25% Increase in Referrals with Enhanced Onboarding Experience

25% Increase in Referrals with Enhanced Onboarding Experience

Executive Summary

Santos Financial Research Group, a growing RIA managing over $350 million in assets, struggled to convert new client acquisitions into organic growth through referrals. Golden Door Asset partnered with Santos to revamp their client onboarding process, focusing on personalized communication, proactive support, and consistent feedback collection. The improved onboarding experience resulted in a 25% increase in client referrals within six months, demonstrating the significant impact of prioritizing client satisfaction and relationship building from the very start.

The Challenge

Santos Financial Research Group, while experiencing consistent growth in new client acquisitions, noticed a stagnation in referrals. They attributed this, in part, to a lackluster onboarding experience that failed to truly engage and delight new clients. The firm’s existing onboarding process involved:

• Generic Welcome Packet: A standard, non-personalized welcome packet with basic information about the firm and its services. This felt impersonal and didn’t cater to individual client needs or goals.

• Limited Communication: Initial contact primarily focused on paperwork and logistical details, with infrequent follow-up during the first three months. This lack of consistent communication left clients feeling uncertain and unsupported.

• No Formal Feedback Mechanism: No formal process existed to gather feedback from new clients about their onboarding experience. This made it difficult to identify areas for improvement and address potential concerns proactively.

Specifically, after analyzing the past 12 months, Santos noted that only 8% of new clients referred another prospective client within the first year. This translated to approximately 5 new clients per year from referrals, which represented less than 2% of the firm's overall growth rate. Furthermore, a significant number of clients (estimated at around 20%) indicated during annual reviews that the onboarding process could have been smoother and more informative. This anecdotal evidence, combined with the low referral rate, highlighted the need for a comprehensive overhaul of the onboarding experience. The firm's leadership team realized that simply acquiring new clients wasn't enough; they needed to cultivate strong relationships and create brand advocates to fuel sustainable, organic growth. With the average lifetime value of a client estimated at $50,000, losing potential referrals directly impacted the firm's bottom line and long-term financial prospects. The goal was to increase the referral rate to at least 10% within the first year, which could potentially generate an additional $100,000 in revenue from new clients.

The Approach

To address these challenges, Golden Door Asset collaborated with Santos Financial Research Group to design and implement an enhanced onboarding process centered around personalization, proactive communication, and ongoing feedback collection. The strategic approach involved the following key elements:

1. Personalized Welcome Experience: Instead of a generic packet, Golden Door Asset helped Santos create customized welcome packages tailored to each client's specific financial goals and risk tolerance. This included a personalized welcome video from the lead advisor, outlining the client's financial plan and addressing their unique concerns. The video, recorded using Golden Door Asset's AI-powered video creation tool, automatically populated key data points from the client's financial profile, making it highly relevant and engaging.

2. Proactive Communication Strategy: The onboarding process was structured around a series of scheduled check-in calls and email communications during the first 90 days. These touchpoints were designed to educate clients about the firm's services, answer their questions, and build rapport with their advisor. Golden Door Asset's communication automation platform enabled Santos to send personalized email sequences with relevant content, such as market updates, investment insights, and educational resources.

3. Interactive Onboarding Portal: A dedicated client portal was created using Golden Door Asset's integrated client management system. This portal provided clients with easy access to their financial plan, account information, and performance reports. It also included interactive tools, such as risk assessment questionnaires and goal-setting calculators, to further engage clients and encourage active participation in the financial planning process.

4. Post-Onboarding Feedback Survey: At the end of the 90-day onboarding period, clients received a short, automated feedback survey through Golden Door Asset's survey tool. This survey asked clients to rate their overall experience and provide specific feedback on areas for improvement. The survey results were automatically analyzed and presented to the Santos team in a dashboard, allowing them to identify trends and address recurring issues promptly.

5. Referral Incentive Program: Santos implemented a referral incentive program to encourage existing clients to recommend their services to friends and family. Clients who referred a new client received a small gift card or a discount on their advisory fees. The referral program was promoted through email marketing and social media, and clients were regularly reminded of the benefits of referring new business.

The decision framework was based on a phased approach. First, assess the current onboarding process (identifying pain points). Second, design the improved process using Golden Door Asset's tools. Third, implement and test the new process with a pilot group of clients. Fourth, analyze the results and make any necessary adjustments. Finally, roll out the new onboarding process to all new clients. This iterative approach allowed Santos to minimize risk and maximize the effectiveness of the new onboarding strategy.

Technical Implementation

The technical implementation leveraged several of Golden Door Asset's AI-powered tools and involved seamless integration with Santos Financial Research Group's existing CRM system (Salesforce). The following specific tools and processes were utilized:

• AI-Powered Video Creation Tool: This tool automated the creation of personalized welcome videos for new clients. It used natural language processing (NLP) to extract key information from the client's financial profile (e.g., age, risk tolerance, financial goals) and generate personalized scripts for the advisors to record. The tool also included features for adding visual elements, such as charts and graphs, to enhance the videos' engagement. The tool also enabled creating the videos in bulk. Santos used this tool to generate videos for all new clients within 24 hours of signing.

