Niche marketing just makes sense. The concept is that you take a large group and separate out a small portion that has a need for a particular or specialized product or service. It's specializing in a specific target within a larger group.
“Niche marketing is a best practice among top producers. One recent survey found that while 41% of producers generating $500 to 800,000 in commissions said they worked a niche, over 62% of those generating over a million worked a niche.1”
The benefits are huge! Advisors who are using niche marketing are experiencing higher closing ratios, larger new accounts and more referrals. The advisors responding to the Horsesmouth.com survey reported prospecting was easier and overall client acquisition was easier. Specifically, 76% saw their referral business increase.
Why? When you work in a niche you are positioning yourself as the specialist and chief financial problem solver for that group. This means that you are communicating your understanding of their unique financial concerns, attitudes and opinions. You are demonstrating that you have the expertise to deal with their specific issues. This can be the first step in a magnetic marketing relationship. Now, first things first.
Let's start by clarifying what a niche is not. A niche is not a field of employment like doctors or engineers. A niche is not a demographic like baby boomer or women. A niche can be a sub-set of any of these. For example, baby boomer executives in real estate in Nashville . Another example would be female attorneys in Seattle .
If it helps, think of an affinity group or association. These are often ideal niches for financial advisors. Check the demographics to make sure they meet the profile you are looking for in new clients in terms of temperament and investable assets. They can be ideal because they frequently have networking opportunities or sponsored events. They also will often produce a newsletter for the membership where you can advertise or write a column. Creating visibility to this ‘niche' gets easier in cases like this.
To summarize, a niche is a tightly defined, highly connected, opportunity rich segment of your target market.
How do you find your niche? Start with a close look at who your best clients are, what their interests are and with what groups they are associated. Look at your competition and what markets they are targeting – maybe you steer away from those? Is this potential niche a segment of the market that's growing or one that is stagnant? Remember, a rising tide lifts all ships.
The key here is that you need an environment that's conducive to building relationships. Our business is fairly mature and it's difficult to differentiate from other advisors. It is through the relationships we cultivate that we experience the greatest opportunities to grow our business. A niche marketing strategy puts you in the position to network and leverage your relationships.
How do you create ‘top of the mind awareness' in your niche? Start making deposits in the impression bank. One of the great benefits of niche marketing is the ability to define your potential customers. Members of an affinity group, association or professional organization are all easily identifiable. The process of converting these prospects into clients can be described as ‘nurture marketing'.
You have a unique value proposition which communicates why the members of the niche should do business with you. By attaching that UVP to the pieces of a communication plan, you start the drip marketing process. Each successive drip creates greater awareness in the minds of your target audience.
Looking for more help with defining a target market? Want assistance with crafting your Unique Value Proposition? Still confused about building a communication plan? The answers to these and many other questions can be found at www.buildyourmarket.com in our Learn module. There you'll find coaching and training videos, PowerPoints, scripts, marketing tips and specific action plans that address branding, marketing, IRA and tax planning concepts.
What is BuildYourMarket.com? It is the industry leader in web-based marketing for financial advisors. It is unique because it integrates into one system your client database, website marketing, drip marketing, tasks and to do's! Learn more by going to www.buildyourmarket.com.
1. “The N Factor”, Horsesmouth.com 2006
MARKETING HOW-TO
INSIGHT
The consequence of more activity is that it will be more expensive. The ”Greatest Generation” understood that retirement meant a more modest lifestyle. They knew they would have to ”get by on a little bit less” than they had during their working years.
By lead conversion, we mean that you get a list of 1000 prospects that meets these standards: CASS certified,
Intelematched
to the most responsive households in your demographic, professionally washed to filter out transients, and profiled to your demographic specifications. Of course, DRS, exceeds these standards.