Why consider to serve another niche?
There are a million and one financial planners, advisors, wealth managers or online solutions on the market. The market is so saturated, so why bother launching yet another one?
Before answering this question, let’s go back in time. Where we lived in a world with limited choices and big companies could afford to cast the net wide across the masses. No depth required.
Do you think this tactic works now that the masses have the power to choose? Where people have the choice to visit your competitor with two swipes? The market of everyone has disappeared and that’s scary for big companies.
But not for you, because your financial planning business can go narrow and deep. Size and ubiquity aren’t what’s important for financial planners any longer. Significance trumps recognition now. The power to ignore the masses and to touch one person at a time is not the short end of the stick.
However, most financial planners question how they will get their service noticed, before thinking about why on earth it will matter to their (potential) clients. In a world where we’re bombarded with messages that we can choose to ignore, more of the same in a brighter package or more colorful box isn’t what people are searching for. It isn’t what they tell their friends about either.
When you don’t know how to communicate what your financial planning service is all about and your clients don’t understand what you’re saying, your ideas and your service blend in. Your financial planning business fails to connect with your target audience and they don’t have a reason to buy into what you do and why you do it. And they won´t be able to ‘connect’ with your service.
When people really ‘get it’ your business has the potential to attract clients, dominate a niche and reinvent a market.
When you appeal to the right brain of your client so that your business story makes an emotional connection, your client is far more likely to spread the word about who you are and what you do. Your clients will have a bond with your business. They buy in.
What most financial planners do
Most financial planners who operate in a niche are in this niche market because it creates an opportunity to really have something at which the financial planner is unique and the best to serve the target audience. They are the best at retirement planning, estate planning, etc. Or the best at planning for airline pilots, new parent finances, financially wise women, medical specialists, etcetera. They focus on ‘what they do’ and ‘who they do it for’.
The question is: does this type of niche really matters to your target audience? Does this make an emotional connection to your potential clients? Do they buy in?
Sure, you’ll get noticed by your target audience. They recognize themselves in what they are or what they do for a living.
But does your target audience believe what you are saying? Aren’t you forgetting to make an emotional connection by saying why you’re serving them and how your service makes your clients feel?
Instead of building your service around a niche that remembers your client what he is or what he does for a living, you might want to consider to build a service that remembers your client how he wants to feel.
Can you imagine how that attracts your potential clients because of the emotional connection you are making with this strategy?
Here are 7 niches you want to consider:
1) People who want to feel RESPONSIBLE
These type of people are motivated to build their finances around the goal of securing their family’s future. When seeking to strengthen your relationship with ’the responsible type’ it’s important to build your story, tie your activities, work, and conversations into the family motivation.
Tips:
- share the importance of your own family in your life
- show how your value of thrift benefits the family
- emphasize experience in working with family issues
- stress reassurance
2) People who want to feel AT EASE
These type of people have little interest in talking about finances and investments. They want to be assured of your professionalism and expertise and need assurance that they are proceeding as planned. The relationship with ’the at ease type’ should center more in learning about their interests and lifestyle. And probing into what changes or activities are occurring.
Tips:
- Tell stories about other clients who have lived out their dreams
- Be task driven and focused on what your client really wants in his or her life
- Provide frequent updates on the progress toward this personal goal
- Avoid technical discussions irrelevant toward this personal goal
3) People who want to feel SECURE
Privacy is the catchword with ’the secure type’. He needs constant assurance that you and your firm are discreet and protective of client information. He or she often doesn’t like online banking and investing. He needs a person to reassure him that his investments are safe from cyber dangers.
Tips:
- Say you like working with clients who understand the need for confidentiality
- Agree that privacy is increasingly important
- Give much attention to client privacy needs
- Tell the client about the firm’s security procedures
4) People who want to feel IN CONTROL
Remember the words control and ego with this type of clients. They crave control and respect. They often think highly of their own abilities to reason and decide.
Tips:
- Set up choices for clients; don’t question their decisions
- Show that you think their accomplishments are significant
- Reinforce perception of client control at all opportunities
- Make them feel as though each is the #1 client
5) People who want to feel IMPORTANT
VIP’s want to get noticed, and they’ll spend money to get that notice. Pay attention to the car they drive, the watch and clothes they wear, and ask about the things they’ve purchased. VIP’s want both prestige and respect and will solicit that respect with materialistic flash.
Tips:
- Talk about highly visible people in the community
- Make them feel as though they are in the same class as celebrity clients
- Give the sense of many people involved on their behalf
- Give lots of attention to address their ego needs
6) People who want to feel MEANINGFUL
These people have a higher purpose in life. They want to invest their money in a way that supports their purpose. Small talk won´t do. They need someone to have a ‘real’ conversation with.
Tips
- Be clear on why your company exist
- Ask for your clients’ story
- Tell stories yourself
- Avoid technical stuff and articulate the big picture
7) People who want to feel EXCITED
These people like action, energy, and excitement. They like to ‘play’ with their money. Investments are a sophisticated means to a daily adrenaline rush. Your emotional keys are the excitement and enthusiasm you communicate about finances.
Tips:
- Position yourself as an educational resource
- Share the belief that innovative ways of handling finances is the way to go
- Reflect their technical turn of mind
- They want access to top technical expertise
It doesn’t end here. Emotions and feelings are ubiquitous. And yes, that means even so many niche markets you can specialize in.
Can you see the immense market share you can win? Yes, you can. And I hope you do.
If you don’t want to miss the chance to inspire each other to be more meaningful with your financial planning business, please answer the following question:
What is the niche that you WANT to specialize in?
Please, leave your answer here below in the comment field. Thank you very much.
Together we can make financial planning matter.
Let’s make financial planning matter
Ronald Sier
