Claire Montgomery Reduces Onboarding Time by 50% With New CRM

Claire Montgomery Reduces Onboarding Time by 50% With New CRM

Executive Summary

Montgomery Retirement Solutions faced significant bottlenecks in their client onboarding process due to an outdated and cumbersome CRM system. Golden Door Asset recommended and implemented a modern CRM with integrated automation features to address these inefficiencies. The implementation resulted in a 50% reduction in onboarding time, leading to increased client satisfaction and a 15% boost in Assets Under Management (AUM) growth within the first year.

The Challenge

Montgomery Retirement Solutions, a thriving RIA firm managing over $250 million in assets, prided itself on personalized client service. However, their legacy CRM system, while initially adequate, had become a major impediment to efficiency. The clunky interface, lack of automation, and reliance on manual data entry created significant delays in the client onboarding process.

Specifically, the process looked like this: When a prospective client agreed to move forward, the firm would mail a 20-page paper onboarding packet, requiring clients to manually fill out forms related to risk tolerance, financial goals, investment preferences, and regulatory disclosures. The average turnaround time for clients to return these packets was 2 weeks, often requiring multiple follow-up phone calls and emails from staff.

Once the paperwork was received, administrative staff spent an average of 6 hours per client manually entering data from the paper forms into the CRM. This was not only time-consuming but also prone to errors, leading to inconsistencies in client records and potential compliance issues. Furthermore, the lack of integration with other systems, such as DocuSign for electronic signatures and custodians like Schwab or Fidelity, required advisors to spend valuable time chasing down signatures and manually creating new accounts.

Claire Montgomery, the firm's founder, recognized that this inefficient onboarding process was negatively impacting both client satisfaction and advisor productivity. Clients expressed frustration with the lengthy paperwork and lack of transparency during the initial stages of the relationship. Advisors were spending less time focusing on client service and business development because they were bogged down with administrative tasks. She estimated that the inefficiencies were costing the firm approximately $50,000 annually in lost productivity and delayed AUM growth. The firm was projected to acquire $10 million in new AUM per year, but due to the slow onboarding process, that new business was sitting idle for a significant amount of time. This delayed revenue recognition and put pressure on cash flow.

The Approach

To address these challenges, Golden Door Asset conducted a comprehensive assessment of Montgomery Retirement Solutions' existing workflows and technology infrastructure. We identified key areas for improvement and recommended a transition to Wealthbox CRM, a modern and user-friendly platform specifically designed for financial advisors.

Our approach was guided by the following principles:

• Streamline the Onboarding Process: Implement automated workflows to guide clients through each step of the onboarding process, from initial contact to account setup.
• Eliminate Paperwork: Replace paper-based forms with digital forms that clients can easily complete online, reducing the need for manual data entry.
• Integrate with Key Systems: Integrate the CRM with DocuSign for electronic signatures and with custodial platforms to automate account creation and funding.
• Enhance Communication: Improve communication with clients through automated email updates and a client portal where they can track the progress of their onboarding.
• Provide Training and Support: Offer comprehensive training to advisors and staff on how to use the new CRM effectively.

We proposed a phased implementation plan, starting with the data migration from the legacy system to Wealthbox. This involved cleaning and standardizing client data to ensure accuracy and consistency. Next, we configured automated workflows for various onboarding scenarios, such as individual accounts, joint accounts, and retirement accounts. These workflows included tasks such as sending welcome emails, collecting client information, generating required disclosures, and scheduling introductory calls.

We also worked with Montgomery Retirement Solutions to customize the digital forms to capture all the necessary information in a clear and concise manner. These forms were designed to be mobile-friendly, allowing clients to complete them on their smartphones or tablets. We integrated DocuSign into the workflow, enabling clients to electronically sign documents directly from their CRM. Finally, we established a secure client portal where clients could access their account information, view documents, and communicate with their advisor.

Technical Implementation

The technical implementation involved several key steps:

1. Data Migration: We used a secure ETL (Extract, Transform, Load) process to migrate client data from the legacy CRM to Wealthbox. This involved mapping fields, cleansing data, and resolving any inconsistencies. We prioritized the integrity of the data, ensuring that all client information was accurately transferred. This process involved verifying the transfer of over 500 client records, and the successful validation of key data fields such as Social Security Numbers, dates of birth, and account balances.

