BEST-IN-CLASS FOR THE ONLINE
DC PLAN PARTICIPANT EXPERIENCEA COMPETITIVE ANALYSIS
NOVEMBER 2013
Copyright 2013 Corporate Insight, inc.
ABOUT CORPORATE INSIGHT
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Corporate Insight provides competitive intelligence and user experience research to the nation’s leading financial
institutions. For over 20 years, the firm has tracked technological developments in the financial services industry,
identifying best practices in online banking and investing, online insurance, mobile finance, active trading
platforms, social media and other emerging areas. There are no assumptions in Corporate Insight’s work – we use
live accounts at all of the firms we research, providing our clients with unparalleled, unbiased intelligence on the
competition.
Corporate Insight welcomes the opportunity to speak with the media. If you are interested in citing our research or
would like to schedule an interview with one of our analysts, please contact Intermarket Communications at 212-
888-6115 or [email protected].
Media Inquiries
Connect With Us
JAMES MCGOVERN
Vice President
Consulting Services
646-454-2667
TABLE OF CONTENTS
• Introduction
• Building a Best-In-Class Online Experience
o Know your users
Findings from our 2013 DC Plan Participant Survey
o Understand your competitors
Findings from our 2013 DC Plan Participant Website Audit
• What is Next?
• Corporate Insight Thought Leadership
• Contact The Author
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CORPORATE INSIGHT’S RETIREMENT RESEARCH
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• Began research on DC participant Web experience in 2006
o Custom DC Plan Participant Website Audit 2006 and 2010
o Plan Sponsor Website Audit 2007 and 2010
• Launched Retirement Plan Monitor research service in 2012
ABOUT THE DC PLAN PARTICIPANT WEBSITE AUDIT
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For over 20 years, Corporate Insight has closely monitored and analyzed the online
customer experience offered by financial services firms. The DC Plan Participant
Audit helps our clients understand the strengths and weaknesses of their DC plan
participant website versus key competitors. The Audit also offers actionable
recommendations to close competitive gaps and improve the client firm’s plan
participant site.
AUDIT METHODOLOGY
The DC Plan Participant Website Audit framework consists of five categories,
23 sub-categories and over 125 attributes covering all facets of the online
plan participant experience. The five categories assessed are:
• Account Information
• Account Servicing
• Planning, Advice & Education
• Quotes & Research
• Transactions
AUDIT INCORPORATES FEEDBACK FROM DC PLAN SITE USERS
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• CI surveyed 1,000 DC plan site users to understand what they want from their plan site
• Survey data powers weighted scores used to determine the importance of Audit categories, sub-categories and attributes
• Weights can be tailored based on preferred demographic
• Survey data used to create DC Plan Participant Survey Report
DC PLAN PARTICIPANT WEBSITE AUDIT – WHAT YOU RECEIVE
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AUDIT REPORT – Customized report that identifies your plan participant website’s strengths and weaknesses against key competitors. The report includes weighted scores for your site and all competitor sites that reflect importance ratings from our DC Plan Participant Survey. We also provide dozens of gap analysis charts and hundreds of specific, tailored recommendations to help you improve your plan participant website.
DC PLAN PARTICIPANT SURVEY REPORT – As part of the Audit, we surveyed nearly 1,000 participant website users in June 2013 to understand how they utilize their provider’s website and mobile platforms and what features they value most. This report summarizes the results of this research and how attitudes and behavior differ by such demographic factors as age, gender and plan assets.
DC PLAN PARTICIPANT SURVEY DATA – Audit purchasers also receive the raw plan participant survey data we compiled focusing on website and mobile usage, customer satisfaction and more.
To learn more about our DC Plan Participant Website Audit, please contact James McGovern, Vice President, Consulting Services, at 646-454-8667 or [email protected].
THE WEBSITE MATTERS TO USERS…
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88%
9%
2% 1%Logging onto the plan provider’s website and reviewing real-time data
Opening your mailed statement andreviewing periodic data
Logging onto the plan provider’s mobile app and reviewing real-time data
Calling customer service to speak with arepresentative
When you think of where to go to monitor your retirement plan balance and activity, you think of?
AND IT MATTERS TO YOUR BUSINESS TOO!
