Personalized Birthday Outreach: 10% Reduced Attrition

Personalized Birthday Outreach: 10% Reduced Attrition

Executive Summary

Meridian Wealth Partners, a growing RIA managing over $500 million in assets, sought to enhance client relationships and reduce attrition. The firm implemented a personalized birthday outreach program, leveraging automated tools to send cards and gifts with handwritten notes from advisors. As a result, Meridian Wealth Partners experienced a 10% year-over-year decrease in client attrition, demonstrating the significant impact of personal connection on client loyalty and long-term asset retention.

The Challenge

Meridian Wealth Partners recognized that client relationships are the lifeblood of their business. While they excelled at providing sound financial advice and investment management, they identified an opportunity to foster deeper personal connections with their clients. Historically, their client attrition rate hovered around 15% annually, costing the firm an estimated $75 million in assets under management (AUM) each year. This attrition wasn't necessarily due to dissatisfaction with investment performance; rather, clients often cited a lack of perceived personal attention as a contributing factor when moving their assets to competitors.

Specifically, Meridian observed that clients in the $500,000 - $1,000,000 AUM range were particularly susceptible to attrition. These clients, while not considered high-net-worth individuals, represented a significant portion of Meridian's revenue stream. Losing even a handful of these clients each year impacted the firm's profitability. Internal analysis revealed that while advisors were encouraged to connect with clients regularly, personalized outreach beyond routine financial updates was often overlooked due to time constraints and operational inefficiencies. In a survey of departing clients, 28% indicated that feeling “like just another number” played a role in their decision to switch advisors. This feedback highlighted the critical need for Meridian to implement a system that facilitated meaningful, personalized interactions, especially during significant personal milestones like birthdays. The challenge, then, was to create a scalable and efficient way to express genuine appreciation and build stronger relationships with their clients, thereby reducing attrition and safeguarding AUM.

The Approach

Sarah Chen, Meridian Wealth Partners' Client Relationship Manager, spearheaded the initiative to implement a personalized birthday outreach program. The core strategy revolved around acknowledging clients' birthdays in a meaningful and personalized way, demonstrating that Meridian valued them as individuals, not just as accounts. The approach involved several key steps:

1. Data Audit and Segmentation: Sarah began by auditing the client database in their CRM (Customer Relationship Management) system, ensuring accurate birthday information for all clients. She also segmented clients based on AUM, age, and relationship tenure to tailor the level of outreach. For example, clients with over $1 million in AUM might receive a slightly more elaborate gift.

2. Personalized Card and Gift Selection: Instead of relying on generic pre-printed cards, Sarah curated a selection of high-quality greeting cards with diverse designs to cater to different client preferences. Gift options included gourmet food baskets, high-end wine selections (where permissible by regulations), and charitable donations in the client's name. Advisors were given the flexibility to personalize the gift based on their knowledge of the client's interests.

3. Handwritten Notes: Recognizing the importance of a personal touch, Sarah mandated that each card include a handwritten note from the client's advisor. These notes were not generic birthday wishes; instead, advisors were encouraged to reference a specific conversation they had with the client, a shared interest, or a recent accomplishment. The goal was to make the note genuine and memorable. Advisors were instructed to handwrite at least a brief 3-4 line message.

4. Automation and Integration: To streamline the process and ensure consistency, Sarah implemented Sendoso, a gifting automation platform. Sendoso integrated seamlessly with Meridian's CRM, allowing for automated triggers based on client birthdays. The system automatically alerted the advisor 30 days before a client's birthday, providing ample time to select a gift and write a personalized note. The card and gift were then shipped directly to the client, eliminating the need for manual fulfillment by the advisors.

5. Compliance Review: Sarah worked closely with Meridian's compliance department to ensure that the gifting program adhered to all relevant regulations and ethical guidelines. This included setting gift value limits (capped at $150 per client per year) and clearly disclosing the gifting program to clients when necessary.

6. Advisor Training: Sarah conducted training sessions with all advisors, explaining the program's rationale, demonstrating how to use Sendoso, and providing guidance on writing effective personalized notes. She emphasized the importance of authenticity and genuine appreciation.

