40% Faster Onboarding: Reduced Churn for Ferguson Estate Planning

40% Faster Onboarding: Reduced Churn for Ferguson Estate Planning

Executive Summary

Ferguson Estate Planning struggled with a cumbersome client onboarding process that led to frustration and increased churn within the first 90 days. Golden Door Asset implemented a streamlined onboarding workflow leveraging automated document collection, personalized communication, and proactive engagement strategies. The result was a 40% reduction in onboarding time and a dramatic 60% decrease in early client churn, significantly boosting client retention and profitability.

The Challenge

Ferguson Estate Planning, a boutique firm managing over $250 million in assets for high-net-worth individuals and families, recognized a significant bottleneck in their client onboarding process. The traditionally manual process, involving extensive paperwork, back-and-forth communication, and in-person meetings, proved time-consuming and frustrating for new clients.

Specifically, the onboarding process averaged 3 weeks (15 business days) from initial contact to full account activation. This lengthy period resulted in:

• Client Frustration: New clients, eager to begin managing their wealth, grew impatient and dissatisfied with the delays. This negative initial experience colored their perception of the firm.
• Increased Churn: The most concerning outcome was a high churn rate within the first 90 days. Approximately 8% of new clients, representing roughly $20 million in potential assets under management (AUM), terminated their relationship with Ferguson Estate Planning during this critical period. Each lost client meant lost revenue and increased acquisition costs to replace them.
• Administrative Burden: The manual onboarding process consumed significant staff time, diverting valuable resources from other crucial activities such as client service and investment management. Staff spent an estimated 20 hours per new client, totaling nearly 1000 hours annually based on the firm’s 50 new clients each year. This inefficiency also increased operational costs.
• Missed Opportunities: The delays in onboarding hindered the firm’s ability to quickly implement financial plans and capitalize on timely investment opportunities for new clients. This delayed realization of benefits further contributed to client dissatisfaction. For instance, a client who joined during tax season might miss crucial tax planning opportunities due to onboarding delays, leading to a potential tax liability of $5,000 - $10,000.

Ferguson Estate Planning needed a solution that could streamline the onboarding process, improve client satisfaction, and reduce early churn, ultimately leading to increased profitability and sustainable growth.

The Approach

Golden Door Asset worked closely with Ferguson Estate Planning to design and implement a white-glove onboarding process centered on automation, personalization, and proactive communication. Our approach was guided by these key principles:

1. Automated Document Collection: Replaced manual paperwork with a secure, digital document collection system. This eliminated the need for printing, scanning, and mailing documents, saving time and reducing errors. We leveraged DocuSign for digital signatures, enabling clients to easily sign and return documents from anywhere, at any time. This eliminated the average 3-5 day delay associated with traditional mail.

2. Personalized Welcome Experience: Created personalized welcome videos for each new client, introducing the Ferguson Estate Planning team and outlining the onboarding process. These videos fostered a sense of connection and reassurance, addressing potential anxieties and setting clear expectations. These videos included a brief summary of their investment goals from initial meetings.

3. Proactive Communication Checkpoints: Established regular communication checkpoints throughout the onboarding process to keep clients informed and engaged. These checkpoints included:

   • Welcome Call: A dedicated call within 24 hours of signing the client agreement to answer any initial questions and reiterate the next steps.
   • Weekly Progress Updates: Brief email updates outlining the progress of the onboarding process and any required actions from the client.
   • Mid-Onboarding Review: A scheduled virtual meeting to review completed documentation, discuss the client's financial goals in more detail, and address any concerns.
   • "Ready to Invest" Notification: A notification upon completion of onboarding, indicating that the client's account is fully activated and ready for investment management.

4. Integrated Scheduling: Integrated Calendly to automate the scheduling of introductory calls and mid-onboarding reviews. This eliminated the back-and-forth email exchanges typically associated with scheduling, saving time for both clients and staff. This reduced the average scheduling time from 30 minutes to less than 5 minutes per meeting.

5. Data-Driven Optimization: Implemented a system to track key metrics related to the onboarding process, such as onboarding time, client satisfaction scores, and churn rates. This data allowed us to identify areas for improvement and continuously optimize the process.

The strategic decision framework centered around identifying points of friction within the existing onboarding process and then leveraging technology and personalized communication to mitigate these friction points and create a more positive and efficient client experience.

