Many of you loved the “The Illusion of Branding” post, so I thought of doing an interesting extension of that post. In her book “What Great Brands Do”, Author Denise Lee Yoo wrote, “We all know the cautionary equation that if you try to be all things to all people, you risk becoming nothing to anyone. But when it comes to target marketing, many companies are known to drift in this hazardous direction, nonetheless. They grow excessively concerned about alienating certain seemingly high-value customer groups, so they hedge their bets by casting too wide a marketing net.”

Isn’t this true for many of us? Aren’t we concerned about alienating some customer segments?

Denise further added, “As a result, they struggle to stay focused, set clear priorities, and stick to them. Lululemon has taken the opposite tack. It has enjoyed meteoric growth by shaping consumer expectations around its goals and then inviting like-minded guests to engage with Lululemon on its distinctive terms. The model for retail used to be, come here and be cool if you buy our product. The model Lululemon is trying to build is, you are pretty cool, we will be your partner in being in the best possible way. And that kind of turns retail on its head.”

Lululemon’s aversion to putting products on sale is an extension of the company’s brand identity. The objective is to condition customers to buy an item at full price when they see it, rather than wait for the next sale. ‘We are a luxury brand. We make a certain amount of product, and the newness is what our guest wants. When you see something at the store, you should buy it, because it may not be there tomorrow.’

Retail has trained consumers to look for a discount, and to ask, ‘Why should I ever pay full price?’ Lululemon customers are trained to grab it before it’s gone. The brand is about driving innovation on constant basis – that’s why we are loved,’ says Laura Klauberg.

‘We don’t do segmentation,’ Klauberg explains. ‘We are driven by our core guest. Our focus is on creating the best product in the world that’s both functional and beautiful. That’s what our guest wants.’

“However, we know that even though we design with a very specific core guest in mind, we appeal to a wide range of guests.  We offer aspiration to a big cross section of people, but we are laser focused on who we are designing the product for and communicating to.”

The same is true for businesses in our industry who keep a very specific core guest in mind. You might build the best product for tech entrepreneurs but in the process, you could appeal to the entrepreneurial surgeons, corporate executives and even celebrities. Just because you cater to a certain niche or core guest, does not mean the other doors are closed for you. You will never lose a great prospect; in fact, you will open the doors for other guests to feel excited to walk in.

Let’s connect the dots between Lululemon’s brand strategy and the principles that can guide you in carving your own niche in a competitive market.

Lululemon’s approach teaches us a lesson in clarity and conviction. As real financial professionals, it’s easy to fall into the trap of wanting to serve every potential client that comes our way. The fear of missing out on any segment of the market can be tempting. However, it’s essential to resist casting too wide a net and instead, focus on the core clientele—the ‘niche‘ that resonates most with our values, expertise, and unique service proposition. Two questions to help clarify this. “Who do you truly enjoy working with (something you can do for the rest of your life? What kind of client engagement lights you up even at the end of a tiring day?”

Define Your Core Clientele: Just like Lululemon designs for a specific “core guest,” you should identify who your ideal client is. This could be tech entrepreneurs, as in the example, or it could be a different group altogether. It’s about homing in on the demographic that not only benefits most from your services but also aligns with your vision of financial life planning.

Communicate Your Unique Value: Lululemon’s ethos, “You are pretty cool, we will be your partner in being your best possible way,” can be mirrored in how you, as a real financial professional, communicate with your clients. It’s not about convincing prospects that they need you to become ‘cool’ or financially savvy; it’s about partnering with them to realize their financial goals and live their best financial life (HappyRich Life), with your guidance and expertise.

Cultivate Exclusivity: The brand’s strategy of maintaining value by not discounting products underscores the importance of exclusivity. For you, this translates to upholding the value of your services. Avoid the temptation to compete on price or to undervalue your offerings. Instead, focus on delivering an exceptional client experience that sets you apart from competitors.

Innovate and Educate: Just as Lululemon drives innovation, you should strive to innovate in your client experience and service delivery, whether it’s through cutting-edge technology, unique processes, or educational content. By constantly improving and staying ahead of industry trends, you can offer your clients a service that is always evolving and adapting to their needs.

Stay True to Your Vision: Lululemon’s success stems from its commitment to its brand identity and vision. Similarly, you must stay true to your own vision and the promises you make to your clients. This means being consistent in your message, your approach to financial life planning, and the client experience you provide.

By adopting a strategy akin to Lululemon’s, you define not just your target market but also the essence of your brand. You become known not just for the clients you serve but for the quality, consistency, and reliability of your service. In doing so, you attract a wider audience that aspires to be part of your clientele because they recognize the value in what you provide.

Remember, it’s about being the best for your clients, not just the best in the market. When you tailor your services to a specific niche with excellence and authenticity, your reputation will naturally draw in a broader spectrum of clients who seek the premium experience you offer. This focused approach doesn’t limit your practice; rather, it elevates it to a place where quality trumps quantity, and where every client engagement is meaningful and deliberate.

So, embrace the power of a targeted approach. As the late, great Philip Kotler once said, “There is only one winning strategy. It is to carefully define the target market and direct a superior offering to that target market.” Take this wisdom to heart, and let it guide your practice to new heights of success and fulfilment.