By Mariana Lemann January 21, 2011
Client service trumps all other criteria in plan sponsors’ selection of 401(k) plan providers.
That’s according to a new survey out from Anova Consulting Group that is based on input from more than 300 midsize- and large-plan sponsors.
The results show that client service has gained in importance in sponsors’ decisions to remain with or swap out providers. And while client service is not a big factor in sponsors’ creation of a short list of providers, it becomes a bigger factor in the final stages of the decision-making process, the study shows.
Plan sponsors surveyed were only 12% more likely to cite client service as a factor in their initial search criteria, but when it comes to their final decisions, 33% were more likely to mention client service as the deciding factor.
The survey was based on telephone interviews conducted within the past year with plan sponsors in the month following their decisions to either switch or retain providers.
Client service has become much more important in the 401(k) space because the market has become much more competitive, says Rich Schroder, president of Anova Consulting Group
“As the industry has become more commoditized, plan sponsors are beginning to base their decisions more on client service,” he says.
A greater focus on fee transparency and the resulting compression of fees have also contributed to the commoditization of plan features in the retirement plan market.
The rise of open architecture and the dissemination of automatic plan features also have made fees less of a factor than the quality of the service rendered to clients, Schroder says. “What we are learning is that as these things become more on par with each other, providers have to go down the value chain.”
Plan providers catering to the middle and large end of the marketplace agree that client service is more important now than it has ever been.
“The fiduciary perspectives on pricing and open architecture have been met and the marketplace is very competitive from a pricing perspective and from an open architecture perspective,” says Wayne Finnegan, head of institutional corporate markets at ING U.S. Retirement Services. “You start to think of the less commodity- like aspects of service or delivery and the importance that has been placed on the experience of the representative that will be handling that account.”
The quality of the service rendered by providers to plan sponsors ultimately depends on intangibles like the client’s chemistry and personal fit with the relationship manager handling the account, Schroder says.
That has been the experience Putnam Investment has had with its clients over the last few years.
“If you look at why plan sponsors choose to leave their current provider or at least look at options in the marketplace, the level of client service is a contributing factor if not a driving factor,” says Edmund Murphy, III, managing director and head of defined contribution at Putnam.
But the decisions clients make are driven by more than client service, Murphy says. “It is not only about being responsive to a customer, but it is being proactive.” He touts Putnam’s client-to-relationship manager ratio, and says the firm has one of the lowest ratios at a time when “a lot of firms [are] cutting back on front-line associates.”
Fidelity Investments attributes the retention of a 20-year contract with Hewlett-Packard to client service and investments in technology. The behemoth announced yesterday that it has extended its relationship with HP for an additional five years. The deal consolidates more of HP’s retirement plan under the Fidelity umbrella.
“They look at this as an opportunity to look at their plans and to consolidate them under one provider,” says Jeffrey Lagarce, executive VP of workplace investing at Fidelity Investments. But Lagarce says that while client service is important, sponsors assess providers on a variety of factors.
“Very large clients look at all parts of the equation: competitiveness of fees, technology capabilities, Web capabilities, plan participant retirement planning tools. We have had a long relationship [with HP] and we’ve been able to demonstrate our ability to invest in technology, offer this at a competitive market price, and they have been very satisfied with the service.”
January 19, 2011 (PLANSPONSOR.com) – According to a new survey by Anova Consulting Group, retirement plan sponsors report that client service has now become the number one or number two reason for choosing a new plan provider.
In an earlier survey in 2008 and 2009, client service ranked number three or number four in importance, after fund selection and fees, according to a press release.
Among the reasons for the increased importance of client service are the continued commoditization of funds and technology in the retirement plan marketplace as well as growing fee pressure affecting all providers. Another reason, according to Rich Schroder, president of Anova Consulting Group, is that “many recent plan turnovers have tended to be among plans that are more complex in nature and need a stronger client service team to handle them.”
The survey shows the value placed on client service rose as retirement plan sponsors reached the final stage of their buying process. While plan sponsors were only 12% more likely to refer to client service as a factor in their initial search criteria, 33% were more likely to cite it as a top reason for the final decision.
“These results should be a wake-up call for retirement plan sales teams that are not currently bringing the appropriate service team members to finals presentations,” said Schroder, in the press release. “Plan sponsors want to know how their account will be managed once the sale is made, so for sales teams, it’s critical that relationship managers not only be in the room, but be skilled at presenting in finals situations.”
The 2010 Anova survey included responses from more than 300 plan sponsors in the middle and large markets (plans with over $25 million in assets under administration).
