Last week, Larry called Beyond Insurance, asking us to supply him with leads. He said, “The world is my oyster, and I want to cast my net wide to turn a bunch of prospects into clients. Please send me some leads.”
We quickly told him that we could give him tools to use, but he would need to actively seek out leads on his own. He then inquired about strategies for achieving success as he had previously utilized an ineffective shotgun approach. Beyond Insurance advised him that refining and narrowing his focus by determining a niche could potentially be the catalyst for achieving success in his insurance career.
Let’s start by clarifying what it means to find a niche. Instead of being a generalist and trying to cater to everyone's insurance needs, a niche involves focusing on a specific industry or demographic. Start by choosing a broad category and let your niche develop organically over time.
In other words, identify a group of potential customers who share common characteristics making them especially receptive to customized products or service that you and your firm can offer. For example, if you target commercial lines, look at more specific targets within your marketplace, such as specialized contractors, printers, or retail shops.
So, let's say you start off by targeting the hospitality industry. As you gain experience and build your client base, you may notice that a significant portion of your clients are restaurant owners. That's when you can start honing in on that specific niche by joining restaurant associations and tailoring your services to meet the needs of restaurant owners.
Knowing your target market takes on many scenarios including industry–focused and product-focused specialization. Industry focused specialization involves a concentration on prospects within a certain industry such as construction, hospitality, technology, healthcare, real estate, and transportation to name a few. The term “industry vertical” is frequently used to describe your capabilities within a particular industry.
On the other hand, product focused specialization involves working across multiple industries but with a particular line or product type such as cyber liability, professional liability, workers’ compensation, captives, or surety. As you gain knowledge, credibility, and confidence in an industry and/or product specialization, you gain clarity about your ideal client.
So, why should you consider finding a niche?
1) It boosts your confidence. As a young or new producer, it can be daunting to sell anything if you lack confidence. By specializing in a particular niche, you become more knowledgeable and confident in your expertise, which resonates with clients.
2) You become an expert in the eyes of your clients. When you can showcase your experience working with similar businesses or individuals in their industry, you instantly gain credibility and trust.
3) A niche can help bridge the age gap. Gen Zs or new producers often find themselves competing against older, more seasoned counterparts. However, by establishing yourself as a specialist in a niche, you level the playing field and demonstrate your value regardless of age.
Moreover, focusing on a niche allows you to learn the intricacies of that industry more efficiently. Instead of spreading yourself thin trying to understand every sector, you can delve deep into one niche and gain valuable product and market knowledge.
Bottom line, when you understand and select your niche, it increases leads and referrals organically through word of mouth, improves retention rates as a result of your expertise, and reduces competition on key accounts.