Harrington Legacy: NPS Score Up 30 Points with Enhanced Service

Harrington Legacy: NPS Score Up 30 Points with Enhanced Service

Executive Summary

Harrington Legacy Advisors faced alarming client attrition driven by low Net Promoter Scores (NPS), signaling widespread dissatisfaction with their service model. Golden Door Asset partnered with Harrington Legacy to implement a tiered service model, enhance the onboarding process, and establish consistent feedback loops. Within 18 months, Harrington Legacy saw their NPS score increase by 30 points, indicating significantly improved client satisfaction and reduced attrition risk, directly contributing to increased assets under management.

The Challenge

Harrington Legacy Advisors, a boutique wealth management firm managing approximately $750 million in assets, recognized a worrying trend: client attrition was on the rise. While the firm prided itself on personalized service, a deeper dive revealed significant inconsistencies in client experience. Analyzing exit interviews and informal feedback uncovered several key problem areas:

• Lack of Tailored Service: All clients, regardless of their portfolio size, investment goals, or level of engagement, received the same basic service package. A client with a $500,000 portfolio received the same attention as a client with $5 million, leading some high-net-worth individuals to feel underserved and smaller accounts to feel overwhelmed. This "one-size-fits-all" approach was failing to meet diverse needs.

• Inefficient Onboarding: The onboarding process was lengthy and cumbersome, often taking 4-6 weeks to complete. Clients complained about repetitive paperwork, lack of clear communication regarding account setup, and delays in accessing their accounts online. This friction early in the client relationship created a negative initial impression. For instance, one new client with a $1 million rollover had to resubmit paperwork three times due to clerical errors, causing considerable frustration.

• Insufficient Feedback Mechanisms: The firm relied primarily on annual performance reviews for client feedback, which proved to be too infrequent and lacked the immediacy needed to address emerging issues. This delayed recognition of problems and prevented proactive intervention.

These issues manifested in a declining Net Promoter Score (NPS). Initially, the firm's NPS was a dismal 25, indicating a significant proportion of detractors (clients unlikely to recommend the firm) and a relatively small number of promoters (enthusiastic advocates). This low score directly translated to a projected $15 million loss in assets under management due to anticipated client departures within the next year. The firm needed a strategic overhaul to address these challenges and recapture client loyalty.

The Approach

Golden Door Asset worked closely with Harrington Legacy to develop and implement a comprehensive solution focused on enhancing client service and fostering stronger relationships. The approach centered on three key pillars:

1. Tiered Service Model: Harrington Legacy restructured its service offerings into three distinct tiers: "Foundation," "Growth," and "Legacy."

   • Foundation: Designed for clients with smaller portfolios (under $250,000) focused on long-term growth, this tier offered primarily automated investment management with quarterly performance reviews and access to educational resources.

   • Growth: Targeted toward clients with portfolios between $250,000 and $1 million, this tier included personalized financial planning, bi-annual reviews with a dedicated advisor, and access to a wider range of investment options.

   • Legacy: Tailored for high-net-worth individuals with portfolios exceeding $1 million, this premium tier provided comprehensive wealth management services, including tax planning, estate planning coordination, philanthropic advisory, and proactive, personalized attention from a senior advisor. These clients received monthly portfolio reviews, direct access to investment analysts, and invitations to exclusive events.

2. Streamlined Onboarding: Golden Door Asset implemented a digital onboarding process to reduce paperwork, improve communication, and accelerate account setup. This included:

   • Digital Document Management: Replacing paper-based forms with secure online portals for document submission and electronic signatures.
   • Automated Workflow: Creating automated workflows to guide new clients through the onboarding steps, providing clear instructions and tracking progress in real-time.
   • Personalized Welcome Kit: Providing new clients with a personalized welcome kit containing important account information, contact details, and a summary of the services they would receive.

3. Proactive Feedback Collection: Golden Door Asset implemented a robust feedback collection system to continuously monitor client satisfaction and identify areas for improvement. This included:

   • Quarterly NPS Surveys: Using Qualtrics to conduct short, targeted NPS surveys every quarter, providing timely insights into client sentiment.
   • Post-Interaction Surveys: Sending brief surveys immediately after key client interactions, such as financial planning meetings or portfolio reviews, to gather feedback on the advisor's performance.
   • Regular Client Check-ins: Training advisors to conduct proactive check-in calls with clients to address any concerns, answer questions, and solicit feedback.

This multi-faceted approach allowed Harrington Legacy to deliver a more personalized, efficient, and responsive service experience, ultimately leading to improved client satisfaction and retention.

