Client Portal Engagement: 25% More Active Users

Client Portal Engagement: 25% More Active Users

Executive Summary

Vanguard Point Advisors, a leading RIA managing over $500 million in assets, faced a common challenge: low client portal adoption limiting efficient communication and self-service capabilities. Golden Door Asset partnered with Vanguard Point Advisors to revamp their client portal experience, implementing interactive dashboards, educational resources, and streamlined document sharing. This comprehensive approach, coupled with a targeted marketing campaign, resulted in a 25% increase in active client portal users, significantly improving client engagement and reducing the administrative burden on Vanguard Point Advisors' team.

The Challenge

Vanguard Point Advisors recognized the immense potential of their eMoney Advisor client portal to enhance client relationships and streamline operations. However, only 35% of their 400 clients were actively using the portal. This low adoption rate hindered several key areas:

• Inefficient Communication: Advisors spent an average of 8 hours per week responding to routine client requests for information readily available on the portal, such as portfolio performance updates or account statements. This wasted valuable time that could be spent on proactive financial planning and client relationship building. Each client support ticket costs Vanguard Point Advisors an estimated $25 in labor.
• Limited Self-Service: The lack of portal adoption meant clients relied heavily on phone calls and emails for simple tasks like updating contact information or downloading tax documents. This created a bottleneck for the advisory team and resulted in longer response times for clients.
• Underutilized Investment: Vanguard Point Advisors was paying a significant monthly fee for the eMoney Advisor platform, but the low utilization rate meant they weren't realizing the full return on their investment. This was especially problematic when compared to the firm's annual marketing budget of $50,000.
• Reduced Client Engagement: Clients who didn't use the portal were less likely to be actively engaged in their financial planning process. This made it more difficult for advisors to identify opportunities for additional services and build stronger, long-term relationships. For example, surveys showed that clients not using the portal had a 15% lower rate of proactively scheduling annual financial reviews.

The problem boiled down to this: clients weren't finding sufficient value in the existing portal experience to warrant regular use. The initial portal launch lacked a coordinated communication plan and clear demonstration of the portal's benefits.

The Approach

Golden Door Asset employed a multi-faceted approach to address Vanguard Point Advisors' client portal adoption challenges:

1. Needs Assessment: We conducted a thorough analysis of the existing portal usage data and interviewed a representative sample of Vanguard Point Advisors' clients and advisors to understand their pain points and desired features. This revealed that clients wanted easier access to performance reports, educational resources, and secure document storage. Advisors, on the other hand, wanted a platform that would reduce their administrative workload and improve client communication.

2. Portal Enhancement: Based on the needs assessment, we worked with Vanguard Point Advisors' eMoney Advisor account manager to implement several key enhancements to the client portal:

   • Interactive Performance Dashboards: We developed visually appealing and easy-to-understand dashboards that provided clients with a clear overview of their portfolio performance, asset allocation, and investment returns. These dashboards included customizable time periods, interactive charts, and detailed transaction history. We prioritized showing clients their Time-Weighted Rate of Return (TWRR), so they understood their portfolio growth after removing the impact of cash inflows/outflows.
   • Educational Resource Library: We curated a library of educational articles, videos, and webinars on topics relevant to Vanguard Point Advisors' client base, such as retirement planning, estate planning, and tax-efficient investing. These resources were categorized by topic and difficulty level, making it easy for clients to find the information they needed.
   • Secure Document Sharing: We implemented a secure document sharing system that allowed clients to easily upload and download important financial documents, such as tax returns, account statements, and estate planning documents. This eliminated the need for clients to send sensitive information via email or fax.
   • Personalized Communication Center: This feature enabled advisors to send targeted messages to clients through the portal, providing updates on market conditions, portfolio performance, and upcoming events. Clients could also use the communication center to send secure messages to their advisors.

3. Targeted Marketing Campaign: We developed a comprehensive marketing campaign to promote the enhanced client portal to Vanguard Point Advisors' client base. This campaign included:

   • Email Marketing: We created a series of targeted email messages that highlighted the benefits of using the client portal, such as improved access to information, increased efficiency, and enhanced security. We used Mailchimp to segment the email list based on client demographics and investment goals, ensuring that each client received relevant information.
   • Tutorial Videos: We produced a series of short tutorial videos that demonstrated how to use the new features of the client portal. These videos were hosted on Vanguard Point Advisors' website and shared on social media.
   • Advisor Training: We provided training to Vanguard Point Advisors' advisors on how to effectively promote the client portal to their clients and answer any questions they may have. This included role-playing exercises and best practices for demonstrating the portal's value.

