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 Industry
Insight from Fred Barstein
DCP Crosses the Final Frontier: Verified Participant
Satisfaction Ratings
AS MAJOR ELEMENTS of
401(k) services become commoditized, providers and advisors
need to find ways to distinguish their services.
DCP, prepared by the Boston Research Group (BRG),
determines how satisfied sponsors and advisors are with key
areas of service including:
- Investments
Technology
Record Keeping
Customer Service
Employee Education
With more open investment platforms, it
has become impossible for all but a few to distinguish
themselves.
Technology and record keeping has become commoditized with
so many providers doing a great job and customer service is
extraordinarily high for many providers.
In an attempt to find new areas of differentiation,
BRG recently completed a study with over 12,000 participants
in defined contribution plans which includes providers
representing 75% of the market including:
Eight indices were created from over 40 measures of
satisfaction and 70 measures of behavior, loyalty, future
intent and attitudes which rate providers on:
- Preparation for Retirement
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- Assistance in Retirement
Planning
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The final battleground for providers is which one is doing a
better job in preparing their participants for retirement.
The DCP Participant Study will be the first industry
accepted research which will indicate who is actually
winning this battle.
Because of the sensitive nature of the information, BRG does
not release the results to the public and only those record
keepers that purchase the Study for $50,000 may view the
results. Most of the
major providers have already purchased the study, so
interested advisors should contact their record keeping
partners to get access to the results.
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