Next-Gen Engagement: Legacy Bridge Sees 25% Heirs Portal Adoption

Next-Gen Engagement: Legacy Bridge Sees 25% Heirs Portal Adoption

Executive Summary

Legacy Bridge Advisors faced the common challenge of engaging the next generation of clients (heirs), who often lacked interest in traditional financial planning. To address this, they created a dedicated, educational portal tailored for heirs, supplemented by targeted events. This strategic approach resulted in a 25% adoption rate of the next-gen portal within the first year and an increase of $5 million in assets under influence.

The Challenge

Legacy Bridge Advisors, a prominent RIA managing over $300 million in assets for high-net-worth families, identified a growing concern: the lack of engagement from the next generation of their client families. While the firm maintained strong relationships with their primary clients (typically the first generation), their children and grandchildren often showed little interest in financial planning or wealth management.

This disengagement posed a significant threat to the firm’s long-term sustainability. A large percentage of wealth, estimated at over $68 trillion according to Cerulli Associates, is expected to transfer to the next generation in the coming decades. Failing to connect with these heirs meant potentially losing significant assets to competitor firms or seeing assets mismanaged due to lack of financial acumen.

Specifically, Legacy Bridge noticed that only 5% of heirs regularly logged into the existing client portal, which primarily showcased performance reports and transaction histories – information irrelevant and uninteresting to those unfamiliar with financial markets. A client survey revealed that heirs felt overwhelmed by the complexity of financial planning and lacked the basic financial literacy necessary to appreciate its value. One striking example involved the children of a client with a $10 million portfolio; despite inheriting a substantial trust fund, they lacked understanding of diversification or the importance of long-term investing, expressing a desire to liquidate the assets for immediate gratification.

The problem was further exacerbated by the geographical dispersion of heirs, many of whom lived in different cities or even countries. Traditional client meetings, the cornerstone of Legacy Bridge’s client service model, proved impractical for engaging this demographic. Furthermore, the firm's marketing efforts, focused on attracting established professionals and business owners, were completely ineffective in reaching a younger, digitally native audience. The existing client communication, tailored to an older generation comfortable with phone calls and paper statements, failed to resonate with heirs who preferred digital communication and personalized content. The firm projected that without a targeted strategy, they risked losing up to 20% of their assets under management (AUM) within the next five years solely due to the lack of next-gen engagement.

The Approach

Legacy Bridge Advisors recognized the need for a fundamentally different approach to engage the next generation. Their strategy centered around three key pillars: Education, Personalization, and Community.

Education: The firm realized that many heirs lacked basic financial literacy. To address this, they decided to create a dedicated online portal offering educational content tailored to their needs. This content included:

• Video Series: Short, engaging videos explaining fundamental financial concepts such as budgeting, saving, investing, and debt management.
• Estate Planning Guides: Simplified explanations of estate planning documents, including wills, trusts, and power of attorney.
• Family Wealth Management Tutorials: Information on managing family wealth, including philanthropic giving, impact investing, and family governance.
• Glossary of Financial Terms: A comprehensive glossary defining common financial terms in plain language.

Personalization: Recognizing that each heir had unique needs and interests, Legacy Bridge implemented a personalized onboarding process. This involved:

• Initial Consultation: A one-on-one meeting with a financial advisor to understand the heir's financial goals, risk tolerance, and time horizon.
• Personalized Content Recommendations: Based on the initial consultation, the portal would recommend relevant educational content and investment strategies.
• Customized Investment Plans: For heirs who were interested in investing, the firm offered customized investment plans tailored to their specific circumstances.

Community: Legacy Bridge understood the importance of building a community among heirs. To foster this community, they organized:

• Educational Webinars: Webinars on topics of interest to heirs, such as socially responsible investing and cryptocurrency.
• Networking Events: In-person networking events where heirs could connect with each other and learn from financial experts.
• Family Dinners: Informal dinners where heirs could connect with their families and discuss financial matters.

The firm also adopted a digital-first communication strategy, using email, social media, and messaging apps to engage with heirs on their preferred platforms. They shifted their marketing budget to focus on online advertising and content marketing, targeting younger audiences with educational and informative content. Furthermore, they trained their advisors on how to effectively communicate with heirs, emphasizing empathy, patience, and a willingness to explain complex financial concepts in simple terms. This included training on using social media and digital communication tools effectively.

