3 reasons to focus on women investors
Many of the advisors I’ve been meeting with in the last few weeks have mentioned they’re focusing on growing their client base. Invariably, I encourage them to consider engaging women investors for 3 key reasons:
1. Women entrust more of their assets to their advisor
While women have only about 77% of the assets men have on average,1 women’s revenue per dollar invested with their advisor is larger than that of men because women place a larger percentage of their assets with their advisor and stay with their advisor longer.
2. Women may be loyal clients
Why do women entrust more assets and stay with their advisor longer? It’s all about trust. Trust is one the top drivers of investor satisfaction. And it makes sense; trust is the foundation upon which the rest of the relationship is built. Women want you to listen, connect and understand all aspects of their life – not just their financial life. Don’t “think about” asking about their families, their work, and their passions, “do it”! It will build deeper connections. For ideas on how to build trust, consider these three deceptively simple steps provided by Sandy Cavanaugh, CEO of Russell’s U.S. Private Client Services business.
3. Women can generate more referrals
Once you earn a woman’s trust, it’s likely to pay off – in the form of advocacy. Research shows that women are three times more likely to refer a trusted product or service than men. 83% of women will recommend a brand they trust and 70% are willing to pay more for a brand they trust.2
I’m the perfect example of this; I had windows put in my house four years ago. We had such a good experience with one (of four) salespeople that I – much to my husband’s embarrassment – have tried to convince any and all of my friends to work with my window guy. If a friend so much as utters the possibility of looking at windows, they get his contact info in their inbox because my experience with him was that positive. I’ve heard that story in different iterations from women across the country, for services ranging from doctors, dentists, hair stylists, accountants, and…financial advisors.
1 Based on survey data from Cogent ReportsTM
2 Source: Barbara Kay and Anthony DiLeonardi, “The $14 Trillion Woman: Your Essential Guide to Engaging the Female Client.”