More Than WE Know

Recently I’ve been discussing NaturallyCurly.com. I’m fascinated with this business because it is such a great example to demonstrate the power of having a narrow market niche.

Rather than seeing their narrow niche - hair products for people with curly hair - as a limitation - the owners have chosen to view the specificity of their niche as a strength.

For example, enter the keywords “hair care” into google and NaturallyCurly.com isn’t anywhere in the first 100 entries.  (And who knows how much further down the list they are? I wouldn’t bother to look and neither would any potential customers)

But enter the keywords “curly hair care products” or  even “curly hair care” and they are Number One on Google for both!

By definining their niche narrowly and focusing exclusively on a target market, NaturallyCurly.com has been able to stand out in a crowd.  They would be (and still are) lost in a sea of generic hair care - but they’re beginning to get status in the area of curly hair.

How are they doing it?

1. Exhibiting their expertise.

Michelle and Gretchen can’t be experts on everything about hair care - but they can become experts over a smaller topic - the care of curly hair.

• They both have the advantage of actually having curly hair and from there they’ve accumulated a wealth of information on the frustrations, challenges, opportunities and nuances of having curly hair. 
• They know which products work and which don’t.
• They know which external factors affect curly hair and what can be done about it.
• They know which salons cater to curly hair and which haven’t got a clue. 

In other words, by keeping their area of focus relatively narrow, they can dig deep and become true experts.

2. Building Community.

Michelle and Gretchen could have created a generic site that simply lists hair care products for sale. But they realized that their target market was largely women (women make most of this type of purchase even for men and children).

They knew that women don’t necessarily shop for efficiency. Women like to browse. They like to comparison shop. They like to discuss their potential purchases. They like to share their success tips and vent their frustrations.

So, Michelle and Gretchen created a community forum for women to discuss their hair. They solicited salon reviews from readers who had good (or not so good) experiences with local salons. They write articles about the trials and tribulations of having curly hair - dating, self-esteem, images in the media, etc. 

They give their customers a reason to visit their site, even when they don’t have anything they need to buy. 

This keeps them top of mind with their customers. It ensures repeat sales and enables them to take advantage of advertising revenue.  Other retailers want to advertise to the community they have built.

3. Developing Customer Loyalty.

Michelle and Gretchen stand by their products. They have a reasonable return policy which they explain upfront.  They have a customer service support line. They have feedback forums. 

They realize that their main profit will come in repeat sales and word of mouth referrals. Therefore they focus on developing and maintaining a long-term relationship with their customers for repeat business - not on a single, quick sale.

What about you and your business? How can you incorporate some of these ideas into your marketing strategy?

photo credit: mbtrama

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In yesterday’s post I discussed NaturallyCurly.com a business that is devoted solely to people with curly hair.  When first developing the business, Michelle was advised to broaden the target market by carrying products for people with all types of hair.  Instead she listened to her Inner Samurai and continued to focus on a narrow group of customers.  It was a risk that paid off - she and her partner, Gretchen,  now have a million dollar company.

That bold decision to stick to a well-defined target market is one of the key success factors for Naturally Curly.     

How do you know whether you have a well-defined target market for your business?

Let’s look at NaturallyCurly as an example.  Before reading further - state out loud who you think their target market is.  Then look below - how close did you come?

Levels of Definition of a Target Market.

Level 1: People with hair.

Level 2: People with curly hair.

Level 3: People who struggle with their curly hair.

Level 4: People who struggle with their curly hair and want to look better.

Level 5: People who struggle with their curly hair and want to look better and have money to spend on caring for their hair.

Level 6: People who struggle with their curly hair and want to look better and have money to spend on caring for their hair and have a history of spending on their hair.

Level 7: People who struggle with their curly hair and want to look better and have money to spend on caring for their hair and have a history of spending on their hair and are users of the internet.

How did you do? 

Are you wondering what’s so important about the 7th level of definition?  

1) It includes a pain point. People buy from pain.   Simply having curly hair wouldn’t be enough to motivate potential customers to buy their products - they have to be somewhat unhappy with their hair - struggling to make it look better.

2) It is lucrative. Potential customers must have money and must be willing to spend it on your product or services.  Unless you are running a non-profit, it is important that customers have money to spend and it is helpful if they already have a history of spending money in similar areas.

3) It includes a way of reaching potential customers.  If NaturallyCurly was a brick and mortar business, their niche might be “people who live within 15 miles of a store located in Houston, Texas”. But since theirs is an online business, then their customers must have access to the internet.

Now try it with your business. 

Write down a definition of your target market.

• does your market have some problem you can help them solve?
• can your market afford your product or service?
• does your market have a history of spending on similar products or services?
• is your market somewhere you can reach them?

Dig deep. The answers may not be immediately obvious. 

But if the answer to any of the above questions is no, you may want to consider modifying your target market to include more of these traits.

photo credit: angela sevin

Recently Shama Hyder looked into her crystal ball and made her top 3 marketing predictions for 2008. In sum, she is predicting the increased need for small businesses to have both an online and an offline presence.

I couldn’t agree more with her predictions. I believe all businesses should have a strategy for marketing their products and services in both an online and an offline arena. Ideally each aspect of your strategy should complement the other.
This does not need to be as intimidating or as expensive as it sounds.

There are several relatively simple, low-budget ways to develop a stronger online presence.

1) Write a blog that is associated with a topic related to your business. This can be as simple as creating top ten lists or writing a tip of the day. It doesn’t have to be intimidating - just start building a relationship with your customer and give them a reason to keep coming back to you. (hint: set up a free blog in 5 minutes at www.wordpress.com)

2) Post in forums related to your business. The key is to find forums in which your potential customers hang out. Offer advice and ask questions. Don’t hardsell. If they like you, they will link back to your website for more info. (hint: search google for forums and a word related to your business)

3) Create a linkedin profile. Ask questions and answer questions. Use the opportunity to network with potential customers and referral partners. Again, no hard selling.

Marketing on the internet is inexpensive, effective and fun. Don’t let this powerful phenomenon pass you by because you are intimidated or don’t see the value.

Start thinking now about your internet strategy for 2008.

And if you have questions about what an online presence can do for your business let me know in the comments below or by sending an email to liz (at) morethanweknow (dot) com.

Check out the two 30 second videos I created using pictures from my series on Women Entrepreneurs!

This is a great way to display your products in an engaging format. Can’t you just see a collection of your images displayed with some appropriate theme music???

I used new software at Animoto. Videos like this are free and fast to create. You can upload your own music or use theirs. The software does the special effects - if you don’t like it, you can remix it.

But what’s the most fun about making these videos is that the software is designed to intelligently respond to the genre, structure, rhythm and energy of the music. You can also choose to Spotlight certain images which will place more emphasis on them in the video by featuring them more prominently.

Read the rest of this entry »

Tomorrow starts our Holiday review of Woman Entrepreneurs who sell gifts online. 

My goal is to profile 18 businesses this holiday season between November 23rd and December 24th.

If selected, I’ll include a description of your business and a link to your site.

Additionally, I’d like to write about you as a Woman Entrepreneur - what motivated you to start your business? what  challenges have you faced? what lessons have you learned?

To be profiled, please contact me in the comments below, or email me directly:

liz (at) morethanweknow [dot] com.