Find your niche market

Whether you are currently a financial consultant with a large client list or a newbie looking to build your books, have you considered focusing your energy on specific types of clients?

If so, you may want to know where to start. After all, you will be dealing with these people for the rest of your career, so you’d better make the right choice from the beginning.

One starting point is in your customer base. We will show you how to hone the type of customers you want.

Key points

  • As a financial consultant, you may find it difficult to compete with the growing field of consultants and planners.
  • Financial advisors can gain a reputation for themselves and successful companies by targeting a dedicated set of clients.
  • Here, we provide some useful tips to help you start planning your niche market.

Screening gold

First, first print out your customer list. You may want some different colored highlighters. We will use green, yellow and pink. Now, slowly walk down the list, stopping at each name. Imagine what it feels like to work with everyone.

Suppose the first one is Jones. They are pleasant, open to new ideas, and committed to following the plan you make. When the market fell sharply, they realized that volatility was only part of long-term investment. They introduced a few colleagues to you and kept saving money every month. If all your customers are like them, life will be better. They got a gold nugget. Highlight this green.

Li is next on your list. When they call, you get the antacid. They complain about your expenses, how the neighbors make more money on their investments than Li, and how the people on the radio say your advice is bad. Do you want to be more like Li? Oops no! Highlight this one pink.

Many other customers may be between Jones and Lee. Highlight these customers in yellow.

Find common features

Now, let’s revisit the customers in the green group. Look for common ground between these customers. For example:

The possibilities are limitless, and this is just the beginning. Next, you need to fine-tune your results.

Assume that women between the ages of 35 and 55 constitute the majority of your “green” group. Apart from gender identity, what do they have in common? Some things in common may be their marital status, occupation, net worth, number of dependants (if any), etc. For example, suppose that most people in this gold nugget group are unmarried and they own their own company. Now you have something to watch: female, 35 to 55 years old, single, business owner.

After completing this exercise for the “green” group, do the same for the “yellow” group. You may find more great customers, they only need you to spend some time to become “green” customers.

Consider the customer’s concerns

Your next step will be to consider what financial issues these customers share.

Some of them may be:

In order to solve these problems, you may provide the following products:

Clone your best customers

Now that you know who you like to work with, their common problems, and how you can meet their needs, you want more people like them.

A proactive approach is to find out which organization they belong to, for example:

  • Professional organization
  • Social club
  • charity organization

A good strategy is to participate in these organizations. There are multiple ways to do this:

  • Write articles for their newsletterMost organizations have monthly newsletters, and their editors are almost always looking for interesting articles related to their members. Be sure to include your contact phone number in the article, and if possible, photos are usually also helpful.
  • Provide a voiceThe project chair often needs a speaker. Let them know that you are available, even if the intended person does not show up as a substitute.

Either way, the network definitely needs work. However, as time goes by, you will get closer and closer to the people of your ideal customers. In some cases, you may be the only financial advisor they know, but even if they never decide to work with you, at least you have contributed to a worthwhile cause.

What if I don’t have a client?

Suppose you are a new business and have no customers. no problem. You can use the same strategy to determine your niche market. For example, what is your first hobby?

Suppose you make a living from golf, and you know the golfers on every course within a few miles. These guys can pair you with qualified prospects for a round of golf. What usually happens when you ride on a golf cart for three to four hours? Sooner or later the other party will ask: “What do you make a living?”

Imagine how wonderful it would be to have customers who are as passionate about gaming as you are.

This won’t happen overnight, but when people see you in the club, they feel that they know you and are more likely to choose you when they need the help of a financial professional.

Bottom line

Following these steps, you will begin to develop a productive and satisfying niche market that will be crowded with great customers.


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