01 Jul How Financial Advisors Can Reach Women More Effectively
Financial services generally don’t cater to women. The male-dominated industry is one that may deter women because they see men in most leadership roles, which can be a bit intimidating. They want to know that their voice is important and that their needs, which often are different than men’s financial needs and goals, are addressed.
To learn how to reach women for financial services, you must learn to prioritize what women see as important financially. Men and women often don’t have the same goals for their personal, professional, and financial lives, so accommodating what women see as necessary is going to be pivotal for your wealth management business.
These tips may help you learn how to reach women for financial services to build a stronger business that caters equally to both sexes.
Make Sure Your Business Mirrors Your Ideal Clientele
Research shows that only about 16 percent of financial advisors are women. This industry is dominated by male advisors, so it’s no wonder that women might feel out of place entering it as an advisor or client. It’s similar to choosing your doctor; you want someone who you think best understands your concerns, which is often someone of the same sex.
To make it clear to potential women clientele that they’re financial needs are important to you, it’s in your best interest to mimic that in your business. Hire female advisors who can help build trust and relationships with other women to bridge the gap between financial services and women who can use them.
Additionally, provide ample opportunities for women to have influential roles in your business, rather than just be there on the sidelines to attract more women to your business. Place them in leadership roles and you might find that women are more inclined to choose your business over other, less female-friendly companies.
Tweak Your Education Style
Women and men generally don’t act the same or want the same things. They also learn differently from infancy through adulthood. The wiring of the female and male brains differs, and you’ll need to learn to adapt to the way women learn if you want to be successful in making them your clients.
Women tend to prefer interaction and communication to learn, whereas men like to process information themselves. You might find that women are much more comfortable learning about their finances when you involve them in the process and communicate with them every step of the way. Just giving them some tools and suggestions and sending them on their way is not the best solution.
Connect with potential women clientele as often as possible. Explain to them how your suggestions for their financial management might affect their present and future, and what impact they might have on their family. Real-life examples can assist you in building a stronger connection with women.
Accommodate the Communication Preferences of Women
Most women want an active role in decision-making processes, especially when it comes to finances that can impact every aspect of their lives. They want to ask questions, offer suggestions, and make sure that they understand every piece of the puzzle. Women have strong communication skills, so it’s crucial that a financial advisor interested in learning how to reach women for financial services also has a strong desire to communicate.
Women are likelier than men to pick up on nonverbal cues and notice strong body language when communicating with someone. Face-to-face communication helps women build trust with another person. It can also make them feel confident and at ease with that person.
You might find that, while men prefer talking to you over the phone or through email, women might want to set up an in-person meeting to discuss their financial plan with you. Be open to suggestions to accommodate the communication preferences of your target clientele better.
Build Trust and Boost Confidence
Some experts believe that women avoid using wealth management services because they don’t feel confident enough in their knowledge of financial matters to make sound decisions for their present and future. About 36 percent of women responding to a survey conducted by The Global Financial Literacy Excellence Center said that they don’t even know where to begin when it comes to receiving help with their finances.
That’s a significant statistic that financial advisors should make themselves aware of. Rather than marketing yourself to potential women clients, you should first address their fears and insecurities so that you can start to build a trusting relationship and partnership with them.
Educating women about your services in layman’s terms can be an excellent way to fill them in on what wealth management entails. Create engaging, insightful blog posts that speak to some financial concerns of women – like putting the kids through college and having an emergency fund saved – and offer a free, in-person consultation to address their personal fears.
Find Less Risky Alternatives
Women are likelier to want a portfolio with little risk than men. They’re conservative in their financial planning and investing, typically because they want to see steady returns that can benefit them in the future, rather than risk a lot of money for potentially high returns. If you don’t compassionately address a woman’s concern about risky investments that may yield a higher return, you likely won’t gain her as a client.
Rather than convince a potential client that her conservative portfolio choices aren’t in her best interest, you should do what you can to find less risky alternatives that can put her mind at ease but still give her the most financial benefits possible. Remember that, with women clientele, a solid, trusting partnership is vital. Women want an educator and teammate assisting them with their finances rather than a preacher.
Remember That Women Live Longer Than Men
Something that’s essential to take into consideration if you want to work with women in your wealth management business is that women, on average, live longer than men. That means that women will need more money in retirement to make their funds to last longer. This could, of course, present a challenge if they’re determined to go the less risky route in their investments.
It’s in the best interest of your potential women clients to make sure that they are aware of this issue and present it to them in a way that makes sense. Ask them about their most important financial goals but be sure that you give them solid examples of what their retirement savings will look like in different scenarios.
The last thing you want to do is paint a scary picture of your client outliving her retirement savings. Instead, talk about some suggestions that can help her meet her most important goals and give her a bit of cushion as she nears retirement age.
Conclusion: How to Reach Women in Your Financial Services Business
The first step in creating a financial services business that welcomes women is to create a business culture that embraces women too. Women will likely see that their voice matters and that they, also, can be financially-savvy like the women in those roles. Speak to the top needs of women, like college and health savings, and be open to new ways of communicating that build trust and confidence in potential clients.