Retirement plan advisers should keep current clients happy to get new ones: MassMutual study
Survey shows that 58% of plan sponsors found their adviser through a referral.
Retirement plan advisers can get new clients by keeping the ones they have satisfied and happy, according to a new MassMutual study released Monday.
The study showed that 58% of employers that sponsor retirement plans found their adviser through referrals and almost nine out of 10 would recommend their adviser to other employers.
The results also suggested that to retain plan sponsors, advisers should be more concerned about providing good customer support than obtaining good returns.
Because despite the sponsors’ high satisfaction level with advisers indicated in the study, one-third of them said they had changed advisers in the past, with 41% stating “bad adviser” as a reason.
The study defined that reason as advisers “failing to provide adequate support” and showing lack of interest, knowledge and response.
(More: Jerry Murphy: How to become a more referable adviser)
Better investment and poor returns were low on the list of reasons for changing advisers with 7% and 6% respectively.
“The retirement plan business is all about solving problems,” Tom Foster, national spokesperson and practice management leader for MassMutual’s retirement plan services, said in a release. “Advisers who are attentive and responsive, keep up with the regulatory environment, and work closely with sponsors to help their employees become retirement ready have tremendous opportunities to grow in the retirement plans marketplace.”
The study polled 565 employers last fall that sponsor retirement plans with assets ranging from less than $1 million to $75 million.
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