Advisor Today - November/December 2015 - (Page 59)

sales & marketiNg MARKETING By Bryce Sanders Cultivating the African American Market If you want to go after this lucrative market, start by taking the steps outlined in this article. T arget marketing makes terrific sense when you are part of the market you are trying to cultivate. Suppose you learned about a market segment with $1.1 trillion in spending power in 2015. It's on an upward trend to reach $1.4 trillion in 2019. If it were a country, it would be the world's 16th largest economy. Best of all, you have access to that market. That market is the African American community in the United States. It is young (median age 32), highly influential and represents about 13 percent of the U.S. population. From 2000-2009, its share of more than $75,000 peryear-income households grew by 60 percent, faster than the rest of the population1.  Ariel Investments has conducted several annual surveys of attitudes towards investing within the African American community. Schwab partnered with them for several years. Unlike the broader U.S. population, African Americans don't have a tradition of stock market investing dating back generations. According to a survey conducted by nerdwallet. com (2013), about 81 percent of Americans overall don't know the type of account to open in order to trade stocks online. An even more compelling statistic comes from The Economist in 2014: "80 percent of investors seek professional advice." African Americans want the same things all Americans desire; yet, they often want them with more intensity. The Ariel studies over previous years reveal interesting data. For example, while everyone wants the best education possible for their children, African Americans will forgo saving for their own retirement to focus on their children's education. They often see retirement savings Build success first by helping people of all ages and from different backgrounds. as providing for their parents' retirement comfort today instead of their own retirement in later years. They often view leisurely retirement as a luxury. For years, African Americans have considered real estate preferable to conventional investing. This changed in 2010, when 41 percent of them saw a greater opportunity in the stock market, as opposed to 30 percent in property. Figures for white investors were 55 percent versus 27 percent, respectively2. Next steps How does the African American agent or advisor start to build his brand within his cultural community? To begin, he can: 1. Join local community organizations. There, he will meet influential people and enhance his visibility. 2. Network in business and professional groups. When attending events, one African American advisor asks his friends: "Is there anyone here you think I should meet?" They get the hint and make introductions to him. 3. Build credibility by giving back. The Nielsen Organization reports that 40 percent of African Americans expect the brands they buy to support social causes. 4. Educate by seeking speaking opportunities. Find opportunities with local organizations to speak or hold your own seminars. Allow people to get comfortable with you. 5. Cultivate accountants, pastors and lawyers. These individuals often know people who might need help. Become one of their potential providers. 6. Become an expert. Assuming your firm is in agreement, write a column for your community newspaper. Reporters need experts to explain complex concepts in layman's terms. Being cont'd on page 60 November/December 2015 | ADVISOR TODAY 59

Table of Contents for the Digital Edition of Advisor Today - November/December 2015

From the Editor
New Products
In Step with a Winner
Finding Success in the Chinese-American Market
Dealing with Client Confidentiality
Hashtag Your Way to Social Media Relevance
Starting the LTCI Conversation
From Term to Perm
Protecting the Downside with Allocation Adjustment
Jules Gaudreau: A NAIFA Success Story
Helping Clients Cope with Market Volatility
NAIFA Government Relations
Working with Single Women
Financial Planning FAQs of Small-Business Owners
Three Retirement Conversations to Have with Clients Today
The Advent of Robo-Advisors
Moving into the Retirement Space with 401(k) and 403(b) Plans
Moving the Sales Process Forward
Cultivating the African American Market
The Lighter Side of LIfe
Advertiser Index
Back Page

Advisor Today - November/December 2015