Selling to the 50+ Woman

by Michael P. Sullivan
50-Plus Communications Consulting

While women are very different, they do have a lot in common as a gender. It is important to recognize their commonalities as well as their differences. Here are just a few of the characteristics that women typically share:

Women are relational - not transactional.

Women want to be educated, not sold.

Women are more likely to be motivated by their family and care-giving responsibilities than financial goals when discussing long-term planning.

Women look for trustworthiness, not gender, in a financial adviser.

Women change advisors less often than men and refer more business.

In the last century, women have been influenced by some powerful cultural and political changes that have affected them to one degree or another; depending on what generation they were born into. Here's a summary of some of those differences, and how they affect their values, concerns and relationship to money:

Elder Women (Age 75+)

Like the men of this generation, women were raised very risk-aversive and security oriented because of their direct experience of the Great Depression. They typically didn't handle money -- their realm of responsibility was the home and family. Their role in earning and managing the finances was supplemental at best.
A large majority of these women are now widowed and have had little exposure to a career or to the family finances - even with simple tasks such as managing a checking account. They tend to be very vulnerable and rely heavily on family members and close friends for advice. For many, maintaining self-sufficiency is the key driver. For those with means, leaving a proper legacy for their grandchildren and great grandchildren is paramount.

Sales Approach: Prescriptive - much like a doctor, examining their financial condition. Talk to them in simple metaphors and avoid overloading them with too many options. Establishing trust, respect for their values, and an ongoing connection to several generations of their family is helpful in reaching this group.

Mature Women (Age 65 to 75)

The prospect of widowhood is a key issue for Mature Women - how they will handle financial decisions without their husbands -- as well as the fear of outliving their assets. While this group may have accumulated substantial assets as a result of a lifetime of frugality and savings, these women likely have not been actively participating in the family finances. Now is the time to encourage them to take a more active role in finances - for fun and profit.

Most Mature women are not consumed by a career and have the time to learn and boost their confidence level about investing before a crisis arrives. Encourage them to learn by exposing them to the many opportunities to gather investment information - whether online, in an investment club or through your own company newsletter. Get them interested in long-term planning by helping them to think about how they want to provide for their grandchildren. This group, more than any, needs to understand and not fear stocks, since they are a key component to a portfolio that will help prevent them from outliving their assets.

Sales Approach: Directive - much like a manager, very active on their behalf, suggesting solutions but being sensitive to their level of experience with money and their risk tolerance. Simple metaphors are very effective in communicating investment concepts and once trust is established, these women will remain loyal long-term clients.

Pre-Retired Women (Age 59-65)

More comfortable with stocks than Matures, this group of women has still had little direct involvement in managing the family investments. They are looking for guidance about investing and how it fits into their dream of a comfortable retirement lifestyle.

Their husbands have likely been the primary wage earners and investors, but this group is not afraid to learn new things and take charge alongside or in place of their husbands. Many have experienced divorce, and have had to enter the workforce in order to take care of their family's needs. They recognize the vulnerabilities of being single and managing their own money.

Some are doing quite well as executives and business owners, yet lack the confidence to invest their earnings wisely. Most are still the primary caretakers and will think of their financial planning in terms of providing for their children and grandchildren's needs, as well as their own. For these women, asset allocation is an investment strategy that will help them afford the retirement they've dreamed of.

Sales Approach: Authoritative - much like a teacher, making them aware of all the issues they are about to face in retirement, leading them to pertinent facts and information, and educating them about the solutions that make sense for them.

Leading Edge Boomer Women: (Age 41-59)

This is the generation that launched the women's movement, so they will be drawn to the sense of independence and empowerment that accompanies managing their own investments. While many are not thinking about their retirement, they are likely drawn to the explosion of information sources about investing on the internet and other media. Boomer women want information and lots of it. They love to learn, develop, expand their horizons, and take charge. They are also cause-oriented, so even if they do not have families, they will be responsive to financial planning in terms of the legacy they can leave behind in their work or charitable activities.

Boomer women are not intimidated by technical information and charts, but want to know how it applies to them. Personalizing investment concepts with hypotheticals is most helpful with this group. A key driver with Boomer women is time - or the lack of it. Most Boomer women work and are under great stress to balance work and family responsibilities. Consequently, they will appreciate any time-saving strategies, such as dollar cost averaging and asset allocation, that will help automate the investment and planning process.

Sales Approach: Cooperative - much like a business partner or coach. You and she are in this together as a team. You are the team leader, providing guidance where needed and saving her time in execution and planning.

Mike Sullivan is a founder of 50-Plus Communications Consulting and a well-known and highly regarded public speaker on financial services and the aging population.

A consultant and trainer specializing in financial marketing and sales for Baby Boomers and older consumers, Mike is the author of Financial Relationships with Seniors: The Strategic Battleground of the 90s. (Lafferty Publications, Ltd., Dublin, 1994). He is a regular contributor to horsesmouth.com, a web site for financial advisors. He has written articles for many publications, including The American Banker, Trust & Estates, Bank Investment Marketing and Ticker magazines.

The famous trainer, Nick Murray, in his book, The Excellent Investment Advisor, says, "Michael P. Sullivan...for my money has the best handle in America on the sales/marketing of investments to the aging."

Before helping to found 50-Plus, Mike was an independent consultant focused on helping banks understand the aging market. He previously served as Vice President, Corporate Communications, First Union National Bank, Charlotte, N.C.
He has a journalism degree from the University of Detroit and an MBA from Wayne State University. He is a member of the National Speakers Association. He serves as Chairman, Council on Aging for Charlotte-Mecklenburg, N.C.