Increased Client Referrals by 20% Using Onboarding Feedback Loop

Increased Client Referrals by 20% Using Onboarding Feedback Loop

Executive Summary

Ferguson Estate Planning, a thriving RIA managing over $250 million in assets, faced a common challenge: missed opportunities to refine their client onboarding process. By implementing a structured feedback loop at key milestones during onboarding, leveraging tools like SurveyMonkey and integrating the results into a centralized dashboard, Ferguson Estate Planning increased client referrals by 20%. This surge in referrals contributed to a 10% growth in new client acquisition within the past year, solidifying their position as a trusted wealth management provider.

The Challenge

Ferguson Estate Planning prided itself on providing personalized financial guidance. However, their onboarding process, while thorough, lacked a formal mechanism for capturing client feedback. Opportunities to enhance the initial client experience were being overlooked. While client retention rates were already respectable at 92% annually, the firm’s leadership knew that a better onboarding experience could translate into higher client satisfaction and, consequently, increased referrals.

Specifically, anecdotal evidence suggested a few pain points. Some clients found the initial paperwork overwhelming, with some packages exceeding 75 pages. Others felt that the explanation of the firm’s investment philosophy could be simplified. The challenge wasn’t a lack of competence, but rather a lack of structured data to identify and address these areas for improvement.

The consequences of these missed opportunities were significant. The firm estimated that each new client was worth an average of $5,000 in annual revenue. Assuming a conservative 10% referral rate, each dissatisfied client represented a potential loss of $500 annually. Furthermore, lost referrals impacted the long-term growth strategy. Before implementing the feedback loop, new client acquisition was growing at a rate of only 5% per year. Given their target market and local competition, the firm believed they could achieve at least 10% growth with improved client satisfaction. This shortfall translated to approximately $125,000 in missed revenue opportunities, based on their average client portfolio size of $500,000. The cost of inaction was becoming increasingly clear.

The Approach

Golden Door Asset worked closely with Ferguson Estate Planning to design and implement a comprehensive onboarding feedback loop. The approach was multi-faceted and designed for continuous improvement.

Phase 1: Identifying Key Milestones: The first step was to identify the key milestones in the onboarding process where client feedback would be most valuable. These included:

• Initial Consultation: Immediately following the first meeting with a potential client.
• Paperwork Completion: After the client completed the onboarding paperwork.
• Investment Plan Presentation: After the presentation of the initial investment plan.
• 30-Day Check-in: A check-in call 30 days after the client began their engagement.
• 90-Day Review: A formal review meeting 90 days after the client began their engagement.

Phase 2: Designing Feedback Surveys: Short, targeted surveys were designed for each milestone using SurveyMonkey. The surveys were designed to be concise, taking no more than 5 minutes to complete. Questions focused on clarity, ease of understanding, and the overall experience. For example, the survey following the paperwork completion included questions like, "How easy was it to understand the paperwork?" and "Were you adequately informed about the necessary documents?" The investment plan presentation survey included questions like, "How well did the advisor explain our investment philosophy?" and "Did you feel your risk tolerance was accurately reflected in the plan?"

Phase 3: Automating Survey Delivery: Automation was critical to ensuring consistent feedback collection. SurveyMonkey's integration capabilities were leveraged to automatically send surveys to clients after each milestone. This eliminated the need for manual intervention and ensured that feedback was collected in a timely manner. Email reminders were also configured to prompt clients who hadn’t completed the survey.

Phase 4: Advisor Check-ins: In addition to the surveys, advisors were trained to conduct brief check-in calls with clients at the 30-day and 90-day marks. These calls provided an opportunity to gather more qualitative feedback and address any immediate concerns. Advisors were provided with a standardized script and a checklist of topics to cover to ensure consistency across the team.

Phase 5: Data Analysis and Action Planning: The data collected from the surveys and advisor check-ins was compiled into a centralized dashboard. This dashboard provided a real-time view of client satisfaction levels at each milestone. The onboarding team met bi-weekly to review the data, identify trends, and develop action plans to address any areas for improvement. For example, if the data revealed that clients found the paperwork overwhelming, the team would explore ways to simplify the process, such as pre-filling forms or providing a more comprehensive explanation of the required documents.

