PLANSPONSOR - December/January 2021 - 18

2020 PLANSPONSOR BEST IN CLASS DC PROVIDERS
because the " surviving " recordkeeper is
the one most invested in technology and
cybersecurity.
Typically, when recordkeepers consolidate,
they try to maintain the best of both
companies, says Credico. An acquired
company's plan sponsor clients will experience
change. Therefore, " [they] need to
do their due diligence on the new recordkeeper, "
she says. " The fiduciary duty of
selecting providers means don't just go
along with the change. "
With an acquisition, the acquiring
company will usually maintain the sponsor's
contracts until they run out, she
says. " But it's important to benchmark
fees, which may go up or down after that. "
How to Choose
As the pool of recordkeepers gets smaller,
plan sponsors might have a harder time
differentiating between them and not
know which considerations matter most.
Sponsors should seek a team that
will focus on their needs and offer effective
solutions. " They'll want to look for a
recordkeeper that does a fair amount of
business with plans like theirs and of the
same size, " Credico says.
Investment in technology is a differentiator
for recordkeepers, Credico says.
" More participants tend to go to the internet
for services, so recordkeepers should be
improving their websites and making
them user-friendly, " she says.
In addition, she notes, there is a big
market for financial wellness programs
and products integrated with technology.
" Student loan benefits, managed accounts
and advice that incorporates participants'
total financial picture are examples of
tools that address individual challenges,
not just saving for retirement, " she says.
" Recordkeepers that focus on these are the
ones that will differentiate themselves. "
" Ultimately, " says Popp, " the industry
will end up with a couple of handfuls of
recordkeepers with significant scale and
a focus on participant value-add services.
To me, this is a standard life cycle of the
industry, and, as it matures, we'll see more
consolidation. " -Rebecca Moore
METHODOLOGY
THE 2020 PLANSPONSOR DEFINED CONTRIBUTION (DC) SURVEY summarizes plan sponsor
satisfaction with DC recordkeeper offerings in 23 areas of service covering five broad
categories: Participant Services; Sponsor Services; Service Teams and Support; Plan
Administration; and Investments and Fees. Responses were gathered via an online
questionnaire distributed to approximately 20,000 DC plan sponsors sourced from
prior surveys and PLANSPONSOR's subscription database; the questionnaire was also
sent to client lists supplied by DC recordkeepers. A total of 2,343 usable responses was
received by the close of the survey, late this past November.
To qualify for inclusion in the published results, a provider had to meet quotas
in each of six asset-based markets; see charts starting on page 20 for details. A total
of 17 providers qualified for listing in at least one market. More information on the
markets serviced by these providers and others can be found on page 29, as well as in
our 2020 Recordkeeping Survey, available at plansponsor.com/research (free registration
is required).
Best in Class Awards are based on sponsor satisfaction within a given area of
service. Ratings were derived from the percentage of respondents " completely satisfied "
(9 or 10 on a 10-point scale) less those that were " dissatisfied " (6 or less). The three
highest-scoring providers in each service category earned a Best in Class Award, as did
those providers with a net satisfaction rate above the asset group's benchmark score,
which is given in each chart.
Service Commendations were given to recordkeepers that did not receive Best
in Class honors but exhibited strong client satisfaction within a service attribute-i.e.,
more than 70% of clients were " completely satisfied " with the service offering.
Results are presented by individual market to reflect differences in the competitive
landscape. Leader boards are used to indicate the highest scoring providers in certain
areas. Expanded listings are available at PLANSPONSOR.com. For more information,
email surveys@issmediasolutions.com.
Net Promoter®
Score
FOR THE PAST THREE YEARS, PLANSPONSOR has used a modified version of Satmetrix
Systems' Net Promoter System (NPS®
)* to measure sponsor satisfaction. Based on a
single question-on a scale of 0 to 10, how likely are you to recommend a company to
a friend or colleague?-NPS provides a single-metric snapshot of customer loyalty and
has been shown to have strong correlation with positive business outcomes such as
client retention and long-term growth. Because of these factors, NPS has become something
of an industry standard for measuring and reporting client satisfaction.
NPS is calculated by subtracting the percentage of customers who are " detractors, "
giving a score of 6 or less, from the percentage who are " promoters, " giving a 9 or 10.
The thinking is that this measure gives equal importance to clients who love a company's
product or services and to those who are less happy-and possibly at risk of leaving
for a competitor that offers something better. " Passives " -7s and 8s-are thought to be
only somewhat satisfied and do not influence the final score. Forrester Research Inc.
published its 2020 Net Promoter Benchmark report this past November and found that
the top Net Promoter Score across 250 brands, representing 14 industries, was 59%,
which roughly corresponds to the Best in Class benchmark used in the DC Survey. For
additional information, please visit netpromotersystem.com.
*Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons
are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
18 PLANSPONSOR.COM December 2020 - January 2021

http://www.plansponsor.com/research http://www.PLANSPONSOR.com http://www.netpromotersystem.com http://www.PLANSPONSOR.COM

PLANSPONSOR - December/January 2021

Table of Contents for the Digital Edition of PLANSPONSOR - December/January 2021