Nearly two-thirds of defined contribution plan sponsors are using social media as a regular source of information for 401(k) plans and the providers that serve this market, according to new research.
Cogent Research published this finding in a summary of results from its 4th annual Retirement Planscape 2013 study. The report is based on a representative survey of over 1,500 DC plan sponsors across all plan sizes and industries.
While many providers continue to dedicate more time and money to more traditional forms of communication and outreach, 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 percent), LinkedIn (24 percent), and Facebook (22 percent) to share or seek news and opinions related to 401(k) plans and providers.
“The prevalence of social media activity among DC plan sponsors is much higher than we anticipated,” says Linda York, Practice Director of Syndicated Research at Cogent Research. “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.”