Why Niche Marketing is the Best Sales Strategy

In my sales training classes, I ask students: “Is everyone your potential customer?” Many originators will say “Yes” but the truth is everyone is not your potential customer for the simple reason that every sales person has a sweet spot where certain customers and referral sources are a better match than others. Frankly, being a generalist originator with no targeted focus is not a successful sales strategy.

It might sound counterintuitive, but having a niche or targeted market works better because it establishes you as an expert. When you look at the recent top 100 originators published by National Mortgage News, what do you find? Top originators use niche sales models because it is smart marketing. Here are some important points to remember:

•  Every business or field has competition. There are an estimated 100,000 originators in the mortgage industry. Potential customers, whether consumers or referral sources, are inundated with marketing information from TV ads to LO pictures on shopping carts. It literally is a blur from their standpoint. As a result, every originator must answer the key question: Why should a customer or referral source hire or use you instead of any of the other qualified professionals out there?

General answers such as: “I have integrity; I have 20 years of experience…” aren’t enough to differentiate your business in the marketplace. By specializing in a particular customer group such as FTHB or a product like super jumbo loans, you can distinguish yourself from the majority. It can even be a service differentiator such as delivering an amazing mortgage experience. Select something to be known for instead of letting your customers try to figure out what your expertise really is.

•  As any marketing consultant will tell you, the only way to get someone’s attention is to provide prospects with content that is relevant and useful to their unique needs. It starts with knowing who your ideal clients are and crafting marketing content that is specifically targeted towards them.

•  Finally, there are four questions that originators need to answer before selecting their niche. They are:

  1. What do I enjoy doing?
  2. What do I want to do?
  3. Where is my experience?
  4. Who values my services?

The best answers to these questions come from your current customers who can share their honest opinions with you.