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Beware of the pink trapBeware of the pink trapBeth Braverman, 10/11/2019

More women than ever are earning graduate degrees, leading Fortune 500 companies,and spearheading financial decisions large and small. So why do so many financialadvisors act like nothing has changed?

“Demographics alone are enough of a reason to pay attention to women," says KristinPetrick, TD Ameritrade Institutional's Managing Director of Marketing andCommunications. Women make up half the population, and they control about a third ofall private wealth—a share that's set to grow. “Add in their increasing wealth, influence,

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and buying power, and it's an imperative."

Even so, many in the financial services industry continue to ignore women when itcomes to their outreach. In 2017, financial services companies spent 13 times moremoney—13 times!—advertising their products in male-skewing magazines than inmagazines targeting women.

Part of the hesitance to devote time and marketing dollars to female clients andprospects may reflect uncertainty about the best way to do so. Or maybe it's as simpleas some advisors not yet being aware of the increasing clout women hold in makinginvesting decisions. Either way, marketing to this increasingly powerful group requires adifferent way of thinking. Communicating the different issues women face andunderstanding their mindsets—without being patronizing or pedantic—is hard.

Let's put it this way: Pink-washing your existing materials isn't going to cut it. Read onfor tips on targeting and engaging with female clients and prospects in an effectiveway.

Focus on the female clients that you already have

Start by making sure you're delivering the best possible service and experience to yourcurrent female clients, including those who are part of a heterosexual couple and maybe the second name on a client account. Think carefully about how you treat the femalehalf of those couples. Invite both spouses to all meetings, make eye contact impartially,and proactively ask each spouse questions. If you communicate via email or text, askcouples whether they'd both like to receive all messages.

Truly connecting with all of your clients is key to making sure that women remain withyou over the long term, both as part of a couple and potentially down the road as awidow (a statistically likely event). Plus, if they feel valued and heard, they're more likelyto recommend you to acquaintances—each of those women is a potential referral toanother female client. More than 40% of women depend on referrals from people theytrust when choosing a wealth manager.

Check your assumptions—but understand who you're talking to

The best way to help your clients meet their long-term goals is to listen carefully whenthey explain what those goals are. That sounds straightforward, but more than 40% ofU.S. women don't feel that their advisor understands them. Unconscious biases orgender stereotypes, from both male and female advisors, may be preventing deeperconnections, says Emily Joles, 27, an associate advisor at Schwallier WealthManagement.

Joles uses herself as a case study. “Someone might look at me and just assume that Iwant to get married and have kids," she says. “But that's not the case. I'm working on mycareer right now."

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So check your assumptions at the door, and tailor your conversation to each client'sgoals.

Although generalizations are dangerous, it's also important to note that women do havecertain needs that are objectively distinct from the needs of men. Women tend to livelonger and earn less money than their male peers, they're more likely to take time out ofthe workforce to care for their children or parents, and, largely because of their longerlife spans, they face higher lifetime health care costs.

But it's not all about the numbers. Research has shown that women want differentservices—and sometimes, results—from their advisor than men do. While male investors'top priority is to outperform the market, women's more important investing priority isfulfilling their personal goals. As an advisor, that means you should make sure thatyou're focused on understanding the goals and dreams of your clients, and making plansto achieve them, even if that means taking a less aggressive approach to investments.

“When you're marketing to women, it's not about the investment sale, it's about solvinga problem," says Kate Healy, managing director of Generation Next for TD AmeritradeInstitutional. “Women come in, and they're thinking, 'I don't want to be a burden to mychildren. I need protection. I need to maintain my standard of living.' They're trying toaddress a certain problem. When your messaging focuses on that, it's going toresonate."

Choose a niche

The sheer number of women makes it impossible to be knowledgeable about all of theirspecific needs, and attempting to do so can be an immediate turnoff. Rather thanmarketing to all women, consider choosing one segment of women on which to focusyour efforts. You might cater to single mothers, for example, or widows, or femaleentrepreneurs. Tailoring your messaging, and your product delivery, to a specific groupof women allows you to target your marketing efforts more effectively, and over timeyou can develop valuable expertise as well as a connection to the community you'reserving.

“Having a niche doesn't mean that 100% of your clientele has to be in that niche, but itmeans that you understand their needs well," says Dan Sondhelm, CEO of SondhelmPartners, a consultancy for asset managers. “Then you can tell that story over and over,and people will start to see you as the expert."

Make sure to communicate that niche in your marketing materials. Make it explicit onyour website, that you specialize in women rebuilding after a divorce, for example. Thenwomen in that position will know immediately that you're the right advisor for them.

Be a thought leader

Show your value to your potential audience by providing content that showcases your

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expertise. Sondhelm suggests having a blog on your website and regularly updating itwith posts relevant to your market. Those posts can be short items you've written,podcasts, videos, or links to local or national media appearances. If you're targeting acertain market sub-segment, focused content will demonstrate your expertise and setyou apart from the generalists.

Once you've got the content on your site, you can promote it via social media, targetingyour niche audience, and use it in email marketing campaigns to current andprospective clients. Blog posts will also boost your site's search engine optimization(SEO) ranking for the keywords within your niche.

Feature women in your marketing materials

Make it easy for women to picture themselves working with your firm. That means thereshould be women featured prominently all over your website, brochures, and any othermarketing materials. If you're using stock photos, make sure they show women on bothsides of the desk.

Research has long shown that people respond to imagery that reflects them, andfinancial advice is no different. More than 40% of women say that they want to seemarketing materials from wealth managers featuring people who “look like them" andthat mention issues they're dealing with.

Champion diversity within your walls

It's not enough for marketing materials to make your firm look diverse, especially ifyou're a male advisor hoping to serve a female clientele. To appeal to today's women,the firm should actually be diverse, and that goes beyond gender to include other formsof diversity, including age, ethnicity, and other demographics. If a woman is scrollingthrough your website and sees that the entire management team is white and male, shemay be inclined to look elsewhere.

“I just want to know that there are people there who will get me," says Janelle Ward-Butz, director of strategic relationship management for TD Ameritrade Institutional.“It's not that a man can't understand a woman, but it's important for women toparticipate in the overall client experience design, given all client bases are made up ofboth men and women."

TD Ameritrade and all third parties mentioned are separate and unaffiliated companies,and are not responsible for each other's policies or services.

Sources:

“Winning Over Women in Financial Services," Kantar, Oct. 3, 2017. (Found here.)

“New Strategies for Nontraditional Client Segments," Boston Consulting Group, June

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TopicsTopics

CLIENT EXPERIENCE

GROWTH

MARKETING

AuthorAuthor

Beth Braverman

Related InsightsRelated Insights

15, 2016. (Found here.)

“Harnessing the Power of the Purse," The Center for Talent Innovation, May 2015.(Found here.)

“Women and wealth: The case for a customized approach," EY, 2017. (Found here.)

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