What to Consider When Choosing a Transfer Agent Services Provider

Which best practices support great service? 

To help you think about what best practices to look for in your client and shareholder service provider (i.e., transfer agent, equity compensation service provider, corporate actions, etc.), the following section highlights best practices in operations, call center and shareholder support services, cost savings, and proactive partnerships.    

Operations 

Does your provider incorporate operational performance measures? Reviewing their key performance indicators (KPIs) or service level agreements (SLAs) would help you determine how well they perform their core business functions. Other operational considerations are:  

• Does the provider ensure there is consistent communication among the necessary teams? Do the teams work closely together with various levels of management on a regular basis? 
• Do their operations leaders participate in regular (e.g., monthly) meetings with other departments (e.g., Relationship Management, Technology and Risk Management)? 
• Do call centers report regularly (e.g., daily) on their call forecast, actual call volumes, the average speed of answer and service level agreements (SLAs)? 
• Are there dedicated operational resources that are aligned with company processes and can seamlessly execute complex transactions with accuracy?  

Call center service should focus on quality

The purpose of an excellent call center is to create exceptional customer moments. 

Call center representatives should be trained to recognize and escalate when a shareholder needs additional assistance with their account or has repeated issues and complaints. Account notes and flags can be used and tracked to ensure all representatives have access to any prior calls or correspondence with your shareholders. At EQ, our call center manages over 1.8 million calls annually with a 90% first-call resolution. Best practices to look out for in your provider’s call center are: 

• Exceptional shareholder care, backed by excellent training. 
• It is preferable that this critical part of the shareholder experience should be hired, trained and retained as in-house talent. This ensures continuity of service for your shareholders through clear expectations and a supportive culture. 
• Passionate about service, consistently delivering superior customer care. 
• Measures quality: establishes clear SLAs and KPIs. 
• Takes ownership of the shareholder experience, regularly exceeding client expectations. 
• Acquires and maintains superior soft skills, such as active listening, matching the pace of the caller, being friendly and courteous. 
• Demonstrates a high level of professionalism. 

Shareholder calls that require additional attention and research, including escalated calls, should be managed by a call center customer solutions team dedicated to handling the client’s most complex and challenging questions. They should work directly with shareholders and across departments to offer solutions until each situation is resolved or closed. 

Cost Savings Practices

From a cost savings perspective, are you taking into consideration whether to review the methods that you currently use to communicate with your shareholders? For instance, are you currently sending your Dividend Reinvestment Plan account statements on a quarterly or an annual basis? Are you considering shifting costs from issuer-paid to participant-paid? The following cost savings best practices can help you determine the right provider for your company: 

• Determine your dividend mailing options.
  • Step 1: Consider whether to discontinue ACH advice mailings.  
  • Step 2: Promote ACH mailing to shareholders that currently receive a check. 
  • Step 3: Review the frequency of the statements for your Dividend Reinvestment Plan. 
• Reduce the number of regulatory mailings required to be sent to the issuer. For example, does your transfer agent’s best practices include a program reuniting shareholders or their heirs with their assets? This best practice would help to further reduce the cost of mailings.  
• Evaluate whether an odd lot program would further provide cost saving benefits.  
• Promote shareholder digital service solutions that assist in promoting a sustainable benefit, such as an electronic delivery option for statements, tax forms and client communications.  
• Determine whether to utilize stratification vs. full notice and access to distribute your annual meeting materials.  

Proactive partnerships with clients

A good transfer agent and/or services provider will facilitate relationships with clients that are proactive by design. They should engage with their industry to ensure products and services remain ahead of regulatory expectations and best practices. Proactive steps to look for include: 

• Brings industry, regulatory and product-based insights through client communications and regular touchpoints with a relationship manager.
• Caters a dedicated relationship manager who will work collaboratively with you to meet your specific needs.
• Provides meaningful and proactive, collaborative strategy with immediate, short and long-term objectives. For example, if your organization is seeking to manage expenses, a good relationship manager should proactively provide cost savings measures including those listed above.
• Develops robust reporting that measures performance KPIs like shareholder satisfaction percentages, call answer rate, volume of calls, turnaround time, etc.

Establishing credibility through measurement – Group Five study

Group Five is the leader for benchmarking satisfaction in the shareholder services industry. Each year, EQ participates in industry-specific, third-party surveys with Group Five to document issuer and shareholder satisfaction. In the 2023 Shareholder Services Benchmarking Study, EQ was rated the highest overall client satisfaction, surpassing the industry standard of 79% satisfaction.