When it comes to making decisions about personal and family finances, 56 percent of women are involved in the decisions and another 41 percent are the sole decision maker. Women are a growing force for financial services professionals. They outnumber men in the professional and technical workforce. More than half of college undergraduates and graduate school students are women and an increasing number of women earn higher salaries than their spouses.
The numbers tell the story. If you are not targeting women in your practice, you are missing a sizable opportunity. Attracting women as clients may take a shift in your approach and as with all clients there is no one-size-fits-all. There are some general strategies that are likely to lead to success.
Strategy #1: Focus on financial security
Financial planning and decision making is a means to achieve financial peace of mind. Women are seven times more concerned about financial peace of mind than with accumulating wealth. It’s easy to see why financial security is so important to women. On average, women outlive their partners by five years. At some point in their lives, either due to divorce, being widowed, or never married, 90 percent of women will be fully responsible for financial decisions. Women are increasingly aware of their susceptibility to Alzheimer’s disease and dementia. Almost two-thirds of Alzheimer’s patients are women. The need for financial security is great.
Strategy #2: Meet with clients as a couple
The majority of your male clients are consulting with their spouses or partners about financial issues. 55% of couples look to each other for financial advice. As couples age, women seem to become involved in financial choices. Women of the Baby Boomer generation feel equally responsible for finances and preparing for retirement. Schedule client meetings with both spouses and encourage candid conversations. It is not uncommon, especially at the beginning of the financial planning process, for couples to have different expectations and priorities about retirement. Ask the two about their financial roles; who tracks the budget, who pays the bills? Get a feel for how they communicate with each other about financial matters. Perhaps most importantly, be sure to address both parties during the meeting. It’s a mistake to direct the conversation toward only the man. If you hope to remain the advisor of the widow, establish a balanced relationship with both spouses.
Strategy #3: Adjust your communication style
For women, personal issues drive financial decisions. These decisions are made to ensure security for their children, parents, their spouse and themselves. Remember the accumulation of wealth is not the primary motivator. Connect your recommendations to the emotional side of finance, citing financial security and reducing uncertainty. Learning the personal details of your female clients is a step to building trust. Share examples of how other clients handle similar financial concerns. Women are four times more satisfied when the financial professional listens to goals and concerns rather than touting their credentials. She probably researched you extensively before your meeting. Women are serious researchers. Encourage women to research your recommendations.
Strategy #4: Expect a longer sales process
Establishing a client-advisor relationship may take a bit more time but the rewards are great. Patience pays off. A discovery process focused on financial peace of mind, personal information, potential risks, and building trust often reveals opportunities for products and services that might not have been uncovered. Women who are satisfied and trust their financial professional are more loyal and more likely to provide referrals.
Western Asset Protection provides access to the financial products women need to achieve financial peace of mind. Our objective is to make it easy for you to provide products and advice to your clients. Visit or call, at 800-955-5390.
