Value-Add Services — What Advisors Really Want

Providers, and particularly DCIO’s, spend a lot of money on value-add services to help them distinguish themselves and their services above and beyond record keeping administration and money management — much of which has been commoditized. The array of products, services and tools is virtually endless. When advisors were asked in a 2012 Cogent study how they would define a value-added program, 27% said "business-building" and 20% indicated "client educational programs." Nearly 10% said the term was meaningless. Nothing new in this — advisors want help finding new clients and then educating them to help improve participant outcomes. In an era of unbundling of services, fee transparency and margin pressure, one has to wonder about the future of value-add, though many cannot imagine a world without it.