Do you focus your agency on all niches or only on one niche?
The other day, I shared the case of an agency that specialized in dentists. This specialization gave this agency many advantages: such as knowing its customers really well, how to reach them, what to tell them, and what services to provide to them.
Being an expert in the dentistry industry provides dentists with confidence that the agency was going to be able to solve any problems. As a result, the agency received 1 million dollars of revenue in its first year and 3.5 million in 3 years. In that article, I also shared why this agency chose dentists as a market in which to focus.
Market specialization is very attractive because it automatically generates a connection and credibility with customers in that niche.
If you are a company in the automobile industry and you are looking for a communication agency, in which of the following two proposals are you more interested?
An agency that says:
- We are a communication agency.
- We are a communication agency specializing in the automobile industry.
Centering your services on a given sector has the advantage of generating much more credibility because you are also a specialist in that niche. If you understand that industry, you will understand the opportunities, as well as the problems, that customers face in that market. If you have experience in that industry, you know what works the best and what does not and can bring all that knowledge and experience to the table. You will have the credibility and confidence that you will be able to accomplish the objectives and goals you set forth. You may even know more about the industry than your customer, which will give you lots of credibility, and credibility is the most important asset that an agency can have.
Being specialized in a given industry means that you will better know what you should say to a potential customer to convert her into a customer.
The problem with this strategy is that, for certain sectors, it can be a limiting factor. For example, if you are focused on the automobile industry and you wanted to do a communication campaign for big brands, how many companies could you handle? If, for example, BMW became your customer, could you offer the same service to Mercedes-Benz? Probably not.
There are niches where you could serve several customers at a time. For example, if you are focused on lawyers, you could serve many law firms, but if you are specialized in the automobile industry, you would probably not be able to have more than one customer.
If you work in a large, non specialized agency, going this route may seem like a very risky step to take. If you think this way, but would like to test it out, you could try the following.
As a large agency, you have theadvantage that you canput a small team in a particular niche, while the rest of the team remains “unspecialized”. By following what the new team does, you can start to understand and see for yourself the power that specialization can have.In this case, you could treat that small teamlike anindependent agency; they should have their own website, their own sales strategy and should get clients in their sector. As they gain business, you can start moving employees from the general to the specialized area.
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