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Why you should target female clients

January 30, 2014 by

As the definition of the traditional family changes, so does the traditional female role.1 More than ever, women are taking leadership roles in the home, at work and in the marketplace.2

Yet, the financial services industry has been slow to accept women in their new role as chief financial officer of the household.

In my previous blog, “Who bought the kitchen table,” I discussed the failure of the financial services industry to connect with women, and cited the need for effective communication in order to acquire and retain female clients.

The “Women, Money, and Power Study” commissioned by Allianz Life Insurance Company of North America (Allianz) supports these findings, and identified four factors financial professionals must understand before effectively communicating with women.3

The first step is to understand why you should target female clients. The Allianz study gives several reasons:3

  • Lack of knowledge: The study discovered 90% of the women respondents feel at least somewhat financially insecure. Help women feel good about their financial decisions in your effort to become a trusted resource.
  • Referrals: Women typically have a larger circle of influence than men and tend to give more referrals. By gaining her trust, you may get access to her networking system.
  • Loyalty: Acquiring a female client may take more effort initially. But, if you build a relationship with her, she’ll be a loyal customer.
  • Women and legacy: To women, legacy is more than wealth transfer. It’s about handing down values, traditions and memories. Take a holistic—not just a financial—approach.
  • Impact of Divorce: Many women say that divorce changed their financial outlook. These divorcees may want to handle their money differently and could potentially be good prospects.
  • Mortality rates: Women live an average of 5 years longer than men.4 So, not only are women assuming control of more wealth; they will likely be responsible for their wealth longer.
  • Small-business ownership: Women-owned businesses have shown rapid growth. This represents an emerging opportunity for financial professionals.

Now that you understand why you should target female clients, we are ready for the next step in effectively communicating with women—understanding how life events influence financial decisions. Watch for my next blog in the series.

1 Allianz Life Insurance Company of North America, “The Allianz Women, Money, and Power Study: Empowered and Underserved” (2013) available at http://www.biltd.com/CarrierMaterial/Allianz/ENT-1462-N_FINAL.pdf.

2 FleishmanHillard and Hearst Corporation, “Women, Power & Money: Wave 5″ (2013) available at http://cdn.fleishmanhillard.com/wp-content/uploads/meta/resource-file/2013/women-power-money-white-paper-1374761552.pdf

3 Allianz Life Insurance Company of North America, “Help your clients find solutions that fit.” (2012) ENT-324-N

4 National Vital Statistics Reports, Volume 61, Number 3, September 24 2012.

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Kristine Garrett

Kristine Garrett joined Brokers International in 2012 as a Marketing Project Manager. She brought with her a strong background in sales and marketing that she uses to write helpful blog tips and marketing ideas to grow your business. Kristine shares a hobby farm near Panora with her husband, farm critters and beautiful bulldogs. 11854-1/30/13

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Who bought the kitchen table?

July 11, 2013 by

If you knew the key to capturing a portion of the largest emerging market in the world, how could that information benefit your business?

In this article, you’re going to learn who that market is and the key to reach them based on a study by Allianz Life Insurance Company of North America.

Who is this market? Women.

Women make up the fastest growing group of consumers worldwide,1 and are involved in most of the financial decisions in the home.2  Research supports those statements, but if you gave it some thought, you might come to the same conclusion.

In your home, who decides what doctor you visit; what detergent you use; or the brand of cereal on the kitchen table? In fact, who bought the kitchen table? Chances are, it was a woman who made these decisions and purchases.

Women are responsible for an estimated 85% of consumer buying decisions.3 We aren’t just talking about small buying decisions either. The Allianz “Women, Money, and Power Study” states that 49% of women say they have a great deal of responsibility for making major financial decisions.4

You would think that businesses would be flocking to cater to a market this size with so much financial decision-making power. However, this is an area where the financial services industry falls flat.

The study also “found that women were more dissatisfied with the financial services industry than any other that affected their daily lives.”1

Wow! How can it be that an entire industry is failing so miserably to connect with women? They must be missing the “key.”

What is the key? Communication.

According to the study, “The key to acquiring and retaining female clients is effective communication.”

A woman seeking help from a financial professional needs someone to help her feel financially secure. To do that, you must know how to speak to her.

The study discussed four crucial things to understand before effectively communicating with women:

  • Why you should target female clients;
  • How life events influence decisions;
  • Why you need to communicate with women differently than you communicate with men;
  • Who women are financially.

These topics will be the subject of the next four installments of this series. We will walk through the study’s results, and help you learn how to better connect with this financially affluent group.

Click here to download the Women, Money, and Power white paper.

 

1 Allianz Life Insurance Company of North America, “The Allianz Women, Money, and Power Study: Empowered and Underserved” (2013) available at http://www.biltd.com/CarrierMaterial/Allianz/ENT-1462-N_FINAL.pdf.

2 Prudential Research Study, “Financial Experience and Behaviors Among Women” (2010-2011), available at http://www.prudential.com/media/managed/Womens_Study_Final.pdf.

3 The AIO Group, Mass Affluent Women Buyers, 2011.

4 Allianz Life Insurance Company of North America, “Help your clients find solutions that fit.” (2012) ENT-324-N

 

Kristine Garrett

Kristine Garrett joined Brokers International in 2012 as a Marketing Project Manager. She brought with her a strong background in sales and marketing that she uses to write helpful blog tips and marketing ideas to grow your business. Kristine shares a hobby farm near Panora with her husband, farm critters and beautiful bulldogs. 11854-1/30/13

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