I recently came across an advertisement from a known investment company.  Although I've excluded their name, the headline and theme of the ad went as follows.

The Headline Read: “Blank Factors That Can Strengthen Your Retirement Plan”
The Body Read: “If you have a portfolio worth $500,000 or more you should download this complimentary investment report.  You never know when the insights you find may prove to be useful.”

The Complimentary Report: “The 15 Minute Retirement Plan”
Sub-Title: “How to avoid running out of money when you need it most.”

Additional Information: “This must-read guide will explore the dangers of running out of money during retirement and review blank factors you should keep in mind when planning for retirement.”

This is an outstanding example of Target Profiling.  The ad asks for a response, from a limited group of individuals who fit a specific profile; in this case a portfolio worth more than $500,000.

It’s impossible to exaggerate the benefits of Target Profiling.  As Yogi Berra might have said, let’s start at the beginning.  With any marketing plan you must clearly define your target market. If you don’t what are your chances of being successful?  Are you willing to take on any and all comers?

If you’re unhappy with your current customer base you have no one to blame but yourself.  You have the freedom to choose who your customers will be. I’m willing to bet that your most frustrating customers are those with the smallest portfolios, who ignore your advice and call you almost everyday with some complaint.  They feel like you owe them a favor.

In the accounting industry we had a saying; you've got to trim your branches if you want your trees to grow. The same holds true for investment managers. You've got to get rid of the deadwood to develop better clientele.

It’s important to make your prospect feel like you’re talking directly to them.  You want them to think, “Hey, he/she is talking about me.  This is exactly what I’m experiencing.  This is what worries me most.”

Only by profiling your target can you generate this kind of response.  It’s like the difference between using a shotgun vs. a rifle. In the example I discussed above the shotgun approach mentions nothing about portfolio size.  The rifle approach takes direct aim on the type of client you're looking for.

With the shotgun approach you’ll receive responses from individuals with nearly nothing who are reaching retirement age and haven’t accumulated sufficient savings.  Do you want to deal with these types, I doubt it?

If you don’t define who you want as your customer, you’ll never be able to communicate directly with them. You want your prospect to feel like you understand their problems and have a solution for them.

Once you’ve defined your target you can begin the process of creating messages to stimulate their emotions and develop triggers that will generate buying impulses.

Your marketing message is by necessity based on a customer profile.  Hence the importance of defining the profile first.  Once this is complete you can begin to create relevant sales messages.