Automated NPS Surveys: Whitfield Increases Promoters by 22%

Automated NPS Surveys: Whitfield Increases Promoters by 22%

Executive Summary

Whitfield Tax, a growing RIA managing over $150 million in assets, struggled with inconsistent client feedback, hindering their ability to proactively address concerns and identify areas for improvement. By implementing an automated Net Promoter Score (NPS) survey program triggered after key client interactions, Whitfield gained valuable insights into client sentiment. This data-driven approach enabled them to enhance service delivery and cultivate stronger client relationships, resulting in a 22% increase in their percentage of 'Promoter' clients within six months.

The Challenge

Whitfield Tax prides itself on delivering personalized financial planning and tax services to high-net-worth individuals. However, their previous feedback collection methods were ad hoc and inconsistent. They relied heavily on informal conversations and occasional email surveys, resulting in a fragmented and incomplete picture of client satisfaction.

This lack of structured feedback created several critical challenges:

• Reactive Problem Solving: Without consistent feedback, Whitfield often learned about client dissatisfaction only when issues escalated into complaints or, worse, client attrition. This meant they were constantly reacting to problems rather than proactively preventing them. For example, one client, managing a $2 million portfolio, nearly switched advisors due to a perceived lack of communication regarding tax implications of recent market fluctuations. While the situation was resolved, it highlighted the need for a more proactive feedback loop.
• Missed Opportunities for Improvement: The absence of systematic feedback made it difficult to identify areas where Whitfield could improve its services. They suspected that the onboarding process could be streamlined and communication could be enhanced, but lacked concrete data to support these assumptions. They estimated that improving client onboarding could potentially lead to a 10% increase in new client referrals, translating to an additional $50,000 in annual revenue based on their average client AUM.
• Inability to Quantify Client Sentiment: Whitfield lacked a quantifiable metric to track client satisfaction over time. This made it difficult to measure the impact of service improvements and assess the overall health of their client relationships. They had an annual client retention rate of 92%, which, while respectable, left room for improvement. Even a 1% increase in retention could translate to $1.5 million in retained AUM and associated revenue.
• Inefficient Resource Allocation: Manually gathering and analyzing feedback was time-consuming and resource-intensive, diverting staff from other critical tasks. The administrative assistant was spending approximately 5 hours per week manually tracking down clients to complete surveys.

The Approach

To address these challenges, Whitfield Tax partnered with Golden Door Asset to implement an automated NPS survey program. The approach was multifaceted, focusing on integrating NPS into their existing client workflow and leveraging the data to drive continuous improvement:

1. Strategic Survey Implementation: Whitfield identified key touchpoints in the client journey where feedback was most valuable:
   • Immediately after the initial onboarding process (within 30 days).
   • Following the completion of annual tax planning.
   • After significant portfolio reviews or financial planning sessions.
   • On the anniversary of the client relationship.
2. Automated Survey Delivery: They chose Delighted as their NPS survey platform due to its ease of integration with their CRM (HubSpot) and customizable survey templates. The system was configured to automatically send NPS surveys via email within 24 hours of each identified touchpoint.
3. Segmentation and Analysis: The CRM was configured to segment clients based on demographic data (age, income, AUM) and service type (tax planning, investment management, retirement planning). This allowed Whitfield to analyze NPS scores across different client segments and identify specific areas for improvement. For instance, they hypothesized that younger clients with a higher risk tolerance might be more sensitive to communication regarding portfolio performance.
4. Closed-Loop Feedback: A critical component of the program was establishing a closed-loop feedback system. This involved:
   • Prompt Follow-Up: Detractor scores (0-6) triggered an immediate email to the advisor responsible for the client, prompting them to reach out and address the client's concerns within 48 hours.
   • Analyzing Themes: Whitfield's leadership team reviewed the qualitative feedback from both Promoters (9-10), Passives (7-8), and Detractors on a monthly basis to identify recurring themes and areas for systemic improvement.
   • Action Planning: Based on the feedback analysis, Whitfield developed specific action plans to address identified issues. This included improving communication protocols, streamlining the onboarding process, and enhancing the clarity of financial planning reports.
5. Training and Empowerment: Advisors were trained on how to effectively respond to client feedback, both positive and negative. They were empowered to make necessary adjustments to their service delivery to improve client satisfaction. They incorporated some talking points in client meetings regarding NPS scores to show that they valued the feedback.

