Benefits Providers Missing Out On Cross Selling Opportunities

Just 14% of 401(k) plan participants currently own additional products and services from their retirement plan provider, but as many as two-thirds of these employees are open to the idea of purchasing other benefits, according to a study by financial services consulting firm Spectrem Group.

Based on more than 400 telephone interviews with 401(k) plan participants, the survey showed that many 401(k) plan participants, particularly those with the highest balances, would consider buying additional products and services from their providers. The survey found, however, that a large percentage of participants are unaware of additional products and services available from their provider.

When asked how they wished to learn more about other products, respondents said they would prefer to get information from mailings to their homes, statement supplementals, and website links.

Results showed that most respondents are happy with their 401(k) plan providers. Some 70% of surveyed employees who do not yet own additional products said they were satisfied with their provider’s service, and 63% said they were satisfied with their plan performance.

George Walper, Jr., president of the Spectrem Group, said, "Cross-selling represents a tremendous opportunity for the providers of 401(k) plans, yet it remains largely untapped by these firms. Plan participants tell us they are generally satisfied with their providers and overwhelmingly open to the marketing of new products by these organizations. At a time when scandal has tarnished so many areas of the financial services industry, positive relationships like these are worth their weight in gold. New sales seem to be there for the asking."