For Immediate Release
Contact: Heather Jenkins
Anova Consulting Group, LLC
(617) 731-1085
heather@anovaconsulting.com
BROOKLINE, MASS. – According to a new survey by Anova Consulting Group, a leading provider of customized market research, sales training and consulting services to financial services and human capital management companies, retirement plan sponsors report that client service has now become the #1 or #2 reason for choosing a new plan provider over a rival firm.
The 2010 Anova survey of more than 300 plan sponsors in the middle and large markets (plans with over $25 million in assets under administration) reveals the significance placed on client service and fit with an account team has increased for plan executives. In an earlier survey in 2008 and 2009, client service ranked #3 or #4 in importance, after fund selection and fees.
Notably, the survey shows the value placed on client service rose as retirement plan sponsors reached the final stage of their buying process. While plan sponsors were only 12 percent more likely to refer to client service as a factor in their initial search criteria, 33 percent were more likely to cite it as a top reason for the final decision.
“These results should be a wake-up call for retirement plan sales teams that are not currently bringing the appropriate service team members to finals presentations,” said Rich Schroder, president of Anova Consulting Group. “Plan sponsors want to know how their account will be managed once the sale is made, so for sales teams, it’s critical that relationship managers not only be in the room, but be skilled at presenting in finals situations.”
Among the reasons for the increased importance of client service are the continued commoditization of funds and technology in the retirement plan marketplace as well as growing fee pressure affecting all providers, according to Anova. Another reason, according to Schroder is that “many recent plan turnovers have tended to be among plans that are more complex in nature and need a stronger client service team to handle them.”
Schroder, whose firm has been performing market research for leading financial services and human capital management firms since 2005, is the author of a new book, From a Good Sales Call to a Great Sales Call (McGraw-Hill, October, 2010), which details how learning from post-sale debriefing helps close more sales.
Established in 2005, Anova Consulting Group is a leading market research and consulting firm focused on Win / Loss analysis and client satisfaction Analysis. By helping its clients understand why they win, lose and retain business, Anova provides strategic perspectives to its clients, driving better decision-making, product development, sales effectiveness, client service, and continuous improvement. Last year, Richard Schroder, president of Anova, released a book about Win Loss Analysis titled, From a Good Sales Call to a Great Sales Call (McGraw-Hill, 2011), which details how learning from post-sale Win / Loss debriefing helps close more sales.
Q: I have been in sales for more than 10 years, and I have changed industries several times. I never had formal training or courses but learn quickly, even when starting from scratch. I am tired, though, of doing it on my own without input of how to be better. My sales managers always seem to be busy with the duties of managing a team and keeping track of sales.
I never have had managers who are interested in training on an overall basis. They want great results with as little investment of time as possible in the reps. I think I am a natural at sales, but I would do better if I had some creative suggestions along the way for how to improve.
How do I find such a thing when a company does not offer it?
A:You have been hired for your experience and successful sales record, so your managers may feel you do well enough on your own. Independent sales reps have entrepreneurial personalities with perceptive social skills, but they can improve when they apply various processes to their knowledge banks. Seeing as you have done well as an independent learner, you could benefit from reading books on selling, which would replace the formal business courses or seminars you think you have missed.
Peruse the “how to sell” books, and check each author’s background. If you think an author’s background is impressive, review the table of contents to see what the book offers.
Richard M. Schroder, author of “From a Good Sales Call to a Great Sales Call,” researched the sales process for more than 12 years. He found that salespeople repeatedly make the same mistakes, and asking their potential clients why they did not get the sale does not net the real reasons. If you practice Schroders eight-step system — intended for all professional sales reps — you will learn how to analyze why you win and why you lose.
You even may learn that switching industries was not what you needed to do better.
Additional task degrades educated employee
Q:I work alone in sales in a large store. The owner just asked me to mop the floors because the cleaning service has become too expensive. I was offended and in shock. I have a college degree; I’m not a cleaning woman, and I was not hired to do floors. He didn’t even offer me a raise to do this.
My husband does not think the request was that bad. What do you think?
A:In defense of the owner, he is under pressure and has to cut corners. He clearly cannot cut your job, because you are the only salesperson in the store. On your side, you were hired to sell, not to replace his cleaning service.
If you peacefully comply with his request, there is no telling what it eventually will do to your self-esteem. Once you start mopping, your anger may rise higher than you can imagine, and when it does, you may quit in a rage. Do not let it get to that point.
Calmly explain your feelings and thoughts about this with him. You also can call a lawyer to see whether you have a potential cause of action. Do not go ahead with it if you do, but knowing your rights may help you in your discussion.
Jobs may not be easy to find, but if you cannot find peace within yourself because of this change in duties, start looking for another job.
