Two to three decades ago, advertising in television was the best medium to reach umpteen numbers of viewers to market certain product and services. Now the trends are changing with the advancement in technology. Another factor accelerating this digital trend is the increase in the number of people who are hooked to their smartphones, messaging apps and social media sites.
Let’s take a look at the top 5 messaging apps that could be used to promote your business.
WhatsApp is no doubt the leading messenger application worldwide. It is rare to find a smartphone user who hasn’t installed WhatsApp on his mobile phone.
A study by Statista says that WhatsApp is the most popular mobile messaging apps worldwide as of January 2017 with currently more than 900 million monthly active users followed by Facebook Messenger, WeChat and Line.
The evolution of WhatsApp has replaced the once popular text messaging service SMS among the masses. It has evolved drastically since 2009 by adding features like calling, video calling etc. in its new version. Many businesses be it a startup or an established one, have taken WhatsApp to its marketing advantage by creating groups and sending the group invite link to clients.
The news for marketers is that, WhatsApp has several features to its advantage like cross platform compatibility, Creating Broadcast Lists, Group chat facility etc. that will aid you to reach a number of audience through marketing.
This is another popular messenger used by so many people of all ages. Over 1.2 billion people use Facebook so this is another lucrative platform for marketers when it comes to lead generation. Facebook ad’s called destination ad’s which on clicking leads the user to the messenger can be set up.
Chatfuel is another application that lets you build a Facebook bot to suit your business needs.
Stats say that 53%of people are more likely to shop with a business they can message directly. And when it comes to customer service, 56% of people would rather message than call the customer service and wait for ten minutes by selecting various options to talk to a representative.
WeChat, though an unfamiliar household name is China’s version of WhatsApp. WeChat has 1.1 billion registered accounts and 938 million monthly active users according to a recent report. WeChat has become a part of the parcel in China by letting its users do daily tasks like hiring a cab, managing credit card bills, news updates and much more all from within the main app. Cool isn’t it?
WeChat has an added advantage to capture the Chinese crowd Since Facebook is blocked in China. You can use WeChat for location based marketing if you plan to market in the regions like United States, Hong Kong, India, Indonesia, Macau, Malaysia, South Africa, Taiwan, and Thailand.
Many businesses communicate with consumers and share discount coupons on WeChat to attract them to their stores.
Line which is owned by South Korean search portal Naver Corp has 218 million monthly users mostly from Japan, Taiwan, Thailand and Indonesia. It gained its popularity for its use of stickers and stories about the characters they feature. It is predicted by MobileMarketing magazine that Line will be used by 50.2m people in Japan in 2017, which equates to 92.8 percent of the country’s mobile messaging app.
Businesses can create accounts for a fee in Line and send information and free promotional stickers to subscribed users. Line offers various facilities like special discount coupons from brands, make group calls up to 200 members, book a taxi, shop online, follow your favorite brand and artists etc. There are famous brands like Pepsi who made use of line stickers for marketing by creating happy emoji’s who drink Pepsi.
Line offers a LINE Store Page that lets users create their own stickers which in turn will facilitate the exposure of new businesses and the LINE Store Chat allows businesses and consumers to engage in mutual communication. It allows sellers to send messages and coupons to customers encouraging them to visit again.
These days you can get millions of mobile app development companies who can design and develop messaging app for you as per your need & budget.
Slack is an internal communication and collaboration tool that is known for its convenience and organizing ability. There are several marketing, sales, and tech-based tools that have built-in integrations to work within Slack. Trello, DrumUp, Get Response, GrowthBot etc. are some of the noteworthy tools in this list. Slack is excellent when it comes to content delivery too. If users subscribe to your page in the slack channel, then your content will be broadcasted in their slack profile.
These 5 messengers can reach different regions in order to help expand your reach around the world. You could choose which messenger app is the best for you based on the location of the market you aim to capture.
Corporate Social Responsibility Is More Than a Marketing Ploy
For-profit companies traditionally operated within a set of rules dictated by the government, such as collecting and paying taxes or meeting state and federal regulations. Everyone accepted profit maximization as the goal, and it didn’t really matter how companies managed to achieve that mission.
