Niche Marketing for Financial Advisors

By Mike Renton, Advisor Websites on Wednesday, September 24th, 2014

 

What is niche marketing?

It has been one of the most popular topics in the financial industry over the last couple of months, but what exactly does niche marketing entail? Niche marketing is the business art of specializing in a particular market by serving specific needs to a particular client base. It helps your business operations by focusing all your resources on a specific buyer persona. In turn, this boosts your client engagement and allows for an experience that is tailored. Although many business owners have a fear of specializing in a niche, due to restricting themselves to a narrow market, it can be one of the most powerful ways to build and grow your business. In today’s competitive business environment, niche marketing is becoming a powerful solution to meet the needs of a targeted group.

Why is works

Niche marketing works because it allows your business to direct all the resources into one specific goal. You will begin to understand the needs and problems that arise with these clients – seeing important trends that your market has. Every client is different but classifying or segmenting them will help your define your marketing strategies, goals, and solutions.

Becoming a niche provider has many advantages including being cost effective. For example, say you decide that a specific ethnic demographic will be your niche. Your marketing budget will go much further because you can target specific outbound tactics. Mediums such as print or radio advertisements will often have channels already specializing in this demographic. Inbound will also be easier, as you will see less competition than a broad market where  larger corporations have a presence. Qualified leads through inbound tactics will be attracted through custom content. Instead of trying to appeal to a vast market, you can spend time on providing in-depth, valuable content. This increases engagement and showcases that you are a leader in the respective area.

Building a brand in your local community is another advantage to operating a niche business. It gets people talking and often leads to some sort of referral process. Worth of mouth is still one of the most, if not the most, powerful form of marketing. Provide a tailored and customized experience to one client and they are far more likely to refer you to new potential client that has similar traits. Once you have showcased your expertise in this community, you position yourself as the premium provider.
Lastly people trust specializations much more than generalist. This is a re-occurring theme that can be seen from everything in business to lifestyle. By providing a niche experience you can provide them with a unique and tailored experience that fits with what they want from a business. You will jump to top of mind and project an image that aligns with their financial goals.

Vast consumer shifts are now happening today providing untapped opportunity for the financial advisor to capitalize on. Will you take advantage?

Types of Niche Marketing

Categorizing your target market into your niche is the first step in providing tailored business solution. There are many traits that can make up your specific market, but defining the largest characters will help you focus and develop your buyer personas. Below is a category or general characters/traits that your niche can have.

Occupation: This is typically one of the primary traits of any niche marketing business. The type of profession they have allows you to understand what types of education and challenges they face. Industry trends such as pension plans or other defining financial aspects, show what kinds of issues or problems they will incur now and in the future.
Focus on becoming as specific as you can > > >

  • Doctor, Surgeon, Neurosurgeon

  • Skilled trades, Welder, C level Welder

  • Business Professional, Marketing, Marketing Manager,

Age: With each generation comes varying characters such as general purchasing power, behavior, awareness, and reach.

  • Younger generations are more tech savvy, thus utilizing inbound strategies is probably the best way to reach and engage them.

  • Baby boomers provide an enticing mix between tech adoption and traditional marketing channels.

Income/Assets: One of the most looked at features in the marketing niche. Obliviously the profitability of each segment depends on the income/assets they have. Does the segment have a good outlook in profitability for the future?

Personal Characteristics:  These can include the way this group acts, interests they posses, or opinions/views. Branding yourself to fit these characteristics is important for brand loyalty as well as lead generation.

  • Outlooks on the financial market.

  • Are they looking for a much more personal financial service experience?

Life Transitions: targeting specific life cycles can be a great segment to capture. With people lives typically going through many different transitions, this displays many opportunities whether it is career, relationship, or personal transitions.

  • Markets that are 5 years away from retirement and need extra advice in investing the final years of their wealth.

  • Recently married couples who are looking for specific financial goals in the future, i.e. buying a house or saving for a vacation.

Strategies

The strategies that focus on providing answers to your niche’s questions or solving their problems can be done through a number of different ways.

  1. Position yourself as the best in your community. This can be done by providing the best possible tailored experience, in which word of mouth will play a factor.

  2. Showcase success through a developed brand image or case studies.

  3. Develop your marketing collateral that aligns with your market. Content marketing strategies that provide valuable and useful information is a great start. Your website will show pictures that are financial goals of your niche.

  4. Make referrals extremely easy. You can achieve this by optimizing your website or providing a referral program.

  5. Create an integrated marketing campaign where you have several points of contact. i.e. News publication and social platform presence.



 

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