The Ultimate Guide to Finding Your Niche
In the first article of our series on agency positioning, I provided a step-by-step guide to develop your agency's positioning strategy. The key takeaway was the importance of understanding and articulating the specific problems that your agency solves for clients.
This article will explore how to find a niche that aligns with your agency's unique strengths and passions. Finding your niche, essentially a form of specialization, allows you to focus on more targeted marketing campaigns and communicate your expertise more effectively. My goal with this article is to guide you through practical steps to identify and embrace your niche.
Parking Space Theory
Many of you may have heard of the parking space theory in marketing? Imagine a 'parking lot' where clients are metaphorically circling, searching for a place to 'park' (i.e., a business to engage with). Your agency's challenge is to make your 'spot' as easy and appealing as possible for them to choose.
Your parking space symbolizes your niche – what you want to be known for more than anything else.
The ideal 'parking space' for your agency is determined by three factors:
Core Strengths: Your parking space should be an area where your agency truly excels. This could be based on past projects or the experience of your team.
Client Values: Your clients should be able to tell how your services solve their problems.
Availability of Space: Ideally, it's a space not already “owned” by competitors. The challenge with competing for a similar space is it usually causes clients to make decisions based on price. Now if there is a lot of demand for your service and not enough supply, well by all means choose to compete in a similar space.
To help you identify the most suitable 'parking space' for your agency, consider the following:
What are the top three to five strengths of your agency that add value to your clients?
How do you differentiate from your competition?
What are the key factors that trigger your clients to make a purchase?
Which potential 'parking spaces' are currently open and not claimed by your competitors?
Remember, an empty parking space doesn’t automatically make it the right choice for your agency. Your chosen 'parking space' is what you aspire to be known for, above all else.
Finding Your Niche Worksheet
I know that the parking lot theory can sometimes seem abstract, yet its core message is important: owning a single space in the minds of your clients can be a game-changer. This concept is especially relevant for those of you who lead agencies with fewer than 50 employees. While larger agencies may have the luxury to diversify their specialties, your path to success lies in carving out a niche.
This worksheet, a condensed version of my workshop material, is tailored to help you identify a niche that leverages your unique expertise. It encourages introspection and strategic thinking, essential in articulating your agency's distinct value proposition.
Main Service:
What is your main service? Describe it in plain English.
How many years have you been working in this industry or on similar types of projects?
Assess Your Impact:
What specific metrics or KPIs do your projects typically impact?
Which types of projects have historically led to successful outcomes for your clients?
Define Success:
How do you define a successful outcome for your projects? Consider both your agency’s and your clients' perspectives.
Business Identity:
What business are you in? Now, think about what business your accountant would say you're in. Are these the same thing?
Final Thought
I trust that you will use The Finding Your Niche Worksheet to reflect on your agency's strengths and potential for differentiation. Embrace this process, and watch as your agency transforms from just another option in the parking lot to the spot that everyone is vying for.
Stay tuned for the third part, where we will discuss common positioning strategies for marketing agencies.