How to Use Your Data to Identify Your Niche
Why Knowing Your Niche is Essential
You can post endlessly, run discounts, add products, and redesign your website, but none of it will make a significant impact unless you know your niche.
Knowing your niche means understanding who buys from you. These are the only people you need to focus on. Stop worrying about what other businesses are doing. Even if they’re in the same industry, they aren’t necessarily your competitors because their customers may differ from yours.
Imagine throwing a stone with no one there to catch it. Instead, you want someone (your customer) to catch that stone, throw it back, and keep the exchange going. This back-and-forth represents repeat customers, the backbone of a successful business.
How to Discover Your Niche
Ask yourself:
• What kind of “stones” do your customers want?
• Purple ones?
• Small ones?
• Stones from the beach?
To find out, you need to ask questions and analyse what’s already working.
Start by collecting all your previous sales information. Write it down!
Key Questions to Ask About Previous Customers:
1. What did they buy?
2. Where do they live?
3. How much did they pay?
4. What did they look like?
5. Did you enjoy working with them?
6. What did you like about them?
7. What was their clothing style?
8. Where did they hear about you?
9. What’s their occupation?
By answering these questions for your previous sales, you’ll start to notice patterns. These patterns form your customer profile. Over time, you might identify two or three distinct profiles.
Tracking Your Sales Data
Create a chart or use a simple notebook to log each sale alongside the “who bought it” questions. Patterns will emerge, showing you the type of people drawn to your business.
Here’s an example from my first bridal fashion business after launching my Etsy shop:
• Demographic: Women, aged 23–40
• Location: North/South England, Netherlands, France, USA (Texas, California)
• Seasonality: Summer sales via Etsy, winter sales via boutiques (wholesale)
• Product Features: Modest cover-ups for church weddings
• Sizes: 8–12, with bespoke requests for sizes 20–22
• Popular Features: Sleeves were a must-have
• Average Spend: £180
“Pink Slips” System
I called my notes "pink slips" because I used pink paper to track customer information. This system helped me:
• Tailor products to customer preferences
• Style photoshoots to match my audience’s tastes
• Design a website that resonated emotionally with my target market
• Write social media posts that attracted new customers and engaged existing ones
Digging Deeper
Expand your data collection with questions like:
• Where did they find out about you?
• What social media platforms do they use?
• What are their hobbies?
• What do they do for a living?
• What do they aspire to do or be?
• Which celebrities do they follow?
• What do they read?
• Where do they spend their free time?
• Why did they choose to buy from you?
• What set you apart from competitors in their opinion?
If you don’t interact with your customers in person, create a questionnaire to send to each paying client. Most people will complete it if it’s easy, quick, and convenient. Explain how their feedback helps your business grow, and consider offering a prize or discount as an incentive.
The Advantage of Being Small
Unlike large corporations that rely on automated sales data, small boutique businesses can connect personally with their customers. This one-on-one connection provides insights that big businesses often miss.
You may notice similarities between you and your customers, which is common for creatives since our work often reflects parts of ourselves. However, don’t rely solely on assumptions—your data will reveal unexpected insights.
Customer Profiles and Archetypes
In my business, I discovered three distinct customer types. I gave each group a name and description, which became the foundation of customer profiling and archetypes for marketing.
Get Started: Pink Slips Template
Here’s a basic template to begin tracking your customer data. Customise it to suit your business and make it a habit to answer these questions for every sale:
Pink Slip Questions
1. Who bought it?
2. What did they buy?
3. Why did they buy it?
4. How much did they spend?
5. Where did they hear about you?
6. What do they do for a living?
7. What are their hobbies and interests?
Resources to Help You Further
• How to Send Questionnaires to Customers
• How to Profile Customers
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