98% Client Retention with Enhanced Welcome Sequence

98% Client Retention with Enhanced Welcome Sequence

Executive Summary

Richardson & Associates, a leading RIA firm, faced increasing client attrition due to inconsistent early engagement. To combat this, Golden Door Asset collaborated with them to develop a multi-channel welcome sequence incorporating personalized emails, videos, and onboarding checklists, delivered strategically over the first 90 days. The implementation of this enhanced welcome sequence led to a significant increase in client retention, reaching an impressive 98%, solidifying client relationships from the outset and substantially increasing the firm's long-term profitability.

The Challenge

Richardson & Associates, managing over $500 million in assets, recognized a troubling trend: a growing number of clients were leaving the firm within the first year of engagement. Their initial client retention rate hovered around 85%, meaning they were losing approximately 15% of new clients annually. This attrition was particularly pronounced among high-net-worth individuals with portfolios exceeding $1 million.

The firm's previous onboarding process was primarily reactive. New clients received a welcome package containing standard documents and were invited to an introductory meeting. While the firm delivered exceptional service, the lack of proactive and personalized communication during the crucial first few months led to clients feeling disconnected and unsure about the value they were receiving. Many clients admitted to shopping around for alternative advisors within the first quarter due to this perceived lack of engagement.

Specifically, the firm estimated that the churn of 15 clients with an average portfolio of $1.2 million each translated to roughly $18 million in lost assets under management (AUM) annually. With an average management fee of 1%, this represented a direct loss of $180,000 in annual revenue, a significant figure that prompted immediate action. Moreover, the cost of acquiring new clients, estimated at around $5,000 per client through marketing and sales efforts, further highlighted the financial implications of client attrition. The partners at Richardson & Associates understood that addressing this issue was crucial for the firm's long-term financial health and growth trajectory. They observed that many of their competitors offered advanced AI-powered experiences, making their less-tech driven welcome sequence seem outdated.

The Approach

The solution began with a deep dive into Richardson & Associates' existing onboarding process, identifying pain points and opportunities for improvement. Golden Door Asset's team conducted client interviews and analyzed feedback data to understand the root causes of early attrition. This revealed a need for more frequent, personalized, and value-driven communication during the initial 90 days.

The core of the solution was a strategically designed multi-channel welcome sequence delivered over 90 days, leveraging HubSpot's marketing automation capabilities. This sequence was built around the following key pillars:

• Personalization: Recognizing that each client is unique, the welcome sequence incorporated personalized elements based on individual investment goals, risk tolerance, and financial circumstances. This included segmenting clients based on their AUM and investment strategies to deliver tailored messaging. For example, clients with a focus on retirement planning received content specifically addressing their needs, while those focused on growth investments received information relevant to their goals.
• Value-Driven Content: The sequence included educational content designed to demonstrate Richardson & Associates' expertise and provide valuable insights. This included articles on market trends, investment strategies, and financial planning tips. The goal was to establish the firm as a trusted advisor and build confidence in their services. One email highlighted how the firm was proactively managing risk in volatile markets, using the specific example of rebalancing portfolios to mitigate potential downside in certain sectors.
• Multi-Channel Communication: The sequence utilized a variety of communication channels, including email, video, and personalized onboarding checklists. This ensured that clients were engaged in multiple ways and received information in their preferred format. Short, engaging videos featuring the client's dedicated advisor explaining key aspects of their investment strategy proved particularly effective.
• Proactive Engagement: Instead of waiting for clients to reach out with questions, the welcome sequence proactively addressed common concerns and provided clear guidance on next steps. This included regular check-in emails from the advisor and a detailed onboarding checklist outlining the key milestones in the relationship.
• Consistent Branding: Throughout the welcome sequence, the firm's branding was consistently reinforced, creating a professional and cohesive experience. This included using the firm's logo, colors, and tone of voice in all communications.

The first 30 days were focused on relationship building and setting expectations. The subsequent 30 days involved deeper dives into investment strategies and portfolio performance. The final 30 days concentrated on long-term financial planning and ongoing support. This staged approach ensured that clients were not overwhelmed with information and felt supported throughout the entire onboarding process. The overall strategy emphasized demonstrating the value of the advisor in real-time. This helped curb the initial impulse to shop around for alternatives.

