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11 September 2024

To Niche or Not to Niche

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Posted by: HRi

Finding the Right Clients as an HR Consultant: A Guide to Defining Your Target Market

As a HR consultant, one of the biggest challenges you might face is connecting with the right clients. And this isn’t surprising as you’re a HR Consultant not a marketing expert so don’t worry too much if you face these struggles. Besides, you’re in good company because many other HR consultants struggle with this too.

One of the biggest issues preventing HR Consultants from getting that pipeline of clients for their consultancy is the lack of a target market. They say they work with everyone, but from a marketing perspective, “everyone” doesn’t exist. You can’t solve “everyone’s” problems and you can’t create marketing messages that will resonate with “everyone” either.

Essentially, if you don’t have a target market, you’ll feel like you’re playing hide and seek with a ghost when you do your marketing—you’ll put in a helluva lotta effort, but not get any results. To resolve this situation, we’re going to dive into what a target market is, why it’s crucial for HR consultants, and how to define it so you can attract the clients you truly want.

Defining A Target Market

First things first, let’s get a working definition of a target market so we all know what we’re talking about. The dictionary definitionof a target market is, “a specific group of people or businesses that a business chooses to focus on working with”. In layman’s terms, that means identifying who you want to work, and then turning up and serving them.

The Importance of Niching

Niching takes your target market a step further. It’s about honing in on a specific, narrow segment within your broader market. For example, instead of saying you work with manufacturers, you might focus specifically on car parts manufacturers. This extra focus helps you narrow down your audience and enables you to become a recognised expert in that niche, making it easier to stand out and attract clients who are looking for specialised help. This isn’t a super essential step, it depends on the market you choose and how tight you want your marketing messages. But it can make marketing much easier if you get this bit right.

This especially rings true for me because I initially started out focusing on Business Consultants before niching down further into HR Consultants. And in time I might well niche down further into HR Consultants who want a specific result (which I haven’t determined yet). Every time I’ve niched down it’s made marketing so much easier because I know who I’m talking to. And then people can see those messages and know they’re for them.

Why Defining a Target Market is Essential for HR Consultants

Speaking of which, let’s talk about the benefits of defining a target market.

Tailored Messaging: As an HR consultant, when you know exactly who you’re talking to, you can craft messages that resonate directly with their needs and concerns. That makes your marketing more effective and helps potential clients feel like you understand their specific challenges. And that means they’re more likely to respond to your marketing and ask you for your help, rather than ignoring your messages because they think you’re talking to someone else.

Smart Resource Allocation: Knowing your target market allows you to use your resources—like time and money—more efficiently. You can focus your efforts on the platforms and channels where your audience spends their time, whether that’s LinkedIn, industry forums, or other specialised networks. And this focused approach maximises your impact and reduces wasted effort. Effectively, you go to where your people actually are, rather than guessing or wasting time where they aren’t.

Higher Conversion Rates: When your target market sees that your services are designed just for them, they’re more likely to become clients. See, specific and relevant offers tailored for a particular audience are much more compelling than generic messages and services that serve everyone. Messages and services that serve everyone are messages and services that serve no-one. So they’re much easier to ignore.

Stand Out as an Expert: Specialising in a niche helps you differentiate yourself from other HR consultants who take a more general approach. It’s like being the top brain surgeon in a city—clients will seek you out because they see you as the expert in solving their specific problems.

Customised Services: Defining your target market also allows you to tailor your services to meet the unique needs of that group. This means you can engender loyalty whilst also reinforcing your reputation as the go-to HR consultant for that specific group of people.

Business Focus: Finding a target market or niche doesn’t necessarily have to be about choosing a particular industry to work with. You could equally focus on what you do best. So whether that’s managing redundancies, driving change programs, or implementing engagement processes, a business focus helps you position your expertise so you can grow your business easier.

Charge Premium Rates: As you establish yourself as an expert in your niche, your target market will recognise your value and will therefore be willing to pay higher rates for your services. You’ll be the expert in their specific field, and experts always get paid more, right? To give this a real life example, who gets paid more, the GP or the Brain Surgeon?

 

Addressing Common Fears About Defining Your Target Market

If you’re reading this article then you probably feel hesitant about narrowing down your target market. And that’s only natural. After all, by focusing on a specific group, you’ll feel like you’re cutting off opportunities or turning away potential clients. However, it’s important to recognise that defining your target market isn’t about limiting your business; it’s actually about maximising your business and your impact.

Don’t believe me? Well, let’s address some common fears:

You Don’t Need Everybody as a Client:
You might worry that you’re turning people away from working with you, but here’s the thing, you don’t need to work with everyone. In fact, trying to appeal to everyone often dilutes your message and makes it harder for clients to decide to work with you. By setting the terms of who you want to work with, you can focus on attracting those clients and that frees you up to ignore everyone else.

