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Sponsors Connecting to Providers via Web, Social Media

Boston-based Cogent Research has released some interesting data about the use of social media by plan sponsors. The information comes from the firm’s 4th annual Retirement Planscape® study.

Cogent found that while many providers continue to dedicate time and money to traditional forms of communication, such as e-mail or direct contact with an advisor or firm representative, plan sponsors are more often linking to plan providers through websites or blogs (39%), LinkedIn (24%) and Facebook (22%) to share or seek news and opinions related to 401(k) plans and providers. Nearly two-thirds (63%) of DC plan sponsors are using social media as a regular source of information for 401(k) plans and the providers that serve this market, Cogent found.

This has significant implications for the sales and servicing approach advisors and other plan service suppliers must consider to remain competitive and relevant. As Linda York, Practice Director of Syndicated Research at Cogent Research, said in a press release, "These results indicate that a social media strategy, if it hasn't already, should be an integral component of any provider's overall communication plan." You can read the full press release here.

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