Technical Implementation

The technical implementation involved integrating Delighted with Whitfield Tax's existing HubSpot CRM. This allowed for seamless automation and data tracking:

• Delighted API Integration: Delighted's API was used to connect to HubSpot, allowing automated survey sends triggered by specific events in the CRM (e.g., completion of a tax plan, a completed portfolio review).
• HubSpot Workflow Automation: HubSpot workflows were configured to:
  • Identify clients who met the criteria for an NPS survey (based on the identified touchpoints).
  • Send the survey through Delighted using a pre-defined email template.
  • Capture the NPS score and associated feedback in a custom HubSpot property.
  • Trigger a task for the advisor if a Detractor score was received.
• Data Mapping and Segmentation: Custom HubSpot properties were created to track key client attributes (age, income, AUM, service type) to enable segmentation and analysis of NPS scores.
• NPS Calculation: The Net Promoter Score was calculated automatically within Delighted and reflected in HubSpot. The calculation is: (% of Promoters - % of Detractors) * 100.
• Security and Compliance: All data transmission was encrypted using SSL, and Whitfield Tax ensured that the NPS program complied with all relevant privacy regulations (e.g., GDPR, CCPA). They obtained explicit consent from clients before enrolling them in the NPS program, informing them about the purpose and frequency of the surveys.
• Cost Considerations: Delighted's pricing varies depending on the volume of surveys sent. Whitfield Tax opted for a plan that allowed them to send approximately 500 surveys per month, costing approximately $400 per month. This cost was justified by the potential for increased client retention and referral revenue.

Results & ROI

The implementation of the automated NPS survey program yielded significant positive results for Whitfield Tax:

• Increased Promoter Score: The percentage of 'Promoter' clients (scoring 9-10) increased from 42% to 51% within six months, representing a 22% increase in promoters.
• Reduced Detractor Score: The percentage of 'Detractor' clients (scoring 0-6) decreased from 18% to 12%, a reduction of 33%.
• Improved Overall NPS: The overall Net Promoter Score increased from 24 to 39, a substantial improvement indicating a significant increase in client loyalty.
• Increased Client Retention: Client retention rate improved from 92% to 94% within the first year of implementation. This 2% increase translated to an additional $3 million in retained AUM, generating an estimated $24,000 in additional revenue (assuming a 0.8% AUM fee).
• Improved Onboarding: Based on feedback, the onboarding process was streamlined, reducing the average time to complete onboarding from 4 weeks to 2 weeks.
• Enhanced Communication: Communication protocols were revised, resulting in a 15% increase in client satisfaction with communication clarity, as measured by follow-up surveys on specific communication channels.
• Time Savings: Automating the NPS process saved the administrative assistant approximately 5 hours per week, freeing up their time for other tasks, such as client outreach and marketing support. The estimated value of these time savings was $2,500 per year based on the assistant's hourly rate.
• Increased Referrals: Client referrals increased by 8% due to improved client satisfaction. This resulted in approximately $40,000 in additional revenue annually, assuming their average client brings $500,000 in AUM.

Key Takeaways

The Whitfield Tax case study provides several valuable takeaways for other RIAs and wealth managers:

1. Proactive Feedback is Essential: Don't wait for problems to surface. Implement a system for proactively gathering client feedback at key touchpoints in the client journey.
2. Automation is Key: Leverage technology to automate the feedback collection process, saving time and ensuring consistency.
3. Close the Loop: Actively respond to client feedback, both positive and negative. Demonstrate that you value their input and are committed to improving their experience.
4. Segment Your Clients: Analyze NPS scores across different client segments to identify specific areas for improvement tailored to their needs.
5. Integrate with CRM: Integrate your NPS survey platform with your CRM to streamline data tracking and automate follow-up actions.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify at-risk clients, personalize client communications, and automate compliance tasks, giving you more time to focus on building meaningful client relationships. Visit our tools to see how we can help your practice.