Increasing engagement among 401(k) plan participants leads to better outcomes. Hardly a shocker, but T. Rowe Price has introduced analytics to demonstrate that fact.
Called “Engagement to Action,” the new quantitative plan-level metrics measure six features available to qualified plans serviced by T. Rowe Price Retirement Plan Services Inc.
Specifically, T. Rowe Price found plan participants who:
- Watched a personalized video were nearly five times more likely to increase their deferral rate;
- Completed a Confidence Number evaluation were two times more likely to increase their deferral rate;
- Visited the Savings Check-In page on their Workplace Retirement website were nearly two times more likely to increase their deferral rate;
- Clicked on a T. Rowe Price or plan sponsor email were nearly two times more likely to increase their deferral rate. T. Rowe Price also tracks the impact of participants opening a T. Rowe Price or plan sponsor email.
“Our new ‘Engagement to Action’ metrics confirm our belief that targeted participant engagement leads to positive actions that propel stronger financial futures,” Diana Awed, head of marketing and client experience for T. Rowe Price Retirement Plan Services, said in a statement.
She added that sponsors can now access on-demand analytics to see which experiences resonate the most with participants by linking their specific actions with increased savings rates.
The metrics provide quantitative data that plan sponsors can use to demonstrate internally that the initiatives are effective and help them make further plan enhancements to encourage retirement preparedness.
Available in the company’s PlanView Portal for plan sponsors within its Plan Health feature, the Engagement to Action metrics are visible on a monthly or quarterly basis, with historical data beginning in October 2017.
For comparison purposes, industry averages are available, as well as quantitative metrics for each of the six features or measures by participants’ Confidence Number, age, or salary. Advisors can also view the engagement metrics for their plan sponsor clients.