How to Find #1 Target Market for Financial Advisor Marketing.
The best target market for your financial advisor marketing is one that needs your expertise. This article provides tactics to find your ideal customer.
Offering services that meet the needs of all target markets is not an efficient use of time for a financial advisor. What works for one business might not work well for another, so you need to be focused on the right potential clients for your financial advisor marketing. This post will go through strategies and insights to help you identify the perfect market for your business.
When marketing yourself as a financial advisor, there are many factors you need to consider. These include your domain expertise, personal networks, interests, background, etc. It can be unclear and daunting when trying to identify the right target market for you. Here is guidance on some key considerations that will help focus your efforts.
Base your target market on your background.
To succeed as a financial advisor marketer, you must apply the skills and knowledge you gained from previous employment. This experience in this industry should make it simple for you to pique the attention of folks interested in such areas. For example, it will be simple for you to connect with other ex-colleagues if you have previously served in the military. Financial professionals do well in environments that are familiar to them.
Also, suppose you have a significant academic background. In that case, understanding the university’s benefits and retirement structure will assist you in becoming marketable to people in that sector. Financial advisors working in the corporate sector will understand how businesses are structured. Business owners nearing retirement can benefit from the services of a financial planner.
Consider under-served markets.
Other markets underserved by financial advisors include small business owners and women. Financial advisor marketing strategies often overlook these groups, but they can be highly lucrative target markets. Small business owners, for example, are always searching for ways to improve their businesses. If you can offer them sound financial advice, you’ll quickly build a rapport and earn their trust.
Here are five popular small businesses to consider for clients:
Restaurants or mom-and-pop grocery stores
Retail stores or boutique shops
Service businesses like plumbers or lawn care
Online businesses like eCommerce stores or affiliate websites
Product manufacturers or white labeling companies
Since women are often more risk-averse than men over time, they make a great target client for financial advisors who want to build long-term relationships. Women are also generally more likely to seek financial advice, making them a great target market for marketing efforts from financial advisors.
Here are five popular women-owned businesses to consider for clients:
Boutiques
Day spas
Event planners
Real Estate Agents
Interior designers
Base your niche on your favorite clients.
Working with groups of people who share your values and whose needs match your experience level will result in your best target market as a financial advisor. Another way to generate the best target market is to work with clients you prefer and base your niche on the best ones.
To help identify these individuals, ask yourself questions like:
Do they significantly contribute to my income?
Do I find it easy to work with them?
Do I know how to solve their problems best?
A financial advisor’s marketing goal is to determine your target audience and then deliver on what they need. For example, suppose you want to deal with high-end clients who value your services, concentrate on providing the most remarkable customer service, and resolve their problems on budget and on time. You’ll attract more ideal clients that you enjoy working with while repelling those who would be a waste of time and resources.
Build your social network marketing strategy.
It’s a social endeavor to nurture relationships and help your prospects achieve their financial goals through business strategy and financial planning. People usually choose to deal with individuals they consider friends rather than strangers, so working with people who share interests with you is essential.
If you enjoy golf, for instance, hit the course up with a client and some friends after a big win, then introduce yourself to others who are having a good time. Ask them for referrals and online reviews when you’ve fixed your clients’ problems.
If you want to bring in more prospects, use this method- even though it might not seem like it will work at first. Building offline and online relationships is one of the best ways to market yourself as a financial advisor and doesn’t significantly impact your marketing budget.
If you have great experiences with your clients, like celebrating after a big win like a new contract, and you get their permission, share those moments on social media. You’ll be surprised by how many new people will want to join in the success!
Identify the financial challenges of your chosen market.
Once you’ve finished the selection process, the next step is determining the financial problems your target market might face. There can be a variety of issues linked with this, ranging from their retirement savings to how to get their children to college without taking out loans.
Primary and Secondary research are the best ways to understand your potential clients’ most significant problems. Primary research is when you talk to your customers directly. Whether you have conversations with existing clients, conduct a focus group, or even join a Facebook group to discuss current issues, all these methods can bring great insights into your potential clients. Secondary research is when you review information others have collected, whether it’s a scientific study or a simple google search engine result from a reputable financial professional or other advisors.
A few questions potential clients consider when they hire financial advisors:
How much money will I need to have saved for retirement?
What is the best way to save for my children’s college education?
I am self-employed- how can I make the most of my deductions and write-offs?
What are some creative ways to invest my money so that it works for me?
No matter your niche market in the financial industry, your marketing efforts will be most effective when you truly understand your customers’ problems. First, your value proposition must improve their financial lives; if it does, you’ll retain current clients, which is far less expensive than gaining new ones. Then, you can build a business model that collects client testimonials to attract new client relationships through search engines, social media campaigns, and relevant content for your best customers.
What are a few social media strategies you can try?
A personal message from satisfied clients on social media platforms, financial blogs, or marketing materials will help overcome prospects’ prior objections, resulting in more brand recognition online. One strategy you can try is sharing a case study of financial plans or exceptional client service in your content marketing on social media to establish trust in your ability to develop a great financial plan.
Here are five great kinds of content for your social media:
Blog Posts
Video Testimonials
Podcasts
Photos with Clients
Infographics
Create a profile of your ideal prospective clients.
Upon deciding your target market, you’ll next list all the qualities and services to determine if a potential client belongs to your niche. Their age, stage of life, level of education, hobbies, and industry sector are all factors you need to put into consideration when building a plan for financial advisor marketing. A great tool to keep your work organized is vital, whether you opt for pen and paper, Google Docs, or Google Sheets.
After you’ve settled for a target market, you will now draft a marketing plan to address that particular target market directly. But, again, ensure you stay committed to rendering the best service to each client. In no time, you’ll see that you’re getting better at solving their problems, and your business will keep growing.
Why Do You Need Target Markets In Financial Advisor Marketing?
Are you still doubting the need to direct your attention to a specific target market? Here are definite reasons you will need a target market.
1. Secure More Clients
You’ll establish a strong connection with your niche audience if you’re an expert in solving their biggest problems. To your advantage, most clients prefer the service of those that specialize in their category rather than a generalist. This strategy will help you gain more clients as you become more experienced in the niche. To ensure this works well for you, you will need to set up a quality marketing strategy to attract prospective clients.
2. Get More Referrals
Another advantage when you specialize is the massive turnout of referrals when you become an authoritative expert. You’ll be the only name to come to people’s heads when someone they know is facing a similar problem they’ve experienced, and they know you can solve it. Gaining a reputation over a short period will help increase the rate at which people recommend you.
3. Have Less Competition
There’s no doubt that there’s competition in Financial Advisor Marketing. However, you can quickly shut down the competition by specializing. This way, you’ll only be concerned about the relatively limited number of people you work with within the same target market. It will also be reasonably easy to set up and implement your marketing strategies since they won’t be complex. Ensure you work well with your financial advisor marketing plan, failure to do so will after your business.
4. Be More Efficient
Another benefit of focusing on a topic is that you’ll be more familiar with your client’s issues. You’ll be well-versed in the problem, making it easier to find answers. Because you and your clients have a similar background, you tend to be thorough in your study, giving them the most significant financial advice possible. Efficiency is an excellent outcome of specializing in your field. You may improve the economic life of your ideal client while also improving yourself.
What Are The Best Target Markets in Financial Advisor Marketing?
When you decide to specialize as a financial advisor, it’s important to know all the different types of clients that are available so you can choose the right one for your business. Here are some great sources for finding potential clients in this market:
1. Small Business Owners
In financial advisor marketing, small business owners are often overlooked. However, like every other person, they also require the services of a financial advisor. In addition to the primary insurance, tax preparation, and retirement planning needed by every person, small business owners tend to need more support on personal and business-related issues.
They also have vendors and workers helping run their business who may need financial advice. When you provide excellent service and solve significant problems for people, you’ll more than likely come up in various conversations they have about the issue. Whether you found a big tax break or helped them to attract more customers, they’ll be excited to share the news about the financial firm that solved their problems.
