalizing your business niche.

Let's look at some of the criteria to consider while deciding on your business niche and profitability.

• Market climate
• Customer demography
• Business location to cut the volume of competition

• Price and performance of the product 

Your business venture could profit by analyzing and upgrading its niching strategy according to market demand. 

The profitability of your product depends on its pricing and performance in the market. The more people know about your brand and its products in the market, the better profit it will yield. Location demography also plays an integral role in determining a niche's profitability. 

5. Test Your Product and Services

A working prototype of your product will solve most of the marketing issues of your business setup. If your product prototype solves real issues and benefits your target audience, your business will perform better than most market competitors.

Test your products and services in front of your close acquaintances and mentors. Record their feedback and reviews. 

Make sure you work on the areas with lacunae. Pitch your product prototype if you have an angel investor for your business. It will help market your product better in the market.

Let's look at some tips and tools to test your product before launching it into the market.

• Linkedin is a professional platform you can pitch your business idea and test your product prototypes on. It will help you gain a market perspective on your business idea’s viability and profitability.
• InVision allows you to build robust UX designs for your business apps and test run your prototype.

Key Takeaways

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• Niching down helps outrank the market competitors with ease.

• Niching down a business is economical and builds brand credibility over time.

• Identify business goals and target audience before choosing a niche.

• Define your business strategy for your niche and the market.

• Align your business goals with the target audience to maximize your local SEO strategy.

• Cater your product and services to an exclusive niche-specific audience.

• Improved client-customer relationships will boost business growth.

• Test your product prototype before launching it into the market.