Affluent household women influence financial decisions

Next time when you meet an affluent client either for prospecting or reviewing portfolio, try to make a concentrated effort to involve the women of the household. But remember to make sure that expectations of both are met. An online survey of more than 400 investors, all with over $500,000 in investable assets, reveals that the women of an affluent household plays an important role in taking financial decisions. The study was done by Oechsli Institute, a training firm which caters to financial advisors in US.

Although the study was conducted in US, the findings are of great relevance to Indian advisors. The study gives interesting insights into the way advisors should approach affluent clients, their psychology and expectations.

The study suggests financial advisors to interact with spouses on a personal level like face-to-face interaction and non-business phone calls

The Oechsli Institute found that having a business and personal relationship with both spouses of an affluent family improves performance ratings of advisors. It also strengthens client loyalty and increases their willingness to provide personal introductions to family members, friends, and colleagues.

The research shows that 77% of affluent women prefer a financial adviser who truly understands their family needs. Also, 63% of affluent women believe that financial advisers should protect their family’s wealth and investments.

Here are some other parameters in which both affluent men and women have responded

The research says that these statistics should be a warning signal to advisors that there is much work to be done to strengthen these relationships. Without the foundation of a strong relationship with existing affluent clients, success in relationship marketing (expanding into your clients’ spheres of influence) will be extremely difficult.