Maybe it’s a simplistic approach when it comes to certain things, but I 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.
Plan sponsor clients leave when they’re unhappy. They leave when they’re not satisfied with their service and/or a lack of communication. Keeping them happy will go a long way into keeping them as a client.
Maybe I’m oversimplifying things, but keeping clients happy goes a long way in keeping them as clients.
