In contrast, new entrants are betting on innovative, but unproven strategies. SheCapital is a recently launched robo advisor exclusively focused on educating and serving women through their life stages. Aligned with its focus on education and empowerment, SheCapital donates 10 percent of its profits to She’s the First, a nonprofit organization that sponsors girls’ education in developing countries, helping them to be the first in their families to graduate from school. They are appealing to women’s desire to support firms and organizations that give back to society. It is too soon to tell whether this is a formula for success.
High-profile female Wall Street executives have also entered the arena. Fortune reported in September 2015 that Sallie Krawcheck, former banking executive, has raised $10 million in funding to launch Ellevest, a new digital investment platform for women.
The successful formula will be one that recognizes that all women do not have the same needs and should not be treated as a homogenous group. The needs of women vary significantly based on personal situation, lifestyle choices and sources of wealth. Marketing to women is a combination of science and art—the use of targeted and differentiated marketing strategies will have greater success in pursuing this underserved segment.
What Is The Payoff?
Armed only with anecdotal results on pockets of success, these firms are betting that their targeted strategies will result in increased share of the women segment as well as greater referral and retention rates. In order for firms to succeed in this way, there needs to be a culture shift across the board to see women as major buyers and decision-makers. All the WM firms we interviewed across the US and Canada highlighted that they are struggling with collecting and tracking metrics regarding the success of women-related initiatives. WM firms will benefit from greater focus on data analytics, which is the science behind the art of client acquisition and retention strategy and ensuring ROI.
Nalika C. Nanayakkara is principal and wealth management practice leader at EY (formerly Ernst & Young).