April 17, 2014

The following article appeared on a website that caters to professional investment advisers. I found it interesting because it has specific tips about how to sell investment products or advice to women.

If you are a woman, I am very interested in hearing from you. Do you find the content in this piece offensive? Helpful? Or just a curiosity?  Leave a comment below, or email me at erik@zeninvestor.org   I will post a follow-up article with the results.

 

The Secret to Selling to Women
By Jack Evans

The impact of hormones

A hormone called oxytocin reduces stress and promotes social bonding. Men and women have similar levels of this hormone, but oxytocin has a greater effect on women, which may be because women have higher levels of estrogen. The relationship between estrogen and oxytocin is thought to explain why women are less aggressive than men.

Unfortunately for men, the male sex hormone (testosterone) can reduce the level of oxytocin. It can also increase the level of another hormone called vasopressin, which has been shown to enhance aggression.

These hormonal differences may account for the aggressive response by men to stressful situations, compared with the calmer, “tend-and-befriend” reaction of women. It may also be why women are more comfortable sharing their feelings, which causes their oxytocin levels to rise. Understanding these differences is critical to communicating with women.

Communication differences

Given our hormonal dissimilarities, it’s not surprising that men and women communicate differently. Conversation among women is more personal and focused. Women tend to interrupt less frequently than men. They encourage participation by everyone. Men avoid discussing their personal feelings, talk many topics and seek to dominate the conversation. They do so to establish hierarchy.

A guide prepared by Fidelity Investments characterized the way men communicate as “hierarchical,” “competitive” and “independent.” Women were described as “inclusive,” “collaborative” and attracted to groups.

In general, men view wealth as indicative of success. Women think about it as security. These profound differences require a tactical shift in the way you deal with female prospects.

If you are a man selling to a woman, you may be predisposed to use the conversation as a vehicle for “educating” her. She, on the other hand, may be using the conversation as a way to assess how trustworthy you are. While these goals are not necessarily mutually exclusive, your tactics may be counterproductive unless you are aware of her goals.

You can’t communicate with someone you don’t understand.

No one solution is right for all interactions between genders. When a man is selling to a woman, I recommend mirroring her behavior as much as possible and avoiding stereotypical conduct associated with male communication patterns. A woman looking for an emotional connection is not going to find it with a man who talks loudly, lectures to her, interrupts her and generally attempts to dominate the conversation in order to establish his alpha-male credentials.

A more effective strategy is to make inquiries that elicit her views on exactly what she needs and wants from you. Repeat back what she has said so she knows you understood her. Don’t interrupt, even if you feel compelled to do so. She needs to understand she can trust you to act in her best interest and that your goal is not just to make a sale. As the Fidelity guide aptly noted: “Women want an advisor who is a team player, not one who is the captain of the ship.”

Women selling to women are likely to find implementing these suggestions easier. Asking questions, sharing feelings and sharing information can be easier for women than men.

Regardless of gender, no one likes to be patronized, lectured to (in the guise of “education”) or trivialized. The impact of these negative impressions is heightened when dealing with women.
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Jack Evans is the director of investor advocacy for the MAN Alliance and a wealth advisor with ManlyMen Asset Management. He is a New York Times best-selling author of the Manly-est series of books. His latest book, The Manly-est Man Book You’ll Ever Read, has just been published. He consults with corporations and advisory firms on ways to improve their sales.

About the author 

Erik Conley

Former head of equity trading, Northern Trust Bank, Chicago. Teacher, trainer, mentor, market historian, and perpetual student of all things related to the stock market and excellence in investing.

  1. Very interesting article. I don’t find it offensive, but I wish more financial people would figure out that women like me just want someone who will listen to our concerns instead of trying to sell us a one size fits all solution. I guess that’s what any potential investor wants, not just women. Thanks for sharing this.

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