Erika Jones, CFO, CCTAProfit First Professionals · Certified Fractional CFO and Profit First Professional

Why should your business specialize in a niche? #growthmindset #growyourbusiness

28 Jun 2024 · 1 min

Watch on YouTube

0:37

In this brief YouTube clip, the speaker explains how niche specialization works by likening it to the brain’s information‑filtering system. Incoming information first passes through the brainstem’s reticular formation, which decides whether the data is relevant. If deemed relevant, the reticular formation “illuminates” the prefrontal cortex, the region where a customer recognizes a message as personally applicable and decides whether to act—i.e., make a purchase. The speaker concludes that to consistently reach a customer’s prefrontal cortex, a business must speak directly to a specific community, making the message unmistakably relevant to that niche.

Chapters

This is how niche specialization works. We receive information relevant to us and ignore information that's not so. As information comes in through the brainstem, it hits the reticular formation. Reticular formation determines is it relevant or not. If it's relevant, it illuminates the prefrontal cortex. That's when the customer says, this is for me. With the prefrontal cortex illuminated, then the decision made is, do I want to take action on it. Now, when we do, we. We are buying. So if you want to be a niche specialist, make sure you are speaking to a specific community and they know it's for them. It's the only way into the prefrontal cortex to get these things happening.