Today, many judge companies based on their broader impacts and whether they contribute to beneficial change. It’s definitely a positive shift, but new businesses must strike a delicate balance: Too much of a focus on corporate social responsibility (CSR) for a new brand over the effectiveness of the product or service can actually damage brand appeal. Researchers at North Carolina State University found that consumers view new brands as less enticing when their key messages focus on CSR more than the benefits of their products, even if they donate money to good causes.
While consumers want to support brands that give back to the world, they are more concerned about the efficacy of new products. And who can blame them? Nobody wants to spend hard-earned money on a subpar product. When product quality is equal but one item comes from a company with a social mission, customers are more likely to choose the company with a focus on CSR, though.
Patagonia stands out as an excellent example of effective CSR. The company aggressively incorporates environmental causes into its corporate DNA — and its customer base is just as aggressively loyal. Volkswagen, on the other hand, went out of its way to greenwash its corporate image by promoting “clean diesel” while flagrantly violating federal emissions laws with nitrogen-oxide emissions (a smog-forming pollutant linked to lung cancer). The disparity between VW’s mission and its actions had steep consequences.
Finding the Right Fit
CSR should be authentic to the soul of an organization — it should not be an add-on or a marketing ploy. Before committing to CSR, brands need to survey potential customers and brand ambassadors to ensure they focus on the right initiative.
For smaller companies and startups, this could constitute a more informal process of casual interviews with a few dozen people coupled with the founders’ personal goals. Established companies will want to undergo more extensive research that includes surveys and in-depth focus groups with employees, customers, and potential customers. In both cases, companies must confirm that the CSR initiative resonates with potential customers while identifying any concerns that could alienate critical groups. Without genuine authenticity, it’s only a matter of time before an initiative fails — it’s imperative that the CSR mission resonates with the company, its staff, and its executives.
Patagonia earned plenty of attention in 2016 for donating 100 percent of its profits from Black Friday sales to environmental groups. By literally putting its money — more than $10 million, in fact — where its mouth is, Patagonia proved its dedication to protecting natural resources. Considering a large swath of Patagonia’s clientele is environmentally conscious, that single day of sales truly resonated with brand loyalists.
Once a company pinpoints the CSR initiative that meshes with its identity, its leaders must articulate the CSR mission internally and externally. That mission will likely evolve, but it should be authentic to ensure long-term success. A genuine effort at CSR initiatives can be a great way to motivate and empower employees.
Internal CSR messaging focuses on culture and creating a universal message across the company. Everyone should understand the overlap between the CSR initiative and the company’s mission, as well as how the initiative affects every employee’s role. Externally, brands must simplify this messaging into an easy-to-understand version for consumers.
I’ve had to tackle this challenge with my own company, 2920 Sleep. We have boiled down our CSR focus to three elements: a commitment to product quality, excellent customer service, and 1% for the Planet. We aspire to make high-quality, long-lasting products that will have a reduced environmental impact with lower return rates; take care of our customers with great service; and stay financially successful so we can channel one percent of our revenue to support organizations that protect the environment. Our commitment to product quality and customer service enables us to support our CSR initiative. This mission is driven by everyone at the company — from our leadership and marketing teams to our customer service department and our brand ambassadors.
More than anything else, brands should ensure the CSR narrative is a part of the corporate culture. Think again of the difference between Patagonia and VW. Patagonia’s founder, management team, and employees all actively support its mission. VW, meanwhile, has lost brand integrity and market share, and its executives face significant fines and possible jail time.
Consumers can spot the difference between pretenders and companies that are committed to a mission. CSR offers an opportunity to pivot a business from a purely financial operation to an organization that recognizes its ability to help a wider community in addition to meeting financial goals. With a balanced approach to CSR and business goals, companies can truly shine.
Instagram Benefits for Businesses in Comparison to Other Social Media Platforms
With billions of monthly users and almost 500 million users who are active regularly, Instagram has been marching towards success since its introduction in the year 2010. There is no denying the fact that businesses are constantly using social media platforms in order to ensure that they have proper knowledge about their competitors. Apart from that, social media marketing has helped numerous small businesses gain success.
