Spinning the Web
In recent months, many retirement plan advisers might have felt as if they needed to be in more than one place at the same time in order to keep up with plan sponsor and participant concerns. Until there is an outsourcing service for superhero powers, using tools such as Webcasts/Webinars, e-newsletters, and other new media can be an effective and efficient way for advisers to educate participants about what is happening in the markets and their 401(k) accounts.
Financial adviser Joshua Itzoe, Principal at Greenspring Wealth Management, Inc., in Towson, Maryland, and author of Fixing the 401(k), offers plan sponsor and participant clients quarterly Webinars featuring general financial education, such as what is happening in the markets, which he says have been received well by all recipients. His firm had offered Webinars sporadically for the last couple of years, and began offering them regularly in 2008. In January, he decided to conduct a Webinar about what happened in 2008 and what the future is likely to bring. Similarly, consultants at Barney & Barney in San Diego, California, have been using Webinars since 2002, offered as both online enrollment meetings and general education about the markets to all of their clients. The firm designed a series of workshops in order for participants to understand the market volatility, says Bill Peartree, Director of Retirement Services. “As we’re looking forward, we’re not reinventing the [participant communication] wheel, we’re just using technology to redesign it,” says Rick Ferguson, retirement analyst at Barney & Barney.
In a market environment like this, face-to-face contact is still important, but sometimes the Web can be faster, suggests Sylvie Feist, Director of Communications Consulting at the Retirement Group at Merrill Lynch. Not only are advisers unable to visit everywhere at once, but also employers are hesitant to take employees “off the production line,” she says—meaning having a Web-delivery option is time-efficient for not only advisers, but also plan sponsors. Merrill offers customizable online presentations powered by Brainshark, a Web presentation tool, called On-Demand, which advisers can customize for their retirement plan clients and also include attachments, such as enrollment information. Last year, Merrill created an On-Demand presentation about the basics of investing, which advisers can show to their clients. Feist says one benefit is that the presentations are easy to change, so they have been updated with more information about market volatility as the financial crisis progressed.
In addition to using Webinars as a general educational tool, advisers are using the Web more for regular communication, such as enrollment meetings and e-newsletters. As automatic enrollment becomes more common, it helps to have a basic enrollment presentation for participants as they become eligible between scheduled enrollment meetings, says Rick Skelly, Client Services Executive at Barney & Barney. The largest benefit of using Webinars for enrollment and education is the recording function, enabling participants to go back and listen to a playback on their own time, says Barney & Barney’s Peartree.
Web-based enrollment meetings also come in handy when companies have locations all over the country. Itzoe describes a recent Webinar he conducted with a new client that is switching recordkeepers and has employees on both coasts. He used the Webinar to explain, among other things, the changes in providers and plan services, as well as his methodology and fees as an adviser. Skelly also predicts that the Web will play a role as education continues to be more than just about investing, but also fee disclosure, which is where regulation is headed.Such topics might seem too complicated for the Web but, actually, the Web might be just the right venue. When executed efficiently with the audience in mind, the Web can offer another way, in addition to traditional media, to keep up with the demand for communication in the format in which individuals prefer to receive information. “More companies are communicating a lot more to their employees right now. Doing that through all the communication channels that are available is a smart way to go,” says Jennifer Benz, Founder of Benz Communications, which specializes in employee benefits communication. Employees want more information and are continuing to look to their employer for financial guidance, she adds, citing a recent survey from MetLife that found about half of employees are interested in access to a financial planner at work.
“Face-to-face communication is absolutely the most powerful thing you can do,” Benz says. “Unfortunately, it’s also the most expensive and time-consuming.” Even when using in-person communication, the Web can be a supplemental tool. Merrill’s Feist says, “Seeing the same content in different places has an impact with individuals.”
Peartree says there is a demand from plan sponsors for advisers to provide educational resources to participants. Using Web-delivered education is a chance for the adviser to add value to the plan sponsor client—it also can be beneficial to the advisory business when it enables advisers to free up time usually spent doing in-person presentations. Itzoe says he is continuing to look at ways to leverage technology to make his time, and therefore his business, more effective. “I don’t think you can do only a Web-based approach…but I think trying to weave it in as companies, and employees particularly, become more comfortable with technology is a way to enhance your service deliverable and run your business effectively.” Instead of having four live meetings, maybe you can have two, he adds.
