Sarah Chen Sees 60% Reduction in Advertising Review Time

Sarah Chen Sees 60% Reduction in Advertising Review Time

Executive Summary

Meridian Wealth Management, grappling with a slow and error-prone manual advertising review process, faced significant delays in launching marketing campaigns, hindering client acquisition and engagement. Golden Door Asset implemented a cloud-based advertising compliance platform with automated rule checks and streamlined workflows. As a result, Meridian Wealth's advertising review time decreased by 60%, leading to a 25% increase in marketing output and improved overall operational efficiency.

The Challenge

Sarah Chen, CFP, and Chief Compliance Officer at Meridian Wealth Management, faced a growing challenge in managing the firm’s advertising compliance. Meridian, managing over $350 million in assets for high-net-worth individuals, understood the critical role of marketing in attracting new clients and retaining existing ones. However, their manual advertising review process was a major bottleneck.

Prior to implementing a streamlined solution, the compliance review involved printing out advertising materials (digital ads, social media posts, website updates, client newsletters), manually checking them against a 25-page internal compliance manual and FINRA guidelines, and physically routing them for approval. This process routinely took 5-7 business days per piece of advertising, especially when multiple rounds of revisions were required.

"We were constantly playing catch-up," Chen explains. "A compelling market insight, a timely investment opportunity – by the time our marketing material was approved, the window of opportunity had often closed. We were potentially losing out on new clients and failing to communicate important information to our existing base in a timely manner."

The inefficiencies translated directly into lost revenue opportunities. For instance, a delay in promoting a new high-yield bond offering meant that Meridian missed out on attracting an estimated $5 million in new assets under management (AUM) from prospective clients. Furthermore, the manual process was prone to errors. A misplaced decimal point in a projected return figure, missed disclaimers, or outdated performance data could lead to regulatory scrutiny and potential fines. Chen estimated that the cost of potential compliance errors, including legal fees and regulatory penalties, could easily exceed $100,000 annually.

The problem was exacerbated by the increasing volume and complexity of advertising materials. Meridian was actively leveraging social media, email marketing, and targeted online advertising to reach its target audience. Creating compliant and engaging content for each channel required significant effort, and the manual review process simply couldn’t keep pace. They also wanted to add video marketing to their repertoire, but the prospect of reviewing complex video scripts manually was daunting. Moreover, Meridian had a team of three marketing professionals whose time was significantly hampered because of the delays. They estimated this cost them around $30,000 annually in lost productivity.

The Approach

Golden Door Asset partnered with Meridian Wealth Management to implement a comprehensive advertising compliance platform. The approach was based on a four-pronged strategy:

1. Assessment and Customization: The initial step involved a thorough assessment of Meridian’s existing advertising review process, compliance manual, and marketing workflow. Golden Door Asset worked closely with Chen and her team to understand their specific needs and identify pain points. This included mapping out the current approval workflow, identifying frequently cited compliance violations, and analyzing the types of advertising materials most frequently used. Based on this assessment, the Golden Door Asset team tailored the compliance platform to meet Meridian's specific requirements, including uploading their compliance manual, customizing rule checks to reflect internal policies, and integrating the platform with their existing CRM system.

2. Automated Rule Checks: The core of the solution involved implementing automated rule checks to identify potential compliance violations in advertising materials before they were submitted for review. The platform used natural language processing (NLP) to analyze text for prohibited claims, unsubstantiated statements, and missing disclosures. It also checked for consistency with performance data, regulatory guidelines, and internal branding standards. For example, the system automatically flagged any references to past performance without the required disclaimers, identified statements that could be construed as guarantees of future results, and verified the accuracy of fee disclosures.

3. Streamlined Workflow: The platform streamlined the advertising review workflow by replacing manual routing and paper-based processes with a centralized, cloud-based system. Marketing professionals could upload advertising materials directly to the platform, initiate the review process, and track the status of their submissions in real-time. Compliance officers could review materials, provide feedback, and approve or reject submissions with a few clicks. The system also provided version control, ensuring that everyone was working with the latest version of the document, and maintained a comprehensive audit trail of all review activities.

4. Training and Support: Golden Door Asset provided comprehensive training and ongoing support to Meridian’s marketing and compliance teams. This included hands-on training sessions, user manuals, and a dedicated support team available to answer questions and resolve any issues. The training focused on how to use the platform effectively, understand the automated rule checks, and interpret the results.

The strategic decision framework was centered around prioritizing automation and efficiency without compromising compliance rigor. The goal was not just to speed up the review process but also to reduce the risk of errors and improve the overall quality of Meridian’s advertising materials.

