[Use Case] How Brox.AI Uncovered a $3.2 Trillion Blind Spot in Financial Marketing to Women
Nov 5, 2024
Executive Overview
With women controlling 85% of consumer spending yet significantly under-participating in investments, financial institutions face a $3.2T market opportunity. This use case demonstrates how Brox.AI's advanced analytics platform reveals actionable insights about women's financial decision-making – without requiring new research investment.
Through AI-powered analysis of existing consumer data, we uncovered:
Key drivers of women's investment choices
High-impact engagement strategies
Validated program concepts that resonate with women investors
Essential reading for: Financial services leaders seeking data-driven strategies to capture market share in the growing women's investment segment.
Reading time: 12 minutes
"I'm looking for a man in finance..."
By now we've all seen the hilarious meme based off of Megan Boni's "song of the summer..." but really - what ARE women looking for when it comes to finance and investing?
The Gender Gap Challenge
Although women control or influence 85% of consumer spending¹, men continue to out-earn, out-save and out-invest women², which is troubling given its direct relationship to current and future inequality. If women just invested at the same rate as men, total assets under management would grow by $3.2T³, having a substantial impact on the market. So - how can financial services brands play a positive role in helping close this gender gap?
The Brox.AI Solution
With Brox.AI, there's no need to field a new custom study every time you want to deep dive on a new question that comes up. You can turn to the thousands of people who have taken your ongoing sector survey and mine their responses in a new way for additional insight - it's like having a huge database of rich human voices on call, saving you time and money.
In this example, to gain a nuanced understanding of women's investing (or, non-investing) choices, and the levers brands might pull to engage more women in the category, we took a multi-step approach looking across Brox's consumer finance and investing/brokerage sector studies.
Step 1: Understanding Women's Motivations for Investing
Although financial security is the top motivation behind investing for everyone - and, the top priority for all non-investors - women are more likely than men to mention this as a theme, along with long-term planning and retirement.
Women are also more likely to use tonally similar, conservative words to describe their motivations and goals - like saving, "not losing" money and managing expenses whereas men talk more about risk-taking, diversification and "growing" money.
Navigating the investing and brokerage dashboard - motivations for investing overall and by gender, and financial priorities for non-investors overall and by gender
Female, 30-44: "My primary goal when it comes to investing is just making sure that I have retirement set up. Once I get a fair amount in there, then I'll think about branching out into other things like education, college funds. But just making sure that I have something to fall back on once I'm at an age where I would like to retire is my number one goal."
Female, 45-64: "My primary goal when I'm investing is making sure my money is safe and that I can use it later on for my retirement so I can have a nice retirement."
Education and support is the main thing people look for and want more of from their investing and banking brands, though again we see that this is even more true for women, particularly in banking.
Personalization, transparency, flexibility and community/personal connection emerge as important considerations among women compared with men.
Navigating the dashboard - needs in investing overall, and by gender
Female, 65+: "I think it's important to have someone who is able to communicate and explain things in terms that someone understands."
Female, 27: "A good bank is one that listens to me and meets my needs."
Female, 47: "Transparency about fees makes me feel respected as a customer."
Female, 38: "They made me feel really important even for my small account."
Step 2: Identifying Women's Biggest Influences on Financial Decisions
With this strong desire for security and the importance of service that feels personalized, it's no surprise that women reference personal relationships more often than men, who are more likely to rely on online research (which also acts as a more dominant tool for them relative to all others).
Navigating the dashboard - research methods/tools overall, and by gender
Additionally, women are more likely to want a "do it with me" approach, being hands-on with advisor support.
Navigating the dashboard - interaction with investment/brokerage providers overall, and by gender
Step 3: Using the Brox.ai Shadow Panel to Test Initiatives to Attract More Women Customers
We now have a deeper understanding of women's more conservative tendencies towards financial security, and the greater importance of personal relationships in their decisions. So - what types of initiatives or programs might help financial brands better attract and retain women?
For questions outside the scope of our weekly respondents, Brox offers the Shadow Panel. We can use the Shadow Panel to better understand how people would respond to unseen questions.
We asked our women shadow panelists how likely they'd be to use various ideas for new resources by posing this question:
"Let's say you're trying to increase your financial literacy; you want to learn more about investing, making smart money choices and building wealth.
How likely would you be on a scale of 1 (not at all) to 5 (very) to use [xxx] as a resource if it were available to you?"
