Cornerstone Podcast Builds Community, Lowers Churn by 8%

Cornerstone Podcast Builds Community, Lowers Churn by 8%

Executive Summary

Cornerstone Wealth Management faced increasing client churn as clients sought deeper connections and community beyond portfolio performance. To address this, Michael O'Brien, Cornerstone’s founder, launched a weekly podcast featuring diverse guests, from clients to industry experts, discussing financial wellness and lifestyle topics. The results were significant: within one year of launching the podcast, Cornerstone experienced an 8% reduction in client churn, demonstrating the power of engaging content in fostering client loyalty.

The Challenge

Cornerstone Wealth Management, a boutique RIA managing approximately $150 million in assets for 180 high-net-worth families in the greater Boston area, faced a growing challenge: client churn. While Cornerstone consistently delivered strong investment performance, averaging a 12% annual return over the past five years, Michael O’Brien noticed a disturbing trend. Clients, particularly younger ones, were leaving the firm at an increasing rate.

An internal survey revealed the underlying issue: clients felt a lack of connection with Cornerstone beyond investment results. Many expressed a desire for a stronger sense of community and a deeper understanding of financial wellness topics that extended beyond asset allocation. They were seeking resources and connections that Cornerstone wasn't currently providing.

Specifically, the churn rate in the 18-45 age bracket had jumped from 6% in 2022 to 11% in 2023, representing a potential loss of $8.25 million in assets under management (AUM) based on the average portfolio size of $750,000 within that demographic. Further analysis revealed that these clients were often migrating to firms that offered more comprehensive financial planning services, community events, and educational resources. Michael knew that maintaining Cornerstone's AUM and reputation depended on addressing this issue head-on. Failure to act could have resulted in a projected $12.38 million AUM loss and a 16.5% churn rate within two years, severely impacting Cornerstone's profitability and growth trajectory. The challenge was clear: how could Cornerstone cultivate deeper relationships with its clients, foster a sense of community, and reduce client churn without significantly increasing operational costs?

The Approach

Michael O'Brien and his team decided to tackle the churn problem by creating a valuable and engaging content offering: a weekly podcast titled "Cornerstone Conversations." The strategic thinking centered around three core pillars:

• Community Building: The podcast would feature interviews with current Cornerstone clients, sharing their personal financial journeys, challenges, and successes. This approach was designed to foster a sense of shared experience and community among clients.
• Expert Insights: Episodes would also include interviews with industry experts, covering topics ranging from retirement planning and estate planning to tax optimization and alternative investments. This would provide clients with valuable educational content and demonstrate Cornerstone's commitment to providing comprehensive financial guidance.
• Advisor Visibility: Cornerstone advisors would regularly appear on the podcast to share their expertise, perspectives, and personal stories. This would humanize the firm and build stronger relationships between advisors and clients.

The decision-making framework involved a careful evaluation of content format, production quality, and distribution channels. They considered video content but ultimately opted for audio podcasting due to its lower production cost and greater accessibility for clients who could listen during their commute or while exercising.

They created a detailed content calendar, planning topics and guest appearances for the first six months. The team also established key performance indicators (KPIs) to track the podcast's success, including listenership numbers, social media engagement, and, most importantly, client churn rate. The initial marketing budget was set at $5,000 per year, allocating funds for podcast hosting, editing software, and promotional activities. This conservative budget was a deliberate choice, allowing Cornerstone to test the concept without significant financial risk.

The focus was shifted from solely focusing on portfolio returns (alpha generation) to a more holistic approach including financial education and community building - ultimately working towards a higher client retention rate and lower customer acquisition costs.

Technical Implementation

"Cornerstone Conversations" was implemented using a combination of readily available and cost-effective tools.

• Podcast Hosting: Cornerstone utilized Libsyn, a popular podcast hosting platform, to store and distribute their episodes. Libsyn offered a user-friendly interface, detailed analytics, and seamless integration with major podcast directories like Apple Podcasts, Spotify, and Google Podcasts. The monthly cost was $20.

• Recording & Editing: The team invested in a high-quality USB microphone ($150) and used Audacity, a free and open-source audio editing software, to record and edit the episodes.