You Can’t Work With Everybody Anyway:
It’s simply not possible to serve everyone. Your time and resources are limited after all. And by trying to be everything to everyone you can burnout and start losing quality in your work. So by defining a target market, you can concentrate your efforts on those who truly align with your skills and expertise, and that means you’ll deliver the best possible service to them.

Defining a Target Market Doesn’t Mean Excluding Others:
Just because you’ve defined a specific target market doesn’t mean you can’t help others who approach you. If someone outside your target audience reaches out for your services and you feel you can help them, you still have the option to work with them. You don’t have to turn people away just because they’re not in your chosen audience.

Wouldn’t You Rather Be the Go-To Person for 1,000 Businesses Than Be Ignored by Everyone?
To be blunt, instead of focusing on potentially losing business, focus instead on what you actually gain.
So focus on the fact that you’ll be the first person that comes to mind when a company in your niche faces an HR challenge. Focus on the fact that you’ll be seen as the go-to expert in a specific area. Focus on the fact that you’re more likely to attract a loyal client base.
Overall, it’s far better to be highly sought after by a smaller group than to be overlooked by a larger audience, right? And focusing on a niche allows you to build that strong reputation and become that trusted advisor that your leads and clients turn to.

Where to Start: Defining Your Target Market

Hopefully you’re on board now. If so, you might be keen to define your target market. And we’ll get to that shortly, but before that, let’s get a few things straight by asking yourself these important questions:

1. Who Do You Want to Work With?
Consider the industries, company sizes, and roles you enjoy working with. What types of clients energise you? What problems do they have that you’re excited to solve?
You need to enjoy your work, so make sure the audience you choose won’t drive you mad!

2. Who Have You Previously Worked With?
Reflect on your past clients and job roles. Who did you have the most success with? What types of projects brought you the most satisfaction? These previous experiences can help you identify patterns and pinpoint your strengths.

3. Do You Have a Strong Network?
Think about the connections you already have. If you have contacts who can refer you to potential clients in a specific industry then that could be a potential gold mine. After all, a strong network is an invaluable asset in building your client base. It’s not what you know, it’s who you know.

4. Can Your Chosen Market Afford Your Fees?
It’s crucial to ensure that your target market can pay the fees you want to charge. So make sure to research the financial capabilities of your chosen market to make sure they align with the financial goals you’ve set for yourself. There’s no use identifying a target market only to find 6 months later that they don’t have any money to pay for your help.

5. Is the Industry You’re Choosing Growing or Shrinking?
Make sure you’re targeting a stable or growing industry because if you choose a dying market then you’re going to limit your opportunities. Instead, look for sectors with long-term potential where your services can continue to add value over time. You don’t want to have to re-do all your marketing and branding in a few years’ time if you can help it. Trust me on that.

 

Further Resources

Here are some additional resources to help you bring your target market to life:

1. Understanding your Audience
This podcast shares valuable insights into identifying and reaching your ideal clients as an HR consultant and it’s packed with practical tips to help you develop your avatar.

2. Downloadable Guide to Define Your Target Audience
This free guide provides step-by-step instructions to help you identify and understand your target market, ensuring your marketing efforts are focused and effective.

3. Downloadable Guide to Understanding Your Target Audience
It’s one thing defining a target audience, it’s quite another putting out messages that get them to stop what they’re doing and to pay attention. As such, that’s what this guide is for; to help you understand what you need to say to make your audience sit up and take notice.

4. The Complete Guide to Getting Every Client You Ever Want
As a special offer for HRi readers, you can secure a half price discount for my seminal book, “How to Land Your Dream Client” by entering the code 50OFF at the checkout.
This book shares a 7-step formula to attracting all the leads and clients you ever need for your HR Consultancy. You’ll understand target markets, developing your service, lead gen and lead management, and a whole lot more. So get the book today if you’re looking to build a HR Consultancy that hits £80K and above.

 

Conclusion: Take Control of Your HR Consulting Business by Defining a Target Market

Defining your target market is the most important step you can take when marketing your HR Consultancy. Simply because, if you don’t have an audience then who are you selling your services to?

So by focusing on a specific group, and creating effective marketing targeting them, you’ll establish yourself as an expert and attract the clients who truly need and appreciate your services. Importantly, you’ll know who you’re speaking to, and they’ll know who you’re speaking to too.

Remember, you don’t need to work with everyone, and defining your target market doesn’t mean you have to turn away other opportunities. It simply allows you to be more strategic and successful in your marketing activities and lead generation.
As mentioned above, get started by answering the questions in the “Where to Start” section, and then use the resources provided to help you develop the concept further.

With a clear target market, you’ll be well on your way to getting more leads, clients, sales and profits for your HR Consultancy.

Nick Poninski

Author: Nick Poninski
Nick Poninski is a former 9-5 HR Office Worker who turned to copywriting and marketing during and after the pandemic.
Since then, he’s written two books on his areas of expertise, hosts a weekly podcast which is converted into a LinkedIn newsletter, and has helped countless HR Consultants with their marketing efforts.

Make sure to connect with him on LinkedIn if you want any further guidance.