Record Keepers Shift Focus to Advisor Business Models
Record keepers must align their service capabilities with specific advisor business models rather than relying on generic offerings, according to the annual DC Advisor Study by NMG. Strong general capabilities alone no longer secure new plan placements as the industry’s criteria for winning business evolve.
The study surveyed nearly 600 advisors to evaluate what drives record keeper selection. While pricing remains a baseline consideration, how platforms integrate service, technology, and business growth support determines whether an advisor brings them their next plan.
Diverging Fortunes for Leading Service and Digital Platforms
Traditional evaluation metrics often fail to predict which record keeper wins new business. The NMG study highlights two record keepers that each held a 77% advocacy score—a metric measuring overall regard—yet experienced drastically different outcomes between 2024 and 2025.
One platform, known for leading service ratings, saw its share of top-3 advisor relationships fall from approximately 30% to 22%. Meanwhile, a competitor featuring a leading digital experience watched its share climb from approximately 25% to 28%. Advocacy establishes general regard, but it does not guarantee an advisor will award them their next plan.
Pricing Gets Consideration While Service Drives Retention
Economics continue to dictate modern advisory practices. Eighty percent of advisors cite pricing as a selection criterion, and 68% point to client service, according to the study data. However, poor advisor service stands as the leading reason for rejecting a record keeper, averaging 28% across providers compared to just 8% for fees.
Price effectively places a record keeper on an advisor’s shortlist, but poor service removes them. A low fee for the plan sponsor can still leave the advisor managing a costly, inefficient relationship.
Tailoring Capabilities to Specialized Practice Types
Advisors expect record keepers to actively support practice growth, with 43% identifying business development as a vital area for improvement. The nature of that support depends entirely on the advisor’s specific business model.
- DC Specialists: Eighty-nine percent expect revenue to increase over the next 12 to 24 months, but only 43% expect gross margins to improve. Their primary priority is capacity to scale without adding staff.
- Hybrids: Nearly half want business development support that connects retirement services and wealth management, using participant data to identify broader client needs.
- Wealth Advisors: Twenty-eight percent cite ease of doing business as a selection criterion, compared to just 13% of specialists, needing retirement plans to fit neatly into a practice focused elsewhere.
Across all practice types, the ideal experience is not purely digital. Thirty-seven percent of advisors want greater support through dedicated contacts, utilizing technology to automate routine interactions while maintaining human accountability when operational problems arise.
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