OUTLOOK & ANALYSIS

The Four Flavors of Niche Strategies

But it depends on your taste for risk.

Jean Caragher
Jean Caragher

by Jean Marie Caragher
Capstone Marketing

There are at least four types of opportunities your firm can pursue in considering new niche growth, each with its own level of risk:

1. Market penetration.

Better known as cross-selling, market penetration is providing existing services to existing clients. This is the least risky opportunity since you are already familiar with the service and the clients. For example, you may be developing a niche in the construction industry. Currently, succession planning is a firm specialty. This is a service needed by and could be offered to your builder and contractor clients.

2. Market development.

Provide existing services to new clients. This is a bit more risky since you need to learn about a new market segment. For example, you may currently offer retirement planning services to your current clients. This is a service needed by and could be offered to new business prospects.

3. Product development.

Provide new services to existing clients. This is also a bit risky since you need to learn a new service area.

4. Diversification.

Provide new services to new clients. This opportunity is the most risky since you are moving into a new line of business. Sarbanes-Oxley compliance work has provided many regional and local firms with opportunities to expand their bottom lines.

Caragher is president of Capstone Marketing, a partner with CPA Trendlines in the Seven Keys to Successful CPA Firm Management. This article is adapted from one that appeared in the AICPA Insider, which was excerpted from “Bull’s Eye: The Ultimate How-to Marketing Guide for CPAs,” available at Amazon.com.

2 Responses to “The Four Flavors of Niche Strategies”

  1. Alan Vitberg

    Accounting firms looking to grow the top line of their niche practices need to consider the a powerful new marketing approach called “inbound marketing”. Inbound marketing can help firms and their niche practices: (1) get found first by prospects searching on line for solutions, (2) convert website visitors to leads, (3) get more leads and ROI out of traditional outbound marketing efforts, and (4) measure results to pinpoint areas of greatest ROI so you can repeat the marketing strategies and tactics that work!

    Firms that are employing inbound marketing just aren’t seeing more leads – they’re also seeing a lower cost for lead acquisition, more effective use of partner unbillable time and more opportunity to steal clients from competitors.

    Check out our website for our whitepaper, “Partner’s Guide to inbound Marketing”.

  2. Robert F. Cruise, E.A.

    Nice article, we are starting our niche marketing program as we speak. So this article was a nice reminder of where we need to go.