A niche market is a slice of a larger market or group of people that can be defined by its own unique needs, preferences, psychographics or identity that makes it different from the market at large.
The most successful membership sites typically have a niche clearly defined.
Over time it often becomes clear that there are different groups of people sharing similar characteristics within this niche market. These groups are called customer segments.
An example of customer segments for airlines:
- First class traveler
- Coach traveler
Another example of customer segments for casino gamblers are:
- Whales (spend a lot)
- Dolphins (spend a modest amount)
- Minnows (spend as little as possible)
What are the classic segments within business coaching membership sites?
Business focused membership sites help their clients be more successful as business owners.
Typically these 3 segments emerge in a business coaching client base:
- Starter (New or aspiring niche business owner)
- Grower (Established business owner looking to scale)
- Top performer (Elite top performer in their industry)
Knowing this you can create different offer packages to fit each stage. This allows people to grow with you from beginner to advanced. Having segmented memberships also allows someone already at a certain level in their business to drop into the membership level that’s the best fit for them.
How do I structure my membership site for these 3 segments?
Use a membership plugin like LifterLMS, and create 3 separate memberships for each segment. develop separate online courses, coaching calls, resources, and marketing content for each segment membership.
1) Starters are the most cost sensitive and are most easily overwhelmed.
2) Growers will pay significant money to grow, and they will stay with you for a long time if your membership works for them.
3) Top performers are very protective of their time, they will pay the most, and they will appreciate you allowing them to add team members to their account (like you can do with the LifterLMS Groups add-on). Top performers also like to be in the company of other top performers.
It’s more work to create a well designed multi segment membership site, but the benefits are high levels of product market fit and you keep a recurring revenue customer for the longest possible term.
And your membership becomes known as the authority for business training in that niche no matter what stage the business owner is at.
If you take one thing away from this, remember that each segment wants to feel like they are in exactly the right program for them surrounded by others just like them.
