Competition in the financial services space has never been more intense. Technology has increased the ability to scale. Robo platforms are on the rise. Advisors need an edge. That’s where niche marketing comes in. Find the offering that sets you apart from your competitors, then figure out which prospect types are most likely to need those services. To help you get started, here are some of the top financial advisor niches and some insight on how you can define your target market.
Identifying Your Target Market
Our business is all about relationships. It’s important to be able to communicate using common bonds and shared experiences for reference points. When you construct the framework for your target market, profile yourself first. Include college experiences, specific skills, age, marital status, children, and any previous job experience outside of financial services.
This exercise will help you create a prospect pool made up of people with similar life experiences. The prospects don’t have to be exactly like you. What you’re looking for is individuals who you can have common ground conversations with. That is your target market. When drafting your business plan, establish a broad pool of those folks, then break them down into more specific niches.
Five Niche Ideas for Financial Advisors
Once you have your target market established, it’s time to evaluate some niche categories. You can target more than one, but the approach for each will be different. The messaging you use has to be specific to the niche you’re selling to. Here are some top financial advisor niches to consider:
The members at your golf club will do business with you because you’re a member of their group. The same could be said for fraternal brothers, sorority sisters, or fellow church attendees. This is known as “group affinity.” Another term for it is “natural market.” These people already know you and share common experiences, so it can be easier for you to approach and work with them.
Raising children and planning for their financial future are experiences that only a parent can understand. Your best prospects in this niche are new families. Mothers and fathers having their first or second child need guidance, both financial and personal. Position yourself to offer both.
Financial Literacy Prospects
Otherwise known as the “education niche,” teaching financial literacy has proven to be an effective technique for financial planners and wealth managers. It puts you in the role of mentor without you having to break out the elevator pitch. That’s a strong position for starting a client relationship.
The world is changing. There are some folks who aren’t happy about that. This is particularly true with older clients who have a more traditional view of wealth management. They don’t want more technology. Traditionalists are looking for a personal approach. Promote yourself as the advisor who offers that.
Tech Savvy Millennials
Techies are the opposite of traditionalists, and they speak a different language. This is a niche you don’t want to go into unless you talk the talk. Your technology will also need to be on point. Tech prospects are looking for automation and online client engagement. Make that part of your appeal.
Hone in on Your Niche
The niches mentioned above are broader categories. Your actual niches will be more granular. There are also other markets to consider. Your past work experience may give you access to industry-specific prospects. Life events, like divorce or personal tragedy, may also give you an inroad to others who’ve had those experiences. Don’t be afraid to think outside the box to define a niche that works best for you.
Salespeople call this a funnel. The more qualified the prospect, the higher the likelihood of closing the deal. Niche marketing employs the same principle. The categories are more granular than the overall target market. Niches take it to the next level. Techies are broken down into software engineers. Family planners can be separated by age or profession.
There’s an outdated belief that advisors should simply market to everyone and take what they can get. That might have worked twenty years ago. Today, we live in a different world. Prospects are looking for specific services. They are educated and have access to on-demand market information twenty-four hours a day. You need to bring more to the table.
Take Your Marketing to the Next Level
Marketing to niche markets is the best way to scale. Think of it as being a big fish in a small pond instead of a little fish lost in the ocean. Make your firm the go-to service provider in that small space. When it gets saturated, take over another space. It takes a little more work to organize campaigns like this, but it’s well worth it.
Need assistance defining your niche, brand, or managing your marketing campaigns? Learn more about the financial advisor marketing services available through Good Life Companies today.