To paraphrase Rudyard Kipling “…. keep your head when all about you are losing theirs.”
That is certainly apropos given the recent market mayhem. As a financial advisor, you know that the best action when markets tank is to take no action at all. But saying “stay the course – this too shall pass,” is not always enough for clients. Some are scared and demand immediate action to safeguard their account adding more stress to an already trying situation.
Not coincidentally, the clients who are the most demanding are often the same people you actively pursued just a few months ago – and many are men. While these clients may have been quick to sign with you, they are also the ones who are most likely to leave you when the going gets tough – because as a general rule, men tend to focus on rates of return and “the size” of their portfolio. Women, on the other hand, invest for the long term and are more loyal. It takes more than a blip in the market, even a big one, to unhinge them from their long-term goals.
One of our favorite stories is about a male advisor who was on the verge of quitting the industry. He told us he simply couldn’t handle the daily pressure some of his clients subjected him to – especially in a volatile market. His epiphany came one day sitting with a female client – he realized how pleasant it was to work with her. She actually listened to him and appreciated everything he did for her. Right there and then he decided to build his practice around female investors. Now he tells us he’s never been happier.
You may not be able to control the markets but, like our advisor friend above, you too can build your practice around women – and each time the markets take a big downswing, at least you can rest assured that your clients won’t come running to you to sell everything.
Women Are Ideal Clients in volatile markets and good ones too…
They have lots of money to invest – in fact they’re likely to control most of the wealth in just a few years.
They are looking for and need help managing their new-found wealth.
They appreciate everything you do for them – they are less fixated on rates of return, rather they focus on their long-term life goals.
Once they trust you and understand there are likely to be market downturns, they won’t second-guess your recommendations and demand you do something each time the market wobbles.
Another compelling reason to work with women – if they like you, they refer you to friends and family – twice as often as men do.
Start attracting more female clients and you can be sure the next time there is a market correction your phone won’t ring off the hook with angry calls.
But focusing on female investors isn’t as easy as just switching your target to women because connecting with women takes a different approach. It’s not a better or worse way of prospecting…it’s just different from how you’ve been doing it.
Related: What Not to Say to Women With Wealth