Retail Industry

The Color of Money

American Demographics, Feb, 1999 by Jennifer Lach

So Merrill Lynch tailored the three-night series to suit the wide range of investment knowledge and attitudes of its participants. "We didn't want people to feel talked at," says Collins. "People would have seen through a product pitch in a second." Boston signed on as moderator, accompanied by a panel of African American consultants from Merrill Lynch's Chicago office. Two seminars--one targeted to small-business owners, the other for individual investors--were held at the DuSable; the third, designed for clergy and nonprofit organizations, took place at the Fellowship Missionary Baptist Church. Nearly 2,000 potential attendees received invitations in the mail last September and close to 600 came, often for more than one session. Evaluations turned in each evening indicated that people were pleased--and hungry for more. "When will we see you again?" was asked repeatedly, Collins says.

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Merrill Lynch may expand the program in Chicago or to other locations. And while it's too early to measure direct sales originating from the event, appointments with black investors at the Chicago branch are on the rise, Collins says.

African American investment advisors will be waiting to greet them at the door. Merrill Lynch, as well as other financial firms, recognizes the importance of a minority presence among its employees, says Smikle. "Black consumers need to know that companies understand them," he says. "It helps if the hand reaching out to them is of the same color." It also helps Merrill Lynch measure its success in reaching the black community. Since there's no line on race on investment applications, companies can track the success of their black sales forces to estimate their market share in local black communities; 8 percent of Merrill Lynch's 14,000 U.S. consultants are minorities.

Currently, American Express Financial Advisors' multicultural efforts are considered the industry benchmark, says Boston. Besides launching a targeted marketing program five years ago, AEFA built an internal system to mentor black employees (American Express CEO Ken Chenault is also African American). And there are those American Express commercials featuring golfer Tiger Woods and his dad.

Despite the advances by Merrill Lynch and other financial firms, everyone agrees that more attention needs to be paid to black investors. "If you want to be a major player five or ten years from now, you have to recognize that black America is in the middle of an economic rights movement," Boston says. "That bodes well for banks, credit card companies, insurance, real estate --anything that builds net worth." Callery of the National Black MBA Association shares the sentiment: "All we need are the nuts and bolts," he says. Whoever provides the toolbox will be the real winner.

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