How Financial Advisors Can Help Retain Female Clients

No advisor wants to hear the words: “You’re fired!” — but you are more likely to hear them when a female client becomes a widow. According to the guide Women Are Not a ‘Niche’ Market, 70% of women fire their current male financial advisor after the husband dies, and 90% of those women hire a female advisor. Considering that women control $18.4 trillion in consumer spending and 30% of global wealth, this is a segment which advisors can’t afford to lose. But it’s not all bad news. According to the Journal of Financial Planning, “Women believe advice from a financial advisor is the most important factor when making investment decisions.” There are steps you can take to retain these women and be the financial advisor they seek, and you can start that process now.

Treat Women as Equals
If there is something women hate, it’s being invisible. If you are meeting with a couple, make sure you speak with both parties. Ask each of them questions and allow both to answer. When scheduling client meetings, be sure to ask that both parties attend. Going above and beyond to do this in the early stages of your interactions can pay dividends later.

Zone In on Her Life Stage
A great way to find out what products and services your client might be interested in is to start by defining her stage of life. Is the client a single professional, a married mother, a divorced investor, a widow, a caretaker, etc.? Once you establish this baseline, you can begin asking questions to zone in on her specific needs and how that can relate to her finances.

Determine Her Goals
My experience with female clients has shown overwhelmingly that women are more interested in financial peace of mind than in wealth accumulation. However, you shouldn’t make assumptions about what any individual’s goals are before you have the opportunity to meet one-on-one. Women, just like men, have varying degrees of financial needs, so you should find out what your client’s specific goals are before you start suggesting products and services.

Educate and Empower
Women want to be educated by their advisors. They want to learn what products might be best for them and why. They expect their advisor to educate them about financial responsibility and not push a product simply because the rate of return is high. Remember, the goal for most women is to become financially independent, not solely to accumulate wealth, so you need to show them how to achieve this goal. This approach will take more time on your part but is worth the investment in building the relationship. Most women make the financial decisions for their families. And by 2019, approximately two-thirds of America’s wealthy will be female, according to Debra Nichols, Director of Women’s Financial Advisory Services at First Union Corporation.

Advisors know how important referrals are to their business, so it’s a no-brainer that you want your female clients to rave about you! Women tend to share their experiences more openly and more frequently than do men. According to a Spectrem Group survey conducted earlier this year, “Women also rely far more on the advice of friends and family members when making investment decisions.” If you’ve done a stellar job in assisting your female client with her financial needs, you will more than likely receive some great referrals.
The women’s market is rapidly changing. By targeting this niche area, advisors can generate new business and capture more share of the lucrative $1 trillion women’s market. As always, feel free to e-mail me with any questions or concern.

Russell Bailyn

Wealth Manager
Premier Wealth Advisors, LLC
14 E 60th Street, #402
New York, NY 10022
P: 212-752-4343 *231
F: 212-752-7673

Securities offered through: First Allied Securities, Inc., a registered Broker/Dealer. Member: FINRA/SIPC. Financial Planning offered through First Allied Advisory Services & Premier Wealth Advisors, Inc. Premier Wealth Advisors, Inc is a Registered Investment Advisor. First Allied Securities & Premier Wealth Advisors, Inc. are not affiliated entities.

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × one =

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>