By Jowanna Daley
Understanding how to segment your market makes it easier to define your ideal client and forecast your revenue.
So you’ve finished your coaching certification, and you’re ready to empower the world! Now everyone is telling you to “niche down.” You’ve probably heard it in training, by experts, and parrots—but what does it really mean? Then, when you ask how you find your niche, you hear all kinds of opinions. It leaves you feeling deflated, intimidated, and demotivated. No, it’s not you.
What Is a Niche?
Niche is used in various ways. For instance, some people use it to describe your professional focus, others use it to describe their target market, and some use it interchangeably. A niche can describe your coaching focus, such as a business, life, success, or executive coach. A niche is also a smaller segment of a bigger market (also called a market segment).
Carving out your niche is not a straight recipe. Instead, it’s like that your grandma’s secret sauce—a dash of this and a pinch of that. Your niche can take on many forms, such as:
- A few specializations for one group (e.g., a life coach who sees divorced women seeking a new career, self-esteem, or goals success coaching)
- One discipline for a broad population (e.g., a life coach who specializes in self-esteem issues and sees anyone from 15 to 70+)
- One specialization for a targeted group (e.g., a relationship coach that sees engaged couples)
What’s the Difference Between a Market Niche and Market Segment?
You may have also heard the term “market segment.” The only difference between a market niche and a market segment is perspective. Both phrases describe a portion of a larger market. Big corporations usually “segment” their market, appealing to the masses first. While small businesses look for a smaller (often under served) market—they niche down.
So why shouldn’t you appeal to the masses, like “Big Business”? Here’s why:
- Big companies have the resources to appeal to many segments at one time
- As a new business, you are learning your brand and your clients, and generic messaging will kill your business
- Enough studies show that you do better with a narrower focus (mainly because of personalization and budget)
- You are not going to know your strength and weaknesses for real before you get out there; reaching one niche (and one ideal client) at a time gives you time to evolve your business
Segmenting the Market
Dividing the market is not straightforward, but there are some common ways you can slice the pie, including:
- Demographic Segmentation is a quantitative way to view your market. This means you can count the population in this segment. Common ways to break up your demographics include age, gender, ethnicity, income, religion, family status or structure, occupation, and level of education.
- Psychographic Segmentation is a more qualitative or subjective way to view your target population. It is a powerful way to look at data because it gives insight into your market’s motivation. Common ways to break down the data are personality, attitudes, values, activities, and lifestyle.
- Behavioral Segmentation is based on how a person engages with your business, product, website, or app. It can also give insight into how they interact during the different phases of a purchase cycle. Typical ways to segment purchasing behavior include how and when they purchase, usage, loyalty, and benefits sought.
- Geographic Segmentation is based on the premise that people who live near each other use the same products or services. As a life coach, you may decide to see people close to your location because you want to have in-person sessions. Or you may choose people in a time zone that aligns with your work hours. Common geographic parameters include location, climate, culture, population, and language.
Identifying Your Niche
Determining your niche will help you define your ideals clients, and going through the steps of the process will pay off as you further define your business. It will help with creating your ideal clients and developing your market strategy. Let’s review ways to help you find your niche.
What’s Your Super Power? What do you like to do? Transformation Academy’s (TA’s) Life Purpose or Career Coach certifications can help you articulate what you love to do, your skills, and your natural abilities. All of TA’s coaching curriculum coaches the coach first. Additionally, Life Purpose will help you unveil any limiting beliefs you may have about what you can or can’t do.
What’s Your Story? Often, we are led by changing moments in our lives. Think about the obstacles you’ve overcome and how you overcame them. Who helped you? Do you want to be like someone who helped you through something? Who didn’t help you? What did you have to do to overcome the situation? Align your story with the coaching discipline you select or even with your age during the experience.
What Groups Appeal to You? Whom do you like working with, talking to, or watching? I loved mentoring young women back in my corporate days because I could relate to being a young lady in a male-dominated field. Brainstorm groups that appeal to you. Do not limit it to typical coaching clients—you may miss an otherwise obvious fit.
What’s In Demand? I’m one of those people who can live my purpose in just about any field or circumstance. Given that the average person changes careers every 13 years and has about 12 jobs in their lifetime—chances are your purpose evolves as well. Look to see what coaching niches are in demand.
Mix It Up. Don’t think linear. Analyze your superpowers, experiences, the groups you like, and demand to find your niche. Be like grandma, and make your own recipe. I bet you and your clients will love it!
Start Coaching. You don’t have to figure out everything to start coaching. Take advantage of TA’s done-for-you certification courses. Start with those you know. Let them know what you are doing and start coaching. There is a systematic way you can grow from those in your Rolodex (I’m dating myself). You will figure out to whom you most appeal and their needs through coaching and feedback.
I know you’re constantly hearing different tips, and that’s because you can define niches in multiple ways. However, understanding how to segment your market makes it easier to define your ideal client and forecast your revenue. Remember that it is not an exact science. It is also not like grade school either—you don’t have to pass 12th grade to graduate.
Just start coaching!
Jowanna is a business and personal coach, consultant, freelance blogger, and personal brand photographer. Jowanna uses her 20-plus years of business, information technology, business analysis, and project management experience to serve solopreneurs, microbusinesses, and professionals through consulting, coaching, training, and workshops. She is also a freelance blogger who serves corporate and non-corporate clients. Visit her website at https://www.jowannadaley.com/about/.