The retirement plan industry loves talking about the future.
Artificial intelligence. Managed accounts. Financial wellness. Personalized participant experiences. Predictive analytics. Enhanced cybersecurity. Better mobile apps. There is always another product that is going to revolutionize the 401(k) plan.
Meanwhile, the plan sponsor is still waiting for someone to answer an email from Tuesday.
There is nothing wrong with innovation. Providers should improve their technology and develop new services. But there is something strange about constantly selling tomorrow when basic problems today remain unresolved.
I’ve sat through enough provider presentations where tremendous attention is paid to whatever the latest industry trend happens to be. The presentation looks terrific. The graphics are impressive. Everyone talks about the future of retirement.
Then the client signs on and discovers that getting a simple operational question answered requires three emails and two escalations.
That is where the disconnect occurs.
Plan sponsors don’t live in the provider’s marketing presentation. They live in payroll deadlines, participant questions, compliance issues, contribution problems, and day-to-day administration. Those things may not sound as exciting as artificial intelligence, but they are what actually determine whether the sponsor thinks the provider is doing a good job.
Providers sometimes forget that innovation is only valuable when the foundation is solid.
Before selling the sponsor another sophisticated tool, make sure the basic service model works. Make sure calls are returned. Make sure emails are answered. Make sure payroll problems are resolved. Make sure somebody actually knows the client’s plan.
There will always be another industry trend coming around the corner. Providers should embrace the good ones.
But don’t spend so much time selling the future that you forget about the client standing in front of you today.
Because that client may not be around tomorrow.