What To Consider
Like any communication strategy, the key is knowing your audience, and with what level of understanding they are starting out, Benz says. The possible downside to Web communication is the risk of condensing something like financial education into a short segment. “You don’t want to have a one-size-fits-all about financial education,” she says; before implementing Web education, advisers need to consider the cultural background and financial literacy of the audience (see “Zooming In”).
Itzoe also points out that you have to determine whether the Web is effective based on the demographics of the plan and what the plan sponsor client thinks is acceptable. If an adviser is working with a technology company, of course everyone will be tech-savvy but, at a manufacturing company, doing Webinars might not be effective or appropriate. Regardless of what is efficient for the advisory business, the plan sponsor is the decider of what is appropriate for the plan. Like conversations about any educational strategy, talking about the Web involves approaching clients individually and outlining possible Web tools and ensuring that those tools are right for their particular plan needs.
Determining the technological concerns and then informing plan sponsors and participants well in advance also is key. Even with everyone on board, technology is known to be fickle. Itzoe says it is important to communicate with the clients to set realistic expectations so that they are prepared for glitches, such as trouble logging on to a Webinar. Keep in mind the technology available to the employees: Do employees have audio on their computers? Should Web presentations be given in a conference call and online format or just an online format (see “Web Tools Advisers Can Use,” below).
Another thing to let participants know about is how to ask questions. Sometimes the Web presentation can include a section for questions but, if the presentation is not being watched live, the adviser might want to offer contact information so that participants can ask questions afterward. Itzoe notes that many participants are comfortable educating themselves and then asking questions later.
Tools To Use
There are many different new media and Web tools advisers can use for employee education, some of which are more advanced than others. Mark Palmer, Director of Business Consulting at Charles Schwab, says he is seeing an uptick in advisers not only using Webinars, but also sending e-newsletters on a regular basis, whether monthly, bimonthly, or quarterly. Palmer says e-newsletters can create dialogue because advisers can use software to see what information recipients click on, and then tailor future newsletters to that information. He also says two-thirds of an adviser’s clients will choose an e-newsletter over a print version, and gradually that group will increase.
As for using more new media tools—like audio and video—there has not been a huge take-up rate yet, Palmer notes, but advisers are considering some of those tools. Itzoe has thought about using short educational video clips on his Web site, for instance. Benz notes that, in order to use video or other multimedia to create a professional presentation, it might not be cost-efficient, meaning video could take more time and cost than it saves. Nevertheless, as more tools become accessible, audio and video could be the next step in Web development for retirement plan advisers.
Like any disseminated information, advisers might need to check with their firm’s compliance department before developing their own Web content. Some advisers might be limited to recordkeeper-provided content rather than original Web content. Web content from the provider, such as educational modules, is out there for advisers to leverage, says Barney & Barney’s Skelly. “Those [providers] that have been proactive in putting that out there are at the forefront of employee communication,” he says. Peartree adds that advisers can go through the proper screening process and introduce tools to the client that are appropriate for meeting the client’s goals—such as targeting a certain age group.
Palmer mentions that using the Web is about utilizing all the channels available, as people communicate in different ways. The idea is to communicate better with plan sponsors and participants and be more productive at the same time, and, he says, to “always keep the client at the center of what you are doing.”
SIDEBAR: Web Tools Advisers Can Use
Webinars/Webcasts: Webinars are a way to communicate using live Web presentations that are Web-only or paired with a telephone conference. Common services include WebEx, Citrex, and Microsoft Live Meeting. In addition to serving as live meetings, the Web sessions can be recorded and then accessed by participants later.
Online presentations: Similar to a Webinar, some presentation software, such as Brainshark, allows advisers to create PowerPoint-like presentations and attach documents such as enrollment information that can be accessed on demand.
e-newsletters: Advisers can e-mail information to keep clients informed about regulatory happenings or news. It could be as simple as sending e-mails with content or links, or using e-newsletter software, such as HNW Publisher, which is specifically for the financial services industry.
Video: Advisers can produce video on their own, or employ tools like SmartPlan Advisor, a video and education engagement system that can be somewhat customized.
Audio/podcasts: Podcasts are audio content that can be subscribed to via an RSS feed or through iTunes. To create podcasts, you need audio recording equipment and software, as well as an audio player and RSS feed on your site.