• Communication Automation Platform: This platform automated the delivery of personalized email sequences and SMS messages to new clients during the onboarding process. The platform included features for creating custom email templates, scheduling automated send times, and tracking email open and click-through rates. This ensured consistent and timely communication with new clients, reducing the administrative burden on the advisory team. The platform also integrated with Santos' CRM to automatically update client records based on their engagement with the email communications.

• Client Portal Integration: The client portal provided a secure and centralized location for clients to access their financial information, communicate with their advisor, and complete important tasks. The portal was integrated with Santos' CRM and portfolio management system to ensure that all client data was accurate and up-to-date. The portal also included features for secure document sharing, electronic signature, and online payment processing.

• Feedback Survey Tool: This tool automated the creation and delivery of feedback surveys to new clients at the end of the onboarding period. The tool included features for creating custom survey questions, scheduling automated send times, and analyzing survey responses. The survey results were automatically aggregated and presented in a dashboard, providing Santos with valuable insights into the client experience. The platform also automatically flagged negative feedback, allowing the team to address concerns promptly.

• CRM Integration & Referral Tracking: The CRM (Salesforce) was configured to specifically track referral sources. A custom field was added to the client record to identify how each client was acquired (e.g., referral, website, social media). This allowed Santos to accurately measure the impact of the enhanced onboarding process on referral rates. The CRM also tracked the number of referred clients who converted into paying clients, providing a clear picture of the ROI of the referral program. The referral data was analyzed on a monthly basis to identify trends and optimize the onboarding process.

The calculation of the 25% increase in referrals was based on a comparison of the average monthly referral rate before and after the implementation of the enhanced onboarding process. The referral rate was calculated as the number of new clients acquired through referrals divided by the total number of new clients acquired during the period. This provided a clear and quantifiable measure of the impact of the onboarding changes.

Results & ROI

The enhanced onboarding process implemented by Santos Financial Research Group, in partnership with Golden Door Asset, yielded significant positive results:

• 25% Increase in Client Referrals: The most significant outcome was the 25% increase in client referrals within six months of implementing the new onboarding process. This translated to an additional 1.25 new clients per month acquired through referrals, compared to the previous average. The firm increased from 5 to 6.25 new clients per year from referrals.

• Improved Client Satisfaction Scores: The post-onboarding feedback survey revealed a significant improvement in client satisfaction scores. The average satisfaction rating increased from 7.2 out of 10 to 9.1 out of 10. Clients specifically praised the personalized communication, proactive support, and easy access to information through the client portal.

• Reduced Client Churn: While not the primary goal, the enhanced onboarding process also contributed to a slight reduction in client churn. The annual client churn rate decreased from 5% to 4.5%, indicating that clients were more likely to stay with the firm after experiencing the improved onboarding process.

• Increased Advisor Efficiency: The automation features of Golden Door Asset's platform freed up advisors' time, allowing them to focus on more strategic tasks. Advisors reported spending approximately 15% less time on administrative tasks related to onboarding, such as sending emails, scheduling calls, and preparing reports.

• Increased AUM: The increase in new client referrals and reduced churn contributed to an overall increase in assets under management (AUM). Santos Financial Research Group saw a 7% increase in AUM within six months of implementing the enhanced onboarding process.

The ROI of the investment in Golden Door Asset's tools and the enhanced onboarding process was significant. The increase in client referrals generated an estimated $62,500 in additional revenue within the first six months (1.25 new clients * $50,000 lifetime value). The reduced client churn saved the firm an estimated $12,500 in lost revenue (0.5% reduction * $2.5 million total AUM * 1% average fee). The increased advisor efficiency freed up valuable time for advisors to focus on revenue-generating activities. Overall, the investment in the enhanced onboarding process generated a return of approximately 250% within the first six months.

Key Takeaways

1. Personalization is Paramount: Tailoring the onboarding experience to each client's unique needs and goals creates a stronger connection and fosters trust. Utilize data-driven insights to personalize communication and content.

2. Proactive Communication Builds Confidence: Consistent and timely communication throughout the onboarding process helps clients feel informed, supported, and valued. Automate key touchpoints to ensure consistent engagement.

3. Feedback is Essential for Continuous Improvement: Regularly solicit feedback from new clients to identify areas for improvement and address potential concerns proactively. Use surveys and other tools to gather actionable insights.

4. Technology Can Enhance the Onboarding Experience: Leverage technology to automate tasks, personalize communication, and provide clients with easy access to information. Consider using AI-powered tools to further enhance the client experience.

5. The Onboarding Process Sets the Tone for the Entire Client Relationship: A positive onboarding experience can lead to increased client satisfaction, loyalty, and referrals. Invest time and resources in creating a seamless and engaging onboarding process.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors personalize client experiences and drive organic growth. Visit our tools to see how we can help your practice.