Today, women are working more, earning more and taking an increasing role in planning for their families’ security.
For MFDs, a focus on women can result in a solid client base. In this context, LPL Financial has released a whitepaper titled ‘Strategies of attracting and retaining women clients’ to help MFDs understand women clients better.
Let us look at some key highlights of the whitepaper.
Women are becoming decision makers
Today, women play an active role in determining how their families save, spend, invest and plan for the future. In addition, most women spend at least part of their lives on their own as sole earners, after divorce or as widows taking full responsibility for their finances.
Women are more loyal, profitable clients
Women tend to maintain long term relationships with people they trust. In addition, once they believe in MFDs they willingly give referrals.
They may take a long time to do research before they settle on a course of action and often consult with a pool of experts. They value good communication and service and focus more on finding an MFD they can trust.
Women’s financial empowerment creates opportunity
Women clients seek information and education that can empower them to make their own decisions. By providing your female clients with opportunities to expand their knowledge and by explaining their choices in clear, simple terms, you can forge strong relationships and increase the size and stability of your book of business.
Recognize women as equal partners
Make sure that you are treating both male and female clients as decision-makers, even if you are initially approached by one partner. This is because today women share equal financial decision making responsibility with their partners.
MFDs should encourage open dialogue between spouses. Ask them to talk to each other about their financial goals before making investment decision.
Don’t talk numbers
Since women connect so strongly with the emotional aspects of money, MFDs must learn to go beyond the numbers- only financial discussions to create meaningful personal connections. You should start your conversations with life and family issues.
Women may take more time to make investment decisions
Women are often more deliberate and take more time in making investment decisions. They may want to confer with different experts and do their own research before reaching conclusions.
Once that investment of time and energy is made, women clients invariably offer significant long-term reward in terms of loyalty and referrals.
Create a group
Women are more social and they like to be a part of a small group. MFD can create a club where women get together on a monthly basis to talk about money.