In fact, big and reputed businesses are also constantly revising their social marketing strategies in order to stay one step ahead of their competitors. One of the most difficult tasks that businesses face is to choose between the different social media platforms that are there. However, without a doubt, most of the businesses have agreed that Instagram is undoubtedly the best platform currently.
Numerous businesses have not only started reacting more to this growing platform but also, if an analysis is conducted on the topmost brands from different parts of the world, you will get to know that almost 90% of these businesses have Instagram accounts. With this number of businesses as well as brands on this platform, it is obvious that one question is constantly going on your head. This question is whether there is an incentive for businesses that are using Instagram consistently. You need to know that the top brands are capable of generating more leads with the help of Instagram in comparison to other social media platforms.
Instagram is constantly rolling out numerous amazing features that you should definitely take advantage of. Given below is a list of the reasons as to why you should take your business to Instagram in comparison to the other social networking platforms.
Users purchase products online
According to www.lyfemarketing.com, users are responsible for using the Instagram app for purchasing any product that they love, online. It is obvious that sales are the most important thing that a business is looking forward to achieving at the end of the day. If you are asking as to why you should be on Instagram, the answer is that this platform helps in increasing sales by ensuring that you connect with your potential customers.
Instagram has a huge volume of people who are online regularly and it is not very difficult to locate your potential customers. Just like you are on the hunt for your potential customers, you need to know that even they are also looking for the kinds of products and services that you are offering. If they are interested in what you are posting on Instagram, they are going to visit your business website. And, this is exactly where the journey of becoming a customer from a potential customer starts.
You already know the total number of users that are there on Instagram and you are also aware of the fact that this growth is not going to slow down. You also know that once your potential customers come across your business, they are likely to convert into your customers as well. Now, you need to know about Instagram advertising.
Instagram was purchased by the CEO of Facebook, Mark Zuckerberg, and since this purchase, the capabilities of Instagram started broadening in order to match the capabilities of Facebook. Facebook is currently known to have the best and advanced platforms of advertising on social media. You have the option of advertising to people by understanding their age, behavior, location, interests, etc., on Facebook, and this means that you have the option of doing this on Instagram as well.
This means that you have the option of targeting your target audience with the help of Instagram advertisements and you can be assured that they are going to definitely make a purchase. You can also buy real Instagram likes in order to get more likes from real people on your posts.
Leads and sales can be tracked
You need to know that both your sales as well as leads can be tracked with the help of Instagram. This can sound pretty obvious but you need to know that a number of companies are investing in the platforms without even understanding the effect that they have. Since Instagram makes use of the same platform that manages Facebook advertisements as well, it is obvious that the tracking capabilities are also the same.
You will be able to see almost everything, which includes, the number of times your present or potential customers have clicked on the links, your leads, and conversions, and you will also be able to observe the cost for every result on the ad campaigns that you run. This means that you have the option of viewing the results that you have been achieving consistently. This will also help you to understand whether you have invested money in the right place or not.
Instagram analytics along with the tracking capabilities is responsible for making this platform worth the time of the marketers. It is crucial to understand, which advertisement is drawing in revenue and, which is not. On the basis of this information, you can work on future advertisement campaigns.
Business profiles and personal profiles are different
Instagram allows you to create both a personal profile as well as a business profile. It is obvious that if you are the owner of a business, you cannot run a personal profile on Instagram. You need to switch to the business profile so that you can gain all the benefits, which include, having calls to action, the ability to promote a post and also gaining access to Instagram insights. It is also going to provide the Instagrammers with the idea that the business pages are owned by verified businesses and not personal users. If you are making this adjustment, you can be assured that you are going to get all the amazing benefits that Instagram is providing to the other businesses as well.
Instagram has created an amazing world for both the small as well as the reputed businesses. Instead of hunting for recognition and awareness in the other social media platforms, it is a much better idea to get on Instagram and giving your business everything that it needs in order to spread its wings.
