CAMS report shows that 24% of 1.70 lakh millennial investors in FY 2019 were women. Further, a survey conducted by Scripbox reveals that 67% of women were jointly involved with their spouse in money matters. These numbers point to the increasing participation of women in finance and a growing business opportunity for MFDs/advisors. In this context, today’s episode of Lessons from the Masters addressed the needs and preferences of women clients.
In conversation with K.S. Rao, Head - Investor Education & Distribution Development, Aditya Birla Sun Life MF, Sapna Narang, Managing Partner, Capital League, shared what women clients seek from their MFDs/advisors. Sapna has authored the book, ‘Investing is the new cooking’, and shares that investing today is a basic skill that all women must know.
Here are the key highlights of the session.
Understanding women clients
Owing to education, employment, financial awareness and literacy, women today not only plan their finances but also influence family decisions on money matters. As more and more women are entering the job market, there exist huge business opportunities across all age groups and profiles.
Understanding the social conditioning of women clients is an important task. Millennial women clients have typically seen a progressive era and are more open to discussions. The middle age bracket exhibits a mix where many women are normally involved in making investment decisions. Lastly, elderly women clients who weren’t actively involved in finances earlier, require more handholding and empathy. They appreciate more time and attention from their MFDs/advisors.
Leaving the perceptions behind
There is a general perception that women lack financial knowledge, are risk-averse and do not take interest in finance. MFDs must leave such perceptions behind while communicating with their women clients.
While traditionally managing finances was a man’s domain, with access to information, social media, education and work opportunities, things are changing as more and more women are showing keen interest. Moreover, as compared to their male counterparts, women typically underplay the knowledge they possess. Just like for any other client, MFDs must take into account the life experiences of women clients to understand their preferences and investment behaviour.
Acquiring women clients
The basics of client acquisition remain the same. Referrals typically have a high conversion ratio. Women tend to be more social by nature and are normally a part of some group or kitty. A satisfied woman client is bound to refer her MFD/advisor to her group or kitty.
Moreover, MFDs can plan a brief session with the entire group or kitty to simplify finance while increasing their visibility. Also, being associated with or organising annual events for women and their acquaintances can lay the groundwork for client acquisition. MFDs can also focus on the women member of their client’s family and indulge in family conversations for keeping them involved.
Striking an effective communication
Women clients prefer more touch points in the form of emails/phone calls. For instance, they may appreciate it if their MFD/advisor checks with them if things are clear or they need any further assistance.
Women normally enjoy long conversations and being heard. However, working women typically prefer brief communications over long conversations.
MFDs must exhibit sensitivity, patience and empathy in their interactions with women. Women MFDs appear to have a natural edge here as most women are naturally gifted with soft skills and nurturing abilities.
Click here to view the video.
