If you aren’t making a significant effort to attract women clients to your practice, you’re missing out on a great business-growth opportunity.
Women make outstanding clients. They’re extremely loyal and, if they’re happy with your service, they’ll probably stay with you longer than men, whom they outlive by five to seven years on average. Women are also much more likely than men to refer you to their friends and family.
“Over a lifetime, women will make 26 referrals to their financial advisor on average, compared with 11 by the typical male client,” says Kathleen Burns Kingsbury, a wealth psychology expert and author of How to Give Financial Advice to Women. “If you do the right things, and in a way that fosters trust in female clients, they will connect you with their friends.”
Here are some tips for attracting more women to your practice:
> Identify your ideal female client
What are the traits, occupation and financial situation of the woman client you’d like to work with?
Women don’t want to be stereotyped, Kingsbury says, so narrow your search. “Do you want to work with widowed and divorced women? Entrepreneurs? Professionals? Refine your focus.”
> Find ways to connect
Many women do volunteer work. Consider joining an organization that is involved in community activities that interest you. You’re likely to meet members of your target market, says Rosemary Smyth, owner and coach with Victoria-based Rosemary Smyth and Associates. Cultural organizations or the SPCA are good examples.
You can also attend or sponsor events that attract women, says Smyth. Organize a seminar for board members of cultural groups to discuss their responsibilities, for instance.
> Get to know your female prospects
Women are relationship-oriented, Kingsbury says. Get to know them on a personal level before asking about their assets and net worth. What is her family situation? Her challenges? Her goals?
“Women generally view wealth as security for themselves and the next generation,” Kingsbury says. “They see money as providing freedom and independence and they want someone they can work with over time to navigate life’s twists and turns. To succeed, you need a relationship-oriented sales approach. The transactional sales model usually turns women off because it looks like you’re just out for yourself.”
> Talk about what resonates with women
Steer conversations toward issues that are important to women.
“Rather than talking about cash flow and the money she spends shopping, talk about what she wants to leave her children and grandchildren,” Smyth says. “Or, point out that if she puts more into her RRSP, she’ll be able to remain independent longer.”
> Develop good listening skills
Active listening is essential when working with women, says Sara Gilbert, founder and business consultant with Strategist Business Development in Montreal.
“Repeat and confirm what she says, to show you’re paying attention,” Gilbert says. “Many advisors are just looking for an opening to jump in. Control that impulse.”
> Be patient
It may take two or three appointments before a woman decides to work with you, Kingsbury says.
“You need to establish trust, credibility and a willingness to answer questions,” she says. “The key is to focus on the emotional aspects of her relationship with money. How will she feel about working with you? How can you help her meet her needs and address her concerns?”
> Be accommodating
Women have family responsibilities that may make it difficult to meet at your office. So, be flexible about fitting them into your schedule. And be willing to meet them at home.