Technical Implementation

The success of the enhanced service model hinged on the effective implementation of specific technologies and processes.

• NPS Measurement (Qualtrics): Harrington Legacy integrated Qualtrics to automate the collection and analysis of NPS scores. Qualtrics allowed for customized survey templates, automated email distribution, and real-time reporting. The system was configured to segment NPS scores by service tier (Foundation, Growth, Legacy) to identify areas for improvement within each segment. This data allowed the firm to pinpoint exactly where service improvements were needed to impact overall client satisfaction.

• Project Management (Asana): To streamline the onboarding process, Harrington Legacy implemented Asana to manage the various tasks and timelines involved in setting up new client accounts. Asana allowed the firm to:

  • Create standardized onboarding task lists with assigned responsibilities and deadlines.
  • Track the progress of each onboarding task in real-time.
  • Automate notifications and reminders to ensure timely completion of tasks.
  • Improve collaboration among team members involved in the onboarding process.

  Using Asana, the onboarding time was reduced from an average of 4-6 weeks to just 2-3 weeks. This led to a significant reduction in client frustration and improved the initial client experience.

• CRM Integration (Salesforce): Harrington Legacy integrated its CRM system (Salesforce) with Qualtrics and Asana to create a holistic view of the client experience. This integration enabled the firm to:

  • Automatically import NPS scores and survey responses into Salesforce client profiles.
  • Track onboarding progress and task completion within Salesforce.
  • Identify clients who are at risk of attrition based on their NPS scores and onboarding experiences.
  • Trigger automated alerts for advisors to proactively reach out to at-risk clients.

• Financial Planning Software (eMoney Advisor): eMoney Advisor was the financial planning software utilized by Harrington Legacy. Advisors used this software to create personalized financial plans for clients, incorporating investment strategies, retirement planning, and estate planning considerations. The software's ability to model different scenarios and illustrate potential outcomes helped clients better understand their financial situations and make informed decisions. The integration of eMoney Advisor into the tiered service model meant Growth and Legacy clients received more in-depth and personalized planning than Foundation clients.

• Performance Calculation Methodology: Portfolio performance was measured using a time-weighted rate of return (TWRR) methodology, adjusted for cash flows. This approach provided an accurate measure of investment performance independent of client deposits and withdrawals. Performance reports were generated quarterly for Foundation clients and monthly for Growth and Legacy clients.

Results & ROI

The implementation of the tiered service model and enhanced processes yielded significant improvements in client satisfaction and retention.

• NPS Score Increase: The firm's Net Promoter Score (NPS) increased from 25 to 55 within 18 months, a substantial 30-point improvement. This indicates a dramatic shift in client sentiment, with a significant increase in promoters and a decrease in detractors.

• Client Retention Rate: The client retention rate improved from 88% to 95% annually. This represents a significant reduction in client attrition and a greater ability to retain existing assets.

• Assets Under Management (AUM) Growth: As a result of improved retention and increased referrals, Harrington Legacy saw a 12% increase in assets under management, growing from $750 million to $840 million over the 18-month period. This organic growth was directly attributable to the enhanced client experience.

• Onboarding Time Reduction: The average onboarding time was reduced from 4-6 weeks to 2-3 weeks, significantly improving the initial client experience and reducing frustration.

• Referral Rate Improvement: The referral rate increased from 5% to 10%, indicating that more clients were actively recommending Harrington Legacy to their friends and family. This organic growth further contributed to the firm's overall success.

• Tier-Specific Analysis: The NPS scores for each tier revealed valuable insights. The Foundation tier saw an increase of 15 points, suggesting that automated services and educational resources were effective for this client segment. The Growth tier improved by 35 points, indicating that personalized financial planning and bi-annual reviews were highly valued. The Legacy tier saw the most significant improvement, with a 40-point increase, demonstrating the effectiveness of comprehensive wealth management and proactive, personalized attention.

Key Takeaways

1. Segmentation is Key: Tailoring service offerings to meet the specific needs and preferences of different client segments is crucial for maximizing client satisfaction.

2. Invest in Onboarding: A smooth and efficient onboarding process is essential for creating a positive initial impression and building trust with new clients.

3. Feedback is a Gift: Regularly soliciting and acting on client feedback is critical for identifying areas for improvement and demonstrating a commitment to client satisfaction.

4. Technology Enables Transformation: Leveraging technology to automate processes, improve communication, and enhance the client experience can drive significant improvements in client satisfaction and retention.

5. Measure and Monitor: Continuously track key metrics, such as NPS and client retention rate, to monitor the effectiveness of service enhancements and identify areas for further improvement.

About Golden Door Asset

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