Service Agreement Signed in Under 3 Days: A Case Study

Service Agreement Signed in Under 3 Days: A Case Study

Executive Summary

Reeves Institutional Advisors, managing over $350 million in assets, faced significant onboarding delays due to a lengthy service agreement signing process that averaged 2-3 weeks. By implementing Adobe Sign for electronic signatures and establishing a dedicated onboarding team to proactively manage client communication, Reeves significantly reduced the service agreement signing time to under 3 days. This improvement enhanced the initial client experience, expedited revenue generation, and solidified Reeves' reputation for efficiency and client-centric service.

The Challenge

Reeves Institutional Advisors understood that the initial client onboarding process sets the tone for the entire advisor-client relationship. However, the traditional method of handling service agreements, which involved printing, mailing, signing, and returning physical documents, presented a significant bottleneck. This process, on average, consumed 2-3 weeks, leading to several critical challenges:

• Delayed Revenue Recognition: Each week of delay in signing service agreements translated to a delay in managing client assets and generating revenue. For a new client onboarding $1 million, even a one-week delay meant deferring potential fee income of approximately $2,500 (assuming a 1% AUM fee, paid quarterly). Cumulatively, these delays across multiple clients significantly impacted the firm's quarterly revenue projections.
• Client Frustration and Uncertainty: The protracted signing process often created a sense of uncertainty and frustration for new clients. They were eager to begin managing their investments and felt hampered by administrative delays. This negative initial experience could erode trust and potentially lead to client attrition, particularly in a competitive advisory landscape. A survey conducted by Reeves revealed that 30% of new clients expressed concerns about the length of the onboarding process before the new system was implemented.
• Administrative Burden: The manual tracking and management of paper-based agreements consumed significant administrative resources. Staff spent considerable time following up on unsigned documents, resolving discrepancies, and archiving physical copies. This administrative overhead detracted from their ability to focus on more value-added activities, such as client relationship management and investment analysis. They were spending an estimated 10-15 hours per week just chasing down signed agreements.
• Compliance Risks: Manually tracking the status of service agreements increased the risk of non-compliance. Missing or incomplete documentation could lead to regulatory scrutiny and potential penalties. The process lacked the robust audit trail provided by electronic signature solutions, making it difficult to demonstrate compliance with industry regulations.
• Competitive Disadvantage: In today's fast-paced world, clients expect immediate results and seamless experiences. Competitors who offered faster onboarding processes had a clear advantage in attracting and retaining clients. Reeves recognized that improving the speed and efficiency of service agreement signing was crucial to maintaining its competitive edge.

The Approach

Jonathan Reeves, the managing partner, spearheaded the initiative to transform the service agreement process. He adopted a multi-faceted approach centered on technology adoption and streamlined workflows:

• E-Signature Solution Implementation: After careful evaluation, Reeves selected Adobe Sign as its e-signature solution. Adobe Sign offered a secure and user-friendly platform for electronically signing and managing documents. Its features, including automated reminders, audit trails, and integration with other business systems, aligned perfectly with Reeves' needs.
• Dedicated Onboarding Team: Reeves established a dedicated onboarding team responsible for proactively guiding new clients through the service agreement process. This team served as a single point of contact for clients, providing clear instructions, answering questions, and addressing any concerns.
• Workflow Optimization: The onboarding team mapped out the existing service agreement process, identifying bottlenecks and areas for improvement. They developed a new workflow that leveraged Adobe Sign's capabilities to automate tasks, reduce manual intervention, and accelerate the signing process. This included customizing the agreement templates and incorporating fields that could be pre-populated with client information.
• Proactive Communication: The onboarding team adopted a proactive communication strategy, reaching out to new clients immediately after they expressed interest in engaging Reeves' services. They provided clear explanations of the service agreement and the signing process, emphasizing the benefits of electronic signatures and the firm's commitment to efficiency. They also sent automated reminders to clients who had not yet signed their agreements.
• Training and Support: Reeves invested in comprehensive training for its staff on Adobe Sign and the new onboarding workflow. They provided ongoing support to ensure that everyone was comfortable using the technology and following the established procedures. This training also included best practices for communicating with clients and addressing their concerns.
• Feedback Loop: Reeves implemented a feedback loop to continuously monitor and improve the service agreement process. They solicited feedback from clients and staff to identify areas where the process could be further streamlined or enhanced. This iterative approach ensured that the process remained aligned with evolving client needs and industry best practices.