It makes sense: your firm is more likely to land a sale if you skillfully tailor your presentation to the needs of a given prospect. But in order to master …
January 05, 2011
It makes sense: your firm is more likely to land a sale if you skillfully tailor your presentation to the needs of a given prospect. But in order to master customized selling, contends sales-training specialist Richard Schroder, you need to take a standardized approach.
In From a Good Sales Call to a GREAT Sales Call, Schroder suggests the following methods salespeople can use to gain insights into potential clients and incorporate them into their pitches:
1. Write a list of open-ended questions for use with any prospect:
Equip each rep with a series of questions focusing on the potential customer, company and business needs. For example, asking the prospect the personal question “How did you get into the business?” lets your rep learn about the prospect as an individual and identify potential common ground on which to build rapport. And asking the organizational question “How is business?” will help your salesperson understand what the prospects firm is going through, including pain points that your company may be able to address.
2. Get the potential customer talking before your pitch:
Your rep should open a sales presentation by saying something like, “Before I start, can you take a few minutes to fill me in on what is important to you and what is going on with your current provider, product or service? This will help me clarify and better tailor my remarks in the rest of the meeting.” Then your rep should listen carefully to get a clear grasp of the prospect’s specific needs.
3. Restate or paraphrase the prospect’s unique needs before presenting a solution:
By doing so, your salesperson will show that she has listened, and the prospect will get a chance to correct any misunderstandings.
4. Take notes to capture important insights:
Doing so will make the prospect feel important and encourage him to keep talking. It will also help ensure that your salesperson remembers the most pertinent details of what the prospect has revealed so she can incorporate these into her presentation.
5. Highlight the prospects needs in the pitch:
A rep must take care that her presentation covers each of the hot-button issues the prospect has revealed during the early “identifying needs” portion of the sales meeting. And she should not worry if your firms sales materials do not reflect this customization; instead, she should focus on showing the prospect that she understands what he is looking for and on addressing each of his areas of interest.
For Immediate Release
Contact: Andrew Cloutier
Anova Consulting Group, LLC
(617) 731-1045
andrew@anovaconsulting.com
BROOKLINE, MASS., October 28, 2014 – Anova Consulting Group announced today that Diane Johnson, a 30-year veteran of the financial services industry, and Eileen Govaert, an 18-year veteran, have joined the firm as Director of Sales & Relationship Management and Executive Interviewer, respectively.
Johnson is responsible for business development and client relationship management at Anova. In this role, she works with prospective and current clients to build and maintain win/loss and customer satisfaction programs that enable Anova’s clients to win and retain key customers. She is also responsible for the delivery of customized market research projects that are tailored to specific client needs.
Govaert conducts market research projects for Anova’s financial services and defined contribution clients. She is responsible for in-depth interviews with senior executives and financial advisors across a broad spectrum of investment and retirement plan products.
“We are able to provide our clients with exceptional Win / Loss and customer satisfaction analysis because of the knowledge and expertise of our staff,” said Rich Schroder, president of Anova Consulting Group. “We added 10 employees in 2014, all of whom are seasoned executives with impressive credentials. Diane and Eileen are examples of our desire to grow Anova thoughtfully, as they bring knowledge and expertise that will enable us to expand while continuing to provide our clients with top-quality analysis.”
Johnson joins Anova from State Street Corporation where she worked for more than 14 years, most recently as Vice President, Institutional Investor Services, developing and managing significant client relationships within the Asset Owner market: public and private pension plans, Taft-Hartley plans, as well as endowments and foundations. Johnson began her career at Wachovia Corporation, successfully working her way, over a 15-year period, to the position of Senior Vice President, Team Leader and Territory Manager. During her tenure, her responsibilities included business development and client relationship management activities in support of Wachovia’s commercial banking, cash management, and institutional and corporate trust clients.
Govaert joins Anova following an 18-year career with New York Life Retirement Plan Services. During her time at New York Life, Govaert filled various roles including Vice President of Relationship Management, Assistant Vice President of Project Management, and Manager of Internal Sales. Her responsibilities included overseeing the training of associates on ERISA regulations, supervising the plan sponsor conversion / onboarding process, and managing the content and development of the quarterly plan sponsor newsletters.
Established in 2004, Anova Consulting Group is a leading market research and consulting firm focused on win / loss and client-satisfaction analysis. By helping clients understand why they win, lose, and retain business, Anova provides strategic perspectives driving better decision-making, product development, sales effectiveness, client service, and continuous improvement. Richard Schroder, president of Anova, is author of the Win Loss Analysis book From a Good Sales Call to a Great Sales Call (McGraw-Hill), which details how learning from post-sale debriefing helps close more future sales.
