95% Service Agreement Signature Rate with Digital Onboarding

95% Service Agreement Signature Rate with Digital Onboarding

Executive Summary

Richardson & Associates, a growing RIA firm managing over $250 million in assets, struggled with delayed service agreement signatures, impacting revenue recognition and compliance. By implementing a fully digital onboarding process with e-signature capabilities and automated reminders, they achieved a 95% service agreement signature rate within the first quarter. This streamlined approach significantly reduced administrative burden and accelerated the delivery of personalized financial planning services to their expanding client base.

The Challenge

Richardson & Associates experienced significant friction in their client onboarding process. New clients would receive lengthy service agreements via traditional mail or email, leading to delays and a frustrating client experience. Prior to implementing a digital solution, the average time to receive a signed service agreement was 28 days, with a signature rate hovering around 65%.

This inefficient process created several critical challenges:

• Delayed Revenue Recognition: With an average initial investment of $250,000 per new client, each week of delay in obtaining a signed service agreement represented potentially unrealized management fees. Assuming an average annual management fee of 1%, a 28-day delay translated to roughly $2,055 in lost revenue per client before services could officially commence (calculated as ($250,000 * 0.01) / 365 * 28 days). This had a tangible impact on quarterly revenue forecasts.
• Increased Administrative Burden: Chase emails, phone calls, and manual tracking of agreement statuses consumed significant administrative time. An estimated 8 hours per week were spent by administrative staff solely on following up on unsigned agreements, translating to roughly $1,600 in wasted payroll expense per month (assuming an average hourly rate of $50/hour including benefits).
• Compliance Risks: Unsigned service agreements raised compliance red flags. Regulators require documented consent before providing financial advice. The inconsistent signature rate made demonstrating this consent a challenge during audits.
• Poor Client Experience: The cumbersome onboarding process created a negative first impression for new clients. The long turnaround time for agreement signatures projected the firm as slow and outdated, potentially impacting client satisfaction and retention.

This inefficient system hindered Richardson & Associates' ability to scale effectively and maximize revenue opportunities. They needed a solution to streamline the onboarding process, accelerate agreement signatures, and improve the overall client experience.

The Approach

Richardson & Associates recognized the need for a comprehensive digital transformation of their onboarding process. They opted for a solution that prioritized convenience, speed, and security. Their strategic approach involved the following key steps:

1. Selecting an E-Signature Platform: After evaluating several e-signature providers, Richardson & Associates chose DocuSign for its robust security features, user-friendly interface, and seamless integration with their existing CRM.
2. Designing a Streamlined Digital Workflow: The firm redesigned their service agreement to be easily accessible and reviewable on any device. They incorporated clear and concise language, minimizing legal jargon and focusing on the value proposition for clients.
3. Automating Reminders: To minimize follow-up efforts, they implemented automated email and SMS reminders through Zapier to prompt clients to sign their agreements. Reminders were scheduled at 3 days, 7 days, and 14 days after the initial email.
4. Integrating with CRM: DocuSign was integrated with their Redtail CRM through Zapier, allowing for real-time tracking of signature status. This integration eliminated manual data entry and provided a centralized view of the onboarding process.
5. Client Education and Support: To ensure clients were comfortable with the digital onboarding process, Richardson & Associates created a short video tutorial and provided personalized support to address any questions or concerns.
6. Compliance Review: Internal compliance team reviewed the new digital onboarding system with DocuSign to ensure it met all regulatory requirements, addressing previous concerns about documenting client consent.

This strategic approach aimed to remove friction from the client onboarding process, improve the client experience, and ensure timely execution of service agreements.

Technical Implementation

The implementation of Richardson & Associates' digital onboarding process involved a carefully orchestrated integration of various technologies:

• DocuSign Implementation: Richardson & Associates subscribed to DocuSign's Business Pro plan, providing access to features such as bulk sending, advanced branding, and integrations with other platforms. They customized the DocuSign templates to reflect their firm's branding and incorporated legally binding signature fields.
• Zapier Integration: Zapier was used to connect DocuSign with Redtail CRM. When a new client record was created in Redtail, Zapier automatically triggered the sending of the service agreement through DocuSign. The integration also ensured that signature status updates (e.g., "Sent," "Viewed," "Signed") were automatically reflected in the client's Redtail record.
• Automated Reminders Workflow: Zapier was also used to create an automated reminder workflow. If a client had not signed the service agreement within 3 days of receiving it, an automated email reminder was sent. Additional reminders were scheduled for 7 and 14 days. SMS reminders were also implemented for clients who opted in.
• Redtail Customization: Custom fields were created in Redtail to track key onboarding metrics, such as "Service Agreement Sent Date," "Service Agreement Signed Date," and "Time to Signature." These fields allowed for easy reporting and analysis of the onboarding process.
• Security Measures: Richardson & Associates implemented several security measures to protect client data. DocuSign's multi-factor authentication was enabled, and all documents were encrypted both in transit and at rest. Regular security audits were conducted to ensure compliance with industry best practices. They also adhered to SEC cybersecurity guidelines during setup and ongoing maintenance.
• Calculation Methodology: The ROI calculation involved comparing the average time to signature, signature rate, and administrative time spent on onboarding before and after the implementation of the digital onboarding process. Revenue impact was calculated based on the increase in signed agreements and the associated management fees.

Results & ROI

The transition to a digital onboarding process yielded significant improvements for Richardson & Associates:

• Service Agreement Signature Rate: The signature rate increased from 65% to 95% within the first quarter of implementation. This represents a 46% relative increase in efficiency.
• Average Time to Signature: The average time to receive a signed service agreement decreased from 28 days to just 3 days. This drastic reduction accelerated revenue recognition and improved the client experience.
• Reduced Administrative Burden: The administrative time spent on following up on unsigned agreements decreased by 75%, freeing up approximately 6 hours per week for administrative staff to focus on other tasks. This translates to a monthly payroll savings of approximately $1,200.
• Accelerated Revenue Recognition: By accelerating the signature process, Richardson & Associates were able to recognize revenue more quickly. With an average initial investment of $250,000 per new client and an average annual management fee of 1%, accelerating the signature process by 25 days translated to an additional $1,712 in revenue recognized per client in the first year.
• Improved Client Satisfaction: Client feedback on the new onboarding process was overwhelmingly positive. Clients appreciated the convenience and ease of signing documents electronically. This contributed to improved client satisfaction and retention rates.
• Quantifiable ROI: The total annualized ROI from the digital onboarding process was estimated to be 310%, considering the increased revenue recognition, reduced administrative costs, and improved client retention.

These results demonstrate the significant impact that a well-implemented digital onboarding process can have on an RIA firm's efficiency, revenue, and client satisfaction.

Key Takeaways

The success of Richardson & Associates' digital onboarding transformation offers valuable insights for other RIAs:

1. Prioritize Client Convenience: Make it as easy as possible for clients to complete the onboarding process. A user-friendly digital experience is essential for attracting and retaining clients.
2. Automate, Automate, Automate: Leverage automation to streamline workflows, reduce manual tasks, and minimize errors. Automating reminders, data entry, and reporting can significantly improve efficiency.
3. Integrate Systems: Integrate your e-signature platform with your CRM and other core systems to create a seamless flow of information. This will eliminate data silos and provide a centralized view of the onboarding process.
4. Invest in Security: Protect client data by implementing robust security measures, such as multi-factor authentication and encryption. Ensure compliance with all relevant regulations.
5. Track and Measure Results: Track key onboarding metrics, such as signature rate, time to signature, and client satisfaction. Use this data to identify areas for improvement and optimize the onboarding process over time.

About Golden Door Asset

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