2. Workflow Automation: We configured automated workflows within Wealthbox using its built-in automation engine. Each workflow was triggered by specific events, such as a new client record being created or a client completing a form. For example, when a prospective client indicated their intent to become a client, the system automatically triggered a workflow that sent a welcome email with a link to the online onboarding forms. Upon form completion, a task was automatically created for the advisor to review the information.

3. DocuSign Integration: We integrated Wealthbox with DocuSign to enable electronic signatures. We created document templates for various onboarding forms, such as the client agreement and risk disclosure statement. These templates were populated with client data from the CRM, eliminating the need for manual data entry. The integration allowed clients to sign documents electronically from anywhere with an internet connection, and the signed documents were automatically stored in the CRM.

4. Custodial Integration: We integrated Wealthbox with Montgomery Retirement Solutions' primary custodian, Schwab. This integration allowed advisors to create new client accounts directly from the CRM, eliminating the need to manually enter data into the custodian's system. The integration also enabled the automatic transfer of account information from Schwab to Wealthbox, ensuring that client records were always up-to-date. This integration leveraged Schwab OpenView Gateway's API.

5. Security Protocols: Throughout the entire process, data security and compliance were paramount. We implemented robust security protocols to protect client information, including encryption, access controls, and regular security audits. We adhered to all applicable regulations, such as the SEC's Regulation S-P, which governs the privacy of consumer financial information. We also established a data retention policy to ensure that client data was securely stored and disposed of in accordance with legal requirements.

6. ROI Calculation: To calculate the ROI, we used a conservative estimate of advisor hourly billable rates ($250/hour), alongside the firm's target AUM growth of $10 million annually, and an average advisory fee of 1%.

Results & ROI

The implementation of the new CRM yielded significant improvements in Montgomery Retirement Solutions' client onboarding process and overall business performance.

• Reduced Onboarding Time by 50%: The average client onboarding time decreased from 4 weeks to 2 weeks. This was achieved by eliminating paper-based forms, automating data entry, and streamlining the account creation process.
• Increased Client Satisfaction: Clients reported higher levels of satisfaction with the onboarding process, citing the ease of completing digital forms and the improved communication from the firm. Client satisfaction scores, measured through post-onboarding surveys, increased by 20%.
• Enhanced Advisor Productivity: Advisors were able to spend more time focusing on client service and business development because they were no longer bogged down with administrative tasks. The firm estimated that advisors saved an average of 4 hours per week per client, totaling over 800 hours across all advisors during the first year.
• Boosted AUM Growth by 15%: The streamlined onboarding process contributed to a 15% increase in AUM growth within the first year. The firm attributed this growth to the faster onboarding of new clients and the improved client satisfaction, which led to higher retention rates and more referrals. The firm onboarded an additional $1.5 million in AUM compared to the projected $10 million.
• Reduced Administrative Costs: The elimination of paper-based forms and manual data entry reduced administrative costs by 30%, saving the firm approximately $15,000 per year.
• ROI Calculation: Advisor time saved: 800 hours, worth $200,000 in billable time (800 hours * $250/hour). Increased AUM: $1.5 million, generating $15,000 in additional revenue ($1.5 million * 1%). Total ROI = $215,000 in the first year.

Key Takeaways

• Prioritize Automation: Automate as many tasks as possible in the client onboarding process to reduce manual effort and improve efficiency.
• Choose the Right Technology: Select a CRM system that is specifically designed for financial advisors and integrates with your other key systems.
• Focus on Client Experience: Make the onboarding process as easy and seamless as possible for clients to enhance their satisfaction.
• Invest in Training: Provide comprehensive training to advisors and staff on how to use the new CRM effectively.
• Track Your Results: Monitor key metrics, such as onboarding time, client satisfaction, and AUM growth, to measure the ROI of your CRM implementation.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors automate compliance workflows, enhance client communication, and identify new growth opportunities. Visit our tools to see how we can help your practice.