For Immediate Release
Contact:
Andrew Cloutier
Anova Consulting Group, LLC
(617) 731-1045
andrew@anovaconsulting.com
BROOKLINE, MASS., June 26, 2014 – Anova Consulting Group, a leading provider of win / loss and client satisfaction analysis to financial services, technology, and human capital management companies, today announced its expansion with the appointment of two new professionals, Sylvia Forster and Zachary Golden. Forster will support Anova’s work for financial services and defined contribution clients as an Executive Interviewer and Golden will work across all market verticals as a Research Analyst.
“We are seeing unprecedented demand for Win / Loss analysis solutions and we expect the market for Win / Loss to double over the next five years,’’ said Richard Schroder, Founder and President of Anova Consulting Group. “We are looking forward to having Sylvia and Zach on our team to work closely with our clients, helping us continue to deliver high quality research and analysis. During her extensive career in financial services, Sylvia directed strategic product development initiatives in the retirement plan services arena. Zach joins Anova after gaining sales strategy experience at Sun Life Financial.’’
Prior to joining Anova, Sylvia worked at New York Life Retirement Plan Services, most recently as Vice President of Marketing, Insurance Operations, and Services. Before that, Sylvia worked at The Hartford as Manager of Product Development and at Aetna as Manager of the Marketing Department.
Zach joins Anova from Sun Life Financial, and prior to that he worked in IT-focused market research at ClearEdge Partners.
Forster will report to Rebecca Scarlott, Director of Market Research and Golden will report to Andrew Cloutier, Director of Client Service at Anova.
Established in 2005, Anova Consulting Group is a leading market research and consulting firm focused on Win / Loss analysis and client satisfaction analysis. By helping its clients understand why they win, lose, and retain business, Anova provides strategic perspectives driving better decision making, product development, sales effectiveness, client service, and continuous improvement. Richard Schroder, president of Anova, is author of a book titled From a Good Sales Call to a Great Sales Call (McGraw-Hill), which details how learning from post-sale debriefing helps close more future sales.
For Immediate Release
Contact:
Andrew Cloutier
Anova Consulting Group, LLC
(617) 731-1045
andrew@theanovagroup.com
BROOKLINE, MASS., May 7, 2014 – Anova Consulting Group, a leading provider of Win / Loss and client satisfaction analysis to financial services, technology, and human capital management companies, today announced its expansion with the appointment of two new team members, Rhonda Green and Jenn Howard. Green and Howard will both serve as executive interviewers performing telephone-based market and client research. Green will support Anova’s work for financial services clients and Howard will focus on Anova’s technology and human capital clients.
“Anova added 8 new clients in 2013, and we’ve already added 6 new clients so far in 2014. It is imperative for growing companies to continuously source new talent,’’ said Richard Schroder, president of Anova Consulting Group. “Rhonda is a seasoned executive with 30 years of financial services experience focusing on retirement plan administration. Jenn comes to Anova with 15 years of experience in marketing and sales at international technology companies.’’
Prior to joining Anova, Green was manager of defined benefit plan administration at Group Health & Benefit Administrators following a long and successful career at MetLife. Howard comes to Anova from Globoforce and she also worked at Ascential Software Corporation and Dell. Both Green and Howard will report to Andrew Cloutier, Director of Client Service at Anova.
Established in 2004, Anova Consulting Group is a leading market research and consulting firm focused on Win / Loss analysis and client satisfaction analysis. By helping its clients understand why they win, lose, and retain business, Anova provides strategic perspectives driving better decision-making, product development, sales effectiveness, client service, and continuous improvement. Richard Schroder, president of Anova, is author of a book titled From a Good Sales Call to a Great Sales Call (McGraw-Hill), which details how learning from post-sale debriefing helps close more future sales.
For Immediate Release
Contact: Andrew Cloutier
Anova Consulting Group, LLC
(617) 731-1045
andrew@anovaconsulting.com
Brookline, MASS, April 15, 2014 — Anova Consulting Group, a leader in Win / Loss analysis and customer satisfaction research, is launching an updated brand image coinciding with the 10-year anniversary of the firm’s founding. The rebranding includes a new website (www.anovaconsulting.com), a completely revamped capabilities brochure, and a redesigned logo.
“Helping our clients win and keep business is what we do,” said Anova Founder and President Rich Schroder. “Our new brand image more accurately reflects our growth and expansion while still emphasizing our core mission statement of existing to help our clients compete more effectively.”