The overall strategic decision framework centered around addressing the "Why" before the "How." Legacy Bridge focused on educating heirs on why financial planning was important, rather than immediately pushing investment products. This built trust and created a foundation for long-term relationships.

Technical Implementation

The creation of the next-gen portal involved several key technical implementations:

• Secondary Portal Instance: Rather than rebuilding the entire client portal from scratch, Legacy Bridge leveraged their existing platform provider to create a secondary instance specifically for heirs. This minimized development costs and allowed them to maintain consistency with their overall branding. The cost of the secondary instance was approximately $5,000 per year.
• Content Management System (CMS) Integration: A robust CMS was integrated into the portal to facilitate easy content creation, management, and updates. This allowed Legacy Bridge to regularly add new educational resources and keep the portal fresh and engaging. The CMS license cost $2,000 annually.
• Third-Party Video Series Integration: To provide high-quality educational video content, Legacy Bridge partnered with a third-party provider specializing in financial literacy videos. This involved integrating the provider's API into the portal, allowing heirs to access the videos directly within the platform. The annual subscription fee for the video series was $3,000.
• Personalized Onboarding Workflow: A custom onboarding workflow was developed to guide heirs through the initial consultation and content recommendation process. This involved integrating a CRM system (Salesforce, in this case) with the portal to track heir engagement and personalize their experience. The integration cost $1,500 in development time.
• Data Security Measures: To ensure the security and privacy of heir data, Legacy Bridge implemented industry-standard security measures, including encryption, firewalls, and regular security audits. This involved adhering to SEC guidelines and maintaining compliance with privacy regulations.
• Analytics Dashboard: Integrated Google Analytics to track portal usage, content engagement, and heir demographics. This provided valuable insights into what content resonated most with heirs and allowed Legacy Bridge to optimize the portal for maximum impact.
• Email Marketing Automation: Used Mailchimp for automated email sequences that onboarded new portal users and provided ongoing educational content. This involved segmenting the email list based on user behavior and preferences to ensure that heirs received relevant and timely information.

The platform was built with responsive design principles to ensure optimal viewing on all devices, including desktops, tablets, and smartphones.

Results & ROI

The implementation of the next-gen portal and the associated engagement strategy yielded significant results:

• Portal Adoption Rate: Within the first year, 25% of heirs actively used the next-gen portal, a dramatic increase from the previous 5% engagement rate with the original portal. This translated to approximately 125 heirs out of a total of 500 actively engaging with financial planning content.
• Assets Under Influence (AUI) Increase: Legacy Bridge saw a $5 million increase in assets under influence (AUI) directly attributable to heir engagement. This was calculated by tracking the assets managed by heirs who had actively used the portal and attended networking events. This increase was largely driven by heirs opening new accounts or consolidating existing accounts with Legacy Bridge.
• Client Retention Rate: The firm’s overall client retention rate improved by 3%, attributed to the improved engagement with the next generation, strengthening familial ties with the firm.
• Improved Brand Perception: Legacy Bridge received positive feedback from both clients and heirs, who appreciated the firm’s commitment to educating and engaging the next generation. This enhanced the firm’s brand reputation and positioned them as a leader in wealth management. Client satisfaction scores among families with engaged heirs increased by 15%.
• Cost Savings: By proactively engaging heirs, Legacy Bridge mitigated the risk of losing assets to competitor firms, resulting in significant cost savings. The estimated cost of acquiring new clients to replace lost assets was significantly higher than the cost of implementing the next-gen engagement strategy.
• Reduced Marketing Expenses: Shifted focus to digital marketing resulted in a 10% reduction in overall marketing spend, while simultaneously increasing reach and engagement.
• Increased Advisor Productivity: While initially demanding, the tailored process improved advisor productivity over the long term, as they were able to cultivate relationships with heirs more efficiently.

Key Takeaways

1. Education is Paramount: The next generation is more likely to engage with financial planning if they understand the fundamentals. Prioritize education over product pushing.
2. Personalization is Key: Tailor content and communication to the specific needs and interests of each heir. One-size-fits-all approaches will not be effective.
3. Build a Community: Fostering a sense of community among heirs can create a support network and encourage long-term engagement.
4. Embrace Digital Channels: Engage with heirs on their preferred platforms, using digital communication tools and content formats.
5. Invest in Technology: A dedicated platform or portal can streamline the engagement process and provide a centralized hub for educational resources and communication.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify and nurture client relationships that lead to organic AUM growth. Visit our tools to see how we can help your practice.