Expand revenue with niche audience intelligence
Audience intelligence can tell you a lot about a niche market - from their pain points and challenges to their latest topics of interest. And these are the insights that will shape your marketing strategy and tell you how you can expand your revenue.
In this post, we discuss how brands like Fenty Skin, Zoom, and Roku managed to expand their revenue using niche audience intelligence. Let’s dive right in.
How audience intelligence helps you learn about your niche market
Audience intelligence gives you highly valuable insights into the people that make up a particular market and then use those insights to group them into relevant niche segments. You can then utilise niche audience intelligence for each segment to deliver powerful and highly relevant messages that drive revenue.
At the most basic level, you can discover demographic insights such as age, gender, race, ethnicity, geographic location, marital status, profession, income, and so on. You can then create separate niche audience groups according to these characteristics.
Beyond that, niche audience intelligence also gives you insights about interests and behaviour. What do they like to talk about? Which TV shows do they watch? Are they interested in personal care products? How often do they shop online for makeup and skincare?
All of this information helps you dive deeper into a particular market and discover information about the biggest pain points of different niche groups, uncover new market opportunities, research competitors in your niche, and identify the best ways to connect with your target niche.
Audiense Insights even comes with the ability to learn more about the needs, values, and personality traits that a certain group shares. So for instance, you might find that your niche audience group is bold and outgoing and seeks excitement. You can then shape your marketing messages and selling strategies to fit these characteristics.
Here’s a glimpse into how a Personality Insights report on Audiense would look. As you can see, it gives you a detailed breakdown of your niche audience based on aggressiveness, neuroticism, extraversion, conscientiousness, and openness.
This helps you understand what kind of messaging would resonate with the audience and how to best approach them.
How to use audience intelligence to market to a niche audience
There are virtually endless opportunities for utilising audience intelligence to market to a niche audience. And all of these opportunities will help you expand your revenue – whether it’s directly or indirectly. Here are a few options and ideas:
Tap into new and unexplored markets
The first and most obvious way to expand your revenue with niche audience intelligence is to find new and unexplored markets to tap into. Niche audience intelligence helps you discover whether you’re overlooking demographics and consumer segments that could potentially be profitable.
For example, you may be marketing your skincare products mainly to millennial and Gen-X women. But with the men’s personal care market growing significantly (with a CAGR of 6%), you might be missing out on a lot with your women-focused products and campaigns.
Fenty Skin taps into this overlooked demographic with gender-neutral skincare products and marketing messages.
And of course, tapping into new markets will open up opportunities to sell to more customers. This eventually translates to higher revenue in the long run.
Evolve with the changing market
Markets evolve with changing trends and opinions. And the needs and interests of your niche audience could evolve along with this. Pretty soon, your current products/services may no longer have a place in the hearts and minds of your existing audience. This will then result in loss of revenue.
That’s why you need to use niche audience intelligence to anticipate any changes in the market and adjust your offering and strategy accordingly. In other words, you’ll be evolving along with the market, which can minimise the risk of losing revenue down the line.
For example, the COVID-19 pandemic brought about widespread changes in how people work and communicate with each other. With people needing to social-distance, Zoom became a central part of workplace communications. The company quickly adjusted and even improved on its services to meet the demands of one of the most critical markets during the pandemic – healthcare.
While the company had already been offering its Zoom for Healthcare service, the existing product wasn’t enough to meet the pressing needs of the market. So it introduced more HIPAA-compliant capabilities and features to evolve with these changing demands. This includes Zoom Chat for secure communication with colleagues, secure cloud recording that’s applicable in a clinical setting, and more.
Solve new pain points
Niche audience intelligence also helps you narrow down on the specifics in terms of pain points. What needs are you currently not meeting? And what are the needs not currently met by anyone else in the industry?
This will help you figure out how you can present a unique solution that sets you apart from the competition. Use this to reposition your existing product/service or jack up your current offering.
This will ensure that people come to you instead of to your competitors. It helps them get a better idea of how your product could be of value to them and why they need it. Plus, it also gives your existing customers a reason to stick with you and continue buying your products/services.
In addition to this, new pain points may arise due to changes in the industry. For example, Instagram introduced the option to advertise through Stories in 2017. Since this was a fairly new feature back then, a major pain point arose for advertisers -- they needed help designing and optimising their ads for Instagram Stories.
Many digital marketing agencies started expanding their service offering to address this pain point. The freelance marketplace, Fiverr has even introduced a new service category for people who need help with their Instagram Story ads.
Change your focus based on demand
Stretching out all your resources to keep things running can sometimes do more harm than good for your revenue. You may have a hard time meeting deadlines on stock delivery or even end up sitting on unsold and expired inventory.
Instead of this, focusing your time and resources on popular products could be a much better way to cut costs and expand your revenue. Focusing on trending segments is also a much faster way to meet your revenue goals since you’re no longer wasting time producing and marketing other segments that aren’t in demand.
Niche audience intelligence can tell you a lot about what products and categories can yield the most revenue in the long run. It helps you discover which categories are generating the most sales, which products are the most popular, and so on.
So for instance, let’s say you find that people haven’t really bought a certain model of your streaming player but another model is extremely popular among streaming fans. You might want to discontinue the unpopular model and focus your efforts on producing (and marketing) the popular option.
For example, Roku discontinued its Roku Premiere Plus model even though it only came out in 2018. This is largely because the device didn’t hold up too well against other Roku models and cost almost as much as the premium Roku Ultra player.
The bottom line
Niche audience intelligence gives you valuable insights to expand your revenue in a number of ways. First, it allows you to tap into unexplored markets and reach more customers. It also helps you identify how you can continue to make money by addressing new pain points and evolving along with the market. Plus, you can even cut costs and expand your revenue by shifting your focus on the most profitable and in-demand products.
Make the most of the Audiense Insights platform to get a holistic view of your niche audience and discover new segments, trends, and marketing opportunities.