Women do not require a completely different service model, but their views diverge in a number of key areas, including how they see their relationship with money. Yes, performance matters, but how a female investor achieves her bottom line matters more. Decisions are intrinsically linked to her financial goals and priorities, and are often values-based. (State Street Global Advisors’’ survey, “Assessing the Landscape: Female Investors and Financial Advice.” 2015). These are important differences in developing successful client relationships.

But demographic segmentation alone is not enough. The individual’s past experiences, current mindset and expectations for the future shape her financial needs and preferences beyond common gender traits. Applying psychographics — personality, values, opinions, attitudes, interests and lifestyles — is one way to enhance the client experience by focusing on what drives the individual. That starts with a greater understanding of her life journey, including the strengths and challenges she brings to financial decision-making.

From Misjudged And Underserved, To Empowered And Thriving

Women still face unique financial challenges, even as their professional standing, pay parity and economic status continues to improve. The gender wealth gap is real — and it’s not just due to risk aversion. For example, women who leave the workforce because of family responsibilities — to raise children, care for parents, and care for a spouse — incur a cumulative pay gap that can add up to over $1 million. (Source: Merrill Lynch study, conducted in partnership with Age Wave, “Women and Financial Wellness: Beyond the Bottom Line.” 2018; Age Wave calculation based on Bureau of Labor Statistics, TED: The Economics Daily, Median usual weekly earnings of women and men who are full-time wage and salary workers, by age 2016 annual averages). This puts many women at an enormous disadvantage, adding to all of the usual challenges facing investors as they build and preserve wealth.

Genuinely understanding the female investor’s financial life journey focuses on the individual’s distinctive needs. Take retirement for example — a one-size-fits-all solution will not work here. Women must weave longevity, work patterns and financial commitments into their planning strategies, not just mitigate health care, sequence of returns and inflation risks.

In many ways, the female investor is an ideal client: She has realistic yet unmet goals, she seeks an advisor who will help guide her decisions, and her investable assets are projected to grow significantly. It’s time that our industry stops looking for a new marketing angle to unlock the potential she represents and instead focus on the basics of relationship management — achieving those unmet needs with a client-centric approach that provides the experience she seeks.

There is no black and white (and definitely no pink) when it comes to money management. But there is an opportunity to capture investable assets by empowering women and helping them take control of their worth.

Overcoming The Experience Gap

We can build stronger relationships with female investors by prioritizing the service model, coaching advisory talent, and personalizing the financial planning process.

• Ask more questions: Develop a deep understanding of her goals and priorities