Technical Implementation

The technical implementation involved a combination of software configuration, workflow design, and data integration:

• Adobe Sign Configuration: Adobe Sign was configured to automatically send service agreements to new clients via email. The agreements were customized to include Reeves' branding and legal disclaimers. Specific fields were designated for client signatures, initials, and dates.
• Workflow Integration with Asana: The onboarding workflow was integrated with Asana, a project management tool, to track the progress of each service agreement. Each agreement was assigned a unique task in Asana, with deadlines and responsibilities clearly defined. Asana's integration with Adobe Sign allowed the onboarding team to monitor the status of each agreement in real-time.
• Data Pre-population: Client data from Reeves' CRM system was automatically pre-populated into the service agreement templates. This eliminated the need for clients to manually enter their information, reducing the risk of errors and speeding up the signing process. The CRM used was Salesforce.
• Automated Reminders: Adobe Sign was configured to send automated reminders to clients who had not yet signed their agreements. These reminders were sent at pre-determined intervals, such as one day and three days after the initial email.
• Secure Storage and Audit Trail: Signed service agreements were automatically stored in a secure cloud-based repository. Adobe Sign's audit trail provided a detailed record of all activity related to each agreement, including who signed it, when it was signed, and any changes that were made. This audit trail ensured compliance with industry regulations and provided evidence in case of disputes. The data was encrypted using AES-256 encryption.
• Reporting and Analytics: Adobe Sign provided reporting and analytics on the service agreement process. This data was used to track key metrics, such as the average signing time and the percentage of agreements signed within 3 days. The data was used to identify areas for improvement and to measure the impact of the new onboarding process.

Results & ROI

The implementation of e-signatures and a dedicated onboarding team yielded significant improvements in the service agreement signing process:

• Reduced Signing Time: The average time to sign a service agreement decreased from 2-3 weeks to under 3 days. This represents a reduction of over 80%.
• Improved Client Satisfaction: Client satisfaction with the onboarding process significantly improved. Post-implementation surveys revealed that 95% of new clients were satisfied with the speed and efficiency of the service agreement signing process.
• Accelerated Revenue Recognition: The faster signing process allowed Reeves to onboard clients more quickly and start managing their assets sooner. This accelerated revenue recognition and positively impacted the firm's bottom line. They were able to realize an estimated 15% increase in revenue during the first quarter after the system was implemented.
• Reduced Administrative Burden: The automated workflow significantly reduced the administrative burden associated with the service agreement process. Staff spent less time following up on unsigned documents and more time focusing on value-added activities. Administrative time spent on agreement processing was reduced by approximately 75%.
• Enhanced Compliance: The electronic signature solution provided a robust audit trail, ensuring compliance with industry regulations and reducing the risk of penalties.
• Increased Competitiveness: The faster and more efficient onboarding process gave Reeves a competitive advantage in attracting and retaining clients. They were able to differentiate themselves from competitors who offered slower and more cumbersome onboarding experiences.
• Cost Savings: While there were initial costs associated with implementing Adobe Sign and training staff, the long-term cost savings from reduced administrative time and improved efficiency outweighed these expenses. They estimated a net savings of $10,000 per year due to the increased efficiency.

Key Takeaways

The success of Reeves Institutional Advisors' transformation of its service agreement process offers several key takeaways for other RIAs:

1. Embrace Technology: Invest in technology solutions, such as e-signature software, that can automate tasks, streamline workflows, and improve efficiency.
2. Prioritize Client Experience: Focus on creating a positive and seamless onboarding experience for new clients. This will help build trust and establish a strong foundation for long-term relationships.
3. Communicate Proactively: Keep clients informed throughout the onboarding process, providing clear explanations and answering any questions they may have.
4. Track and Measure Results: Continuously monitor and measure the performance of your onboarding process, identifying areas for improvement and ensuring that it remains aligned with your firm's goals.
5. Invest in Training: Ensure that your staff is properly trained on the technology and processes you implement. This will help them use the tools effectively and provide excellent service to your clients.

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