Based on a research report from JP Morgan Asset management conducted on a sampling of the UK high net worth population, we uncover the 6 main themes that emerge if a wealth and investment manager wishes to effectively reach women in their marketing efforts.
Background:
JP Morgan Asset Management conducted a research study 1 of the UK high net worth population, including 163 men and 37 women, from which a number of gender-specific differences emerged. Based on my further analysis, we present the perspective of 6 main themes that a wealth manager should be aware of when marketing services to women.
6 Themes – Marketing Wealth Management Services to Women:
- Geographical proximity matters: 36% of women stated that they favor a wealth manager that is close to where they live. Investment managers should be sure to include geo-targetting in their search engine marketing as well as social media efforts.
- Increase investment confidence through learning and education opportunities: Only 8% of surveyed women stated that they are confident making all the investment decisions. Investment managers should be cautious of pushing a full discretionary relationship and instead, provide opportunities such as workshops and online events where women can be exposed to investment themes and skills in order to increase their confidence over time.
- Provide “value-add” services: 27% of women stated that networking and financial education for dependents are desirable services. Establishing exclusive social networks and events as well as educational resources for children could resonate quite well when marketing to women.
- Stress wealth preservation over capital growth: Only 42% of women place capital growth as their top wealth management priority. Likely tied into the lower level of investment confidence, it is clear that investment managers need to market less high-risk/complex investment services and instead stress a wealth preservation message.
- Leverage ethical and socially responsible portfolio management practices: 41% of women are looking to increase their exposure to ethical and socially-responsible investments. Wealth managers should make an effort to describe the portfolio management process and how investment mandates, such as avoiding countries with human rights violations, are accommodated.
- Provide various payment for service options: Over 45% of woman strongly support a performance-based fee payment option, but overall show a desire for a wide range of fee options.
Conclusion:
1.) Wealth management and investment management firms can benefit by aggressively segmenting their marketing efforts and messaging to account for the distinct preferences that women display.
2) Wealth manager’s marketing campaigns need to accommodate for themes that go beyond pure investment management, as 3 of the 6 themes presented fall outside of what most wealth managers focus on.
There is a large opportunity for wealth management firms, both large and small, to more effectively market their services to women and deliver messages that resonate.
Do you agree or disagree with any of these themes?
Sources Cited: 1 – JP Morgan Asset Management – The Wealth Management Report
Mar 31, 2010
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1:14 pm
Adam, I really appreciate this post.
I’m not sure if you saw it, but there was a recent New York Times article (http://www.nytimes.com/2010/03/14/business/14mark.html) discussing differences in the way men and women invest their money and react to volatility in the markets. It seems rather natural that if men and women invest differently, they will most likely respond differently to financial marketing campaigns.
The third theme, stress wealth preservation over capital growth is in line with the NYT article which noted that Vanguard’s research had shown women to be more risk-averse than men. This too should be noted when marketing wealth management to women.
Very interesting!
.-= Samantha´s last blog ..The Economy Rap =-.