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As a child, we all remember the warmth of the sunshine on those fun-filled summer days. With all that energy bursting forth from the sun so diffused, it gave us a lighted path and it felt so invigorating. Then one day we discovered the power of a magnifying glass. Simply by capturing the sun's energy and holding the glass over an object, we quickly learned the power of focused energy. A financial services environment today is much like those early days of our lives. There is plenty of diffused advisor energy going forth into the marketplace. This expended energy feels good and looks like the right approach because it appears to keep people busy. However, by focusing the energy and effort put forth by financial advisors and other personnel into target marketing, management can light a fire in their offices that will increase retention and profits. One challenge facing managers today is how to focus their sales team into the appropriate markets and light a prospecting and marketing fire. HOW TO FOCUS Field management can quickly achieve focus by understanding and utilizing a field-tested and well-proven three-step process. Step One Identify the types of markets and segments they can support. The types of markets should be definable and hold much promise for multiple segmentation and lead generation. Target markets could be ethnic, small business, professional, middle income, affluent individuals, etc. Step Two Once a list of types of markets is defined, the specific target market segment in their area needs to be identified. Is there operating within the geographic area a Spanish-American league or social organization, a Korean Church, a Little Italy Social Club, or an Italian-American League? Or, if the market type is professionals, are there registered nurses, chiropractors, architects, orthodontists, ophthalmologists in the geographic area? The key to this step is to divide each market type into specific target market segments. There is much truth to the divide and conquer adage in this exercise. The more segments identified within each market type, the easier it is to penetrate and cultivate them. To enable you to define these specific segments with a specific type of market, look for the ways people network and communicate within those markets. Specifically, what do they do for a living, where and what do they do for recreation, and where and what are their special interests? To complete this second step, viability issues need to be investigated to ensure this is a true target market. Determine how each segment measures up to a pre-set standard. Use criteria such as how large the segment is, and is there an association or affiliation present to which people in this market belong? How do these people in the segment network and communicate? These questions allow you to select the best segments in their market area. It is important to recognize that some segments simply do not lend themselves well to targeting. A manager in a client company of ours clearly defined this at a recent meeting. He had initially selected furniture manufacturers in his area as a large market segment within his small business type markets. However, after his marketing assistant met with several principals and the furniture association director, they quickly determined not only that this group did not network, but that they rarely spoke ó a very difficult market segment on which to build a proactive marketing effort. He decided to approach this group through the various and diverse country clubs and other lifestyle-type segments to which they belong. As mentioned previously, the most important success key in selecting and identifying segments is that the people in those segments network and communicate with one another. This is critical if advisors are to build long-term, profitable and professional relationships. Step Three The third step necessary to effectively focus your organization and activities on profitable markets involves helping advisors focus on markets. To focus the advisors and the organization on target markets, here are several ideas that will help management promote and generate a market-centered, market-led organization. First, it is important at this point for management to realize that in order for target marketing to work effectively, advisors must be allowed to select the specific target markets they wish to work within. Too often, they are assigned to work a particular area or group or type of people because they have money. Nothing could be more counterproductive for success. Producers must prospect people with whom they relate. To complete this third step, meet with each advisor and determine through candid dialogue the type of people to whom they relate well, and, if given proven methods, with whom they would like to build their business. This process always yields many surprises and rewards for all parties. Certainly, some will have no desire to focus on any target markets. Some will quickly move toward the people with whom they feel they can relate and will be grateful for the additional focus. Still others will move up two paces and back two paces until someone decides for them, or the wins of others that are focused simply become too compelling. Relationship marketing is a change in direction for many and requires that management and advisors recognize it as a process. Experience has shown that once managers focus on the specific target market segments that are viable for their office and then involve the advisors in the specific target market selection process, the culture changes. Many producers continue to fish for a market while markets beg to be fished. Before most advisors find their niche, they leave. To prevent this, offer them guidance and coaching from the management team. The proper guidance and coaching of producers toward and within a target market improves production and profits. In summary, if you have focus don't lose it, and if you don't have it, waste no time in getting it.
Copyright © 2000 by C. Richard Weylman. All rights reserved. C. Richard Weylman serves as President of The Achievement Group, Inc., a Florida-based a financial services marketing firm and publishing house. As a Certified Speaking Professional, Richard has become a sought-after speaker in the financial services industry because his innovative ideas help agents and advisors build more successful operations. He is the author of "Opening Closed Doors, Keys to Reaching Hard-to-Reach People"and the author of numerous sales, relationship marketing and management audio and video education programs. He was a 1999 MDRT main platform speaker. To receive more ideas and insight on how to market to high net worth people or recruit quality people, hear Richard Weylman live at www.unlimitedprospects.com, or to find out how you can have Richard speak at your next meeting, call 1-800-535-4332 or email achieve@theachievementgroup.com. Enroll in Richard Weylman's free emailed Relationship Marketing Tip of the Week at www.unlimitedprospects.com. |
