February 17th, 2011
In December 2007, I went to a breakfast about women and financial services and wrote the post you see below as a result.
As I surfed over to Beyond Today, I was optimistic. Unfortunately, I found more of the same.
Why why why must we continue to alienate big blocks of women? 51 million women in the United States are single and I’d wager that a lot of them, like me, don’t cook. To start a blog post about investment allocation with “Pasta, pot roast, peas… ever get in a rut with your menus?” is just old school. Not to mention the shot of the hysterically-delighted older couple (maybe he’s on Viagra) on the home page while 40-50% of marriages end up in divorce, 32 million people live alone, women live considerably longer than men, etc. Or the primary involvement of Jean Chatzky: an expert I like, but one who is frequently seen in other venues (like The Today Show and Oprah).
In other words, there’s no new news here – still Version 1.0. I guess I expect more. Maybe the thrashing is because gender is no longer (or shouldn’t be) a primary segmentation characteristic in the first place.
Women And Financial Services
I attended a breakfast last week entitled “Marketing to the Female Investor.” I was pretty jazzed about this because, in addition to a pretty good expert panel, the core of the event was a review of fresh research on the topic and I was looking forward to getting a sophisticated update on my own experienced-but-possibly rusty notions.
That’s not exactly what the audience got.
The research’s executive summary declares that “single women are on the rise” (is this the 70′s?) and the study confirms that women are living longer, marrying later, get 58% of all undergrad degrees awarded in the US and are opening businesses at 2x the rate of men. Speakers presenting the research still referred to this as the “women’s market” – despite the fact that 52% of all US citizens are female – and declared that members of this group have “special needs.” The research itself, as in years past, said that 71% believe that financial services marketing is targeted to men, and fewer women then men say they understand financial services products well or extremely well (e.g. mutual funds, stocks, IRAs, trusts). A nervous presenter inadvertently plunged me into a moment of despair when she explained that, while the female respondents may not have an equal understanding of said products, “they are still intelligent.”
Good grief. Had nothing changed in 15 years?
When the morning (mourning?) turned to the panel, however, the tone began to change for the better. Most of the panelists’ real-life priorities and programs focused on women’s changing roles in society, and how these role changes are increasingly non-linear: that women, more so than men, may move back and forth between the core roles of provider and caregiver… and may, as a result, be more or less educated about financial services, may be shopping for products at different times, etc.
So is there a primary segmentation scheme more relevant than gender? Is it more valuable to target based on whether a person of either gender is home taking care of a child or aging parent vs. bringing home the bacon? With roles, education levels and life span all changing, is gender becoming a secondary variable, rather than a primary one?
There’s no question that, when observed in as close to real circumstances as possible, men and women tend to have different ways of consuming information, choosing financial advisors and so on. But, right or wrong, “women’s marketing” has frequently been housed in retail bank groups focused on special niche populations – and this has not served to create a breakthrough positioning for, well, anyone.
Maybe we’ve reached a critical mass at which point it’s not whether one is female or male that should drive marketing communications and sales process design, but rather the role a person plays that dictates her – or his – financial needs, habits and buying behaviors.
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