• Social Media Promotion: Cornerstone leveraged its existing social media presence on LinkedIn and Facebook to promote the podcast. They created visually appealing graphics and wrote compelling copy to encourage listeners to tune in. They budgeted $1000/year for paid social media promotion, targeting existing clients and prospective clients in their geographic area.

• Email Newsletter Integration: Cornerstone used Constant Contact to promote new episodes to its client base. Each weekly newsletter featured a brief summary of the episode, a link to listen, and a call to action to share the podcast with friends and family. The cost of Constant Contact varied based on list size but averaged $75/month.

• Churn Rate Calculation: Client churn rate was calculated using the following formula:

  Churn Rate = (Number of Clients Lost During the Period / Number of Clients at the Beginning of the Period) * 100

  This calculation was performed quarterly and annually to track the impact of the podcast on client retention. Client segmentation was performed to discern what demographics were most heavily listening to the podcast.

• AUM Impact: The projected AUM loss was calculated by multiplying the churn rate by the average client portfolio size ($750,000) and the number of clients within the at-risk demographic. This calculation was used to quantify the financial impact of client churn and justify the investment in the podcast.

The team also implemented a system for tracking podcast downloads and listener demographics through Libsyn's analytics dashboard. This data was used to refine the content strategy and identify topics that resonated most strongly with the audience. By providing valuable content, Cornerstone aimed to increase its client lifetime value (CLTV) and reduce its customer acquisition cost (CAC).

Results & ROI

The launch of "Cornerstone Conversations" had a significant positive impact on Cornerstone Wealth Management's client retention and engagement.

• Reduced Client Churn: The most striking result was an 8% reduction in overall client churn year-over-year. In 2023, before the podcast launched, Cornerstone experienced a churn rate of 10%. In 2024, following the launch of the podcast, the churn rate dropped to 2%. This translates to retaining approximately 14 clients who would have otherwise left the firm, representing approximately $10.5 million AUM saved.
• Increased Listener Engagement: The podcast consistently attracted an average of 250 listeners per episode, with a significant percentage of clients tuning in weekly. Feedback from clients indicated that they appreciated the diverse range of topics covered and the opportunity to learn from their peers and Cornerstone's advisors.
• Enhanced Client Relationships: Advisors reported noticing a significant improvement in client relationships after the launch of the podcast. Clients were more engaged during meetings, asking more informed questions and expressing a greater interest in Cornerstone's services. One advisor noted anecdotally that a client who was previously considering moving his $2 million portfolio to another firm decided to stay after hearing the advisor discuss estate planning strategies on the podcast.
• Improved Brand Awareness: The podcast helped to elevate Cornerstone's brand awareness within the local community. Several prospective clients mentioned hearing about Cornerstone through the podcast, demonstrating its effectiveness as a marketing tool.
• Cost-Effective Retention: With a total annual cost of approximately $3,200 ($240 Libsyn + $900 Constant Contact + $1000 Social Media + $500 initial hardware), the podcast proved to be a highly cost-effective client retention strategy. The $10.5M AUM retained directly equates to saved revenue.

The podcast also contributed to a higher Net Promoter Score (NPS). Cornerstone's NPS increased from 45 in 2023 to 62 in 2024, indicating a significant improvement in client satisfaction and loyalty. By creating a valuable and engaging content offering, Cornerstone not only reduced client churn but also strengthened its relationships with existing clients and attracted new clients to the firm.

Key Takeaways

Here are some actionable insights for other RIAs and wealth managers considering a similar strategy:

1. Focus on Value, Not Just Promotion: Create content that is genuinely valuable to your audience, providing educational insights, actionable advice, and opportunities for connection. Avoid overly promotional content that focuses solely on your firm's services.
2. Involve Your Clients: Feature your clients prominently in your content, sharing their stories and perspectives. This will foster a sense of community and create a more engaging experience for your audience.
3. Consistency is Key: Commit to a regular publishing schedule to keep your audience engaged and build momentum over time. Aim for at least one episode per week to maintain a consistent presence in your listeners' lives.
4. Track Your Results: Define clear KPIs and track your progress regularly. This will help you to measure the impact of your content on your business and identify areas for improvement. Track churn, client engagement metrics, and new lead generation attributed to the podcast.
5. Leverage Existing Tools: You don't need a huge budget to create high-quality content. Utilize free or low-cost tools like Audacity and social media platforms to maximize your reach.

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