95% Retention: Perfecting Summit's First 90-Day Plan

95% Retention: Perfecting Summit's First 90-Day Plan

Executive Summary

Summit Financial Advisors, a growing RIA firm, was experiencing higher-than-desired client attrition in the critical first 90 days. Golden Door Asset partnered with Summit to develop a comprehensive, structured 90-day engagement plan, incorporating scheduled check-ins, educational webinars, and personalized financial planning milestones. The implementation of this plan directly resulted in a significant improvement in client retention, rising to 95% and substantially reducing client churn.

The Challenge

Summit Financial Advisors, managing over $500 million in assets, experienced a concerning trend: a disproportionate number of clients were leaving within the first three months of onboarding. Analysis revealed a 15% churn rate among new clients during this crucial period. While Summit prided itself on its long-term client relationships and personalized financial planning, the initial experience wasn't consistently reflecting this value proposition.

Specifically, clients expressed uncertainty about the onboarding process, unclear expectations regarding communication frequency, and a perceived lack of demonstrable progress within the first 90 days. One specific example highlights the problem: A client, Mr. and Mrs. Johnson, with a $750,000 portfolio, withdrew their assets after only 60 days. Their feedback cited a lack of proactive communication and a feeling that their individual financial goals weren't being addressed quickly enough. This anecdote, echoed by other departing clients, underscored the need for a more structured and engaging onboarding experience.

The impact of this early attrition was significant. Losing 15% of new clients represented a substantial revenue loss, as each lost client represented a potential lifetime value of over $30,000 in management fees. Furthermore, the negative word-of-mouth and the need to constantly acquire new clients to offset attrition placed a strain on Summit’s resources and hampered their growth trajectory. They needed a solution to bridge the gap between initial engagement and long-term client satisfaction.

The Approach

Golden Door Asset collaborated with Summit to design and implement a comprehensive 90-day engagement plan, focusing on building trust, setting clear expectations, and demonstrating value early on. Our approach centered on three core pillars: Structured Communication, Proactive Education, and Personalized Progress.

Structured Communication: We established a defined schedule of touchpoints, starting with a welcome call within 24 hours of onboarding. This was followed by weekly email updates summarizing account activity and market insights. We also scheduled a comprehensive progress review meeting at the 45-day mark and a formal check-in at 90 days to review progress against their financial goals. A detailed communication calendar was provided to each client upfront, outlining the frequency and purpose of each interaction.

Proactive Education: We developed a series of educational webinars covering key financial planning topics, tailored to different client segments. Topics included retirement planning strategies, tax-efficient investing, and estate planning basics. New clients were enrolled in a relevant webinar series based on their individual needs and financial goals. We also created concise, easily digestible educational content, such as infographics and short videos, to address common client questions and concerns. This proactive education empowered clients to feel more informed and confident in their financial decisions.

Personalized Progress: We implemented a system to track client progress against their individual financial goals. This involved setting clear, measurable milestones within the first 90 days, such as reviewing their existing investment portfolio, establishing a preliminary asset allocation strategy, and creating a personalized financial plan outline. We used visual progress trackers and personalized dashboards to showcase this progress to clients, demonstrating the value of Summit's services and reinforcing their commitment to achieving their financial objectives. For example, a client with a goal of saving $10,000 for a down payment within one year would see a visual representation of their progress towards that goal after only the first month.

We also used behavioral finance principles to tailor the communication to each client's risk tolerance and investment style. This meant avoiding jargon, clearly explaining complex concepts, and acknowledging any anxieties clients might have about the market.

Technical Implementation

The 90-day engagement plan was operationalized using a combination of existing and newly implemented technologies.

Salesforce Integration: We leveraged Summit's existing Salesforce CRM to create a task management system specifically designed to track client progress through the 90-day plan. Custom fields were added to client profiles to record key milestones, communication dates, and webinar enrollment status. Automated workflows were created to trigger reminders for scheduled check-ins and to generate progress reports. These reports automatically updated the client dashboard accessible by both the advisor and the client.

Articulate 360 Content Development: We utilized Articulate 360 to develop engaging and interactive onboarding content, including short videos, infographics, and interactive quizzes. This content was designed to educate clients about Summit's services, introduce the team, and provide a clear overview of the financial planning process. The content was hosted on a secure client portal, accessible 24/7. Specifically, we built three animated videos: "Welcome to Summit," "Understanding Your Risk Tolerance," and "Your Financial Plan: A Roadmap."

Financial Planning Software Integration: Summit uses eMoney Advisor for their financial planning software. We integrated eMoney with Salesforce to automatically populate client progress dashboards with relevant financial data, such as account balances, investment performance, and progress towards financial goals. This integration ensured that clients had a clear and up-to-date view of their financial situation.

Calculations and Reporting: We developed custom reports within Salesforce to track key performance indicators (KPIs) related to the 90-day engagement plan, such as client engagement scores, webinar attendance rates, and progress towards milestones. These reports provided Summit with valuable insights into the effectiveness of the plan and allowed them to identify areas for improvement. Furthermore, churn rate calculations were automated using a cohort analysis within Salesforce, providing a clear before-and-after comparison of client retention.

Results & ROI

The implementation of the 90-day engagement plan yielded significant improvements in client retention and overall client satisfaction.

• Client Retention Increased to 95%: As a direct result of the enhanced onboarding process, client retention within the first 90 days increased from 85% to 95%. This represents a substantial reduction in client churn and a significant increase in lifetime client value.

• Client Satisfaction Scores Improved by 20%: Client satisfaction scores, measured through post-onboarding surveys, improved by 20%. Clients reported feeling more informed, engaged, and confident in their financial planning journey.

• Time to Value Decreased by 30%: By setting clear expectations and demonstrating progress early on, the time it took for clients to perceive value from Summit's services decreased by 30%. This resulted in increased client engagement and reduced the likelihood of early attrition.

• Revenue Increase of $150,000 Annually: Based on the increased retention rate and the average revenue generated per client, Summit projected an annual revenue increase of approximately $150,000.

• Webinar Attendance Rate Exceeded Expectations: The webinar attendance rate exceeded initial projections, with an average of 60% of new clients attending at least one webinar within the first 90 days. This demonstrates the effectiveness of the proactive education component of the plan.

Key Takeaways

1. Prioritize the First 90 Days: The first 90 days are critical for building trust and establishing a strong foundation for long-term client relationships. Investing in a structured onboarding process can significantly improve client retention.
2. Communicate Proactively and Transparently: Clear and consistent communication is essential for setting expectations and keeping clients informed. A defined communication schedule can help build trust and reduce uncertainty.
3. Demonstrate Value Early and Often: Focus on demonstrating the value of your services early on by setting clear milestones and tracking client progress. Visual progress trackers and personalized dashboards can help clients see the tangible benefits of your financial planning services.
4. Leverage Technology to Streamline Onboarding: Utilize CRM and other technology tools to automate tasks, track client progress, and personalize the onboarding experience. This can free up advisors to focus on building relationships and providing personalized advice.
5. Gather Feedback and Continuously Improve: Regularly solicit feedback from new clients and use this feedback to continuously improve your onboarding process. This ensures that your onboarding plan remains relevant and effective.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors personalize client experiences and uncover hidden growth opportunities. Visit our tools to see how we can help your practice.