With changes to search algorithms and more competition for online search views, it’s more important than ever for financial advisors to distinguish themselves from key competitors. In addition to producing high-quality financial advisor content, many financial advisory firms are producing better results after selecting a market niche.
No two clients are going to have identical financial situations and needs. Because of this, they are likely going to be looking for different kinds of information and resources from a financial advice partner. This creates an opportunity for financial advisors to identify the needs of a specific audience that also aligns with their area(s) of expertise in financial planning and investment advice.
Following are three ways niche strategies can work for financial advisor marketing, plus a surefire way to identify your own niche.
As a financial advisor, you can take the “know a little about a lot of financial services” approach or the “I want to know a lot about a smaller, more targeted set of services. While the former strategy appeals to a lot of financial advisors, the latter produces better results on the Internet.
As a sole practitioner, it’s close to impossible to be an expert on everything for everyone, yet many generalized marketing campaigns attempt to do that. But, most investors are smarter than that. They know a team of specialists produces the best results. Knowledgeable investors believe specialists produce better results because they have more experience working with investors like themselves.
There are two schools of thought for the niche marketing approach. One belief is specialists get few leads because they appeal to a narrower range of investors. I don’t believe that. The broad market does not respond so there are fewer leads. The niche market is more productive and the quality of prospects is higher.
Niche marketing is an effective way to show prospects that not all financial advisory firms are the same. If your financial advisory firm has a niche that appeals to a specific audience, you can differentiate your firm’s digital content and appeal to those looking for specialized information.
Additionally, Google makes no secret about the importance of your financial advisor website being viewed as an expert on a topic. As we’ve learned by their E-E-A-T (Experience, Expertise, Authoritativeness, and Trustworthiness) rating system, website content that meets the above criteria is ranked higher in search results so your content is more visible - a primary source of traffic.
As the overall population ages, investors are starting to look for more specialized information that has some relevance to them and their financial situations. Cased in point, as these younger generations become wealthier, they are looking for financial advisor content that relates specifically to them and their current circumstances.
Keep in mind that these young adults have grown up in a truly digital world, where Amazon delivers the same day, and they can customize just about every digital aspect of their lives. Since they are used to getting what they need, how and when they need it, they’re going to expect the same from a financial advisor. Key Takeaway: No matter the audience, the most important thing is to understand them (circumstances, requirements, timelines, goals).
A niche can be a special focus on a specific financial service, a specific age group, a minimum net worth, or all three. Before choosing, take stock of both your experience and expertise as a financial advisor as well as any audiences that you may appeal to more than more frequent competitors.
Here are some examples:
While technology makes it possible to do business with anyone in the world, it’s sometimes better to just look in your own backyard. A high percentage of investors prefer the convenience of local financial advisors - in particular, if they want to meet face-to-face.
That’s why taking a local approach to finding a niche can be a good place to start. If your financial advisory firm is in an area that has a regional industry, such as petroleum companies for instance, then a niche marketing plan could include targeting engineers or other professions within the local industry.
As a member of the local community, you have a unique understanding of the community, as well as any potential roadblocks these prospects have had in their personal financial journeys. This also gives you a chance to become well-versed with the types of retirement plans and benefits offered by local employers, which will only add to the appeal of your local expertise.
While most financial advisors are going to share the same general knowledge, no two financial advisors are going to have the same education, experience, or any other factors that have shaped their knowledge base as financial advisors. These different experiences, degrees, and certifications are a natural path to finding a niche that you can develop into a long-lasting career.
There are many reasons why a group of people may be underserved by financial advisors. It could even be that bigger financial advisory firms aren’t interested in serving them because they fall below their minimum asset requirement. Whatever the reason, this group may also be the hardest to reach because of their lack of familiarity with planning, investing, and financial topics in general. However, they could also be the most loyal.
There is a certain “fit” when it comes to finding and developing a niche. Many financial advisors have an existing affinity for a topic, product, or service. Or, women investors may prefer to work with female advisors. Or, retirees prefer to work with financial advisors in their 50’s. Or, church members prefer to work with other church members.
The most important thing is not to force your financial advisory firm into a particular niche. There should be some rational reasons why there is a fit that benefits you and the investors.
Even though you have identified your niche, it’s not recommended to go full steam ahead with your financial advisor niche marketing right away. Identifying your financial advisory firm’s niche is a key part of starting the process, but it’s exactly that. An initial part of the process. The next step is developing niche-oriented content, and mapping out a well-thought-out strategy for achieving your goals.