Seeking a Financial Advisor Target Market? 7 Popular Groups to Target

Having worked as a marketing consultant for financial advisors for 15 years, I have seen every type of financial advisor target market you can imagine.

A target market is a specific group of people identified as the intended focus of a company’s marketing. In this article, I share seven of the most popular financial advisor target markets, their opportunities, and their challenges. While I base the insights I share on my experience rather than a specific study, I believe you’ll find these observations useful and accurate.

1. Pre-Retirees and Retirees: A Prime Financial Advisor Target Market

Without a doubt, pre-retirees and retirees constitute the most popular target market for financial advisors. This market represents the phase when individuals have accumulated most of their wealth and are faced with complex financial decisions and significant ramifications, prompting them to seek financial guidance.

Usually, these individuals see enough need to engage a financial advisor and can comfortably cover advisor fees. However, the primary drawback of this target market is the intense competition, as most financial advisors target this group.

2. Business Owners: A Lucrative Target Market for Financial Advisors

Business owners typically possess substantial wealth and have complex personal and business finances, representing an appealing target market for many advisors. In addition, business owners are likely to receive substantial windfalls from the sale of their companies, resulting in significant investable assets and associated advisory fees.

However, these individuals present challenges. Their assets are typically tied up in their companies, rendering them illiquid and limiting investable assets until the business sells. In addition, business owners often prefer reinvesting profits back into their companies for growth rather than diversifying through external investments.

Moreover, reaching this group through marketing can be particularly difficult due to their busy schedules. They may not interact with conventional marketing channels, making referrals potentially the most effective way to engage with this demographic.

3. Executives: An Accessible Financial Advisor Target Market

Executives, especially those in senior positions, are a popular target market for financial advisors due to the complex compensation structures and unique tax considerations. Executives are an attractive market with considerable income, assets, and financial complexity that can benefit from financial advice.

Executives are relatively accessible for marketing, particularly through professional social networks like LinkedIn or via purchased email lists. However, unless they’re confronting a significant tax issue or nearing retirement, they may delay in hiring a financial advisor, often due to a lack of awareness of their financial complexities.

4. Employees of Specific Companies or Industries: An Easy-to-Find Target Market

Financial advisors often focus on employees of specific companies or industries. This focus can be a particularly effective strategy when these groups have distinctive retirement plans or compensation structures.

These financial advisor target markets can be as specific as employees of a single company, such as Google, or can make up broader categories, like federal employees.

As with executives, LinkedIn and purchased email lists can provide convenient channels to reach individuals in particular companies or industries. The challenge is that some of these people may have much of their wealth tied up in their company and may not have significant investable assets until retirement.

5. Women in Transition: An Urgent and Delegating Target Market

Women experiencing significant life transitions, such as divorce or widowhood, confront significant pain and urgency, necessitating immediate professional advice. This urgency and their potential unfamiliarity with managing finances may make them more inclined to delegate financial decisions to an advisor. These factors make women in transition an attractive financial advisor target market for comprehensive planning.

Although the complexity of these women’s situations may vary, there is typically substantial work involved in organizing their finances and formulating a long-term plan. However, this market can present challenges, particularly for male advisors. Accessing networks or groups primarily composed of women, which can be a valuable source of potential clients, may be more difficult for male advisors than for their female counterparts.

An additional challenge is that the marketing approach requires a high degree of sensitivity and empathy due to the traumatic nature of the transition.

6. Independent Women: An Emerging Financial Advisor Target Market

Unmarried women, whether lifelong singles or those who’ve experienced divorce or spousal loss, represent a market garnering increased interest in recent years.

While their income and investable assets may not match dual-income households, this target market faces distinct advisory needs due to their solo status and need for financial advice. However, a common hurdle with this group is the perception that they aren’t wealthy enough to engage a financial advisor, which deters them from seeking advice.

7. Medical Professionals: A High-Earning, High-Stress Target Market

Medical professionals, including dentists, constitute another popular target market for financial advisors. These high earners often experience high stress, which can prompt them to seek career exits and associated financial advice. They also deal with complex financial situations, making them ideal candidates for financial advisory services. However, reaching this group can be challenging due to their demanding schedules and protective nature.

Conclusion: The Dynamic Landscape of Financial Advisor Target Markets

Financial advisors have a range of target markets to select from, with each group presenting opportunities and challenges. The key to successfully advising these individuals lies in understanding their unique needs and potential hurdles. As the financial landscape evolves, so will the characteristics of these target markets, requiring ongoing adaptation for financial advisors.