Research Results: Insights from Consumer-Directed Account Sellers
Published on March 25th, 2021
The challenges sellers say impact revenue growth
Third-party administrators (TPAs) selling HSAs, FSAs and other consumer-directed accounts operate in what has traditionally been an intermediary-driven distribution model, where partnerships with brokers and consultants drive most, if not all of a firm’s growth. The dynamics are changing, however, and TPAs are challenged to grow revenue in what has become a mature, highly competitive and price-sensitive market. Facing additional headwinds from new entrants and enrollment shifts, growth-minded TPAs need new strategies to grow revenue, win business and increase market share.
We surveyed sales, marketing and executive leaders at TPAs across the U.S. to better understand the strategies and characteristics common to high-growth TPAs and the opportunities and challenges that remain for everyone else.
Discover what health benefit account sellers say about:
- Growth barriers
- Common objections from the market
- Client and account growth
- Keys to their success
- And more
Highlights from the report:
We asked TPAs how their company differentiates its position in the consumer-directed account industry. Over half of all respondents said customer service was their biggest differentiator, while a small fraction admitted to struggling against competitors.
When asked about the top challenge or barrier to success in their role, “competing for time with decision makers” and “competitors undercutting our prices and winning” emerged as the top two responses.
When asked what go-to-market practices and tactics were being leveraged today, less than half of TPAs acknowledged employing basic sales and marketing disciplines. Here are three examples: