There’s much good to say about versatility. But when it comes to marketing and growing your company, learn why specialization is better for your business.
Running a business in a competitive industry means facing the challenge of standing out from the crowd. While your company may be capable of supplying various products or services, putting your finger on your “niche,” the one aspect of your business that differentiates it from all the rest, is crucial to your success. Learn why specialization is better for your business.
Specialization Boosts Online Conversions
Window shopping and browsing the internet is a lot of fun, but not very efficient when your customers are looking for something specific. Can you describe what your business does, makes, or sells in one word?
The more specific and fewer words you use to define your core competency, the better chance your company has of turning up in online search results, where over 70 percent of consumers and 67 percent of business buyers shop. In fact, in June 2022, research firm Gartner announced survey results finding that 83 percent of B2B purchasers preferred to order and pay online.
But showing up on the first page of search results is only half the battle: if a competitor has a name or description that narrows their offering to exactly what the searcher wants, they’ll get the clickthrough. “Pete’s Patios” or “Dan’s Dynamic Decks” are likely to inspire more clicks than “Ernie’s Excellent Exteriors.”
Ernie may do decks and patios, but the business name implies he may also do siding, exterior lighting, and roofs. Which is it? When consumers need a deck cleaned and sealed, or a new patio laid, they’ll click on Dan or Pete. Similarly, when a storefront needs a new cover for its entrance,
“Al’s Attractive Awnings” has a better chance than “Sam’s Storefronts.” Does Sam do window displays and signage, or does he lease retail space? In the meantime, Al is taking orders for two new awnings for a bike shop’s locations.
Specialization Is More Cost Effective
Specialization saves money. The well-known Pareto Principle in business states that 80 percent of outcomes come from 20 percent of inputs. When companies identify their best-selling or most profitable products or services, and correlate them to the inputs that produce those results, they can focus on and prioritize their most effective processes for greater productivity and success. Focusing resources on the most profitable business areas increases efficiency and reduces costs.
Specialization Enables Targeted Marketing
Finding new customers who want what your business offers requires targeted marketing. Focusing on your specialization provides the opportunity for data analysis that provides a profile of your ideal customer. Once you know who is looking for what you’ve got, you can use marketing strategies to put your business in front of potential customers who are looking for what your business offers.
This concept can apply to promoting any business, from marketing a metal fabrication shop to selling tutoring services. Specialization is better for your business because it provides a focus for investment, cost control, supplies, marketing, and operations. It doesn’t mean your business can’t offer a variety of products and services: it just defines the area of expertise your business does better than the competition.