Maybe it’s a simplistic approach when it comes to things, but I kind of see things the way they are in very simplistic approaches.
When it comes to employees working for a client, I always say that happy employees never leave. When it comes to clients of a retirement plan provider, I also say that happy clients never leave.
There was so much concern with fee disclosure regulations that retirement plan clients would drop their current providers to save a quarter or a small amount of money across the street and I don’t believe that has really materialized because fees have fallen industry wide and again, happy clients never leave. Clients that changed providers and saved a lot of money in doing, in my opinion, were never happy to begin with and just used that fee savings as cover. Fees have lowered thanks to the regulation, but I think that was about competition and technology because you’ve not had the race to zero as others have predicted.
Maybe I’m oversimplifying things, but keeping clients happy goes a long way in keeping them as clients.