record-keeper

Learning About Recordkeepers Online

Posted by Anu Heda on Nov 02, 2011, in Thoughts , tagged with , , , , ,

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):

  1. Ascensus – Low-cost, open architecture
  2. Principal – Big, hands-on, and helpful sales force
  3. 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.

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Searching for a Recordkeeper

Posted by Anu Heda on Nov 02, 2011, in Thoughts , tagged with , , , ,

The 401(k) market is massive. There’s nearly $3 trillion dollars in 401(k) plans. For white-collar America, it’s simply part of the on-boarding process at a new job. And those recordkeepers that sell primarily small plans, I think there’s an opportunity to increase sales from optimizing parts of the Web site.  By “optimizing,” I mean improving sales leads in two ways:

  1. Through search engine results
  2. By providing quick visibility into recordkeepers’ value proposition

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Selling the small DC plan

Posted by Anu Heda on Nov 17, 2010, in Thoughts , tagged with ,

In reviewing notes from a meeting with a Third-Party Administrator (TPA) earlier this year, one message became loud & clear.

Stop Selling & Start Servicing.

And as we’ve met and spoken with management at the record-keepers, that message resonates even more.  The record-keepers are working hard in producing sales material and internal strategies to gain share.

For a TPA selling a 401(k) plan to a small business, these simple questions continue to arise from plan sponsors:

  1. Between different options (referring to record-keepers), will investing in one plan versus another be easier for my employees?
  2. When my employees need advice and help, who’s best at answering their calls?
  3. Do all the options offer plans with the same funds, at the same prices?
  4. Do the plans all cost me the same?
  5. How do you (the TPA) get paid by these companies?

To answer these questions effectively, the TPA creates his own competitive analysis.  He has to track changes across record-keepers including, fund price changes, fund availability, plan participant/sponsor Web site changes, and service discrepancies.   Maybe he does a good job.  Most likely his information becomes outdated.

When the TPA’s information becomes outdated, the record-keeper with positive changes but poor communication loses out.  The best record-keepers create a marketing process to continually remind the TPA community of their firm’s competitive advantages (versus others). Without that nuanced and important communication, improvements at the platform-level may go largely unnoticed.

  1. How much does this cost me?