Relationship Errors
Thriving 401(k) plan adviser businesses are built on happy clients, active referrals and healthy growth. By avoiding the errors outlined here, you can maintain your clients’ momentum toward attaining their goals.
After all, 47% of plan sponsors are considering a new adviser, says Fidelity Investments. Three reasons why sponsors that responded to its Plan Sponsor Attitudes Survey said they are looking to make the move are that other advisers: 1) seem more knowledgeable; 2) offer better employee communications and education; and/or 3) provide better investments than their current adviser does.
As you reflect on your client services, are there opportunities for improvement? We give examples of what not to do, plus a better alternative.
7 Common Mistakes to Avoid
1. Hoarding your knowledge | Communicate your retirement plan expertise through employer newsletters, plan sponsor guides, case studies and human resources checklists. Your clients want to know you have their back and that your knowledge is worth sharing. |
| 2. Being anti-‘social’ | With more companies embracing social media, adviser requests for proposals are including questions about how their social media presence improves retirement knowledge. Now is a great time to get social and engage. |
| 3. Having an incomplete LinkedIn profile | Don’t make it difficult for potential clients to learn more about your qualifications and experience. Double-check that your LinkedIn profile is complete. And, if you’re unsure, visit your profile page and look for any of LinkedIn’s suggested prompts. Your profile is today’s virtual handshake. |
| 4. Being a digital ghost | If someone can’t find you in 76 seconds, that person gives up, says Brian Dean, search engine optimization expert and founder of Backlinko. Prevent this by increasing your digital presence. Answer industry questions online, or post about key changes in legislation. By becoming more digitally visible, you’ll increase your credibility and attract more business. |
| 5. Not answering requests | Review the ways by which people can contact you. For example, do you still give out your office phone number? And, if so, who answers the phone? Who checks the voicemail? What about the contact box on your website—who manages it? This may sound inconsequential, but, if clients can’t reach you, that might turn into frustration and could prompt an adviser RFP. |
| 6. Skipping education meetings | Survey after survey shows that employees believe their employer is responsible for their financial well-being—and that includes retirement savings. Encourage your employer clients to promote financial education meetings, and use this opportunity to teach participants about the benefits of saving through their 401(k) plan. The phrase “You don’t know what you don’t know” has never been more applicable. |
| 7. Limiting the relationship | Who are the next-in-line decision-makers? Take the time to get to know the up-and-coming leaders within the company, so if/when there is turnover on the retirement plan committee, you already have a healthy relationship with the newest member. The successful adviser typically knows—and works with—the entire committee. |
Rebecca Hourihan
Founder of 401(k) Marketing, in San Diego, California, has over 15 years of experience helping 401(k) advisers build brand awareness and promote their specialized skill sets.