Driven by a highly consultative approach, Anova’s Win / Loss analysis and customer satisfaction research provide objective feedback to measure the effectiveness of a firm’s sales efforts and the quality and responsiveness of its service functions. Since inception, Anova has experienced steady growth in all business climates, and Anova’s client base has expanded from its original focus on the financial services industry to a broader focus that includes software / technology and human capital management clients.
The updated website is designed to more consistently and clearly communicate Anova’s focus in Win / Loss and client satisfaction research to clients and prospects, as well as serving as a portal to the Viewpoint client dashboard. The website also contains resources such as case studies complete with client outcomes, white papers, articles and the ability to download a chapter from Schroder’s Win Loss Analysis book From a Good Sales Call to a Great Sales Call.
Added Schroder, “Our website and logo are essential indicators of what we stand for as a company, and we have taken the opportunity to strengthen how we represent ourselves as we roll out our broader strategy for Anova’s second decade.”
Established in 2005, Anova Consulting Group is a leading market research and consulting firm focused on the financial services industry. Through custom and syndicated market research studies, Anova provides strategic perspectives to its clients, driving better decision-making, product development, sales effectiveness, client service, and continuous improvement. Richard Schroder, president of Anova, is author of a book titled From a Good Sales Call to a Great Sales Call (McGraw-Hill), which details how learning from post-sale debriefing helps close more future sales.
A recent study of defined-contribution sponsor-clients of the industry’s most successful retirement plan advisers points to a straightforward conclusion: Amid this increasingly complex DC landscape, sponsors demand specialized expertise far beyond traditional investment advice.
The survey, conducted by Anova Consulting Group and BlackRock Inc., identified managing fiduciary responsibilities, plan design and understanding participant goals as the most important factors driving sponsors’ satisfaction with their DC plan advisers.
The key lesson: A financial adviser outside the DC arena might think that supporting retirement plans is primarily an investment problem solved by the ability to pick funds. That isn’t the case.
Getting plan participants ready for retirement is increasingly recognized as a savings, behavioral and fiduciary exercise.
That may pose challenges to advisers focused primarily on investment selection. But it also represents a considerable opportunity for those who can develop and deliver comprehensive retirement plan expertise directed squarely at helping sponsors shape a more satisfying, long-term outcome for their participants.
SPONSOR EXPECTATIONS
To understand that opportunity — as well as how sponsor expectations are setting the bar for existing and aspiring DC-focused advisers — let’s consider how we got here.
In DC’s early days, a key benefit promised to participants was the freedom to choose their own investments.
In practice, it wasn’t necessarily a blessing. Few participants have the time, inclination and insight needed to sort through investment menus with dozens, even hundreds, of funds.
Experience, behavioral finance and the Pension Protection Act of 2006 have now encouraged a swing toward simplification. Freedom of choice remains, but default options — particularly target date funds — auto-enrollment and other automatic tools are helping nudge participants into smarter choices, better habits and, I think, more-successful retirement preparation.
But simplification has changed the game for advisers. Those serving the employer retirement plan market need to provide guidance on increasing participation and fulfilling fiduciary obligations, the differences among the many target date funds available, existing and emerging regulatory directives, and fee disclosures, among a host of other areas.
The BlackRock/Anova survey illustrates the “table stakes” that the best retirement plan specialists have established and also defines some key prerequisites for establishing a successful practice with a DC retirement plan focus.
Here are some highlights of what was found:
Plan sponsor satisfaction with top retirement plan advisers clocks in at 91%. The message is clear: It won’t to be easy to win clients away from specialists.
Ease, ideas, value drive satisfaction. Frequent investment menu reviews are also key to sponsor satisfaction.
Fiduciary responsibilities rate high. Asked to rate the importance of adviser services, 60% cited investment menu selection, 47% said managing fiduciary responsibilities, and 42% mentioned understanding plan and participant goals.
Provider, record keeper impact minimal. Satisfaction with them has very little impact on satisfaction with advisers. Plan sponsors clearly understand the discrete set of services they expect their advisers to deliver.
Strong cross-sell opportunities. 41% of plan sponsors indicated an interest in investment advice for their participants, with 35% interested in retirement income solutions and 33% looking for financial planning services.
SPECIALIZE OR PARTNER UP
DC has continued to grow and evolve, becoming a discipline unto itself that increasingly calls for focused expertise.
Even questions about the investment menu revolve increasingly around selecting target date funds, which are available on nearly 80% of DC plans.
The message to advisers looking to work in the DC space? Either dig in to understand best practices, or actively seek out partnerships with retirement plan specialists as part of a cross-selling strategy.
Whichever path advisers choose, the opportunity is there for those who can deliver the guidance and service that plan sponsors value most today.
Chip Castille is managing director and head of BlackRock Inc.’s U.S. and Canada DC group.
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