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It’s time to celebrate International Women’s Day – the annual, March 8, milestone dedicated to celebrating women’s rights and the continued quest for gender parity. The past few years have shed a new light on issues like the pay gap and gender equality, sparking a conversation that has captured the world like no other in recent memory.
It’s a conversation that has made its way to the advisory profession as well. You know the statistics: Women are the primary breadwinners in 40% of U.S. households. They hold $14 trillion of the nation’s personal wealth, a number that will grow steadily over the next decade.
But disparity still plagues us. Though their economic gains are undeniable, women face obstacles in making the most of their wealth, due to issues like the wage gap and interrupted work histories.
We still have a long way to go when it comes to these issues. But there is something our profession can do: Provide female investors with comprehensive financial planning.
How can you empower this emerging market? Start by asking yourself two questions:
Does my firm have an inclusive culture?
Fewer than 20% of financial advisors in the U.S. are women. Yes, you read that correctly. Your ability to successfully connect with the female investor demographic should start from within your organization. Cultivate a culture of inclusion and develop female talent. Educate your leadership and advisory team about what female investors value in their client experience. Female advisors have a unique opportunity to speak “woman-to-woman” and truly connect with female clients about challenges they face in planning for their financial future.
These are the actions that allow you to have more meaningful discussions with clients – and create more opportunities for your firm to add value.
Does our client experience address female investors?
Many of us have been conditioned to believe that certain disciplines are black and white. But finance doesn’t fall into that neat and tidy category. The issues you discuss with your clients are often emotionally complex and run deeper than the mechanics of a portfolio. And the way that your clients understand those issues varies. Many women process information circuitously. Studies have also shown that women tend to conduct more research before investing, are naturals at keeping a long-term focus and prefer to learn in group settings.
Before you can serve female investors well, take the time to understand how they want to work with advisors like you.
I help advisors refine their client experience, branding and messaging to better connect with niche demographics, especially women investors. I recommend that you start with these steps:
1. Get laser-focused. Saying that your firm “specializes in serving women” is like ordering a piece of toast at brunch (I love analogies, so bear with me). Rye bread is not wheat bread – and women aren’t just women. Like men, women have a diverse array of experiences. Specializing in a micro-market like divorcees, entrepreneurs, widows or attorneys allows you to more deeply understand – and therefore, better serve the needs of – your female clients, in the way that is best-suited to their situation.
2. Audit everything. From the look and feel of your client communications, to the website messaging that describes your firm and services, take a step back, assess how you position yourself in the marketplace and determine whether you’re truly connecting with the women you want to serve. Advisors often build processes from a one-dimensional perspective – and that creates barriers to entry. Start by connecting your value proposition to the life goals and challenges that women face. Making even the most minor changes can go a long way toward bringing female investors into the fold.
3. Offer opportunities to educate and engage. Create environments that allow your female clients to ask questions in a safe way. I mentioned earlier that women prefer to learn in group settings – so host a special event that’s focused on an issue your female clients may be facing, like raising charitably minded children or negotiating for a pay raise at work. Provide opportunities that allow you to share educational information with your female clients in the settings in which they feel most comfortable and confident.
Sylvia Ann Hewlett – an author, economist and the founder of the Center for Talent Innovation – recently proclaimed that, “The biggest emerging market in the world is not China; it’s women. We don’t pay this market the respect it deserves.” Are you ready to lean in?
Gretchen Halpin is the co-founder of Beyond AUM, which provides marketing, growth and technology solutions to financial advisors to drive business success. Over the course of her 25-year-career, Gretchen has founded more than five businesses, in addition to serving as the chief strategy officer for one of the financial services industry's leading wealth management firms. She has been featured in Financial Advisor Magazine and Forbes for her insights and has served as a speaker at the National Association of Personal Financial Advisors conference and Financial Advisor Magazine’s Invest in Women conference.
Read more articles by Gretchen Halpin
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