Technical Implementation

The Golden Door Asset solution leveraged the ComplySci platform, a leading provider of regulatory compliance software for the financial services industry. The following technical details highlight the key aspects of the implementation:

• Platform Integration: The ComplySci platform was integrated with Meridian Wealth’s existing CRM system (Salesforce), enabling a seamless flow of information between the two systems. This integration allowed marketing professionals to pull client data directly from the CRM into advertising materials, ensuring accuracy and consistency.
• Rule Engine: The platform's rule engine was configured to enforce Meridian Wealth’s specific compliance policies and regulatory requirements. This involved uploading Meridian's 25-page compliance manual into the system and translating key provisions into automated rule checks. For example, a rule was created to automatically flag any advertising material that quoted performance data without including the standard disclaimer: "Past performance is not indicative of future results."
• NLP Engine: The natural language processing (NLP) engine was trained to identify and flag potentially problematic language in advertising materials. This included phrases that could be construed as guarantees of future results, unsubstantiated claims, or misleading statements. The NLP engine also flagged references to specific investment products or strategies that required additional disclosures.
• Audit Trail: The platform automatically generated a detailed audit trail of all advertising review activities, including the date and time of each submission, the identity of the reviewer, the feedback provided, and the final approval decision. This audit trail provided a comprehensive record of compliance efforts, which could be used to demonstrate compliance to regulators.
• API Integration: A custom API integration was developed to allow the platform to automatically pull data from third-party sources, such as Morningstar and Bloomberg, to verify the accuracy of performance data and other financial information. This integration ensured that all advertising materials contained up-to-date and accurate information.
• Calculations: The platform automated complex calculations, such as calculating the annual percentage yield (APY) for fixed-income investments and determining the appropriate risk disclosures for different investment strategies. These calculations were performed using industry-standard formulas and methodologies.

Results & ROI

The implementation of the Golden Door Asset advertising compliance platform delivered significant results for Meridian Wealth Management:

• Reduced Review Time: Advertising review time decreased by 60%, from an average of 5-7 business days per piece of advertising to just 2-3 days. This allowed Meridian to launch marketing campaigns much faster and capitalize on time-sensitive opportunities.
• Increased Marketing Output: Marketing output increased by 25%, as the marketing team was able to create and launch more advertising materials with the same resources. This translated into more leads, more client engagement, and more opportunities to grow the business.
• Reduced Compliance Risk: The automated rule checks and streamlined workflow significantly reduced the risk of compliance errors. This saved Meridian from potentially costly fines and reputational damage. Sarah Chen estimated that the platform prevented at least two compliance errors in the first year alone, each of which could have resulted in fines of $10,000-$20,000.
• Improved Efficiency: The platform freed up significant time for both the marketing and compliance teams. The marketing team was able to focus on creating high-quality content, while the compliance team was able to focus on more strategic initiatives. This resulted in a more efficient and productive workplace. The marketing team freed up approximately 10 hours per week, the equivalent of approximately $15,000 annually in salary savings.
• Cost Savings: By reducing review time, increasing marketing output, and reducing compliance risk, the platform delivered significant cost savings to Meridian Wealth Management. The total cost savings were estimated at $45,000 in the first year alone.
• Faster Time to Market: The reduced review time enabled Meridian to launch marketing campaigns 40% faster, enabling them to be much more responsive to market changes and investment opportunities. This led to an estimated $2 million increase in AUM due to quicker marketing execution.

Key Takeaways

For other RIAs and wealth management firms, here are the key takeaways from Meridian Wealth Management’s experience:

1. Automate compliance processes: Manual processes are slow, inefficient, and prone to errors. Automating compliance processes can significantly reduce review time, improve accuracy, and free up valuable resources.
2. Integrate compliance with marketing: Integrating compliance with marketing workflows ensures that all advertising materials are reviewed for compliance before they are launched. This reduces the risk of errors and improves the overall quality of advertising materials.
3. Invest in training and support: Implementing a new compliance platform requires training and support for both marketing and compliance teams. This ensures that everyone knows how to use the platform effectively and can get the help they need when they need it.
4. Focus on customization: A one-size-fits-all compliance solution may not be suitable for every firm. It's important to choose a platform that can be customized to meet the specific needs of your organization.
5. Track results and measure ROI: It's important to track the results of your compliance efforts and measure the return on investment (ROI) of your compliance platform. This will help you to justify the investment and demonstrate the value of compliance to your stakeholders.

About Golden Door Asset

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