Be known for something rather than unknown for everything.
When asked “What do you do?” by a prospect, do you respond with a title such as “financial advisor”? Do you launch into your elevator pitch only to see them start to look for an exit?
What that prospect really wanted to know was this: “What do you do for people like me?”
How might your marketing, planning, product and referral process be changed and improved if you were sharpened around a certain profession or demographic? What if, in so doing, your closing rate increased and you achieved higher premiums and savings rates, while being asked to come and speak with more of whom you like to work with? These are just a few of the benefits of creating your niche market.
What is a niche market?
Niches are commonly thought of as working within a specific profession, such as doctor and dentist. But you can broaden your niche to be any identifiable segment of the population with similar interests that you feel connected to. It may be working with certain age groups, ethnicities, lifestyles or even recreational interests you enjoy.
Now, what might your chosen niche be most concerned with?
Young families might be more concerned with protecting their income, while pre-retirees might be more concerned with how to create retirement income or transferring their business to their children. Maybe you’re focused on new graduates who are entering the workforce with large student loans or on prospects who are planning to leave the workforce and need help understanding their severance package. Whomever you choose to work with, it’s critical to know what they’re concerned with achieving or avoiding.
Everyone wins with a niche focus
Save time and money
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” ― John Wanamaker
With your ideal client clearly identified, where to allocate your marketing resources and developing a call to action keyed to their needs become easier. From writing advertorials in periodicals to making short videos answering some common questions to becoming a regular speaker at events or seminars, you’ll have a higher response rate while becoming recognized as an expert they can turn to.
Client-centric advice
Defining your niche allows you to create a repeatable interview, planning and recommendation process. Drawing upon the experiences of similar clients like them allows you to anticipate areas of interest or concern. Using language and examples they can relate to increases their understanding, which in turn increases their acceptance of your advice. A greater understanding helps keep them on track while being insulated from your competition. Clients don’t recommend a product you’ve sold them; they recommend your understanding of who they are.
Help them to help you help others
“All things being equal, people want to do business with their friends. All things being not quite so equal, people STILL want to do business with their friends.” ― Jeffrey Gitomer
Where would you bring your car for repairs? To a body shop with expensive advertising or a mechanic your friend with a similar car recommends? Referrals are the most inexpensive and effective tool in your marketing tool chest, yet many advisors have no process for obtaining them. Worse, the referrals they receive are rarely prequalified.
Make referrals easier for your clients. Narrow down their mental Rolodex of whom to introduce by providing a name you’ve sourced from social media who they’re connected to, and who is similar to your client and matches your niche focus. Ask how they know that person and what sorts of things they like to do together. This will give you a much more effective and targeted means to be introduced socially to your prequalified prospect.
Developing a niche COI
Professional alliances can be a great resource of new clients, and you should have a process for creating a healthy referral relationship. Try this four-step approach to find your right fit:
- Do no harm. Do they work with clients like yours? Will they bring concerns to you and not introduce other professionals?
- Do you like each other? Can you enjoy going for lunch and developing a social relationship?
- Co-presenting. Would they co-present at a seminar with you, ideally bringing some of their own clients?
- Referrals. If you’re not yet receiving referrals, ask them what they need from you to feel confident in doing so. This approach removes the awkwardness, while clearly setting expectations. If they still don’t refer, move on to repeat these steps with another COI.
How do I get started?
Research your ideal clients. What are some common needs or concerns they have? Do they have association rules or trends you should be conversant in? A great technique is simply asking to go for lunch to gain their insight into an article you want to write. You can also ask them the top questions they’ve always wanted to know the answers to and then create a video series you and your COIs can send to clients and prospects. Writing an article or creating a video series from your research can have multiple benefits.
- Writing an article or creating a short video requires you to not only understand the issue but be concise as well.
- Whether you post on your website, on social media or in an industry publication, you are building content to establish credibility.
- Whether you want to host an event or speak at a university, having conceptual articles and videos you can send the coordinator will go a long way to help them feel you are someone they need to have talking with their peers.
As you establish your niche market, be prepared to continually refine your processes and stay top of mind. This requires time and discipline, but the rewards will lead you to achieving Top of the Table.
Adrian George, CFP, TEP, is a 10-year MDRT member with three Court of the Table and two Top of the Table qualifications who leads and trains a team of six associates, all focused on dentists and physicians. George has been in the financial services profession since 1992 and speaks frequently at industry events across Canada. A member of the Membership Communications Committee for the last three years, he served as Assistant Director for PGA in 2019.
