If you are a generalist firm planning to implement a multi-niche approach, careful planning of your areas of specialization is essential. Each niche should be distinct enough to avoid overlap with other specializations and will generally be broader than the niches recommended for a single-niche approach.
Target Distinct Groups
Your specializations should target different groups of people who would not be reached through the same marketing efforts. For example, you could focus on niches such as:
Medical industry
Business exit planning
Women in transition
Each of these niche specializations requires unique marketing strategies tailored to its audience. This might involve specific centers of influence (COIs), events, campaigns, or social media channels.
Avoid Overlapping Niches
It’s important to avoid creating specializations that are too similar and might overlap. For instance, rather than having separate niches for doctors, nurses, and hospital administrators, you could consolidate them into a broader "medical industry" niche. This approach is effective because these groups often share networks and resources.
The only scenario where closely aligned niches might work is within an already specialized company—such as one exclusively focused on the medical industry—where segmentation into smaller groups (e.g., doctors, nurses, administrators) makes strategic sense.
Conduct a Client Base Analysis
Identifying potential niches begins with a thorough analysis of your client base. Categorize your clients into buckets based on:
Profession
Financial situation
Stage of life
Other defining characteristics
This analysis can reveal opportunities for segmentation and provide valuable insights into which niches to pursue.
Start Small and Expand
As a rule of thumb, I recommend starting with at least three areas of specialization to build a strong foundation for your multi-niche strategy. This approach allows for expansion as the firm grows, enabling you to add more niches over time.
We Want Your Take! If you are considering a multi-niche approach, which specialty areas would you choose to segment your clients into, and why? Share your thoughts in the OnNiche® Public Square!