What You Need to Know
- Focus on a segment of the female investor market and tailor your approach.
- Foster a sense of collaboration.
- Offer multigenerational planning services and financial literacy programming.
Financial advisors can attract, retain and strengthen client relationships with female investors, an increasingly influential but underserved market, by understanding how to serve their needs, according to a white paper released Tuesday by Cerulli, in partnership with Schwab Asset Management.
Cerulli notes that women represent 51% of the U.S. population; they have surpassed men in college education rates and are increasingly assuming corporate leadership positions.
The research lays out three ways advisors can enhance their client experience for female investors.
1. Choose a market segment and tailor your approach.
To capture women’s business, advisors have to identify a market segment that best aligns with their services, processes and personal passions. True, women are not a single market, but within a specific demographic, they are more likely to share interests, needs and preferences.
After identifying a segment based on profession, life stage and other common attributes through which they can connect with prospective female clients, advisors can develop a tailored approach and set of resources that addresses these investors’ needs.
“Ultimately, a clear segmentation strategy translates to clarity and intentionality in all other aspects — from authentic business development to targeted service delivery,” Marina Shtyrkov, associate director at Cerulli, said in a statement.
2. Encourage open communication.
The research found that 1 in 5 female investors consider the relationship with their advisor and the advisor’s trustworthiness the driving force behind overall satisfaction. By normalizing and encouraging questions, and routinely checking for understanding, advisors are more likely to connect with female investors of any level and convey a collaborative tone.