Uncovering Powerful Centers of Influence

Targeting to build mutually profitable relationships opens many doors to high-quality prospects. Central to this process are centers of influence. You need to identify, understand and cultivate these centers of influence in your target markets. Your relationship with them can represent a very powerful and personal way to gain credibility. You should focus on meeting and building a quality relationship with the centers of influence in your targeted niche markets because they influence the attitude and acceptance of others. Attitudes of skepticism stem from a lack of knowledge and trust.

Why are centers of influence so important to relationship building? Basing your market approach on people, not products, allows you to have access to prospects on a favorable basis. Specifically, centers of influence are people who can boost your access and credibility through referrals, testimonials, and general word-of-mouth promotion. In short, they can open doors of opportunity for you that are closed to other financial services professionals.

What do we know about these centers of influence? The Roper Organization as conducted studies on influential people for the last 47 years. The influential segment of the population is remarkable for its consistency.

According to Tom Miller, Roper’s senior vice president, "The key element is activity. They are willingly involved in their communities, both socially and politically."

The Roper studies find that what sets influentials apart is their status as role models. People actively seek their advice and trust them. Most importantly, Roper discovered insurance and investments are two of the topics for which influentials have the most credibility and impact.

Surveys conclude that simply winning the confidence of one center of influence can create six loyal customers. Winning many more loyal customers from a single center of influence is possible with a concerted effort to encourage word-of-mouth and market it effectively.

Roper studies further show that influential people are not necessarily old or rich. Actually, 54 percent of influentials are between the ages of 30 and 49; they represent 41 percent of the general population. How affluent are they?

The largest group of influentials, 43 percent, makes between $30,000 and $50,000 annual income.

The most important factor influentials usually have in common with each other is a college education. Nearly three out of four centers of influence have gone to college. It’s clear that North American centers of influence are most likely to be college educated baby boomers, many of whom fall into a middle income group.

When mapping out your center of influence strategy, start by conducting market research surveys in your target market network. Remember that these surveys are most valuable when done in person. Include the following on your questionnaire:

1. Who is considered the person(s) with the most influence in your industry, club, or association?

2. How can I reach and meet that person?

Use the information you gain to frame your approach. There are several other insights that are helpful in making contact with influential people. Roper research finds that time is their most precious commodity, so be specific about the length of time you’ll need to meet with them. Do advance planning to be efficient during your meeting and always be on time.

When contacting the influential person, make it clear you want to get more involved in the group to which they belong. Pass along the compliment that their peers regard them as a person with valuable insight. Tell the person you would like their advice on how best to proceed on entering and volunteering for the group. Emphasize the benefits to the members of your joining, rather than just what you can gain from the meeting.

Fortunately, many of the same steps you take to build credibility with existing centers of influence will boost your own status among other people in your target market group. Running for office in the group, writing articles, serving on committees, and conducting seminars are powerful ways to become more influential.

The key is to position yourself as a resource and someone who specializes in working with people like them, not just as a financial planner. The more people in your target market perceive you as having the interest of the group and individual members as a priority, the more influential you’ll become.

Remember, your goal is to identify centers of influence and build long-term, mutually profitable relationships by using their insight to become a center of influence yourself.