Brick and Mortar Stores and Their Potential Demise
Earlier this year, Business Insider reported almost 4,000 stores in the United States will close. Among those were giant corporate retailers — Toys R Us, Walgreens, and Gap. If the stores with the most competitive prices and widest spread are having trouble, imagine those with a smaller safety net. Imagine your local mom-and-pop shop.
Across the board, technology and e-shopping are often blamed for this decline in sales for physical stores. According to an infographic from Villanova University, Americans in the current day spend around 5 hours a day on their smartphones and compare prices and reviews for products while shopping in a store, sometimes only to buy them later from Amazon!
It’s no wonder people are more hesitant to become entrepreneurs now. But fear not, aspiring entrepreneurs! The story’s not over yet, and there are a few reasons to believe the physical shopping experience is still alive — and will continue to be that way. But you have to adapt to the changing world as well.
Oh, the Humanity!
According to multiple studies, the majority of shoppers still prefer physical, on-location shopping. This is largely due to the experience of it. People appreciate the experience, and guess what? Your customers are people. It’s different than going to a chain store in which people know what they’re going to get. A brick-and-mortar store has its own personality, typically representative of the owner’s personality, aka their personal brand.
People enjoy going out to shop because there’s an experience to be had with it. The atmosphere of the store, the aspect of leaving their home to travel somewhere, and of course (and this may be the biggest one), the opportunity to feel and touch the product in person. Activating a customer’s senses help them to build an emotional and personal relationship with your brand in this way. It’s this human connection which will get people shopping and keep them coming back.
The Millennial Conscience
Millennials surprised the world a few years ago by proving large amounts of them are not lazy and spoiled. Instead, we’ve learned many of them are very socially conscious and full of moral conviction. It’s this moral consciousness which has led droves of them against big business and extreme capitalism. As a small business owner, this puts you in a pretty good spot with them as potential customers.
From this angle, it’s a good idea to get involved in your local community and give back to people like you. If you plan on running a small business, plan on participating in Small Business Saturday. Think about binding together with some other local businesses as well. Hold events benefiting people and communities around you who need help, or that simply bring people together. Not only will you build brand loyalty, but you’ll be doing something worthwhile that moves far beyond you and your business.
Technology Is Compatible
There are ways to keep up with technology and run a physical storefront. First of all, we live in the app age. People own smartphones — portable computers that fit in their hands and have many functions. Owning an app which is compatible with your store location gives them a reason to shop with you consistently. Primarily, this app should bring customers to your business through special discounts, but it could also make them aware of new products you have.
To further indulge in this intersection of technology and physicality, having a physical storefront does not mean you should not have an online presence or your foot in the e-commerce game! You can have a website and an online store as well as a physical storefront. You can promote your brand through SEO and social media. Technology does not necessarily mean the demise of brick and mortar — it means the changing of it. Be proactive.
The Entrepreneurial Spirit
The acceptance and help of humans are important, but we can’t forget that entrepreneurs have kept hopeless industries alive for years by innovating on what was already there before. It requires intelligence, risk-taking, and drive, as well as the ability to adapt to the present time. The choices surrounding products stocked, inventory ordered, marketing methods, and purchasing or leasing commercial spaces have changed over time with new technology and a new economy. But brick and mortar stores have been around for a long time and they haven’t actually left us, despite losing prevalence in some cases. They are still relevant even with the game-changing.
See, there have always been threats to mom-and-pop shops. The Walmarts of the world moving into communities and taking sales from hard-working small businesses, thus destroying the strength of local communities, come to mind first. Legal restrictions and defamation from competitors have been known to happen in their own form of small business drama. But as long as entrepreneurs have the right resources available to them and there are small communities who care about what they’re doing, they will survive.
What has your experience been running a physical storefront in the internet age been like? What are your reservations about starting one? Let us know in the comments below!
Work Together to Prepare for the Next Big Storm
Year by year, hurricanes are growing stronger and more frequent. We are witness to these changes as we watch two catastrophic storms devastate the southeastern United States in as many weeks.
This month, Hurricane Michael slammed the Florida Panhandle, southern Virginia, and the Carolinas. The massive storm killed at least 16 people, flooded cities, highways, and rivers, and reduced much of the region to rubble.
