Zero 90-Day Churn with White-Glove Onboarding

Zero 90-Day Churn with White-Glove Onboarding

Executive Summary

Richardson & Associates, a growing RIA managing over $500 million in assets, struggled with early client attrition due to a confusing and impersonal onboarding experience. To combat this, they implemented a white-glove onboarding process featuring personalized welcome kits, dedicated onboarding specialists, and proactive communication. The result? A complete elimination of 90-day churn and a significant boost in client satisfaction, translating to increased assets under management (AUM) and long-term client relationships.

The Challenge

Richardson & Associates had built a strong reputation for long-term financial planning, but their initial onboarding process was creating a leaky bucket. While they excelled at delivering ongoing advice, the first 90 days of a client relationship were often fraught with confusion and frustration. Clients, especially those new to comprehensive financial planning, felt overwhelmed by the paperwork, the number of platforms they needed to access, and the general lack of personalized attention.

Specifically, the firm was experiencing a 3% churn rate within the first 90 days. While seemingly small, this translated to a loss of approximately $1.5 million in AUM annually. Consider a new client who invested $500,000 based on the promise of long-term growth and tailored advice. If that client churned within 90 days, Richardson & Associates lost not only the initial investment but also the potential for future management fees, which were estimated at 1% annually, totaling $5,000 per year for that single client.

Beyond the financial impact, the churn rate was affecting the firm's reputation. Negative word-of-mouth and online reviews highlighted the impersonal onboarding experience, making it harder to attract new clients and retain existing ones. For instance, a client who left after only a month complained that they had to fill out over 30 pages of forms without any clear guidance on how the information would be used. This created a sense of distrust and undermined the firm's commitment to client service. Furthermore, internal surveys revealed that onboarding-related tasks consumed 20% of the advisors' time, diverting them from core responsibilities like financial planning and client relationship management. This inefficiency directly impacted the firm's overall productivity and profitability.

The Approach

Richardson & Associates recognized the critical need to revamp their onboarding process. Their strategic decision framework centered around three key pillars: Personalization, Communication, and Efficiency.

Personalization: They moved away from a one-size-fits-all approach and created personalized welcome kits tailored to each client's financial goals, risk tolerance, and communication preferences. These kits included a handwritten welcome note from the assigned advisor, a detailed overview of the client's financial plan, and a curated selection of educational resources relevant to their specific needs. For example, a client focused on retirement planning received articles and videos about Social Security optimization and required minimum distributions (RMDs). A client interested in estate planning received information on trusts and wills.

Communication: Recognizing that clear and consistent communication was paramount, Richardson & Associates assigned a dedicated onboarding specialist to each new client. This specialist served as the primary point of contact during the first 90 days, proactively reaching out to the client to answer questions, provide guidance, and ensure a smooth transition. They implemented a structured communication schedule, including:

• Welcome Call: A call within 24 hours of signing the agreement to reiterate excitement and set expectations.
• Onboarding Review Call: A call within one week to review the onboarding checklist, answer questions about paperwork, and schedule the initial financial planning meeting.
• Financial Plan Review Call: A call following the initial financial planning meeting to discuss the proposed strategies and answer any remaining questions.
• 30-Day Check-In Call: A proactive check-in to gauge client satisfaction and address any concerns.
• 60-Day Progress Review Call: A review of the progress made towards the client's financial goals and any adjustments needed to the plan.

Efficiency: They streamlined their internal processes to reduce the administrative burden on both advisors and clients. This involved digitizing many of their forms, implementing a client portal for secure document sharing, and integrating their CRM system with their financial planning software to ensure seamless data flow.

Technical Implementation

To effectively manage and track the enhanced onboarding process, Richardson & Associates leveraged several key technologies:

• Asana: They utilized Asana project management software to create standardized onboarding workflows. Each new client was assigned a dedicated Asana project with clearly defined tasks, deadlines, and responsible parties. This ensured that all steps were completed on time and that no client fell through the cracks. Tasks included sending welcome kits, scheduling calls, processing paperwork, and updating client records.

• Calendly: To streamline the scheduling of client meetings, they integrated Calendly into their CRM system. Clients could easily book appointments with their onboarding specialist or advisor at their convenience, eliminating the back-and-forth of email scheduling. This improved the client experience and saved valuable time for the firm's employees.

• CRM Integration: Richardson & Associates uses Salesforce as their CRM. Integrating Salesforce with their portfolio management software (e.g., Tamarac or Orion) allows for a unified view of client data. This integration ensured that all client information, including contact details, financial goals, risk tolerance, and investment holdings, was readily accessible to the onboarding team. This allowed for more personalized and efficient communication.

• Secure Document Sharing: Implementation of a secure client portal (e.g., Citrix ShareFile or Box) allowed clients to securely upload and download sensitive financial documents, such as tax returns and bank statements. This eliminated the need for email attachments and ensured compliance with data privacy regulations.

• Fee Calculation Automation: Automating fee calculations using their portfolio management software improved accuracy and transparency. The system automatically calculated management fees based on AUM and provided clients with clear and concise fee statements. This fostered trust and reduced the likelihood of disputes. Calculations consider various factors, such as tiered fee structures based on AUM thresholds (e.g., 1% on the first $1 million, 0.75% on the next $2 million).

Results & ROI

The implementation of the white-glove onboarding process yielded remarkable results for Richardson & Associates:

• Zero 90-Day Churn: The most significant achievement was the complete elimination of client churn within the first 90 days. This represents a 100% improvement compared to the previous 3% churn rate.

• Increased Client Satisfaction: Client satisfaction scores, measured through post-onboarding surveys, increased by 40%. Clients consistently praised the personalized attention, clear communication, and streamlined processes. The average Net Promoter Score (NPS) increased from 60 to 85, indicating a significant increase in client loyalty.

• Reduced Advisor Time: The streamlined processes and dedicated onboarding specialist reduced the amount of time advisors spent on onboarding tasks by 50%. This freed up their time to focus on more strategic activities, such as financial planning and client relationship management.

• Increased AUM: By eliminating churn and improving client satisfaction, Richardson & Associates retained an additional $1.5 million in AUM annually. Furthermore, the positive word-of-mouth and online reviews generated by the enhanced onboarding experience led to a 15% increase in new client acquisition in the subsequent year. This resulted in an additional $7.5 million in AUM, bringing the total AUM impact to $9 million.

• Higher Average Initial Investment: With a more welcoming and confident initial experience, the average initial investment size per client increased by 10%, rising from $450,000 to $495,000. This increase directly contributed to higher management fees and overall firm profitability.

Key Takeaways

1. Prioritize the First Impression: The first 90 days are critical for establishing a strong client relationship. Invest in creating a positive and memorable onboarding experience.

2. Personalization Matters: Tailor the onboarding process to each client's unique needs and preferences. Show them that you understand their goals and are committed to helping them achieve them.

3. Communication is Key: Maintain clear and consistent communication throughout the onboarding process. Proactively address any questions or concerns and provide regular updates on progress.

4. Streamline Processes: Leverage technology to automate and streamline onboarding tasks. This will reduce the administrative burden on your team and improve the client experience.

5. Measure and Improve: Track key metrics, such as churn rate and client satisfaction scores, to assess the effectiveness of your onboarding process. Continuously seek feedback and make adjustments as needed.

About Golden Door Asset

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