Why it Pays to Target a Specific Market

As a financial professional, you want to expand your business and locate new clients. With the Internet, it’s easier than ever to create an expansive client​ base that is not constrained by specific geographic factors.

Producers need to embrace online modes of communication, but activities on those platforms can’t be haphazard. Financial professionals who use online platforms in a particularly targeted way can grow their practice intelligently, while those who lack direction may find their online efforts are ineffective.

The need for targeting

According to Life Health Pro, some believe that choosing a target market is a mistake that limits your potential market growth. That is not the case. Selecting a target market focuses your efforts on a certain subset of the population, but it does not close your business off to other portions of the market. If a good opportunity presents itself, you will still be able to step outside your target market and take advantage of new business.

In fact, being a specialist in a certain field may improve a financial professional’s reputation, because they become known as an expert in a specific area rather than a one of many professionals in the larger market. That effect is actually extremely important for driving business, particularly among high net worth clients.

Centers of influence

In a piece for Forbes, Russ Alan Prince explained the value of working with people who are at the center of their sphere of influence. He points out that a financial professional who handles the estate issues for a billionaire will find they are likely to get more business from high net worth clients because that high net worth individual’s lawyer noticed their work and recommended them to other clients.

In many ways, this is simply a reminder that effective networking leads to more business opportunities, but technology makes it more than that. Using the Internet, financial professionals can quickly connect with centers of influence and maintain relationships that lead to more referrals and business.

The idea of courting centers of influence dovetails with the concept of targeting. Financial professionals who focus their efforts on a certain segment of the market will have an easier time identifying the centers of influence and can become leaders in the field more quickly.

Use online resources

Financial professionals who want to successfully market their business online need to apply smart marketing tactics to their online presence. The key, according to Marketing Tech Blog is not being outwardly promotional. Producers should provide content that establishes their expertise in a chosen field without overemphasizing the sales angle.

If a financial professional becomes a consistent source for good advice for centers of influence, they will turn to that person when they need someone to handle insurance issues. Being overly sales-focused undermines this thought leadership angle and can discourage future clients and referrals.

The Internet is a valuable tool, but financial professionals need to use it intelligently by targeting specific portions of the market.

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