My Financial Planner Should Be Famous

A number of years ago, I turned to a financial planner when I was a waitress. With so much cash on hand, I knew I should do something with my money but was unsure what. With a degree in English and a passion for words, not numbers, I knew that I would never be able to understand or research a topic as thoroughly as my money deserved. I turned to someone who would be able to answer my questions and speak to me openly and honestly – a financial planner with Edward Jones.

My actions are in line with The National Center for Women and Retirement Research (NCWRR) statement that women spend more time researching their investment choices than men do. This prevents women from chasing "hot" tips and trading on whims—behavior that tends to weaken men's portfolios.

In truth, if you go by numbers alone, women are better investors. In a University of California Davis 1997 study, they found that women's portfolios gained 1.4 percent more than men's portfolios. And men trade 45 percent more often than women do because men tend to be overconfident. By trading more often (and without enough research), men reduce their net returns. By trading less often, women get better returns and also save on transaction costs and capital gains tax.

The financial market is no different than any other sector in that women still like lots of information. Women seek out financial data and information online, and are more apt to seek financial advice from an advisor. With today’s current state of affairs and the headlines reporting dire financial news, it should come as no surprise that I again turn to my financial advisor. My accounts are a few zeros short of being important to anyone other than myself, but I can’t help but wonder what to do? Is there action for me to take?

My financial advisor’s reaction to my uncertainty and fear is so good, I have to quote him, “I can appreciate your concerns. While we are in a downturn in the economy and there are many issues with the credit markets, the future is much brighter than the media leads us to believe. I will be happy to discuss with you at your convenience. The best thing to do right now is sit tight, remain diversified, be patient and invest monthly when possible. I sincerely appreciate your business and continued trust in me.”

And when I didn’t respond in two days, he followed up with, “I never heard back from you so I wanted to follow up. Do you want to chat this week? I will do my best to accommodate your free time.” This is a perfect example of 'how to respond to an email' or 'how to have excellent customer service.' Or simply, how to do a job so well, you have customers raving about you like I am doing now.

With this level of customer service, attention, and honesty, combined with the recognition of my fears and current situation, as well as a suggestion for what to do, it is quite understandable why women turn to financial advisors. This is a recipe for continued success no matter how the markets change. I can only hope your financial advisor is as attentive and kind as mine (not to mention, good with money!). You can find Jonathan Stearns here.

Word-of-mouth: David versus Goliath

Yesterday, I experienced the arrogance some big companies display toward their customers first-hand. As a young start-up agency, I had to deal with a big, established agency - a self-professed 'market leader' - for one of my prospective clients. The experience again drives home the impact one single bad experience can have on the way female consumers will view a brand in the future.

Let's take a real-life example of what women do when they have a negative brand experience.
One of my clients - a female marketing manager at a multi-national - had a negative experience with a research agency whom she retained recently for a very high-profile project and who's performance was below-par to say the least. I was not involved in the project, and as such was not on a 'need to know' basis regarding the ins and outs nor the results of the project. My client however, fuming about the lack of service, attention to detail and quality of the supplier's work, did not miss a single opportunity to share her story with others. I heard it at least 3 times in meetings with different parties. Not only did she mention the brand by name, regailing the flaws of the agency in detail, she also explicity said "Let me give you some good advice: don't ever work with them!". Most of those present were women in managment positions. Women who have the decision-making power to choose suppliers and who went back to their respective companies with a very clear impression of the company in question in mind. No doubt this company was never going to be included in the short-list of possible suppliers for any of these women. What's more: when their companies in turn need to retain a research agency, these women are very likely to proactively warn their colleagues about the supplier.

Here are some important lessons brands can learn about women as customers:

1. Women bond with each other by exchanging stories and personal information. If your customer has had a bad experience with your brand, you can bet your bottom dollar on the fact that she will tell her family, friends and colleagues about it. Repeatedly.

2. Women remember the advice they are given or the stories they are told by others. (I've never considered buying an Alfa Romeo because two of my friends - both Alfa Romeos drivers - told me that they tend to have mechanical problems and advised me never to buy one).

3. Word-of-mouth between consumers has a credibility factor no advertising campaign can match. It is the most powerful influencer of your brand's image. As marketeers, we can tell our customers whatever we want about our brand. Ultimately, it is what consumers tell each other that carries the most weight. Word-of-mouth will determine whether a prospective consumer believes our communication or is willing to try our product.

Word-of-mouth: it's the 21st century battle of David versus Goliath.