Full disclosure: I didn’t come up with the title, Why Men Quit and Women Don’t. It is the title of an article in The New York Times last month by Lindsay Crouse.
Not surprisingly, I was drawn to the article because I am a runner. But never for a moment did I imagine that there could be a parallel between “my hobby” and the work my partner, Paulette, and I do in helping companies and their advisors better understand the female market for financial services.
The NYT article stated that when the going gets tough in marathons men are more likely to quit than women. “Interesting, but what,” you may wonder, “does that have to do with me and my practice?”
The article talked about two Boston Marathons: the 2018 race run in the worse conditions in decades, including horizontal rain and freezing temperatures, and the 2012 race run in exceptionally hot humid weather. Lindsay Crouse observed that, in good weather, men typically drop out of the race at lower rates than women but that, in the 2018 and the 2012 races, women had a significantly lower dropout rate. “Why?” she wondered.
The article went on to discuss male/female physiology differences but concluded that, in the end, quitting is a “decision” and men and women use different processes for making the decision to quit. Now that resonated!
The article concluded that: Women are better able to recalibrate their behavior and expectations based on the circumstances they face. Generally, women seem better able to adjust their goals in the moment, whereas men see their race as black or white – succeed or fail. If it looks like failure, meaning a slower time, they will quit rather than fall short.
I’ve overstated the race analogy sufficiently at this point but, suffice it to say, my partner and I have long talked about how women differ in making financial decisions – and that is exactly what makes them great clients.
Women appreciate everything you do for them as a financial advisor and are far less likely to abandon the plan you built together when the markets are down because, “they are able to adjust their goals in the moment, and stay focused on finishing the race, which means realizing their goals.”
Generally speaking, for men, achieving the best rate of return is usually a prime motivator and how they judge success when they invest. As a result, they will often leave their advisor if they don’t feel like they are winning – that is, accumulating more!
It’s 2018 and the tides have turned. There are many wealthy women in the market looking for valuable financial advice and they make excellent clients, who consider investing as more than a rate of return.
Do yourself a favor learn how to connect with women investors today by visiting www.strategymarketing.ca and watch your practice grow!