A shift in the financial market is taking place, and it seems many advisors are choosing to ignore it, despite the unfavorable affects it may have on their business.
Not only do most today's women control their own finances, they're also the primary consumer and positively or negatively influence 85 percent of all purchases. So, if you think it's unlikely that you will need to worry about appealing to women as a financial advisor, you're very wrong.
The "classic" selling techniques are handicapping the success of financial advisors. Historically, the financial services industry has been trained by men to primarily advise other men. Advisors have likely been trained to understand a man's logic, a man's needs and a man's concerns. The big issue is that women are most definitely not like men.
The worst industry serving women
New statistics suggest the financial services industry needs a change and advisors may struggle with it, especially if they're comfortable with the status quo. The Harvard Business Review recently revealed that the financial services industry has been rated the worst industry in serving women. More than 90 percent of women report an overwhelming unhappiness with the financial services they're receiving, stating that their advisor is unsympathetic and detached when it comes to understanding their needs. The lack in desire to change is a major contributor as to why the industry is falling short in customer satisfaction.
When working with women, advisors should:
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- Clear their schedule in order to give the client 100 percent attention with absolutely no interruptions. Women want to feel engagement, a minor distraction may leave women feeling slighted.
- Keep eye contact and listen while the client is speaking. Women want to know that their advisor is present and interested in hearing their expectations and concerns.
- Save financial advice until addressing their wants, needs and fears. Let everything the client said really sink-in before providing financial suggestions.
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Advisors should slowly implement these practices to help increase positive customer satisfaction within the financial services industry. It's especially important that women clients are satisfied because women will be in control of a large portion of the country's financial assets in just a few short years.
Related: An undersold market
Historically, the financial services industry has been trained by men to primarily advise other men. But that sales model is no longer well-suited to today's clients and prospects. (Photo: iStock)
Women with wealth are adding up
Women worldwide control $14 trillion in personal wealth and are expected to control more than 60 percent of the United States' wealth by 2030. Last year alone, six out of 10 bachelor's degrees were earned by women and GoGirl Finance recently reported that by 2028, the average American woman is expected to out-earn the average American man. These are hard-hitting statistics that the financial services industry can't afford to ignore any longer.
