There has been a lot of diversification in UK business in recent years. For example, more than 26,000 new businesses have been set up in the technical, professional and scientific sphere in the last year alone. There is more innovation around, a greater number of SMEs and a whole range of new niches coming into existence, from CBD oil producers to yoga studios. Niche business is currently an exciting place to be – and likely to remain so as the market continues to evolve. But what really makes a good niche scheme?
Knowledge and passion of the team involved
As with any business today, whether it’s in insurance or another sector, the quality and approach of the team can have a big impact. Fundamental to a good niche scheme is knowledge of the market and an understanding of where the scheme fits in. Enthusiasm and interest in the product are also essential – a substantial proportion of success can be attributed to how passionate a team is when it comes to the scheme involved.
Making things easy for clients when it comes to involvement with the scheme is also another necessary step on the road to success. For example, creating a clear and easy proposal form for clients to fill out can make a big difference. Putting this online and ensuring that it is tested and functions properly will improve both accessibility and results.
The benefits of an untapped market
Ideally, a good niche scheme will be dealing with a relatively untapped area of business, as it’s this that will enable the scheme to achieve the most exposure. Being the first into an untapped market can be incredibly lucrative and can also enable a scheme to swiftly establish a profile or position of authority. Another approach may be to look out for a market where there is ready enthusiasm for a packaged product i.e. it is something that those being targeted in this market might have trouble finding elsewhere.
A focus on marketing
Niche schemes may require more marketing than others, simply because they are often designed for a very specific targeted audience. That’s why an extensive and well thought through marketing plan is so essential – this should be aligned with the goals of the scheme and take into account the needs and behaviours of those who make up the target market. Marketing is an area of growth in the insurance industry but one that many players have yet to really master. A clear and effective marketing plan provides an opportunity to give a niche scheme a voice and start building essential profile with those who matter most.
These are just some of the key components that are necessary when it comes to creating a good niche scheme. From ensuring that the team behind the product understands the target audience and the product itself, to pitching the scheme to the right market and in the right way, bringing all of these key factors together can get a niche scheme off to the best possible start.