Sandra Pierce understands that many successful businesswomen share an often irrational fear they won’t have enough saved for retirement.

So, the senior vice president and advisor at Blackmont Capital Inc. ’s Fox Pierce Segal Group in Toronto, hand-delivers an elegant beaded clutch bag to prospective high net-worth clients. Attached is a provocative tag that reads: “Do you suffer from bag lady syndrome?” Inside is a note that proclaims “Financial empowerment is in the bag” and describes Pierce’s services.

“I wanted a calling card that was inoffensive and broke through the clutter,” Pierce says. “When I call, I’m the ‘Bag Lady of Bay Street’ and there’s instant recognition.”

Pierce is not alone in targeting female clients. Advisors and institutions have long acknowledged that women make up a significant and growing portion of the Canadian investor population. But, as Pierce has learned, it’s not enough to aim your marketing at women; you have to address women in a manner that will make them feel you are sincere and sympathetic to their needs.

One effective way of doing this is by hosting marketing events aimed at women, says Kathryn Del Greco, a senior investment advisor at TD Waterhouse Private Investment Advice. However, women clients and prospects are usually more responsive to such events when you take a personal approach, she adds. This means they must regard your invitation as genuine and not just as a marketing ploy.

For instance, Del Greco invites time-stretched female clients to bring a guest to an elegant evening out, which focuses on holistic health and well-being. This year’s event, attended by about 150 women, raised $20,000 for cancer research.

“It aligns itself with my ideal target market,” she says, “which is women investors.”

Del Greco estimates that the three annual fundraising/client appreciation events she has hosted for the Canadian Breast Cancer Foundation have brought significant assets to her business, but only because she is passionate about the charity.

“It is a cause that is near and dear to my heart,” Del Greco says, “and something I want to support.”

And, no, there’s no sales pitch during the event. “I’m not talking about investments and markets,” she says. “It’s more about positioning yourself in front of your market.”

As for Pierce, she further positions herself by sending out a newsletter entitled Bag Lady Musings and has set up the Bag Lady Foundation, a charity that helps women in need.

Andrea Learned of Burlington, Va., author of Don’t Think Pink: What really makes women buy — and how to increase your share of this crucial market, agrees such activities are “a great way to connect” with women. But prospective women clients may not be ready to sign on the dotted line after just one meeting or event.

“A year later,” Learned says, “they realize they need a new financial advisor and they think, ‘That lady was so cool to do that. I trust her’.”

Women respond well to less conventional venues for the meeting. “Get out of the office,” she suggests. “It’s less intimidating and feels more like you’re meeting
a friend.”

With the pressure off, women will be able to relax and be better able to make a decision about your services.

A word of caution, though: don’t view the female market as homogeneous, says Dan Richards, president of the Toronto-based financial services consulting firm Strategic Imperatives Ltd.

Rather, he suggests, focus on market segments, such as women coming out of a long marriage due to the death of a spouse or divorce. He notes that a rising divorce rate has opened up a prime market for certified divorce financial analysts or financial divorce specialists.

“There’s an opportunity whenever there’s money in motion,” Richards says.

It’s also important for advisors to understand the various mindsets common to women clients.

TD Waterhouse identified four distinct investor types in its 2007 female investor poll. Although it can be dangerous to generalize, the following sketches can help you understand some of the thoughts and characteristics of women investors. For example, the survey revealed a notable correlation between age, affluence, level of engagement in the investing process and the likelihood of having a financial plan.

Here is a look at the four types of female investors:

> Panicked Paula. These women, who are disengaged from the process of investing, make up the largest percentage of those polled, at 36%. They pay little or no attention to what goes on in financial markets but still worry. Of these women, 36% are younger than 35, less than 10% have a financial plan, most are risk-averse and they have average household investment assets of $55,400.

@page_break@> Blissful Betty. Accounting for 34% of women polled, this group is disengaged from the financial decision-making process yet happy. Perhaps that’s because 70% of this group is married and have average household investment assets of $107,500. More than half have a low tolerance for risk, and one in five has a financial plan.

> Sleepless Sally. Representing 11% of women surveyed, these knowledgeable and engaged investors worry — perhaps because three-quarters of them don’t have a financial plan. They are older and more affluent (more than a third are aged 36 to 45) and their average household investment assets are $137,200.

> Confident Kate. An interested, engaged and successful investor, Kate accounts for 19% of women. With average household investment assets of $240,900, 40% of this group are aged 56 to 69. Half of those in this type have a financial plan, and 57% report medium risk tolerance, the highest among women.

The challenge for you as an advisor, says Patricia Lovett-Reid, senior vice president with TD Waterhouse, is to “help women who are disengaged, perhaps lacking in confidence and younger in age to get in the game sooner and realize the benefits of a long-term investment horizon.”

There are also factors unique to women that you need to consider, such as life-planning issues — including long-term care and critical illness insurance — and estate planning, given the likelihood of women being the last surviving spouse.

“Who cares for the caregiver?” asks Neil Taylor, vice president at marketing at Investors Group Inc. “Many women tend to have earned less. They may take time off work to look after the family. But even though their income is lower, they live longer. It’s very important to have a good long-term view, a good balanced investment portfolio.”

Taylor has identified yet another female market group that needs to be better served: immigrants.

“One of the greatest challenges we’re facing,” he says, “is understanding the cultural issues surrounding women in Canada, especially new arrivals.” IE