Barely two weeks ago, Hurricane Florence killed at least 36 people in three states, forced thousands to evacuate their homes, dumped record floodwaters on North Carolina, created power outages for hundreds of thousands, and killed millions of farm animals. The most recent damage estimates put the economic toll at a staggering $100 billion, once accounting for property damage, medical costs, and lost wages.
Natural forces emboldened by climate change continue to overwhelm our outdated stormwater management practices and inadequate urban planning, putting us in a precarious position. Short-term economics have often driven development where considering long-term environmental impact was needed instead. When it comes to handling the effects of more storms, we’re not as prepared as we think.
As we assess the damage done by Michael, Florence, and other storms, the shrewdest move is to prepare for the next big storm — and the one after that. Municipalities, businesses, and individuals can brace for the next storms by focusing on the following areas:
Additional Pollution Prevention
Florence and Michael disrupted two of North Carolina’s biggest industries: coal power and hog farming. This created environmental trouble and the potential for health problems. Duke Energy officials in North Carolina said slope and landfill erosion caused stormwater with coal ash — containing heavy metals such as arsenic, lead, and mercury — to spill into Sutton Lake. Watchdog groups have expressed concern about the effect on water quality.
Floodwaters also breached multiple hog lagoons, designed to keep solid waste from polluting sources of drinking water, in at least two North Carolina counties, causing varying degrees of damage. The North Carolina Pork Council says the state’s other 3,000 hog lagoons are holding up, but the state’s Department of Environmental Quality will have to perform inspections.
The landfills, dams, and lagoons containing pollutants need to be stabilized and reinforced. Cities can reduce landfill washout by using gravel stabilizers, terracing, drainage diversions, and other measures to safeguard their slopes against erosion. To avert overflow of detention ponds like hog lagoons, companies can add pond depth, secure the perimeters, and place impervious barriers around the site.
Adjusted Damage Estimates
Because of climate change, we can count on heavier rain and shorter intervals between storms increasing flooding risk. Data is still being gathered for Michael, but we know that for Florence, greenhouse gas emissions and warmer weather made for more intense rainfall. When Hurricane Harvey hit Houston last year, the city matched its annual rainfall (typically 50 inches) in a matter of days.
Cities, businesses, and infrastructure planners need to set new damage expectations, as “500-year storms” arise with increasing regularity. Adequate planning and preparation may seem expensive overall, but it’s more expensive to deal with damage in the aftermath of flooding. It’s important to remember there’s no immediate fix or silver bullet. Instead, we need long-term solutions first acknowledging the problem and then planning for it.
Broader Public Education
Weathering the next storm requires a public education process that touches all sectors on the solutions available to help protect communities against floodwater. In my hometown of Houston, the community has come together with a discussion on the web, in public forums, and in community meetings.
The Houston Green Building Resource Center provides a public resource at the permitting building, providing engineers, architects, contractors, and homeowners with techniques on how to reduce flooding on the macro and micro levels, including information on building codes, permeable and sustainable materials, and engineering technologies to incorporate. Examples include elevated construction, or raising buildings above the rising floodplain, and permeable paving techniques that can reduce the extreme weather’s impact on the earth’s surface. Both are cost-effective improvements worthy of broader public education.
The intensity of storms like Michael and Florence raise the bar for planning and preparation. Governments, businesses, and communities must plan ahead and work together during the quiet times before the storm returns.
Three Mobile Marketing Strategies to Raise Awareness
Today, mobile marketing is one of the most powerful forms of digital marketing. Social media, email and video marketing are other channels for digital marketing, but none of them is quite as efficient as mobile marketing. Mobile marketing entails providing mobile phone users with personalized info which promotes goods and services.
It has an extensive reach. Billions of people around the world actively use mobile devices. The audience is there to be harnessed. With mobile marketing, you can send time sensitive information and personalized deals via push notifications, mobile applications, text messages, QR codes, Bluetooth, and multimedia messages.
Mobile marketing can be vital for enhancing brand loyalty. It also increases the chances of gaining new customers while simultaneously making sure that existing ones return to patronize your business.
