PLANADVISER - July/August 2021 - 31

DEFINING
YOUR
TARGET
MARKET
S
o many plan prospects-where to
begin? According to the Investment
Company Institute (ICI),
last year there were about 600,000
401(k) plans in the U.S., with roughly
60 million active participants and
millions of former employees and
retirees. How do you decide where to
focus your advertising and marketing
efforts for optimal results?
WHERE TO AIM
You are not required to define a target
market, of course, but failing to do so
raises the risk of wasting time and
money trying to attract prospects that
are not a good match for your firm.
Marie Swift of Impact Communications
Inc., maintains: " Prospective
clients
want to know that the provider specializes
in working with clients that have
similar sets of needs and complexities. "
Rebecca Hourihan
of 401(k)
Marketing LLC gives an example of
using geography for market identification;
she describes the approach as
" Own your backyard. "
" If you were to physically plant
a flag in your backyard, what would
that geographic territory be? " she asks
advisers to consider when identifying a
target market. " Become known within
that area as the expert, the go-to
retirement plan adviser, " she explains.
" That's the first step, especially if
you're a smaller retirement plan advisory
office. You want to have really
strong brand presence and awareness
in your 'backyard.' "
Advisory firms in areas with concentrations
of particular professions or
industries might
target a relatively
narrow market niche. For example,
some cities have large hospitals that
have led to the establishment of a local
example, many advisers are currently
segmenting by geography and size as
a way to capitalize on the state-plan
mandates. In doing so, she says, there
is a clear message to their audience,
as well as well-defined parameters for
advertising-e.g., statewide publications
for small businesses, LinkedIn
ads by geography and size, etc.
But it is also key to leverage relationships
with centers of influence, Yvon
says, and those connections can influence
where and how advisers market.
For instance, if an adviser has a relationship
with a payroll provider, as
many of Vestwell's adviser-partners do,
it benefits them to target that market.
" If the payroll provider focuses on a
specific industry sector,
the adviser
can then advertise in that industry's
publications, attend its industry events,
and join appropriate industry social
medical ecosystem that includes physician
group practices, medical labs and
other health service providers. Developing
in-depth knowledge of a specific
niche's business model and retirement
plan requirements can help establish
an adviser's expertise and reputation
in that segment. In turn, that expertise
could also facilitate business development
beyond the local market.
Abbey Yvon, senior vice-president,
communications at Vestwell in New
York City, agrees that while there are
different reasons for segmenting by
geography, size, industry or otherwise,
it is important to define the audience
and determine what message
will have the most resonance. For
" If you were
to physically
plant a flag in
your backyard,
what would that
geographic
territory be? "
networks to help the adviser assimilate
into the community and increase brand
awareness, " Yvon says.
Regardless of who you market to, it
is important to have a clear and differentiated
message, Yvon suggests. Your
website should have targeted landing
pages for each audience, and your
marketing materials should be reflective
of what you can offer that others
cannot.
For example, everyone claims to be
cheaper and more effective, but what
else in terms of resolving pain points
do you have to offer your targets? Yvon
says. " Think about why your current
clients turned to you. Or better yet ...
ask them! Annual surveys are a great
way to understand your audience and
be able to find more leads like them. "
MULTIPLE AVENUES
Once you have selected your target
market, the next step is figuring out
how to reach these prospects effectively,
given your available resources.
A marketing plan that includes tactical
methods to get the word out-the
media-along with the definitions of
the market and the codification of key
messages will provide a good road map
for working toward a higher level of
success, says Swift.
A solid plan will utilize multiple
approaches. Swift says. " At Impact
Communications, we use the PESO
model to create the right proportions
of the paid, earned, shared and owned
marketing components, " she says.
Swift says the key with paid
marketing is to place it where your
target audience is likely to see it.
Earned marketing focuses on creating
media visibility, such as pitching your
expertise and article ideas to publications
that your market reads. Shared
marketing uses social media and crossmedia
promotion. Considering the
increased importance of social media
in marketing, developing a social
media policy and editorial calendar
can make your efforts more productive.
Owned marketing resources
include your firm's website and blog,
both of which can be used to position
your firm as a subject matter expert
and thought leader, she says. -EM
planadviser.com July-August 2021 | 31
http://www.planadviser.com
PLANADVISER - July/August 2021

Table of Contents for the Digital Edition of PLANADVISER - July/August 2021
