Why is it so important for an insurance producer to have a target market? Basically, you need to know how to spend your marketing time, and having a target market helps you determine what to learn, what to read, what to write, where to go, what to say, who to meet, and how to get yourself referred. How's that for a value proposition? Bottom line – having a target makes you much more focused (something producers are notoriously not) and much more referable.
You might think that everyone is your target market, that everyone needs what you offer in terms of protection plans, asset management, retirement, yada, yada, yada. That's not really the case because everybody's situation is different. Besides, you can't market to everyone! In fact, if you're looking to meet everyone, anyone, someone, you very often end up meeting no one – or it's a long time before "no one" becomes "someone."
In other words, if everyone is your target market then no one is your target market. And "no one" equates to "no business."
Your target market is simply who you serve best and, therefore, want to serve most.
So if your target market represents where you do your best work, why on earth wouldn't you focus on doing more of that kind of work? Is it because you don't know who you should target? You don't want to exclude anyone from becoming a prospect? You don't know where to start? You don't understand the benefits of having one? All of the above?
Target marketing is not a new concept, but it still creates a lot of confusion. It's no wonder so many producers enter into a difficult business without having a target market. It's like searching for the buried treasure without a treasure map – you need an X to mark the spot!
It is critical to have a target market, especially if you are just starting your practice or want to significantly grow your practice. I don't think it's the only way to grow your practice, but it's one of the easiest and most effective ways, especially if you plan to network.
Here are some ways to find or create your target market.
Focus on an industry or profession in which you're interested and passionate
Do what you love, and work with people who do something that you love. An advisor at one of my client firms, Mike, is a gym rat, a fitness nut. He is very focused and disciplined with his fitness regimen — but not so much with his prospecting regimen. Since I box and I'm into weights and fitness, Mike and I had a lot to talk about.
When we got together, I had the sense that that's pretty much all he wanted to talk about, though. He was so excited talking about supplements, weights, boxing and fitness, I told him, "You've been an advisor for three years. I have to be honest with you, Mike — it seems like you hate what you do."
He said, "I know my stuff, but I'm just not excited about it. You're right."
"What if your target market becomes people who work out?" I suggested. "Trainers, gym owners, the GNC franchises, the companies that make supplements and exercise equipment and athletes who walk those paths?"
He looked at me in awe and asked, "You can do that?"
So Mike did that, and his production soared. Make your vocation your vacation and work with people that do the things that you love – and you will love them, too.