Like other forms of digital marketing, there are various mobile marketing strategies out there. The trick is to choose an approach that works with your audience; an approach that increases brand engagement, awareness, and customer participation.
Below is a list of mobile marketing strategies that are guaranteed to drive up engagement rates and conversions for your business:
Make the best use of micro-moments
Micro-moments is a term coined by Google. It primarily refers to moments in time when people use their phones to get advice or information. The unprecedented accessibility to the world wide web mobile devices grant conditions many users to seek immediate answers, as quickly as possible, preferably without extraneous data. Extraneous data includes charts, PDF files, and graphs.
There are four major micro-moments you should take advantage of repeatedly. They are:
- “I want to know” moments, e.g., “Who invented the mobile phone?”
- “I want to go” moments, e.g., “Where can I see a movie?”
- “I want to do” moments, e.g., “How do I upgrade my personal computer?”
- “I want to buy” moments, e.g., “Buy Samsung Galaxy S9.”
Optimizing these micro-moments can make all the difference for your business.
You have to research and anticipate the most common searches and needs of your target audience. The next step is to go on to create actionable content that addresses those needs.
Take proper care to make sure that your content is straight to the point.
Mobile marketing truly shines when you promote your brand while providing answers to these micro-moments.
Take for example a clothing company. While answering a query about tying a necktie knot, you could provide a hyperlink to a page on your website with a collection of ties for sale.
You can also get creative by including suggestions and information about shopping deals and discounts as a part of your content. Just makes sure that you include these links and deals without compromising the brevity and quality of the information you are providing.
Use QR codes to improve user experience
Most mobile phone users are now aware of the fact that scanning QR codes with smartphones is an accessible source of information. A considerable percentage of shoppers have confessed to using smartphones to scan QR codes to compare prices.
Use QR codes to provide a seamless information to your target audience.
Remember that everyone wants information as quickly and as directly as possible. When scanned, your QR codes should lead directly to a specific, valuable and useful information. View them as a shortcut for your customer base to get the answers they need.
Make sure that your QR codes do one of the following:
- Take users to a page with detailed information about a product
- Offer users deals, promos, or a coupon
- Allow users to follow your brand on social media.
Utilize SMS to connect with your customers quickly and on the go
According to statistics gleaned from Venture Beat, the open rate for promotions and campaigns sent via text messages is 98%. This represents the highest open rate among the available forms of digital marketing.
On the other hand, the number of mobile coupons users is projected to reach 1.05 billion by 2019. Text messages are a great way to engage with your customers by offering special deals and personalized promotions, among other things.
Since text messages are almost always opened, you must make sure that your customers are ready to add their numbers to your messaging lists.
You can do this by offering compensation in the form of discounts for customers that sign up with their phone numbers. Furthermore, you can use text messages to publicize sales, send reminders for appointment-based businesses, conduct customer surveys, and check up on reluctant customers.
There are many other ways mobile marketing can empower a brand and increase its reach, but the strategies listed above are tested and work admirably if incorporated accurately.
Study your audience, understand their needs and play the strengths of your brand through some inobrtusive, yet engaging mobile marketing.
Women Have Fundamentally Different Journeys to Financial Wellness, Merrill Lynch Study Reveals
A new Merrill Lynch study conducted in partnership with Age Wave, “Women and Financial Wellness: Beyond the Bottom Line,” celebrates the progress made by women while examining the financial challenges women still face throughout their lives, and offers potential solutions. The study finds that 70 percent of women believe that men and women have a fundamentally different life journey, reinforcing the need to better understand women’s financial concerns and opportunities. The study is based on a nationally representative sample of 3,707 respondents, including 2,638 women and 1,069 men.
“Women’s life journeys are not only different than men’s, they’re different than the life journeys of our mothers and grandmothers.”
“Women have come a long way both personally and professionally, but when it comes to their finances, there is still a trail left to blaze,” said Lorna Sabbia, head of Retirement and Personal Wealth Solutions for Bank of America Merrill Lynch. “As women are at a tipping point to achieve greater financial empowerment and independence, it is even more essential that we support women in helping them pursue financial security for life. This includes encouraging women to invest more of their assets, save earlier for retirement, and pursue financial solutions that closely align to their personal values and life paths.”
