How to Identify Your Ideal Client Before You Spend Money on Marketing

Let’s face it - marketing can require a pretty hefty investment. In fact, “the average advisor spent $17,400 on marketing in 2022, according to an in-depth survey conducted by Broadridge. That same survey found that registered investment advisors (RIAs) typically have a larger marketing budget, spending $27,800 annually versus the $9,700 spent by independent broker-dealers.” (Source)

So, the last thing you want to do is throw a lot of money at something that won’t grow your business.

In the world of business, understanding your ideal client is akin to finding the Holy Grail. It’s a crucial step in shaping your marketing strategies, refining your products or services, and ensuring overall business growth. But how do you identify who your ideal client is?

Here’s how you can zero in on the perfect audience for your business:

1. Know What Makes You Different

Before you can attract your ideal client, you have to understand what makes you stand out. What problems do you solve better than anyone else? What’s the “special sauce” that makes working with you worth it? Your value proposition isn’t just a tagline — it’s the heartbeat of your brand. When it’s crystal clear, it naturally draws in people who connect with your message and what you deliver.

2. Get Specific About Who You Serve

Your “everyone is welcome” message might sound nice — but it’s not effective marketing. Start narrowing it down. How old are your ideal clients? What do they do for a living? How do they spend their money and time? If you’re a financial advisor, your ideal client might be “women in their 40s and 50s balancing careers, caregiving, and retirement planning.” The more specific you get, the easier it is to create content and services that feel made just for them.

3. Go Beyond the Stats. Understand What They Care About

Demographics tell you who your clients are; psychographics tell you why they act the way they do. What do they believe in? What keeps them up at night? What motivates them to make a change? Maybe they value independence, crave simplicity, or just want to stop feeling stressed about money. When you know what matters most to them, your marketing starts speaking their language.

4. Get Real About Their Pain Points

Every client has a “thing” — the frustration, challenge, or fear that drives them to look for help. Figure out what that thing is. Are they worried about outliving their savings? Juggling kids and aging parents? Feeling behind compared to peers? When you name the pain, you show empathy. When you solve it, you win trust.

5. Watch How They Make Decisions

Some clients binge-research before making a move. Others go with their gut. Pay attention to how your ideal clients make decisions. Do they want detailed explanations and data? Or quick summaries and visuals? Do they scroll social media, ask a friend, or call after reading your latest newsletter? The goal is to meet them where they are — and make it ridiculously easy to say “yes.”

6. Listen to the People You Already Work With

Your current clients are a goldmine of insight. Ask them what made them choose you — and why they stay. Their feedback often reveals what you do best (and what you might want to do more of). Bonus: their words make great copy for your website, because they’re written in the same language your future clients use.

7. Let the Data Tell You a Story

Analytics don’t have to be intimidating — think of them as your behind-the-scenes guide to who’s paying attention. Check your website traffic, social media insights, and email reports. What patterns do you see? Which posts or pages get the most love? Tools like Google Analytics or your CRM can help you uncover who’s engaging most — so you can create more of what works and less of what doesn’t.

8. Create Client Personas

Here’s what to dig into when crafting your profile:

• Demographics: age, income, location, marital/status.

• Psychographics: values, pain-points, preferred communication style.

• Planning needs & fit: what problems they have and how you uniquely solve them.

For example: “Rebecca is a 45-year-old female executive, balancing a demanding career and aging-parent responsibilities. With $750K in investable assets, she values transparency, warm communication, and a plan that ties together career transition, college funding, and her legacy.” That kind of specificity gives you a meaningful target.

Quick Ideal Client Checklist to Get Started

• List 5 traits of your best–performing/current clients.

• Identify 2 key problems they came to you to solve.

• Write a “day in the life” description of your ideal client.

• Review your current marketing: are you speaking to that person? Or still trying to appeal to “everyone”?

So, before you start spending what could be a large percentage of your budget on your marketing, make sure you know who you’re marketing to. It can make creating content much easier and will likely resonate more with those you want to work with!