Have you Defined Your Target Market?
Posted by: Jennifer Woodard | on May 7, 2012
In the financial services field is common to market to anyone that can make us money. However, in a crowded field it is important to decide whom you will provide services to and stand out as the person for them to turn.
Now I know that narrowing down the field of prospects is a difficult idea for many and seems as if you will miss opportunities. However, narrowing down your prospect field can be very beneficial to your business.
Narrowing down your prospect field will allow you to:
- Offer services that are tailored to that particular market
- Allow you to streamline your business because you will be less scattered
- Allow you to become an expert on the needs of your market
- Become known as the person who understands them and can help them
Let’s look at a couple of scenarios:
You are new practice with a few clients. You live in a metro area of about 2 million people and want to develop a practice with $100 million in assets. You have decided that you will focus on doctors in your area and there are approximately 100,000 doctors in your area. Do you market to all 100,000 doctors? No, there needs are different, so you decide to focus on orthopedic and cardiac doctors which brings your list down to about 1500 doctors. This is a much more manageable group to market. You take the time to research what their needs are financially, what their worries are, how long it takes to build a practice, what they earn on average and how long they need to be in business to have $1,000,000 in investable assets. If each client has $1 million in investable assets, than technically you only need to have 100 clients to meet that goal. Now you can determine how you will reach out to these clients, what associations they join, what things that they have in common that you can become involved in to reach this target market. Do they need estate planners, accountants or lawyers, get to know people who know this market so that you can have referrals to give on hand and so that they can refer people to you.
The same hold true if you were an insurance agent, you could look to see what the average sue rate is and how much coverage they need. What is their liability outlook, what type of insurance to they typically need but do not have, what about disability insurance, life insurance, ECT.
What if you are a mortgage broker, are there areas that doctors typically reside in, then you should know that markets in and outs. What the neighborhoods are like, the schools, traffic levels, crime rates, community activities, etc.
When you take the time to understand your markets needs you can focus on providing what they truly need and not scatter on the resources going after anyone who has money.
You can choose to go after a specific industry like automotive and know the ins and outs of the benefits plans that they offer executives and middle level management at these firms. Maybe you live in a town that has a large university and choose that as you market.
The goal is to narrow down your field of prospects and know as much about them as possible to become the trusted advisor for that Market.
Then when you create marketing material, blog posts, articles, podcasts, videos or whatever, you can speak directly to that market. The good thing is that once you begin to make inroads into that market, they know others in the field that they can talk to about you. Cardiac surgeons know who the other cardiac surgeons are in their area, once you make them a happy client, and they know that you specialize in helping cardiac surgeons they can tell other cardiac surgeons about their great planner, accountant, agent, banker or broker.
People give referrals because they like helping out people that they know. If you are giving great service and they talk to their friends that are a part of your Market, they are more likely to refer you when the time comes. As I stated in my earlier post, I refer my planner and agent, because they give wonderful service, I feel that they are looking out for my best interest. I don’t give referrals because they ask me to, neither has. When someone talks to me about needing to get their finances in order or about their insurance, I think about my planner and agent and if I feel they can help them, I readily give them their name and number.
Have you narrowed down your market?
Are you marketing directly to that market?
Are you afraid to narrow down your market?
Don’t forget to sign up for my NEWSLETTER
No related posts.