The number of financial advisors across the U.S. is increasing at an impressive rate. Between 2000 and 2020, the number of RIAs grew from less than 7,000 to over 13,500. With the market for financial advisors becoming more saturated, prospects have more options to choose from than ever before. Therefore, it's important for advisors to take a step back and think about how they can differentiate themselves in the marketplace.
One way to do this is by developing a niche of clients that they will serve. To attract this group, advisors need to understand the niche, create offerings that make the most sense, and utilize social platforms to connect.
Develop a Deep Understanding
Financial planning is not "one size fits all," and different groups of people have different needs depending on life experiences. That is why developing a niche target market can help advisors better serve their clients. Once an advisor identifies the group of people that they feel connected to in a way that allows them to deliver thoughtful financial advice, they need to do the work to connect with this niche group on a deeper level.
Advisors must be authentic in choosing a niche to which they will have a genuine connection. By choosing a group that the advisor relates to, it will be easier to connect with their clients and understand their financial needs. It's helpful for advisors to think about why they do what they do, because ultimately, it all comes back to helping their clients meet their life goals. The best way to do that is by being able to empathize with the group they're working with.
Once they've identified this group, it's vital to stay on top of the trends facing this group at all times. Be it regulatory or simply what's going on in the world, keeping up with the needs becomes a part of the advisor's everyday work. By doing this, advisors will develop a deeper understanding of what areas of their niche group's finances are of particular importance. This ensures that they're delivering comprehensive, thoughtful financial plans.