Women look beyond the bottom line
While they definitely care about the performance of investments, women view money as a way to finance the lives they want. Seventy-seven percent say they see money in terms of what it can do for themselves and their families. Eighty-four percent say that understanding their finances is key to greater career flexibility. When it comes to investing, about two-thirds of women look to invest in causes that matter to them.1
Longevity needs to be a factor in everyone’s financial strategy, but more so for women, who on average, live five years longer than men. Eighty-one percent of centenarians are women.2 While 64 percent of women say they would like to live to 100, few feel financially prepared, with 44 percent of women stating they worry they will run out of money by age 80.
Confidence in all but investing
The study finds that women are confident in most financial tasks, such as paying bills (90 percent) and budgeting (84 percent). However, when it comes to managing investments, their confidence drops significantly; only 52 percent of women say they are confident in managing investments, versus 68 percent of men. Millennial women were the least confident at 46 percent. Of women who do invest, their financial confidence soars; 77 percent of women who invest feel they will be able to accumulate enough money to support themselves for life.
A trail left to blaze
The study also finds how important understanding the gender wealth gap (as opposed to the wage gap) and wealth escalators are to women’s financial wellness. Women experience a gender wealth gap – the difference between men’s and women’s financial resources across their lifetimes, including earnings, investments, retirement savings and additional assets. This wealth gap can translate to a woman at retirement age having accumulated as much as $1,055,000 less than her male counterparts.3Contributing factors include:
- Temporary interruption, permanent impact: Many women experience lasting effects when they take time away from the workforce to provide care, including for aging parents, their own spouses, and their own children. One in three mothers who returned to the workforce after caring for children says she took on less demanding work, which resulted in lower pay. Twenty-one percent say they were paid less for the same work they did previously.
- Greater lifetime health and care costs: The average woman is likely to have higher health costs than the average man in retirement – paying an additional $195,000 on average4 – due to living longer and having to rely on formal long-term care in later years.
“Women’s life journeys are not only different than men’s, they’re different than the life journeys of our mothers and grandmothers,” said Maddy Dychtwald, co-founder and senior vice president of Age Wave. “We have more opportunities and choices when it comes to family, education and careers, but we’re so busy taking care of other people and other priorities, we often don’t take the time to invest in ourselves and our future financial wellness. If more women can actively take control of their financial future all along the way, it would not only benefit them, but also their families and our society overall.”
Doing more to promote financial wellness
Bank of America’s Global Wealth and Investment Management business serves affluent and wealthy clients through two leading brands in wealth management: Merrill Lynch and U.S. Trust. Advisors specialize in goals-based wealth management, including planning for retirement, education, legacy, and other life goals through investment, cash and credit management.
“In a period of remarkable advances for women in society, a remaining frontier is financial well-being,” said Andy Sieg, head of Merrill Lynch Wealth Management. “It’s a basic component in the quality of life. This report lays out a blueprint for helping to achieve it – and we at Merrill Lynch relish the opportunity to provide women everywhere with advice and support that can make a meaningful difference at every stage of their lives.”
Through its advisors, educational offerings and other resources, Bank of America is positioned to help clients overcome the common challenges presented in the study by:
- Addressing women’s top financial regret: not investing more. Forty-one percent of women say not investing more is their biggest regret. Women cite lack of knowledge (60 percent) and confidence (34 percent) as top barriers.
- Focusing on disparities in wealth, not just income. Women’s financial security is about more than closing today’s pay gap. It’s about accumulating assets or wealth at all income levels, and increasing women’s access to wealth escalators (e.g., employee benefits such as paid time off and pretax savings opportunities).
- Breaking the silence about money. Sixty-one percent of women say they would rather discuss details about their own death than talk about their money. Forty-five percent of women report they don’t have a financial role model.
To learn more about women’s financial wellness, read “Women and Financial Wellness: Beyond the Bottom Line.”
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