Summit Captures $250K AUM: Automated Milestone Celebrations

Summit Captures $250K AUM: Automated Milestone Celebrations

Executive Summary

Summit Capital, a growing Registered Investment Advisor (RIA), faced challenges in maintaining consistent and personalized client communication, potentially hindering client retention and growth of assets under management (AUM). By implementing an automated system leveraging Zapier, Salesforce, and Sendinblue, Summit was able to deliver personalized birthday greetings, anniversary messages, and congratulations for professional milestones. This proactive approach strengthened client relationships, leading to an additional $250,000 in AUM and improved client engagement scores.

The Challenge

Summit Capital prided itself on providing personalized financial advice. However, as the firm's client base grew to over 300 households with an average AUM of $750,000 per client, maintaining consistent, high-touch communication became increasingly difficult. Specifically, remembering and acknowledging significant life events for each client proved challenging.

Before automation, client communication relied heavily on manual tracking within Salesforce. Advisors would attempt to personally call or email clients on birthdays and anniversaries, a task that consumed valuable time and was often inconsistent. For example, only 60% of clients received a birthday greeting each year, and only 40% received an anniversary message with the firm. Further, major professional milestones – such as promotions, company acquisitions, or retirement – were frequently missed altogether.

This lack of consistent personalization translated to missed opportunities to strengthen client relationships. Consider a scenario where a client, Sarah, received a significant promotion with a $50,000 salary increase. Had Summit Capital acknowledged this achievement with a thoughtful message and perhaps a suggestion to revisit her financial plan, they could have potentially captured an additional $25,000 in managed assets related to that income bump. These missed opportunities accumulated over time, leading to potentially significant revenue loss.

Summit estimated that, due to inconsistent personalized communication, they were losing 0.5% of their clients annually. With an average client AUM of $750,000, this represented a loss of approximately $1.125 million in AUM each year due solely to attrition. David Park, the firm's founder, recognized the critical need for a scalable solution to enhance client engagement and prevent further erosion of AUM.

The Approach

David Park, after careful consideration, decided to implement a system of automated, personalized milestone celebrations. His reasoning was built around the following strategic framework:

1. Centralized Data: Leverage Salesforce, the firm's existing CRM, as the single source of truth for client information, including birthdays, anniversaries, professional milestones, and other relevant details. Ensuring accurate and up-to-date data was crucial for effective personalization.

2. Automated Workflow: Utilize Zapier to connect Salesforce with Sendinblue, an email and SMS marketing platform. Zapier's automation capabilities would trigger personalized messages based on pre-defined criteria and dates stored in Salesforce.

3. Personalized Content: Develop a library of pre-written email and SMS templates tailored to different milestone events. Each template would include the client's name, relevant details (e.g., anniversary year, company name), and a personal message from their advisor. He emphasized the importance of the templates sounding authentically human.

4. Targeted Delivery: Segment clients based on demographics, AUM, and relationship stage to ensure the messages were relevant and appropriate. For example, high-net-worth clients received a slightly more customized message compared to other clients.

5. Advisor Oversight: While the system was automated, advisors maintained oversight. A notification system alerted advisors to upcoming milestone events, allowing them to add a personal touch or make a follow-up call. This hybrid approach combined efficiency with genuine human connection.

David chose Zapier because of its broad integration capabilities and easy-to-use interface. Sendinblue was selected for its robust SMS marketing features and affordability, allowing for personalized text messages to be sent alongside email communications. The overall goal was to create a system that felt personal and thoughtful, even though it was largely automated.

Technical Implementation

The technical implementation involved setting up the integration between Salesforce, Zapier, and Sendinblue:

1. Salesforce Configuration: Custom fields were created in Salesforce to track key milestone dates, including birthdays, account opening anniversaries, employment anniversaries, and professional achievements. These fields were regularly updated by the advisory team.

