What Women Want

There has been a notable shift in how prospective female clients engage with an adviser according this year’s CoreData Financial Planning Shadow Shop.

Generally speaking females had a tendency to be more influenced by straight information, insight and process. However in 2009 there has been a statistically significant shift towards some of the softer factors becoming more influential in decision making.

In 2009 the ability to enthuse, influence and demonstrate value for money are pre-eminent in the correlation stakes for females.

The ability to enthuse was the leading correlated measure as to why females chose to proceed, adopt or recommend a planner.

Meanwhile many of those whose wealth suffered notably in the GFC, both male and female, pointed to having a greater need for all aspects of advice offers than those who did not get burnt.

For example, 80.3% of those whose wealth had suffered notably indicated they had a greater need for risk management compared to only 15.6% of those who did not suffer notably.

This led to the question of whether this group (GFC burned) represented potential new entrants into the advice market.

Interestingly for a proportion of this GFC burned group advisers placed them into the products.

More importantly, the research shows that many people in this segment still perceive the value of advice despite negative investment experiences.

Driver analysis was completed separately for those who were impacted more so than others by the global crisis and those who were not to try to understand if there are variations, to suggest the best approach for targeting this segment.

It was found that whose wealth has suffered notably, while still concerned with softer engagement issues, seem more concerned with harder drivers like demonstrating expertise and knowledge as well as having their needs catered to than those who have not been burned.

The implications of this are that there is an emerging market of those who suffered as a result of the crisis (these include self-directed investors, advised clients and other individuals) who now see even greater value in seeking financial advice.

For some it’s the realisation that they’re not experts while for others it’s a case of losing faith or lost faith in current or past relationship experiences and they’re now seeking a new relationship to take them forward.