Featured blog by Jeff Ton, EVP of Product & Service Development at Bluelock
The cloud industry has evolved rapidly in the past few years and developed quicker than traditional IT due to heightened cloud service spending.
While the rapid growth of the market is generally seen as a benefit to cloud providers, the uptick could also introduce some challenges. The success of the cloud industry has attracted many businesses, creating a crowded market. This oversaturation must drive businesses to establish an expertise and hone in on a smaller segment of the market. By doing this, brands will differentiate themselves from others and gain clout in the smaller subset of the industry.
For businesses to fully define this niche, they must take a look at their clients and services, and define where the value is provided. It can be helpful to gain input from clients and prospective clients as to why the services your company offers are attractive and different from others’. Identifying whether problems are being solved (that no one else can) is a key factor in establishing a focus in a market that relies on differentiation for survival.
For those seeking to shift their focus to a smaller subset of the industry, there are three main considerations to make:
1. What component of your business do customers tend to be drawn to first?
There may be one product or service that customers tend to buy more often than others. If so, this could be your defining factor. Even if it’s not the easiest or most exciting offering to work on, that doesn’t mean it isn’t important to customers. Setting all personal biases aside, take a look at the numbers and see what the cold hard facts say about your specialty.
2. What is the price point of your top offering?
If the price tag on your most popular product or service is also one of the highest, it could mean that setting your sights on this singular offering will come much easier. If the offering doesn’t bring in much revenue, it could make things a bit harder. Identify whether you’re just undercharging — and should up the price point a bit — or whether the lower value of the product or service means that you should set your sights on another area of expertise.
3. Does this new focus align with your business’s vision, goals and values?
Keeping a focus on long-term vision is important when identifying a market niche. Make sure the focus you’ve defined isn’t out of left field — and, if it is, make sure there’s a really great reason. Defining a niche doesn’t mean you have to rework your entire company structure and focus.
After you’ve identified your niche, make sure it’s a fit by testing it out. If you find that business is slowing, it might mean that this isn’t the exact place you should be focusing. On the other hand, if business is booming, you’ve found your sweet spot. By setting yourself apart in an oversaturated market, you can provide special value to your customers and create a unique brand.