(Asked one at a time)
Watching/reading courses, articles and content about different topics on a specific brand's website (like Fidelity, Charles Schwab or ETrade)
Watching/reading courses, articles and content about different topics on a relevant website (like Investopedia, Money Matters, Khan Academy)
Following popular personal finance influencers on social media who share advice and information on topics that matter to you
Asking a knowledgeable, experienced friend, family member or someone else you know for advice and guidance
Hiring a financial advisor to help coach you and make a plan with you given your own personal financial situation
Participating in an online community where both experts and people like you share questions, experiences and advice about relevant topics
Aligning with what we learned about the importance of personal relationships for women in finance, "knowledgeable friends and family" is by far the resource most likely to be used by them. Online content from a general finance source and participating in an online community (another potential source of personal relationships) are tied as the next most likely resources.
Likert scale ratings of each resource idea from Shadow Panel
Looking at our women non-investing shadow panelists, friends and family is even more likely to be the primary resource they'd use to increase their financial literacy. Notably, those not currently investing are also much more likely to say they'd hire a financial advisor to help coach them and make a plan.
Likert scale ratings of each resource idea from Shadow Panel non-investors
Implications for Brands
Nearly all financial services brands offer "referral programs" today - but the offerings are generic and transactional, with no context or social sharing attached. Recognizing the important role that trusted personal relationships and positive word of mouth can play for women, brands should develop robust advocacy programs that encourage their customers to share their stories with their networks. This can encourage switching behavior and promote both attraction and retention.
To get more women into the category, brands should develop and promote simple onboarding programs with financial advisors. Having a coach or guide to help with account setup and answering initial questions can make the leap into investing seem easier and more approachable. This would provide the "do it with me" supportive spirit many women are looking for, without a long-term commitment.
Bonus!
We decided to take this one step further - let's say that after this initial deep dive and learning, a major financial services brand decides they want to revamp their referral program from basic and transactional into something that will truly drive advocacy and do a better job attracting women.
After some internal workshopping, they come up with a list of ideas for a revamped program. But, before spending any real time or effort developing them further, let's get a read - which ones have the most potential? Another great opportunity to use the Brox.ai Shadow Panel.
This time, we asked it:
"Which of the following programs would be most likely to get you excited about referring a friend or family member to a financial institution you are currently using?"
Story-Based Referral: Instead of just sharing a referral link, customers can share their personal financial journey, highlighting how the brand helped them achieve their goals. These stories are shared on social platforms or via email, making the referral more authentic and meaningful.
"Refer with a Friend" Consultation: Create a referral program where the referrer and referee get a joint consultation with a financial advisor. This approach leans into the desire for community and a "do it with me" experience, encouraging friends to learn and invest together.
Advocacy Circles: Introduce small, invite-only community groups for women to discuss financial topics. Each new member invited by an existing customer gets personalized content or tools, while the referring customer earns special community leader status or benefits.
Referral Success Coaching: When someone successfully refers a friend, they both receive access to a mini financial coaching session or exclusive content. This turns the act of referring into a gateway to valuable personal support, beyond just financial rewards.
Social Advocacy Challenges: Develop a program where customers earn points by sharing financial tips or advocating for smart money habits online. Customers can tag friends and create viral challenges that also incorporate a referral link for those who want to learn more.
Referral Tiers for Shared Goals: Introduce a multi-tiered referral program where customers and their friends can unlock different financial tools or investment tips based on how many friends they refer. The focus is on achieving shared financial goals, which fosters a sense of accountability and progress together.
Collaborative Learning Rewards: Offer incentives when someone refers a friend and they both complete a series of financial literacy courses together. This taps into the desire for education and relationships, rewarding learning as much as the referral.
Interestingly, one idea was the overwhelming favorite - the "refer with a friend" consultation.
Rather than the team wasting time and money to investigate all seven potential program ideas moving forward, the Shadow Panel results indicate a frontrunner along with good candidates to eliminate at this stage for efficiency (story-based referrals, social advocacy challenges and referral tiers), allowing them to focus on the others for more in-depth exploration.
Listen to this study as a podcast:
Courtesy Google Notebook LM
Citations:
¹https://techcrunch.com/2023/05/21/unlocking-the-trillion-dollar-female-economy/ ²https://inequality.org/facts/gender-inequality/ ³https://www.ellevest.com/magazine/disrupt-money/closing-the-investing-gap
Ready to transform your consumer research? Contact us for a personalized demo of how Brox.AI can help your team uncover deeper insights more efficiently.