4. Ongoing Monitoring and Optimization: We continuously monitored the client portal usage data and gathered feedback from clients and advisors to identify areas for improvement. We made adjustments to the portal design, content, and marketing campaign based on this feedback, ensuring that the portal continued to meet the evolving needs of Vanguard Point Advisors' client base.

Technical Implementation

The technical implementation involved close collaboration between Golden Door Asset, Vanguard Point Advisors, and eMoney Advisor.

• eMoney Advisor API Integration: We leveraged the eMoney Advisor API to customize the client portal interface and integrate it with other systems, such as Vanguard Point Advisors' CRM (Customer Relationship Management) platform. This allowed advisors to access client portal usage data directly from their CRM, providing a more comprehensive view of client engagement.
• Custom Dashboard Development: We worked with eMoney Advisor's development team to create custom performance dashboards that met Vanguard Point Advisors' specific requirements. These dashboards were built using HTML, CSS, and JavaScript, and they were designed to be responsive and mobile-friendly.
• Mailchimp Integration: We integrated the client portal with Mailchimp to automate email marketing campaigns and track email open rates, click-through rates, and conversions. This allowed us to measure the effectiveness of the marketing campaign and make adjustments as needed. A triggered email was created to automatically send users a password reset link if they forgot their credentials.
• Data Security: We implemented strict security measures to protect client data, including encryption, access controls, and regular security audits. We ensured that the client portal was compliant with all relevant regulations, such as HIPAA and GDPR. We also implemented multi-factor authentication for all client portal users. The data architecture utilized encrypted AES-256 bit encryption.
• Calculation of Time-Weighted Rate of Return (TWRR): A key feature of the dashboard was accurately showcasing the client's TWRR. This required a complex calculation, implemented using Python scripts running on a secure server, that pulled transactional data from eMoney Advisor via API, accounted for all cash inflows and outflows, and calculated the TWRR according to industry best practices, specifically the modified Dietz method as outlined by CFA Institute standards. The TWRR formula used was:

TWRR = ((1 + HPR1) * (1 + HPR2) * ... * (1 + HPRn)) - 1

Where HPR is the holding period return for each sub-period.

Results & ROI

The implementation of the enhanced client portal and targeted marketing campaign yielded significant results for Vanguard Point Advisors:

• 25% Increase in Active Client Portal Users: The number of clients actively using the portal increased from 35% (140 clients) to 60% (240 clients) within six months. This exceeded Vanguard Point Advisors' initial goal of a 15% increase.
• Reduced Administrative Burden: Advisors reported a 40% decrease in the amount of time they spent responding to routine client requests for information. This freed up an estimated 3 hours per week per advisor, allowing them to focus on more strategic activities.
• Improved Client Engagement: Client satisfaction scores increased by 10% following the launch of the enhanced client portal. Clients reported that they felt more informed, empowered, and connected to their advisors.
• Cost Savings: By reducing the administrative burden and improving client self-service, Vanguard Point Advisors was able to save an estimated $10,000 per year in operational costs.
• Increased Assets Under Management (AUM): The improved client engagement and satisfaction led to increased client retention and referrals, resulting in a 5% increase in AUM over the past year. This 5% increase represents $25 million of additional AUM.
• Email Open Rates: The targeted email marketing campaign achieved an average open rate of 35% and a click-through rate of 10%, significantly higher than industry averages.

Key Takeaways

1. Understand Your Clients' Needs: Conduct thorough research to understand what your clients want and need from a client portal. Don't assume that a one-size-fits-all solution will work for everyone.
2. Invest in Training and Support: Provide comprehensive training and support to both advisors and clients on how to use the client portal effectively.
3. Promote the Benefits: Clearly communicate the benefits of using the client portal to your clients. Highlight how it can save them time, improve their understanding of their finances, and enhance their relationship with their advisor.
4. Continuously Monitor and Optimize: Track client portal usage data and gather feedback to identify areas for improvement. Regularly update the portal with new features and content to keep it relevant and engaging.
5. Data Security is Paramount: Implement robust security measures to protect client data and ensure compliance with all relevant regulations. This builds trust and encourages adoption.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors improve client engagement, streamline operations, and grow their business. Visit our tools to see how we can help your practice.