Why advisors shouldn’t offer one technology solution to clients
Just as one carrier's products don't work for every client, one technology solution doesn't work for every client either.
A similar approach should be followed when offering benefits technology solutions, but instead, benefit consultants often invest in just one technology solution, hoping it solves every clients’ needs.
Just as one carrier’s products don’t work for every client, one technology solution doesn’t work for every client either. Here’s the deal: Offering only one solution to your clients does more harm than good.
The hidden costs of relying on a single technology solution
Firms typically invest in a single technology solution, paying anywhere between $10,000 to $200,000 per year to hold a license for the platform (depending on the vendor). On top of hefty licensing fees, firms also have to hire someone to learn everything about the system to serve as product support.
Because of the hefty costs associated with holding a license for even one platform, firms generally cannot afford to invest in more than one solution. This means they’re limited to offering a single technology solution to their clients.
While it might seem cost-effective to offer one solution, it also poses challenges:
- The firm is selling clients on a technology solution that may not work for them.
- Managing technology in-house cuts into the firm’s bottom line.
This one-size-fits-all approach isn’t the advantage that benefit consultants believe it to be; instead, it limits their potential to grow their business.
Relying on a single resource is risky
Client success is dependent upon strong support, and employers will turn to benefits consultants when issues with their system inevitably arise.
To ensure a positive client experience, firms must either hire someone or train an existing staff member to serve as the primary point of contact for handling any technology-related issues. However, this is more difficult than firms initially realize.
That’s because the ideal subject matter expert (SME) must have:
- Technical expertise: In-depth knowledge of the platform for seamless implementation, comprehensive training, and ongoing support. The SME must also be capable of building and maintaining EDI files and integrations with carriers and other HR systems of record.
- Benefits knowledge: The SME will need to understand benefits, which may require a benefits expert to oversee their work.
- Commitment to client service: The SME must have customer service skills and be willing to dial in during the stressful open enrollment (OE) seasons.
Above all, the SME must be loyal to the agency. This person is the sole resource behind the technology side of the agency. If they leave their role, it will surely result in the loss of clients, as they’ll be dissatisfied without the technology support they expect from you.
While losing clients sounds like a worst-case scenario, keep in mind managing technology is a high-pressure role, specifically during busy OE seasons. This could easily drive someone away from the role.
Offering only one solution sends the wrong message to clients
Factors like organization size, workforce demographics, and the complexity of benefits offerings can’t be addressed with a one-size-fits-all solution for every client. When you offer just one technology solution, you’re essentially telling clients to take it or leave it. It doesn’t convey interest in working to solve for their unique needs.
Ultimately, clients may take their business elsewhere to someone who can tailor a solution to their needs. Moreover, you’re not a technology expert anyways, and that’s OK. Instead of tying yourself to a single solution, explore how working with a benefits technology partner helps you offer multiple solutions to clients.