time, they represent a great business opportunity. But you better get it right if you want to keep them.
In 1992, when I was on staff at Working Woman magazine, I was
stunned to hear a friend and colleague say, “I’m not going to participate in the
401(k). I want the money now.” I convinced her that she needed to save for her
future. I used the ploy that maybe she wouldn’t get married, so she’d better be
prepared to take care of herself. The threat of no husband worked.
What really surprised me was that the magazine had just run an article
entitled “Women Fear Becoming a Bag Lady!” I realized that for her and many
women, there is a total disconnect on what you have to do to ensure that you
don’t become a bag lady. You have to take the initiative. You have to start
saving and planning. That is as true today as it was 15 years ago.
The idea of saving today for tomorrow was not one that resonated with my
friends and colleagues at the magazine. What we discovered through letters to
the editor was that many readers feared becoming bag ladies but also shied away
from financial advisors. Why? They feared advisors would not listen to them and
would talk down to them. As a result, they procrastinated and postponed seeking
out a financial professional.
Women are a growing market—ignore them at your own risk
While on average women still make significantly less than men for doing the
same jobs, their financial clout is growing. There are more women entrepreneurs,
businesses owners, and executives than ever before; a growing segment of the
women’s market is accomplished and affluent. Women are attending colleges and
universities and earning degrees in greater numbers than men. Women are becoming
more financially savvy and know the importance of investing for their future.
Yet they still may be reluctant to look for an advisor. Here are a few key
insights that can help you position yourself to win with this growing
market.
- Women want service that recognizes their individuality. Each
woman has different needs, wants, and fears. Women are not one big homogeneous
group. As an advisor, once you realize that each female prospect is unique, the
real opportunities to develop long-term relationships with female clients begin.
Women want their advisors to provide a customized approach to managing their
future and their money. - Women want choices and options. Show a woman client how you
will help her accumulate wealth that will allow her to have choices in the
future. As an advisor, you might be the only sounding board your client has, so
use the role. Position yourself as part of her personal board of advisors. Donna
Summer sang the song “She Works Hard for the Money,” and she does. Women clients
are often balancing many roles and wearing many hats. Knowing she will be in a
position to make choices and have options in the future will help her sleep
better at night. - Women prize an advisor who is honest and forthright. For
female clients, trust ranks high on the list of “must-haves.” Women want to know
that their work with a financial advisor is focused on life’s bigger picture.
They want an advisor who can go beyond the investment picture and help clarify
expectations and goals. Define yourself as not only capable but also interested,
caring, and client-focused by taking the time to honestly, patiently explore
clients’ life dreams. Women want an advisor who can do more than just invest the
money. - Women don’t necessarily know how to invest. Women have to
keep a lot of irons in the fire. Whether single or married, in order to be
successful they have had to work very hard. In fact, many feel that they have
had to work harder than men to succeed. They are used to focusing on their jobs,
as well as other intense obligations such as elder care and bringing up
children, not to mention added distractions like traveling for business. This
may not have left them a lot of time to research and understand the investment
world. Don’t assume they get it the first time. Explain the strategies you are
recommending, and periodically go over it with them. - Women are in it for the long term. You should be too. A
woman wants to know that her financial advisor is there to assist her for the
long term. If she perceives her financial advisor as someone who is only
interested in transactions, the relationship will sour quickly. She will find
someone who listens, asks questions, offers solutions, and explores her plans
for the future. - Women have unique challenges. Whether it is hidden attitudes
about money, living single, or managing a blended family, try to better
understand the obstacles each woman faces—real or imagined. The more you know
and understand your client, the more meaningful advice you can
provide.
When a women client loses her partner
Traveling the country speaking to clients of financial services companies, we
have heard a lot of stories from women who have lost their mates, either through
death or divorce. In some ways, it doesn’t matter which; the loss is real, and
unless they have been engaged in managing their own affairs, women may be in for
a very rough time. You can be a lifeline for new widows and divorcees.
We have heard countless stories that go something like this: “My husband
managed the money. I was never really interested or involved. When I found
myself alone, my financial advisor and her team saved me. When I called to tell
them what had happened, they came over and sat with me and reassured me. They
stepped in and helped educate me about my investments. They listened and took
the time to get me up to speed. They were never too busy to take my call or get
back to me quickly.” This kind of response results in a robust long-term
relationship, and these women tell others about their positive experience, which
translates into new clients.
On the other hand, we have also met women who tell this story: “I am a new
client with the firm. The last FA I had at another firm ignored me when I needed
him the most. So I asked a lot of people who had been in a similar circumstance
to my own who they would recommend. Now I have a new firm and a new advisor.”
Compassion, communication, and personal involvement could have made a huge
difference and kept a client.
Discussing retirement plans with women
Advisors can enhance their relationship with women clients by asking
questions that get them thinking about the big picture. Even if a woman doesn’t
have an answer today, these questions will get her thinking about tomorrow:
- What’s your vision for the future?
- What are the things you want in your future?
- What are your drivers (reasons you enjoy your work)?
- Why do you work—beyond the paycheck?
- What will you miss if and when you stop working?
- If you had the gift of time, what would you do with it?
Help your client understand that simply saving for retirement does not ensure
a fulfilled life. Retirement is not a vacation that lasts 25, 30, or more years.
It is a journey. You can assist women clients by helping them understand that
the better they know themselves and what makes them tick, the better they can
plan for the future. Whether working for wages in a new job, volunteering,
becoming a consultant, or being a serial retiree who cycles in and out of
retirement, a client can have many next acts. You can help them be prepared in
more ways than just the money.