Technical Implementation

The technical implementation involved integrating several key tools and platforms to create a seamless and automated onboarding workflow:

1. DocuSign Integration: DocuSign was implemented for digital signature collection. Customized templates were created for all required onboarding documents, including client agreements, risk tolerance questionnaires, and investment policy statements. The system automatically routed documents to the client for signature and tracked the status of each document. We utilized DocuSign's API to ensure data security compliance to SOC 2 Type II standards.

2. Calendly Integration: Calendly was integrated to automate the scheduling of introductory calls and mid-onboarding reviews. Customized scheduling links were created for each type of meeting, allowing clients to easily select a convenient time slot. The system automatically synced with the advisor's calendars and sent out automated reminders to both the client and the advisor.

3. CRM Integration: The entire onboarding workflow was integrated with Ferguson Estate Planning's existing CRM system (Salesforce). This ensured that all client data was centralized and accessible to the entire team. As onboarding steps were completed, the CRM automatically updated the client's status and triggered relevant notifications. Specifically, the integration used Salesforce Apex code to create custom fields for tracking onboarding progress and triggering automated email communications.

4. Personalized Video Creation: Utilized a simple video creation tool (e.g., Loom or Vidyard) to create personalized welcome videos for each new client. The videos were hosted on a secure platform and embedded in the onboarding email sequence. Scripts were standardized but included client-specific details.

5. Performance Tracking: Implemented Google Analytics and custom dashboards within the CRM to track key onboarding metrics, including:

   • Onboarding Time: Measured the time elapsed from initial contact to full account activation. Calculated as the average time across all new clients in a given period.
   • Client Satisfaction Scores: Tracked client satisfaction using Net Promoter Score (NPS) surveys administered at the end of the onboarding process.
   • 90-Day Churn Rate: Calculated as the percentage of new clients who terminated their relationship within the first 90 days of onboarding. Churn Rate = (Number of Clients Lost During Period / Number of Clients at the Beginning of the Period) * 100

Results & ROI

The enhanced onboarding process delivered significant and measurable results for Ferguson Estate Planning:

• 40% Reduction in Onboarding Time: The average onboarding time was reduced from 15 business days to 9 business days, a significant improvement in efficiency. This freed up valuable staff time and allowed clients to begin managing their wealth more quickly.

• 60% Decrease in 90-Day Churn: The 90-day churn rate decreased from 8% to 3.2%. This represented a substantial reduction in client attrition and a significant increase in client retention. This translated to roughly $12 million in AUM saved from churn, which generated approximately $60,000 in annual revenue for Ferguson Estate Planning (assuming a 0.5% advisory fee).

• Improved Client Satisfaction: The Net Promoter Score (NPS) increased from 55 to 75, indicating a significant improvement in client satisfaction. Clients consistently praised the efficiency and personalization of the onboarding process.

• Increased Staff Efficiency: The automated onboarding process freed up an estimated 8 hours per new client for staff. This allowed the team to focus on more strategic activities, such as client service and investment management. This equates to 400 hours per year saved, or roughly $20,000 in recovered staff costs assuming a loaded hourly rate of $50.

• Enhanced Client Engagement: The proactive communication checkpoints and personalized welcome videos fostered a greater sense of connection and engagement among new clients. This led to stronger client relationships and increased client loyalty.

The ROI was clear: the reduced churn, increased staff efficiency, and improved client satisfaction significantly boosted Ferguson Estate Planning’s profitability and set the stage for sustainable growth.

Key Takeaways

Here are several actionable takeaways for other RIAs and wealth managers looking to improve their client onboarding process:

1. Prioritize Automation: Embrace technology to automate repetitive tasks, such as document collection and scheduling. This frees up valuable staff time and reduces the risk of errors.
2. Personalize the Experience: Create personalized welcome videos and tailor communication to the individual needs and preferences of each client. This fosters a sense of connection and builds trust.
3. Communicate Proactively: Establish regular communication checkpoints throughout the onboarding process to keep clients informed and engaged. This reduces anxiety and sets clear expectations.
4. Track Key Metrics: Monitor key metrics related to the onboarding process, such as onboarding time, client satisfaction scores, and churn rates. This allows you to identify areas for improvement and continuously optimize the process.
5. Invest in Integration: Ensure that all onboarding tools and platforms are seamlessly integrated with your existing CRM system. This centralizes client data and enables a more efficient and streamlined workflow.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors enhance client engagement and improve operational efficiency with automated workflows and personalized communication. Visit our tools to see how we can help your practice.