$250K AUM Boost: Personalized Welcome Sequences For New Clients
Executive Summary
Harrington Legacy Advisors faced the challenge of onboarding new clients effectively, struggling to fully engage them with the firm’s resources and ultimately missing opportunities for asset consolidation. Golden Door Asset collaborated with Harrington to create a personalized welcome sequence delivered via email and video, showcasing the firm's team, investment philosophy, and value-added services. This automated sequence, triggered upon account opening, resulted in a $50,000 average increase in initial Assets Under Management (AUM) per new client, translating to a $250,000 AUM boost from the five clients analyzed during the initial pilot.
The Challenge
Harrington Legacy Advisors, a growing RIA firm managing over $250 million in assets, recognized a critical bottleneck in their client onboarding process. While their sales team excelled at acquiring new clients, a significant percentage of these clients weren't fully leveraging the firm's diverse investment strategies and financial planning services after the initial sales presentation. This resulted in suboptimal asset allocation and missed opportunities for consolidating client assets from external accounts.
Specifically, Harrington observed that newly onboarded clients were only transferring approximately 60% of their investable assets to Harrington Legacy Advisors on average. They were seeing potential lost revenue due to accounts held at competing firms, such as old 401(k)s or brokerage accounts that weren't being actively managed by Harrington. In one instance, a high-net-worth client with an estimated $1 million in investable assets initially transferred only $400,000 to Harrington, citing a lack of familiarity with the firm’s extended wealth management capabilities and the convenience of their existing relationships.
Further analysis revealed a lack of consistent communication during the initial 30-day period after account opening. The standard onboarding process involved a welcome email, followed by a phone call from the client service representative to schedule a portfolio review meeting. However, this limited interaction failed to adequately convey the firm's commitment to personalized service, proactive financial planning, and the depth of its investment expertise. The consequence was that clients were hesitant to fully entrust their assets to Harrington without a stronger sense of connection and understanding. This challenge directly impacted the firm's revenue projections and long-term growth strategy, translating to an estimated $5,000 to $10,000 in lost annual revenue per un-consolidated account.
The Approach
Golden Door Asset partnered with Harrington Legacy Advisors to design and implement a personalized welcome sequence aimed at enhancing client engagement and fostering a stronger relationship from the outset. The approach centered on providing new clients with valuable information, personalized touches, and clear calls to action to consolidate their assets with Harrington.
The first step was to map out the ideal client journey from the moment an account was opened. We identified key touchpoints where personalized communication could make the most significant impact. The sequence was designed to be delivered over a two-week period, strategically timed to coincide with the initial excitement of joining the firm and the natural period of information gathering that new clients experience.
The core of the welcome sequence consisted of the following elements:
- Day 1: Welcome Video from the Lead Advisor: A short, personalized video message from the client's lead advisor welcoming them to the firm, reiterating their commitment to the client's financial goals, and highlighting the benefits of a comprehensive wealth management approach. The advisor specifically mentioned the client's stated objectives and linked those back to Harrington's capabilities.
- Day 3: Introduction to the Client Service Team: An email introducing the client to their dedicated client service representative, including a photo and brief biography. This message emphasized the client service team’s dedication to providing prompt and efficient support. The email also included links to the firm's online portal and resources.
- Day 5: Overview of Harrington's Investment Philosophy: An email and accompanying video outlining the firm's investment philosophy, risk management strategies, and long-term investment approach. This section aimed to educate clients on the principles that guide Harrington's investment decisions and build confidence in the firm's expertise. The sequence included a downloadable PDF outlining the team's core investment beliefs.
- Day 7: Case Study of Client Success: Sharing an anonymized success story of a client with similar financial goals, demonstrating how Harrington helped them achieve their objectives. This provided concrete evidence of the firm’s ability to deliver results. The case study was carefully selected to resonate with the new client’s profile.
- Day 10: Invitation to Schedule a Portfolio Review: A proactive invitation to schedule a portfolio review meeting to discuss the client's existing assets and develop a comprehensive financial plan. This served as a clear call to action and encouraged clients to consolidate their assets with Harrington. The calendar invite was pre-populated with the client's lead advisor and client service representative's availability.
- Day 14: Final Reminder and Testimonial: A final email summarizing the benefits of consolidating assets with Harrington, including a client testimonial highlighting the positive impact of the firm's services. This served as a gentle nudge and reinforced the value proposition.
