2020
PLANADVISER Practice Benchmarking Survey

Frame of Reference

Boosting your industry acumen with the help of peers

When advisers evaluate the success of their practice for 2020, they will need to factor in the influence of COVID-19—and how it has changed business as usual. The PLANADVISER Practice Benchmarking Survey, fielded each October, gives us insight into how retirement plan advisers ran their business over the past year. Especially in 2020, it provides an opportunity to reflect on the differences since last our last survey in light of the pandemic.

While a chief concern for practices is often adding new clients, this has topped the list this year, with 58% of responses, up from 43% last year.

During a panel discussion at September’s virtual PLANADVISER National Conference (PANC), experts noted that the best new business now does not result from marketing—it comes from referrals. This is especially true for those advisers who specialize in specific sectors. “Referrals from existing clients, Certified Public Accountants [CPAs] and attorneys is critical,” said Randall C. Long, founder and managing principal of SageView Advisory Group in Irvine, California. “We have a similar focus, with health care, higher education and government plans,” Long said. “Many of those industries have events, and that has helped facilitate referrals.”

Preserving client connections is vital—especially in the era of COVID-19, sources agreed. This was underlined by this year’s survey findings: Client retention was advisers’ third highest concern, growing to 32% from 18% in 2019.

The past six months have provided a unique framework for determining what clients need from their service providers. Joshua Itzoe, partner and chief strategy officer at Greenspring Advisors, on another of our virtual conference panels, said his firm gave webinars to inform clients about the markets’ reactions to COVID-19, as well as to explain to them the Paycheck Protection Program (PPP) and to help with decisions about suspending their retirement plan match. “We tried to think holistically about their businesses, not just their plan,” he said. Not only did he retain clients, but he won new business with this approach, he said.

The survey found a smaller percentage of advisers offering individual advice or wealth services—74% after that number had increased to 80% from 62% over the prior two years.

Advice does look different during the pandemic. Tristan Talley, vice president, wealth management, Bukaty Companies Financial Services, a DigitalOne company, in Kansas City, Missouri, speaking on the same panel, said six individuals on his team would go out daily for on-site visits at sponsor companies, but they moved to virtual meetings in March. “We also have weekly Zoom meetings for participants and plan sponsors,” Talley noted. “We used to do webinars all the time, but they were usually presentations without participant interaction. Zoom changed that. We get to see participants, and they interact [with us].” When participants get involved, he says, it produces better outcomes.

While Zoom fatigue has begun to set in for some, the popularity of videoconferencing has generally taken off in the advising community. Of six technology solutions commonly used by advisers, that tool was used by 98%.

 “Our quarterly meetings with clients have gone really well,” said Long. “In fact, many have said we can continue for each quarterly meeting.”

To indicate how important technology/information technology (IT) support has become, 78% of broker/dealers (B/Ds) considered it a primary benefit this year, up from 68%. For many advisers who have had to adapt their practices to manage remote teams and clients, that support, in 2020, may have been a game-changer. —PA

Art by Philip Lindeman