2. Zapier Workflow Creation: Multiple Zaps were created, each designed to trigger a specific type of milestone celebration. For example, a "Birthday Zap" was configured to:

   • Trigger: Daily Salesforce search for contacts with birthdays matching the current date.
   • Action: Send a personalized email via Sendinblue using a pre-designed birthday template.
   • Action: Send an SMS message via Sendinblue with a shorter, equally personalized birthday greeting.

3. Sendinblue Template Design: Customized email and SMS templates were created for each milestone event. These templates included:

   • Personalized greetings (e.g., "Dear [Client Name]")
   • Specific details relevant to the milestone (e.g., "[Number] Year Anniversary with Summit Capital")
   • A call to action (e.g., "Let's schedule a call to review your portfolio")
   • Advisor's name and contact information

4. SMS Integration: Phone numbers were automatically synced from Salesforce to Sendinblue. SMS messages were kept concise and focused on conveying a warm greeting and encouraging clients to connect with their advisor.

5. Advisor Notification: A separate Zap was configured to send a daily summary email to each advisor listing all clients celebrating a milestone that day. This enabled advisors to add a personal touch, such as a handwritten card or a follow-up phone call, especially for high-value clients.

The cost of Zapier and Sendinblue totaled approximately $600 per month. The time investment for initial setup and template creation was estimated at 40 hours across the team, a one-time cost amortized over the expected lifespan of the system.

Results & ROI

The implementation of automated milestone celebrations yielded significant positive results:

• Increased AUM: Within the first year, Summit Capital saw an increase of $250,000 in AUM directly attributed to strengthened client relationships resulting from the automated system. This figure was calculated by tracking the new assets deposited by clients who received a milestone celebration message and then contacted their advisor to discuss their financial plan.
• Improved Client Engagement: Client engagement scores, measured through annual client surveys, increased by 15%. The survey specifically asked about the perceived level of personalized service received.
• Reduced Client Attrition: Client attrition decreased from 0.5% to 0.3% annually. This translated to a saving of approximately $450,000 in AUM that would have otherwise been lost. The calculation: 0.2% reduction in attrition * 300 clients * $750,000 AUM average = $450,000.
• Increased Advisor Efficiency: Advisors reported a 20% reduction in time spent on administrative tasks related to client communication, freeing them up to focus on higher-value activities such as financial planning and client acquisition.
• Higher Rate of Acknowledgement: 100% of clients received a birthday and anniversary message annually. Professional milestones recognition improved to 90%.
• Direct Revenue Impact: With an average advisory fee of 1% of AUM, the $250,000 AUM increase generated an additional $2,500 in annual revenue. The $450,000 AUM saved through reduced attrition contributed an additional $4,500 in annual revenue.

The ROI was calculated as follows:

• Revenue Increase: $2,500 (new AUM) + $4,500 (reduced attrition) = $7,000
• Annual Cost: $600/month * 12 months = $7,200
• Net Annual Return: $7,000 - $7,200 = -$200. Initial costs were not recouped in year one.

However, the longer-term impact is substantial. Considering the reduced attrition rate and continued growth of the captured AUM, Summit anticipates recouping the initial investment and generating significant revenue within the following years. The intangible benefits of improved client relationships and advisor efficiency further contribute to the overall positive impact.

Key Takeaways

1. Personalization is Paramount: Even small gestures like acknowledging birthdays and anniversaries can significantly impact client relationships and loyalty.
2. Automation Enables Scalability: Automating routine tasks frees up advisors to focus on more strategic activities and personalized interactions.
3. Data Accuracy is Crucial: Ensure your CRM data is accurate and up-to-date to avoid sending incorrect or irrelevant messages.
4. Technology Integration is Key: Leverage the power of integration tools like Zapier to connect your existing systems and streamline workflows.
5. Monitor and Refine: Continuously monitor the performance of your automated system and make adjustments based on client feedback and data analysis.

About Golden Door Asset

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