Landing a new 401(k) plan client is no small feat. Advisors must navigate a long sales cycle as plan sponsors carefully vet providers. That’s one reason why minimizing churn in your advisory practice is so important and why a strong, proactive retention strategy is essential for long-term success.
Demonstrate Value Beyond Basic Plan Management
Noted author and customer loyalty consultant Chip Bell highlights the power of value unique experiences — “small actions that are unexpected and delightful to prospects and customers” — as key to fostering strong relationships. By benchmarking more frequently than the customary three- to five-year interval, you can proactively address potential issues while delivering higher value, higher touch service — and a differentiating client experience. Advisors who leverage innovative benchmarking tools like PlanFees can further set themselves apart by providing data-backed recommendations that reinforce their expertise and dedication to achieving better plan outcomes. Regular benchmarking also helps preempt client concerns by identifying potential issues before they arise.
Strengthen Client Relationships With Fee Benchmarking
Greater fee transparency fosters greater trust. PlanFees provides clear, easy-to-understand reports that help clients feel more informed about where their recordkeeping, administrative, investment, and advisory fees stand in relation to those of similar plans. It also provides a context for ongoing, meaningful engagement by addressing evolving needs and helping to uncover new opportunities to improve performance. Accurate, proactive benchmarking positions you as a plan partner, not just a service provider.
Use PlanFees to Strengthen Your Custom Offering
Use benchmarking to tailor personalized strategies for each client’s specific needs and to help ensure the plan remains compliant, competitive, and aligned with the sponsor’s goals. By regularly analyzing benchmarking data, you can more easily identify potential areas for improvement, adjust investment options, and explore avenues for cost savings. This highly customized approach helps strengthen client relationships, build trust, and guard against another advisor poaching your client.
Tips and Tactics for Turning Benchmarking Into a Retention Strategy With PlanFees
When integrated into your service model, benchmarking can become a proactive tool for strengthening client relationships. Consider these strategies to help better retain clients and demonstrate ongoing value:Advisors who leverage benchmarking as a retention tool — and not just a compliance checkbox — are well-positioned to build stronger, longer lasting client relationships.