2. Industry Specific Workers/Employees
There are several industries in which you may function as an advisor. You need to choose one that is suitable for you. There might be great clients who weld, drive trucks, or even people who own an IT business. Many of these workers have more than one source of income they would like to improve but don’t know how to do it. So developing a clear plan to improve their situation and building long-lasting relationships with them will pay off over time.
3. Couples with Double Income
Another set of people who are good to target for Financial Advisor Marketing is the DINKs: (Double income no kids couples). Choosing this group of people could be very profitable. They often possess high net worths and enormous resources for investing. They can easily pay for the financial advice you give them and typically have big goals for the future. Amongst all the target markets in Financial Advisor Marketing, this market has proven to be one of the most profitable.
4. Minority Families with Kids
Financial advisors can also provide services for minority families with kids, which can be a very lucrative market. Families willing to set up a profitable family business are looking for financial advisors but are immensely underserved. Current generations are accessing investment instruments and generational wealth. This set of people is in dire need of a financial advisor who will help plan the build a foundation that will help them and their kids also develop generational wealth. Unfortunately, many of them are overlooked even though they represent growing cohorts of people with money to invest. You should look out for them if you want to work with this group of people.
5. Single, Career Women
Many single women have built impressive careers and a significant income they want to invest and grow. They are often strong-willed and ready to invest when they see investment opportunities that interest them. They understand how the market works and are willing to invest in their future to have a peaceful old age whether they start a family or not. Working with this niche might have challenges, but it can be a very lucrative field.
Clients Undergoing Dramatic Life Events.
This particular set of people often goes unnoticed in financial advisor marketing. But unfortunately, tragedy can strike instantly, and many people aren’t prepared and will not be in the right mindset to properly handle major financial decisions. Nonetheless, if you decide to target people that belong to this space, you’re sure to earn significant profits if you get it right. These dramatic events may include Childbirth, Divorce, Death of a partner, Significant Relocation, or a change of career. No matter the situation, timely and effective results will go a long way for anyone experiencing a dramatic change in their life.
What Should You Do After Selecting a Niche For Your Financial Advisor Marketing?
1. Prioritize Client Retention.
Are you aware of how hard it is to gain a new client? It’s many times more expensive than providing more value to your current clients. If you specialize in a niche you can find more ways to prioritize your existing clients and help them improve more areas of their life and business. Getting new clients is crucial, and helping the clients you have will not only make this easier but expand the revenue you gain from every client you have.
2. Develop a marketing plan
Like any business process, marketing for financial advisors has its own challenges. The financial advisory field is large and complex, but with the help of digital marketing, quality advice and solutions can reach clients at the right time. Having a strong plan in place will save you money and make your marketing more effective. In this modern era, the success of your business depends on how well you can communicate your value online and offline.
3. Be careful not to divert.
After settling for a niche, there will be some temptation to accept offers from other niches. Your financial advisor management plan will guide you to become an expert in your field instead of a master of none. You should discipline yourself and be bold to reject any offer that doesn’t fall under your niche’s radar so you can continue growing your expertise and authority in your field. Be determined to focus and improve your experience in your primary field; diverting will stifle your development.
Frequently Asked Questions (FAQ)
Why is marketing important for financial advisors?
It is crucial to adopt the right marketing strategy to generate the interest of prospective new clients and maintain old or existing clients. Advertisement and promotions are the soul of financial advisor marketing. Sound marketing strategies will help expand your client base and circle.
What are the best financial advisor marketing strategies?
Some of the best financial advisor marketing strategies include:
Starting a blog.
Creating a social media presence.
Attending local networking events.
Joining small business discussion groups.
Your marketing strategies must be consistent and measured over time so you can pivot and improve. In addition, an effective marketing strategy must ensure growth for your financial firm’s future.
What is a financial advisor marketing plan?
A financial advisor marketing strategy is a plan for publicizing and promoting your business to potential business owners or clients. Getting your marketing plan right in financial advisor marketing is essential to business growth.
Can financial advisors advertise?
Financial advisor marketing is a necessity for every financial advisor. Images, Videos, and all types of digital ads are employed in Financial Advisor Marketing to reach target markets.
