Does client churn undermine confidence in consultants?
Our perspective is that the market has seen significant client churn in recent years and that this has undermined client / provider confidence and relationships. The impacts of this are low levels of administration innovation, increased operational risk, service fragility and a lack of attention to the longer term needs of members, Trustees and scheme sponsors. It has also created a downward pressure on fees and / or service quality, as providers look to recover the costs of transition projects over an initial contract period, rather than being able to confidently invest for the benefit of longer term client relationships.
Our philosophy therefore, is to avoid this client churn wherever possible. In short, we aim to fix and optimise administration, by working with clients and their providers and building on existing situations, relationships and investments.
Quality and cost need not be mutually exclusive. By taking a longer term view, which builds on past experience and achievements, both objectives can be met successfully.
Over the last 12 months, our innovative approach has helped several large public and private sector clients to work more effectively with their administration providers to deliver service optimisation programmes. The benefits are extensive, for example:
- Avoiding transition costs of circa 75% of first year fees
- Having a clearly documented and agreed set of service requirements, expectations and a mechanism for refresh
- Enhanced member services and choices
- Avoiding the risks and service disruption associated with moving providers
- Improved operational efficiency and risk reduction
- More effective client / provider relationships
Administration providers have welcomed this refreshing approach and have benefited from being able to operate in an innovative, confident, transparent and sustainable way with their clients.