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• Compared to our total survey sample, participants who are extremely satisfied with their provider’s website are 18% more likely to roll over their plan assets to an IRA with that firm
Likelihood to Roll Over by Satisfaction Level with Provider Website
TOP WEBSITE ATTRIBUTES
ACCOUNT INFORMATION DOMINATES
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Eight of the Top Fifteen Most Important Website Attributes
Relate to Account Information
See your account balance
Access latest quarterly statement
View account positions
Transaction confirmations
Access quarterly statements for last year
Access account history for past 180 days
Account history available since enrollment
Positions are updated daily
1
4
5
8
9
12
14
15
Im
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MEN AND WOMEN USE SITE SOMEWHAT DIFFERENTLY
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41%
32%
23%
17%
0% 10% 20% 30% 40% 50%
Exchange between investment funds
Performed research on available funds
Female Male
Main Difference in Website Utilization Per Gender
• Men are more likely to research investments and exchange plan dollars between funds
OLDER USERS TEND TO LOG IN MORE OFTEN
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Frequency of Logging Into a Plan Website by Age Group
Age
60+
40 - 59
<40 00
1+/Month
69%
64%
59%
OLDER USERS TRACK THEIR ACCOUNTS MORE CLOSELY
58%
65%
81%
65%
74%
88%
0% 20% 40% 60% 80% 100%
Viewed / downloaded statement
Reviewed account / fund performance
Checked plan balance
60+ < 40Age Group
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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months
OLDER USERS ARE MORE LIKELY TO BE MOVING MONEY AROUND
3%
31%
22%
20%
33%
36%
0% 10% 20% 30% 40%
Withdraw Money from Plan
Change Allocation
Exchange between Funds
60+ < 40Age Group
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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months
YOUNGER USERS ARE MORE LIKELY TO USE PLANNING, EDUCATION
& MOBILE
8%
15%
27%
3%
10%
23%
0% 10% 20% 30%
Use Mobile App to Access Account
Refer to Educational Content
Use Site Tools & Calculators
60+ < 40Age Group
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Percentage of Respondents Who Performed Activity on Participant Site in Past 12 Months
AREAS OF INTEREST FOR THOSE UNDER 40 YEARS OLD
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PlanningTools
1. Estimate of retirement funds needed
2. Recommend asset allocation changes
3. Financial tools covering basic decisions
4. Plan for multiple goals in retirement
5. Actionable guidance on savings rate
EducationalContent
1. Retirement savings as well as investing strategies
2. Understand non-retirement resources from the provider
3. Basic tools / materials available pre-login
WHAT IS THE WEBSITE AUDIT?
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It is NOT like the
government version
IT IS a benchmarking analysis
against your key competitors
• Identify strengths and weaknesses
• Weighted rankings of attributes
• Identifies high value enhancements
• Helps prioritize platform development
COMPETITOR SET OF THE CURRENT WEBSITE AUDIT
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Graded Ten Leading DC Plan Participant Sites Using Live Accounts
KEY AREAS OF INTEREST TO PARTICIPANTS
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Plan Overview
1. View account balance
2. Rate of return
3. Performance chart for account
4. Current contribution & match
5. Retirement income forecast
6. Allocation pie chart
Statements
1. Most recent quarterly statement
2. Quarterly Statements for past year
3. Statements since enrollment into plan
Account History
1. Transaction confirms
2. Minimum of transaction history for last 180 days
3. All history since enrollment into plan
CORE ACCOUNT INFO SCORES FALL WELL SHORT OF EXCELLENT
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Account History
Account Statements
Plan Overview
History, Statements & Plan Overview
1 = Poor2 = Fair3 = Good4 = Excellent
Great West (3.55)
Vanguard (3.42)
Merrill Lynch (3.22)
Total Score
Vanguard (3.57)
Great West (3.55)
Fidelity (3.23)
Great West (3.75)
JP Morgan (3.66)
Mercer (3.22)
Merrill Lynch (3.54)
Vanguard (3.54)
AON Hewitt (3.47)
ACCOUNT HISTORY KEY FINDINGS
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Account History • Half offer less than two years of searchable account history
• History search, sort and filter functionality limited
• Data display tends to be simplisticIndustry Average = 3.05 / 4.0
Vanguard (3.57)
Great West (3.55)
Fidelity (3.23)
1 = Poor2 = Fair3 = Good4 = Excellent
Source: 2013 Corporate Insight Plan Participant Website Audit
VANGUARD IS ABOVE AVERAGE IN
NEARLY ALL ACCOUNT HISTORY ATTRIBUTES
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Account History Gap Analysis – Vanguard vs. Competitors
No print link
Data Display
Transaction Descr.
Data Download/Export
Printability
Navigation / Integration
Depth of Archive
Transaction Types Avail.