Technical Implementation

The technical implementation of the personalized birthday outreach program involved the integration of several key technologies and processes:

1. CRM Integration: The foundation of the program was the integration between Sendoso and Meridian's existing CRM, Salesforce. This integration allowed for automated data synchronization, ensuring that client birthday information was always up-to-date. The CRM triggered a Sendoso campaign 30 days before a client's birthday.

2. Sendoso Configuration: Sarah configured Sendoso to offer a variety of card and gift options. Gift selections were pre-approved by compliance and categorized by price point. Each gift was associated with a specific product code and inventory level.

3. Workflow Automation: A workflow was created within Sendoso to automate the process of sending the birthday greetings. The workflow included the following steps:

   • Trigger: Birthday event in CRM (30 days prior)
   • Task Assignment: Assigned to the client's advisor
   • Action: Advisor selects a card and gift from the pre-approved options.
   • Action: Advisor uploads a handwritten note (scanned or typed).
   • Action: Sendoso prints and inserts the note into the card.
   • Action: Sendoso ships the card and gift to the client.
   • Task Completion: Marked complete in CRM, triggering a notification to the advisor.

4. Budget Tracking: Sendoso's reporting features allowed Sarah to track spending on a per-client and aggregate basis, ensuring adherence to the $150 gift value limit.

5. Reporting and Analytics: The integration with Salesforce enabled Sarah to generate reports on the effectiveness of the program, including tracking response rates, client engagement, and attrition rates. The analytics dashboards tracked spending per client, gifts selected, and advisor participation rates. The cost of the Sendoso subscription itself was approximately $5,000 per year.

6. Cost Analysis: The cost per outreach averaged around $75, considering the gift, card, and Sendoso fees. This investment was weighed against the potential loss of revenue associated with client attrition. A single client with $750,000 in AUM generates roughly $7,500 in annual revenue for Meridian (assuming a 1% management fee).

Results & ROI

The personalized birthday outreach program yielded significant positive results for Meridian Wealth Partners:

• Client Attrition Reduction: The most significant outcome was a 10% year-over-year decrease in client attrition. Attrition decreased from 15% to 5%. This translates to retaining approximately $50 million AUM that would have otherwise been lost.
• Improved Client Engagement: Client engagement, measured by email open rates and meeting attendance, increased by 15%. Clients who received birthday greetings were more likely to respond to advisor communications and schedule review meetings.
• Increased Client Referrals: The number of client referrals increased by 8% year-over-year. Clients who felt valued and appreciated were more likely to recommend Meridian to their friends and family.
• Enhanced Advisor Morale: Advisors reported feeling more connected to their clients and expressed greater job satisfaction. The program provided a tangible way for them to show appreciation and build stronger relationships.
• ROI Calculation: The program's ROI can be calculated as follows:
  • Revenue Generated from Retained AUM: $50,000,000 (Retained AUM) * 0.01 (Management Fee) = $500,000
  • Program Cost: (Number of clients targeted*Average Gift Cost) + Sendoso Subscription Fee
  • Assuming 500 clients were targeted at $75/gift (including card and shipping): (500 * $75) + $5,000 = $42,500
  • ROI: ($500,000 - $42,500) / $42,500 = 10.76 or 1076%

The 1076% ROI demonstrates the significant financial benefits of investing in personalized client engagement. The increased client loyalty and positive brand perception further contribute to Meridian's long-term success.

Key Takeaways

1. Personalization Matters: Clients value personal attention and appreciate being acknowledged as individuals. Small gestures, like birthday greetings, can make a big difference in building strong relationships.
2. Automation Enables Scalability: Technology can be used to automate personalized outreach, ensuring consistency and efficiency. CRM integration is essential for effective automation.
3. Compliance is Crucial: Ensure that all gifting programs adhere to relevant regulations and ethical guidelines. Work closely with your compliance department to establish clear guidelines and limits.
4. Advisor Buy-In is Key: Involve advisors in the program design and implementation process. Provide training and support to ensure they are comfortable using the technology and writing personalized notes.
5. Measure and Track Results: Track key metrics, such as attrition rates, client engagement, and referral rates, to measure the effectiveness of the program and identify areas for improvement.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify at-risk clients and proactively personalize engagement strategies to boost retention and AUM. Visit our tools to see how we can help your practice.