Whether you are starting out in the 401(k) industry or a seasoned professional – it all starts with an accurate prospect list. Who are the key decision makers that you can connect with so that you can share your story and earn their company’s retirement plan business?
Thankfully, in our industry, we have a huge advantage: the Form 5500. As you may know, the Department of Labor (DOL) requires plan administrators to file this annual form by July 31st. It is available to anyone looking for plan information and can add value to your prospect list. The form holds crucial contact information such as decision makers names, addresses, and phone numbers as well as valuable prospecting data points such as total plan assets, annual contributions, number of participants, and much more.
To get started, you will want to identify your target market. Start with the familiar and work outwards. Below are a few recommendations to help you identify and add new companies to your prospect pipeline:
Then use the analytical power of LinkedIn to discover how you might be able to connect with the key decision makers. One the best ways to do this is through social media. Find the plan administrator’s name and then look them up on LinkedIn. Are they a connection or a 2nd degree connection?
Once you have a focused prospect list, it’s time to run meaningful plan characteristic reports. According to a recent Fidelity study, plan sponsors are seeking efficient and reliable support. They want to work with retirement experts and better understand the following areas:
Any one of these concerns could be the key to winning that plan. After running reports and evaluating the Form 5500 public data, select a visible pain point such as low participation, investment share class or unreasonable fees. Armed with this valuable information, develop a value proposition that addresses the issue.
For example, share with the company decision maker why you believe it is beneficial for them to setup a meeting, such as:
Then complete your outreach by asking for a meeting with the decision maker. For example, “We recently ran a retirement plan report and found some interesting information that we’d like to share with you. How is your calendar next week for a conversation?”
By prospecting within your known network, this is an easy way for retirement plan advisors to open 401(k) opportunities and grow their business. It is also a chance for the advisor to demonstrate their expertise by presenting compelling reports that seek to address the plan’s problem and solve a need.
Lastly, by developing a consistent workflow process within your business, you can build a pipeline of qualified prospects and convert them into retirement plan clients.
Source: “Plan Sponsor Attitudes 9th Edition Survey Results.” Fidelity. 2018. https://institutional.fidelity.com/app/item/RD_13569_26306.html