Technical Implementation

HubSpot's marketing automation platform served as the central hub for managing the enhanced welcome sequence. Richardson & Associates invested in customizing HubSpot to align with their specific needs and branding.

• CRM Integration: HubSpot was seamlessly integrated with Richardson & Associates' existing CRM system, ensuring that all client data was synchronized and up-to-date. This allowed for highly personalized messaging based on individual client profiles.
• Email Template Design: Custom email templates were created within HubSpot to reflect the firm's branding and ensure a consistent visual experience. These templates were designed to be mobile-responsive and optimized for readability. A/B testing was conducted on different subject lines and content formats to maximize engagement.
• Video Production: Golden Door Asset collaborated with Richardson & Associates to produce a series of short, engaging videos featuring the firm's advisors. These videos addressed common client questions and provided valuable insights on investment strategies and financial planning. The videos were hosted on a secure platform and embedded in the email sequence.
• Workflow Automation: HubSpot's workflow automation capabilities were used to trigger emails, assign tasks, and update client records based on specific actions. For example, if a client clicked on a link in an email, a task would be automatically assigned to their advisor to follow up.
• Reporting and Analytics: HubSpot's reporting and analytics tools were used to track the performance of the welcome sequence and identify areas for improvement. Key metrics tracked included email open rates, click-through rates, video views, and client engagement scores.
• Custom Checklists: A customized digital onboarding checklist was implemented, reminding clients of action items such as transferring accounts, updating beneficiaries, and scheduling follow-up meetings. The completion of each item was tracked within HubSpot, providing a clear overview of the client's progress.

The implementation process involved several key integrations:

1. Albridge Wealth Reporting: Provided accurate portfolio performance data for personalized reporting within the welcome sequence.
2. Riskalyze: Integrated risk tolerance assessments into the onboarding process to tailor investment recommendations.
3. Calendly: Streamlined scheduling of introductory and follow-up meetings with advisors.

The calculations involved analyzing client AUM, management fees, cost of acquisition, and attrition rates before and after implementation. The team used regression analysis to isolate the impact of the welcome sequence on client retention.

Results & ROI

The implementation of the enhanced welcome sequence had a dramatic impact on Richardson & Associates' client retention rate. Within the first year, the firm saw a significant increase from 85% to 98%. This represents a reduction in client attrition of over 85%.

• Client Retention Rate: Increased from 85% to 98%.
• Assets Under Management (AUM) Retention: The firm retained an additional $21 million in AUM due to the improved retention rate. This was calculated by multiplying the incremental retention rate (13%) by the AUM at risk of attrition ($160 million).
• Annual Revenue Impact: The increase in AUM translated to an additional $210,000 in annual revenue (assuming a 1% management fee).
• Client Satisfaction: Client satisfaction scores, measured through post-onboarding surveys, increased by 25%. Clients specifically cited the personalized communication and proactive engagement as key factors in their satisfaction.
• Reduced Acquisition Costs: With higher client retention, Richardson & Associates reduced their reliance on acquiring new clients. This resulted in a decrease in marketing and sales expenses of approximately 15%, saving the firm an estimated $25,000 annually.

These results demonstrated the significant ROI of investing in a well-designed and executed welcome sequence. The firm not only increased its revenue and profitability but also strengthened its client relationships and enhanced its reputation in the market. The partners reported a notable decrease in client inquiries and concerns, freeing up advisor time to focus on more strategic initiatives.

Key Takeaways

Here are key actionable insights that other Registered Investment Advisors (RIAs) and wealth managers can take away from Richardson & Associates' success:

1. Prioritize Early Engagement: The first 90 days are crucial in building client loyalty. Invest in a proactive and personalized welcome sequence to establish a strong foundation for the relationship.
2. Leverage Technology: Utilize marketing automation tools like HubSpot to streamline communication and personalize the client experience at scale.
3. Focus on Value: Provide valuable educational content and demonstrate your expertise from the outset. Show clients how you are actively working to achieve their financial goals.
4. Multi-Channel Approach: Use a variety of communication channels, including email, video, and personalized checklists, to engage clients in multiple ways.
5. Track and Optimize: Continuously monitor the performance of your welcome sequence and make adjustments based on data. A/B test different messaging and content formats to maximize engagement.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors unlock deeper insights into client needs and personalize financial advice at scale. Visit our tools to see how we can help your practice.