Technical Implementation

The implementation leveraged several tools to streamline the feedback process and ensure data integrity:

• SurveyMonkey: Chosen for its ease of use, automation capabilities, and integration options. Custom surveys were created for each onboarding milestone with a mix of multiple-choice and open-ended questions. Survey results were automatically aggregated into a dashboard.
• Zapier: Used to connect SurveyMonkey to Ferguson Estate Planning’s CRM (Redtail CRM). This integration ensured that survey responses were automatically linked to the client's record, providing advisors with a comprehensive view of the client's onboarding experience.
• Google Sheets: Served as the central dashboard for tracking onboarding metrics. Data from SurveyMonkey was automatically imported into Google Sheets, allowing the onboarding team to easily analyze trends and identify areas for improvement. Custom charts and graphs were created to visualize the data, making it easier to identify patterns. Key metrics tracked included:
  • Survey Completion Rate: Tracked to ensure adequate participation.
  • Net Promoter Score (NPS): Used to measure overall client satisfaction.
  • Average Satisfaction Score: Calculated for each onboarding milestone.
  • Referral Rate: Tracked the number of clients referred by existing clients.
• Redtail CRM: Used to maintain a record of all client interactions, including survey responses and advisor check-in notes. The CRM's reporting capabilities were used to track client retention rates and new client acquisition.

The integration of these tools created a seamless feedback loop that allowed Ferguson Estate Planning to continuously monitor and improve the client onboarding experience.

The financial impact was assessed using the following calculations:

• Client Lifetime Value (CLTV): Calculated as the average annual revenue per client multiplied by the average client tenure. This metric provided a benchmark for measuring the value of each client relationship.
• Cost Per Acquisition (CPA): Calculated as the total marketing and onboarding expenses divided by the number of new clients acquired. This metric helped to assess the efficiency of the onboarding process.
• Referral Rate: Calculated as the number of new clients acquired through referrals divided by the total number of clients. This metric was used to track the impact of the feedback loop on client referrals.

Results & ROI

The implementation of the onboarding feedback loop yielded significant positive results for Ferguson Estate Planning:

• Increased Client Referrals: Client referrals increased by 20% within the first year. This was a direct result of improved client satisfaction and a greater willingness to recommend the firm to others. Prior to the implementation, referrals accounted for 30% of new client acquisitions; after one year, referrals accounted for 36% of new client acquisitions.
• Improved Client Satisfaction: The average Net Promoter Score (NPS) increased from 45 to 60, indicating a significant improvement in client satisfaction. This improvement was attributed to the firm's ability to identify and address pain points in the onboarding process.
• Faster Client Acquisition: New client acquisition grew by 10% in the past year, exceeding the firm's initial target of 5%. This growth was driven by the increase in client referrals and improved client satisfaction. Specifically, the firm added 50 new clients with an average portfolio size of $500,000, representing $25 million in new assets under management.
• Reduced Client Churn: While already strong, client retention increased by 1%, further solidifying the client base.
• Increased Revenue: The 10% increase in new client acquisition translated to an estimated $250,000 in new annual revenue (based on an average of $5,000 revenue per client).

These results demonstrate the significant impact that a structured feedback loop can have on client satisfaction, referrals, and overall business growth.

Key Takeaways

For other RIAs and wealth management firms looking to improve their client onboarding experience, here are some key takeaways:

1. Formalize the Feedback Process: Don't rely solely on anecdotal feedback. Implement a structured system for collecting client feedback at key milestones during onboarding. Use surveys, check-in calls, and other methods to gather both quantitative and qualitative data.
2. Focus on Actionable Insights: Collect data that you can actually use to make improvements. Ask targeted questions that will help you identify specific areas for improvement. For example, instead of simply asking "How satisfied were you with the onboarding process?", ask "How easy was it to understand the paperwork?"
3. Automate the Process: Leverage technology to automate the feedback collection process. This will save time and ensure that feedback is collected consistently. Use tools like SurveyMonkey and Zapier to automate survey delivery and data integration.
4. Act on the Feedback: The most important step is to act on the feedback you receive. Review the data regularly, identify trends, and develop action plans to address any areas for improvement. Communicate these changes to your clients to demonstrate that you value their feedback.
5. Monitor and Measure Results: Track key metrics such as client satisfaction, referral rates, and client retention to measure the impact of your onboarding improvements. This will help you to continuously refine your process and ensure that you are delivering the best possible client experience.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors uncover hidden client needs and personalize their services at scale, leading to deeper relationships and increased AUM. Visit our tools to see how we can help your practice.