Coupon websites use various marketing strategies to attract a wide variety of clients and boost their sales.
However, if your coupon website is in a specific niche, quantity aside, you will need to attract quality customers.
Niche marketing is one such strategy that many coupon websites employ to create business even when the market is saturated.
In this article, I’ll walk you through the pros and cons of using niche marketing for coupon websites.
Let’s dive right in!
What Is Niche Marketing and How to Identify Your Niche Market?
Niche marketing refers to a specific segment of the larger market. For example, a website focusing on coupons for luxury sportswear would be considered a niche market within the coupon website market.
You can identify a niche based on pricing, demographics, quality, geography, and other identity-defining factors.
In my experience, defining a niche is a crucial first step, followed by digging deeper to find sub-niches or the smaller subsets of a broader audience.
Strategies for Researching and Testing Niche Markets
When trying to identify and dominate a niche market for your coupon website, here are some of the steps you need to follow-
Study your competitors
Identify the buyer personas your competitors are targeting and analyze their marketing strategy.
Understand your customer needs
Pay close attention to what your customers want. You can then use this information to develop a business idea that converts well.
To avoid starting a low-profit margin business, thoroughly study the market. If others have not been able to create much demand for similar products or services, the chances of your business creating higher demand are slim.
Research your target market
Once you have a fair idea of where your niche market may lie, you need to conduct detailed research about your target audience to find out what people say online about your products or services.
I recommend conducting this portion of your market research on social media!
Test your theory
Effective niche marketing is a gradual process requiring a specialized marketing campaign where concepts are tested, followed by necessary analysis and adjustment.
Niche Market VS Mass Market
Unlike a niche market strategy focusing primarily on a specific segment, a mass-market approach focuses on a wider audience pool.
I’ve listed some of the key differences below –
- While niche marketing targets a set audience whose interests align with products or services, mass marketing targets everyone.
- Niche marketing is a subset of mass marketing where the audience is narrowed down from the mass audience based on aspects such as geography, demographics, psychology, and more.
Benefits of Focusing on Specific Niches
Niche markets require a different strategy, but focusing on a specific audience has several benefits.
Niche marketing is an excellent tactic that helps businesses build brand loyalty. Since you can engage with a much smaller audience in a niche market, you can focus more on the quality of customer service and spend more time nurturing your relationship with them.
One of the key advantages of a niche market is little to no competition. When working with a limited or specific audience, the chances of competitors offering the same services aren’t too high.
Unlike mass marketing, niche marketing focuses more on a specific user group. Since niche marketing focuses primarily on quality over quantity, it results in higher ROI.
Reduces marketing costs
Another advantage of niche marketing is spending less on advertising costs due to a limited audience. By running targeted campaigns specific to your niche audience’s needs, you don’t have to spend your resources on large promotional efforts.
By occupying a specific niche for your coupon website, you can establish yourself as an expert and thought leader rather than offering another generic service or product.
Disadvantages of Niche Marketing for Coupon Websites
While there are many pros of niche marketing, there are certain disadvantages to consider before entering this space.
Lower profit margin
Niche marketing typically involves finding a specific customer base, and the chances of increasing your profit margin when competing on such a small scale are quite low.
Strong competitors are likely to emerge in such markets, so you must always be ready to stand out.
Difficult to grow
It’s usually very difficult for small businesses to adapt and compete in a niche market, especially in coupon marketing. The chances of big competitors using the niche company’s idea to enhance their own business are quite high. This makes it hard for small companies to survive and thrive in their niches.
How to Pivot or Expand Your Niche if Necessary
If your business isn’t receiving enough traction or your customer analysis suggests a pivot, it may be time to consider other possibilities.
Once you’ve decided to pivot or expand your niche, there are multiple factors to take into account.
Align your goals with your vision and strategize
Spend some time choosing a goal that aligns with your vision so you don’t waste bandwidth attempting to force-fit your goals to your ideas.
Include rigorous testing and employee training in your pivot strategy for a seamless process.
Do it as soon as possible
Irrespective of the number of times you will pivot, make sure to do it as early as possible to save money, time, and effort.
Ensure that your pivot presents growth opportunities
While you pivot, consider the various opportunities for growth and expansion in your new path.
Niche marketing can have many benefits for your coupon website. If you are ready to develop your niche marketing strategy and looking for a coupon theme, get in touch with me today.
I can offer end-to-end help to get you started so you can achieve the kind of success you’re looking for in your chosen segment.