Search, Filter, Sort
Competitors are Better Vanguard is Better
GREAT WEST ALSO CONSISTENTLY OUTPERFORMS
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Account History Gap Analysis – Great West vs. Competitors
Three year archive
Data Display
Transaction Descr.
Data Download/Export
Printability
Navigation / Integration
Depth of Archive
Transaction Types Avail.
Search, Filter, Sort
Competitors are Better Great West is Better
ACCOUNT HISTORY BEST PRACTICES – GREAT WEST
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A Summary overview offers combined figures for each
transaction type within a given time period
ACCOUNT HISTORY BEST PRACTICES – GREAT WEST
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Clicking on a particular transaction reveals
additional level of detail
ACCOUNT HISTORY BEST PRACTICES – VANGUARD
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Users can view transactions by fund, source or
both…
…and sort transactions by
date, description or fund name
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Easy access to related features
Fly-out menu gives users one-click access
to other key site functions
ACCOUNT HISTORY BEST PRACTICES – VANGUARD
TO DELIVER A BEST-IN-CLASS ACCOUNT HISTORY…
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1. Offer a deep archive, preferably for full life of the account
2. Allow users to filter history by fund, source and custom time period
3. Provide dynamic data sorting
4. Let users click on a transaction to reveal additional details
ACCOUNT STATEMENTS KEY FINDINGS
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• Most firms only offer two-year archive
o Sixty-seven percent of respondents said that access to ALL statements online was “very” or “extremely important”
o Young participants prefer digital over paper
• A few sites lack statements in PDF
Account Statements
Industry Average = 3.1 / 4.0
Great West (3.75)
JP Morgan (3.66)
Mercer (3.22)
1 = Poor2 = Fair3 = Good4 = Excellent
Source: 2013 Corporate Insight Plan Participant Website Audit
ACCOUNT STATEMENTS BEST PRACTICES – GREAT WEST
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Users have access to five-year statement archive, plus online
access to mailing inserts
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“On Demand” statements can be
generated and accessed in PDF format for easy
downloading
ACCOUNT STATEMENTS BEST PRACTICES – GREAT WEST
TO DELIVER A BEST-IN-CLASS ACCOUNT STATEMENTS FEATURE…
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1. Offer a deep archive, preferably for full life of the account
2. Organize statements by year
3. Allow users to create custom statement for desired period
4. Present statements in PDF
5. Provide easy access to statement inserts
PLAN OVERVIEW KEY FINDINGS
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• Audit’s most important sub-category
• Homepage & related features/info
o Plan balance/fund balance
o Asset allocation
o Performance
o Current contribution
o Retirement Income projection
Plan Overview
Industry Average = 3.22 / 4.0
Merrill Lynch (3.54)
Vanguard (3.54)
Aon Hewitt (3.47)
1 = Poor2 = Fair3 = Good4 = Excellent
Source: 2013 Corporate Insight Plan Participant Website Audit
PLAN OVERVIEW BEST PRACTICES – MERRILL LYNCH
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Account Summary page offers useful account overview data with click-to-reveal access to more in-depth info
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Balances are available by investment,
source or asset class, with the
option to display a combined view
PLAN OVERVIEW BEST PRACTICES – MERRILL LYNCH
PLAN OVERVIEW BEST PRACTICES – VANGUARD
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Intra-page tabs provide quick access to
overview information and key site features
Combined balance information offered for multiple plans and aggregated external accounts
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Access to personalized rate of return for plan as well as individual
funds
Month-by-month detailed
performance data
PLAN OVERVIEW BEST PRACTICES – VANGUARD
PLAN OVERVIEW BEST PRACTICES – AON HEWITT
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Interactive graph allows users to compare up to three individual funds against
personalized rate of return
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Compare current asset mix to model mix and view the
impact on projected balance
Links are offered to apply new investment mix
PLAN OVERVIEW BEST PRACTICES – AON HEWITT
TO DELIVER A BEST-IN-CLASS PLAN OVERVIEW FEATURE…
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• Put key metrics up front, like plan value and YTD performance
• Allow users to drill down into the details
• Use graphics to communicate performance
• Offer links to key features like recent statements
ADVICE AND GUIDANCE
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2013 Financial Advice Survey
• Americans need financial guidance, but many participants opt to retrieve it from places other than their DC plan sites, especially those that are between the ages of 18 and 34 and 55 and 64, respectively.
