Without a feminine compass, venturing into the lucrative market of women and wealth (while necessary for growth) can be dangerous, especially for male advisors. Over the next decade, women will be the recipients of the greatest transference of wealth in our nation’s history.
While this shift presents an enormous opportunity for financial advisors, statistics tell us women are not happy with the financial services industry and this could lead to massive attrition.
This combination of wealthy women and their less-than-stellar impression of financial advisors is already forcing changes within the financial industry. According to The Gender Gap in Financial Literacy 2015 study, while more women are seeking retirement savings projections and utilizing asset allocation models than ever before, it seems they are doing so through their company retirement plans. So why not through advisors? Women’s desire to plan and prepare for the future is natural to their nurturing and multi-tasking nature making them ideal candidates for financial advisors, yet there seems to be a disconnect.
The challenge for advisors today is that the approach that worked well for her husband, father or brother does not translate well for the wealthy woman who is representing her own interests, thus, change in the methods of effectively engaging women is eminent and necessary to future growth for advisors.
Advisors today have two choices:
For many advisors— especially men—venturing into this untapped market can seem daunting, without a roadmap or feminine compass, trying to appeal to women has the potential to cause more harm than good.
While the desire to provide women with the environment they want may be sincere, the fear of potentially alienating women can prevent advisors from moving forward.
In reality, this fear can be real. Most women won’t tell you they are not happy, they often won’t say they felt disrespected, or that you are speaking over her head making her feel less than comfortable. No, she won’t tell you, but she may tell all her friends and family about this one miserable experience potentially damaging your reputation.
Achieving success in the women’s market is not rocket science, but it does require a new approach that transforms the way you communicate and educate women.
Prospecting, selling and closing while highly productive in a more masculine world does little to build productive relationship with women, often turning them off. A greater focus on building relationships, inspiring and motivating generates more positive and productive results with women.
Incorporating a more feminine business model, advisors are able to develop trusting relationships with women faster and more effectively. Using this new model, advisors begin to inspire women to consider other options and opportunities without selling her (which she abhors). And lastly, by implementing a more female approach advisors gain the skills necessary to motivate women by giving her a voice, listening to what is truly important to her and respecting her desire to become more confident in her journey toward financial independence.