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Written by: Justine Young
The new year often means a fresh start – it’s a (metaphorical) blank slate that inspires us to take action and conquer obstacles with newfound determination. For financial advisors looking to grow their book of business, these first few months of the 2024 season are a great time to channel that energy and focus on marketing.
That’s especially true considering all the AI-generated content likely to populate the web this year. So how do you make your voice heard in the crowd?
Aside from leveraging AI yourself (which has its pros and cons), one of the most popular strategies you can employ is called “niche marketing.” Read on to learn about what niche marketing is, what benefits you can expect and four key steps you can take to get started.
What is Niche Marketing for Financial Advisors?
Niche marketing is a strategy that involves identifying a specific audience segment that you understand well and appealing to them directly.
In many ways, niche marketing is the opposite of “casting a wide net.” It’s not about making your message work for the broadest audience. Instead, you cater to a group based on their common characteristics, needs and challenges. The goal is to set yourself apart from other firms by becoming the “expert” in one category.
A niche could be based on your location, your passions/hobbies, religious affiliation, the careers of clients you serve or another defining factor.
For example, Stripper Financial Planning is a remote-based firm that caters to strippers, escorts and other adult entertainers. While you may prefer a fully clothed niche, the point is that while there are thousands of advisors out there, the number of firms that cater directly to adult entertainers is a much narrower pool.
Another great example is PrairieView Wealth Partners, a midwestern firm that focuses on connecting with prospects that share their faith-based perspective on financial management.
Whatever your niche may be, there are three key benefits to discovering yours:
3 Key Benefits of Niche Marketing for Financial Advisors
- Focus on right-fit prospects
The problem with wide-net marketing is that you risk spending too much time nurturing prospects who end up not being a good fit for your firm. Niche marketing means your messaging is clear and speaks directly to your ideal personas, bringing efficiency to your prospecting process.
- Build stronger client relationships
When you address the needs of a niche market, you naturally foster a sense of connection and loyalty among your clients. They feel confident that you “get” their problems (and can help find a solution).
- Reduce competition
Lastly, marketing to a niche helps cut down the 300,000+ advisors in competition for a client. It makes your firm more memorable and differentiates you from the pack. Rather than writing a blog about 401(k)s (for which there are over 800 million search results on Google), you could write a blog on 401(k)s for construction workers in Florida (which only has 0.5% as many search results).
How to Identify and Develop Your Niche as a Financial Professional in 4 Steps
1. Find your differentiator
The first step is likely to be the most difficult, in that you must begin by pinpointing your niche. To start, we recommend you focus on five foundational areas of your firm. Grab a pen and paper (or your trusty computer) and list out:
- What services you offer
- How you deliver those services (including any tools or software that’s notable)
- Who your firm primarily caters to (or would like to have as clients)
- Where your firm is located, and where your client base is located
- Why you work in financial services in the first place – and what motivates you to continue in this career.
Next, make a section of your document to list out things about yourself that are integral to your background, personality or passions outside of work. If you’ve spent the first 30 years of your life as a surfer in southern California, that could very well be a niche you explore.
Take the time to make your list as comprehensive as possible. It may be worth bringing in other members of your team for their input as well.
Once complete, go over your document and look for anything that stands out – things you do differently than most firms. Do you utilize advanced tax planning software? Do you have a specialized knowledge or background in the medical field? These sorts of items could inspire your niche!
2. Develop a unique value prop
Once you have your differentiator, it’s time to distill it into a distinct value proposition. A simple value prop is essentially your elevator pitch – a 30 second explanation of your firm.
The formula to follow is:
“I help [this type of person] do [these types of things] by [your superpower].”
This simple message will help to inform all of your marketing content moving forward, and give prospects an immediate idea of who you are, what you do and your niche. If you’re struggling, think through what ideal prospects from your niche might be searching for – and what messaging would best catch their attention.
3. Remember that consistency is key
Now that you have your niche and value prop, you’ll need to get it out into the world.
Everyone within your firm should be aware of what your niche is, and consistently promote that message to prospects, clients and other professionals in your space. You may also wish to refresh your website or social media channels to reflect your newfound niche, as well as any other marketing collateral you use regularly.
The goal here is to make sure that you’re telling the same message at each prospect and client touchpoint, thus reinforcing your value prop. Marketing can take time between launch and results – but a focus on consistency can help you find sustainable and long-term success.
As you make progress, it’s a great idea to seek feedback from your niche clients to understand their evolving needs and expectations, then use that valuable information to reassess, adapt and refine your services.
4. Build connections and credibility
Aside from your internal marketing materials, it’s also a good idea to spread the word within your niche community. If your niche is professional athletes, perhaps you would offer to guest on a sporting podcast, or pitch a blog to a related website on the importance of financial planning for NBA players.
There’s no harm in asking, and these opportunities could boost your name recognition and credibility, further solidifying your position in the niche market. Additionally, being involved in your niche community allows you to maintain a pulse on challenges and opportunities specific to your prospects.
Remember, niche marketing is not just about standing out (although it does that, too) – it’s about building lasting connections and providing tailored solutions that resonate with your target audience. If you’re looking to find sustainable growth this year, a niche marketing strategy can help your firm target a particular market, narrow competition, establish itself as a trusted leader and more.
Related: 10 Key Social Media 2024 Predictions and Insights Every Financial Advisor Should Know