It has been 20 years since American author John Gray published his famous book Men Are from Mars, Women Are from Venus, which explored the differences between the ways in which men and women think and communicate. When it comes to financial issues, the thesis that women and men see things differently still holds true.
“Money and investing … charts and graphs and numbers are for men,” says Susan Misner, co-founder of Winnipeg-based Golden Girl Finance, an organization devoted to promoting financial literacy among women. “For women, [money] is about security, legacy and opportunity.”
It is up to you, as a financial advisor, Misner says, to recognize that women relate to finances differently from men, and may require a different approach.
If you are looking to tap into the ever-expanding female marketplace, Misner suggests, consider the following:
> Understand their lives
Develop ways of dealing with your women clients in a way that fits their busy schedules. As women are working more and still occupied with housework and childcare, Misner says, you need to frame the discussion of finance in a way that engages your female clients and that resonates with their day-to-day lives.
“For so long, [women] haven’t related to the industry and the people,” Misner says. “Advisors need to put a ‘real life’ spin on it”
> Consider a streamlined product offering
Forget about discussing complex derivative products or sophisticated money-management strategies, Misner says. These discussions don’t resonate with most women. Women often are not interested in making time to read a 75-page prospectus to understand a product.
Take a back-to-basics approach: if you are not able to explain to your client what the product does and how it can make her life better, the product is probably not appropriate.
> Emphasize relationships
Make a conscious effort to create a connection with your female clients. Instead of the traditional client/expert relationship, Misner says, try to develop a more personal bond based on trust.
While still remaining professional, you can look at doing a female-focused event to attract clients or simply go have coffee with your clients individually to discuss their financial plans.
Developing relationships this way takes time, Misner says, but the effort will pay off in the long run.
> Don’t think they are risk-averse
Women clients are interested in income and stability. They have long been pigeonholed into the stereotype of being risk-averse by some advisors.
Instead, Misner says, you should see women as risk-aware: savvy consumers who control a significant portion of a household’s budget.
Falling victim to stereotypes, Misner says, will only hurt your business.