MANY FIRMS LACK EDUCATION AND PLANNING RESOURCES
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Planning, Advice & Education Industry Average = 2.5 / 4.0
0 1 2 3 4
Vanguard
T. Rowe Price
Fidelity
Planning, Advice & Education Category Scores
0 1 2 3 4
T. Rowe Price
Great West
Fidelity
Multi-Goal Planning Tools Sub-Category Scores
Multi-Goal Planning ToolsIndustry Average = 2.13 / 4.0
Source: 2013 Corporate Insight Plan Participant Website Audit
1 = Poor 2 = Fair3 = Good 4 = Excellent
FIDELITY’S PORTFOLIO REVIEW IS THE BEST IN CLASS
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The tool incorporates Fidelity accounts as well as accounts
held outside the firm
Portfolio Review tool creates investment strategies to help
users meet specific goals
PLANNING, ADVICE AND EDUCATION BEST PRACTICES – FIDELITY
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Users can select all available funds or Fidelity
funds only
Portfolio Review offers actual fund recommendations to help achieve desired goal
TO DELIVER BEST-IN-CLASS PLANNING AND EDUCATION
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• Offer a good mix of plan-specific calculators and in-depth planning tools
• Organize your resources effectively
• Don’t just address retirement – healthcare expenses too!
GOOD NEWS: PROVIDERS OFFER MOBILE
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47%
59%
12%
41%
0%
Mobile Optimized Site iPhone App iPad App Android Phone App Android Tablet App
Mobile Platform Support Among Retirement Plan Monitor Firms As of October 2013
BAD NEWS: PARTICIPANTS ARE UNAWARE
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Yes, 23%
No, 13%
I don't know, 64%
Yes, 35%
No, 65%
Does your provider allow access to your account via a mobile device?
If yes, have you accessed your plan via this device in the past 12 months?
AND MOBILE ACTIVITIES REFLECT LIMITS OF TODAY’S OFFERINGS
1%
2%
2%
2%
2%
9%
10%
0% 20% 40% 60% 80%
Sent or received a text message to/fromcustomer service
Enrolled in my plan
Viewed educational content like a planningtool or video about saving for retirement
Completed an investment risk toleranceprofile
Scheduled a guidance consultation
Made a transaction (e.g., rebalanced myaccount, changed my contribution rate, etc.)
Conducted research on a plan investment
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Retirement Plan Activities Using Mobile
MOBILE CLOSING THOUGHTS
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• Mobile must be part of your strategy
• Participant knowledge is very poor – you must change this
• You can improve overall participant engagement using mobile,
especially with young people
• Do not neglect the tablet
FINAL THOUGHTS
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• Industry gets the basics of account information right…
• But it could do much more to drive engagement…
• Particularly with younger participants…
• Better planning and education is one part of the solution…
• Longer term, mobile will be as well
CORPORATE INSIGHT THOUGHT LEADERSHIP
Next-Generation Investing: Financial Startups and the Future of Financial Advice CI tracks over 100 startups that covers a wide range of new ideas across financial advice and investing. This
study will focus on each idea, analyze compares them to what established financial institutions offer and
examine the potential impact on the industry. Download the study preview!
Social Media Trends: Annuity and Life InsuranceThis presentation analyzes the current social media initiatives and promotions undertaken by leading insurers,
highlights key social media findings and trends across the insurance industry, and offer tips for insurers looking
to bolster their social presence.
Tablet-Friendly Web Design: Best Practices for Financial ServicesThe study examines the tablet-friendly website features provided by four leading firms across financial services
and provides recommendations for financial services firms building tablet-optimized websites.
Facebook Marketing Campaigns - Social Media Initiatives in the Insurance IndustryThis slide deck highlights some of the engaging Facebook marketing campaigns initiated by P&C Insurance
Monitor firms this year and offers a few Facebook marketing tips for insurers.
2013 Mobile Finance Trends and InnovationsThis slide deck includes commentary on mobile developments, key takeaways for financial services firms and
thoughts on what’s next for mobile finance.
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CONTACT THE AUTHOR
James McGovern
Vice PresidentConsulting Services
James McGovern is head of CI’s Consulting Services. He leads a team of analysts that provides highly customized research and competitive intelligence to the nation’s leading financial institutions.
Recent consulting engagements have included website and mobile capabilities benchmarking projects, Website Audits, industry trend analysis, business strategy projects, mystery shop work, pricing analysis, and user testing and heuristic reviews, among others.
Check out our consulting case studies to learn more about our latest projects and strategic engagements.
CONTACT JAMES:646-454-2667 [email protected] | LinkedIn
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