Learning About Recordkeepers Online
In the previous post, we examined the experience of searching for a recordkeeper. In this post, we’ll consider another common experience – the referral. Many people will look for a referral from anyone they deem qualified to provide a starting point. With a referral mindset, I asked a few DCIO wholesalers to recommend recordkeepers for small and new plans. I heard three firms repeatedly (and reasons why):
- Ascensus – Low-cost, open architecture
- Principal – Big, hands-on, and helpful sales force
- John Hancock – Good, easy-to-use technology
From reviewing the firms’ Web sites, online marketing has not been a major focus to-date. None of the top firms’ sites provides a comprehensive pre-sale experience.
Ascensus
From the homepage, it isn’t particularly clear that Ascensus offers 401(k) services for small businesses. In the screen capture below, you see a series of quick links (“I’d like to…”), but nothing about starting a 401(k) plan. Additionally, there are encouraging navigation tabs for “Retirement Plan Solutions” and “Employee Benefits Solutions.” Unfortunately, those sections act as document repositories, not promotions for 401(k) services.
Principal
Within two clearly marked links, a user finds the “Defined Contribution Plans” section. This site provides a straightforward and linear approach to starting a 401(k) plan. Principal starts with “Why 401(k)” and ends with a Learn about our plans call-to-action. There’s a video for some users and additional detail. Principal does not provide a telephone number or offline next step, even on subsequent pages. So once the entrepreneur is convinced to consider Principal, there’s no clear way to “buy” (either via TPA, direct, or partner) a plan.
John Hancock
From the homepage, it’s only one click into a a 401(k) page that clearly defines the process: work with an advisor. Yet, John Hancock doesn’t give the entrepreneur a single, strong reason to believe their platform is good option for his business and employees.
