December 12, 2024
Alongside trustworthiness, being easy to do business with is a major brand attribute DC plan providers must showcase to win new recordkeeping business among plan sponsors and plan advisors. In fact, on a list of 17 different brand attributes we tested, being easy to do business with is a top consideration driver across all plan sizes and DC AUM segments.
It is also a key component of “Partnership,” the most efficient and quickest pathway to building brand consideration using advanced structural equation models, in conjunction with best-in-class participant and plan sponsor support among plan sponsors and strong wholesaler support among plan advisors.
So, what does “being easy to do business with” actually mean? The definitions are oftentimes subjective, so earlier this year we asked plan sponsors to describe how plan providers can demonstrate this vital attribute using their own words.
Nearly half of all verbatims underscore the importance of providing proactive, responsive and knowledgeable support (45%). Other mentions emphasize strong service capabilities and a dedicated support team (20%), maintaining open communication and being easy to understand (20%), as well as strong online tools and digital capabilities (17%).
Micro plan sponsors, who manage less than $5 million in plan assets, are quick to tout agility in client service teams as well as knowledge and clear communication.
Strong technology platforms and fiduciary support are frequently described by Small-Mid plan sponsors, who manage $5 million to less than $100 million in plan assets.
Large-Mega plan sponsors, who manage $100 million or more in plan assets, meanwhile, also stress the importance of offering US-based streamlined services, customization and flexibility.
Given the diversity of definitions at hand, it truly comes down to delivering agile and seamless service and support. As plan providers set new goals for 2025, they must carefully articulate how they can effectively partner with plan sponsors, plan advisors and, ultimately, plan participants in their quest to be easy to do business with and successfully expand their respective industry footprints.
Retirement Planscape and Retirement Plan Advisor Trends provides insight into the latest industry trends, benchmarks the competitive strengths and weaknesses of the leading 28 DC plan providers and 43 DC investment managers, and tracks the emerging appeal of nine digital recordkeepers. As always, our goal is to help firms understand their unique brand identity and claim their distinct place within this ever-evolving market.
Want to learn more about our DC research? Talk to us.
Sonia Davis
Senior Product Director, Cogent Syndicated
Sonia is a senior product director for Cogent Syndicated with more than 12 years of market research experience. She has managed numerous qualitative and quantitative studies in financial services industry research, as well as the hospitality, consumer packaged goods and retail sectors. Prior to Escalent, Sonia served as a community manager for C Space, a public relations specialist for Putnam Investments and as a staff reporter for Community Newspaper Company. Sonia earned an MBA from Boston University School of Management and a bachelor’s degree in communications from Simmons College. She’s a proud finisher of the rainiest Boston Marathon on record (2018), but truly enjoys triathlon training and outdoor adventures with her black lab.
