The 6 'Cs' for working with women in wealth management

The issue in front of financial advisors today is one of gender. The industry needs to do more to attract women as clients, especially since women have quickly become the sole breadwinners and control the majority of our nation's wealth.

Women are the primary earners in more than 40 percent of American households, according to the BMO Wealth Institute. They control $14 trillion of personal wealth in this country - more than half - and are expected to control as much as $22 trillion by 2020.

Even so, financial advisors have a problem. Women are an underrepresented segment of wealth management, with too few female clients in an industry that historically trends white, older and male.

"The unique challenges faced by women make it all the more important for them to find a financial advisor that they are comfortable with, one that understands their challenges and needs," explained Mary Jo Herseth, national head of banking for BMO Private Bank.

The issue in front of financial advisors today is one of gender. The industry needs to do more to attract women as clients, especially since women have quickly become the sole breadwinners and control the majority of our nation's wealth. Not enough is being done to attract, retain and guide female clients.

The solution is the six "Cs" for working with women in wealth management. As detailed below, the "Cs" are as follows:

1. Commit
2. Contact
3. Connect
4. Convert
5. Care
6. Cultivate

By following these tips, you can take significant steps toward not only adding more female clients, but working with them for a long time to come.

"Advisors have to tailor their strategies to fit women."

1. Commit
The first step addresses a financial advisor's drive. Every advisor should want to add more female clients, but the problem today is that too few actively pursue this demographic. Female and male clients differ greatly - women are more patient and they have a better handle on their emotions than men, for example. Advisors who succeed with both groups tailor their strategies to fit, and they commit to this process. 

One of the biggest problems for advisors is that women just aren't on their radar. You need to commit to prospecting for women, and they need to commit to the advisor-client relationship, in order to achieve the best guidance possible.

2. Contact
Once you make the decision to work with more female clients, you have to actually contact them. For many, the best pool to draw from are not existing prospects - of which there could be too few women - but women associated with the practice in any way. The biggest target audience are spouses and significant others of existing clients. 

The goal at this stage is not wealth management guidance, but an introduction. Start off slow. Existing clients are who you should contact first, if you haven't had very much direct contact with the woman in question. Pitching a meeting to both parties is a fantastic introduction.

Of course, bear in mind that women have different conversational preferences than men. For instance, avoid these faux pas:

• Too much jargon - Ditch the industry-speak for a more general discussion.
• Too salesy - Avoid the sales pitch, instead opting for honest advice. Few women want to be sold right away. 

3. Connect
Next, you have to connect with female prospects. Men and women connect in different ways, however, and this isn't a slight on your communication skills - it's just the easiest way to grow your base of female clients. 

For instance, women want the complete financial picture, but they don't want to be lectured. Patience is a virtue here, as many women prefer to think things over and get all the facts before making a decision. Avoid the seminars and jargon-filled events, instead connecting on a more personal level.

4. Convert
Financial advisors must demonstrate value for female clients, not just flash their credentials. The problem is that many advisors try to coerce their prospects into clients. They talk too much. When dealing with women, the better strategy is to listen, with the ideal talking ratio 80-20: You talk 20 percent of the time, the prospect talks 80 percent.

This can be achieved by asking open-ended questions, such as "tell me about your family?" By doing this, you get your prospect talking, and you get her to say the benefits of working with you - so you don't have to tell her. She'll hire you for her own reasons, and your goal is to get her to realize those reasons on her own. 

5. Care
Naturally, women and men have unique likes and dislikes. As you work with female clients over time, you have to care for them in ways that are different than your male clients. You can walk all the way to the car with them after a meeting, giving you more time to chat. You can send along a note following the birth of a child or grandchild - a gesture that wouldn't do much for most men. 

Learn what appeals to your female clients while they are prospects and novice clients, so you know exactly what to do when it comes time to appreciate their business.

"Female clients can help you grow your business."

6. Cultivate
The final step is to cultivate. Once you've got a solid base of female clients, you want to continue to grow your business. The good news is that women can be the perfect allies to have in your corner. 

For starters, don't ask the straightforward question: "Who else do you know who needs my help?" Instead, be more specific. If your client is asking about a property sale that has been in a trust for herself and her sisters, ask her who's helping her family. Also emphasize that your services will be similar to what you offer her, so it is easy for her to talk about your value.

Women are more likely to give word-of-mouth referrals than men, as well. Where men may respect your services, they also are more competitive with their friends. If you've helped them increase their earnings, why would they share? Women, on the other hand, could easily spread the word of your business, especially if you've demonstrated a knack for working with this gender.

Women's share in personal wealth and power will only increase over time. Now is when more financial advisors need to connect with this demographic, not just to help out their clients, but to grow their business with an eye on the future.

The most important thing you can do is shed some light on their current situation. Ask female prospects how prepared they are to take over finances if their spouse passed away today. The answer is likely not very, which helps them see the value in your services.

To learn more on this topic, register for our Certified Wealth Strategist®program.

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