Each email and video message was carefully crafted to be engaging, informative, and personalized to the client’s specific needs and interests. The language was clear, concise, and free of jargon, ensuring that clients fully understood the firm’s value proposition.
Technical Implementation
The personalized welcome sequence was built using Mailchimp and integrated with Harrington Legacy Advisor’s Salesforce instance for client segmentation and automated triggering.
- Salesforce Integration: Upon the creation of a new client account in Salesforce, a trigger was set to automatically add the client’s contact information to a designated Mailchimp audience. This ensured that all new clients were automatically enrolled in the welcome sequence.
- Mailchimp Automation: The welcome sequence was configured as a multi-step automation within Mailchimp. Each email and video message was scheduled to be delivered at specific intervals, as outlined in the approach section.
- Personalization: Mailchimp’s merge tags were used to personalize each email with the client's name, lead advisor's name, and other relevant information. Video messages were recorded using a platform that allowed for personalized introductions tailored to each client.
- Segmentation: Salesforce was used to segment new clients based on their net worth, age, and financial goals. This allowed Harrington to tailor the welcome sequence with specific case studies and messaging that resonated with each client segment. For example, clients nearing retirement received messaging focused on income planning and wealth preservation.
- Tracking and Analytics: Mailchimp's tracking features were used to monitor the open rates, click-through rates, and conversion rates for each email in the sequence. This data was used to optimize the messaging and timing of the emails to maximize engagement. We also tracked the number of clients who scheduled a portfolio review meeting as a direct result of the welcome sequence.
- Compliance: The entire sequence was reviewed by Harrington's compliance team to ensure adherence to all relevant regulations and guidelines. All communications included the necessary disclaimers and disclosures. The technology stack was chosen with data security and client privacy as paramount concerns.
The development and implementation required an initial investment of approximately 20 hours of development time, including video production, email copywriting, and system integration. Ongoing maintenance and optimization required an estimated 2 hours per week.
Results & ROI
The personalized welcome sequence yielded significant improvements in client engagement and asset consolidation for Harrington Legacy Advisors. After analyzing the results of the pilot program with five new clients, the following key metrics were observed:
- Increased Initial AUM: The average initial AUM for new clients increased by $50,000, from $350,000 to $400,000. This represents a 14.3% increase in initial AUM.
- Asset Consolidation Rate: The percentage of clients who consolidated their assets with Harrington increased from 60% to 85%. This indicates a greater willingness among new clients to entrust their assets to the firm.
- Faster Portfolio Review Scheduling: The average time it took for new clients to schedule a portfolio review meeting decreased from 3 weeks to 1 week. This reflects a higher level of engagement and interest in working with Harrington.
- Higher Client Satisfaction: Anecdotal feedback from clients indicated a higher level of satisfaction with the onboarding process. Clients praised the personalized communication, informative content, and proactive support they received.
- Total AUM Increase: Based on the five clients analyzed, the total AUM increase attributed to the welcome sequence was $250,000 (5 clients x $50,000 average increase). This translated into an estimated $2,500 in additional annual revenue for Harrington Legacy Advisors (assuming a 1% AUM fee).
By extrapolating these results across the firm's annual acquisition of 50 new clients, Harrington Legacy Advisors can potentially realize an AUM increase of $2.5 million and an additional $25,000 in annual revenue.
Key Takeaways
- Personalization is Paramount: Tailoring communication to individual client needs and preferences significantly enhances engagement and builds trust. Generic onboarding processes often fail to resonate with new clients, leading to missed opportunities for asset consolidation.
- Proactive Communication is Key: Delivering valuable information and proactive support during the initial onboarding phase fosters a stronger relationship and encourages clients to fully leverage the firm's services.
- Automation Enhances Efficiency: Automating the welcome sequence frees up advisor time and ensures consistent communication with all new clients. This allows advisors to focus on building relationships and providing personalized financial advice.
- Data-Driven Optimization is Essential: Tracking key metrics and analyzing client feedback allows for continuous improvement of the welcome sequence. This ensures that the messaging and timing are optimized to maximize engagement and drive results.
- Video Content is Highly Effective: Incorporating video messages into the welcome sequence adds a personal touch and enhances the overall client experience. Video allows advisors to connect with clients on a deeper level and build rapport more effectively.
About Golden Door Asset
Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors personalize client communication at scale, identify opportunities for growth, and improve overall client satisfaction. Visit our tools to see how we can help your practice.