Personalized Birthday Videos: 5% Increase in Client Advocacy

Personalized Birthday Videos: 5% Increase in Client Advocacy

Executive Summary

Montgomery Retirement Solutions, a wealth management firm managing over $250 million in assets, sought to enhance client relationships and drive advocacy. They implemented a personalized birthday video initiative, creating and sending short, heartfelt videos to each client on their special day. This simple yet powerful gesture resulted in a 5% increase in client Net Promoter Score (NPS), indicating a significant improvement in client advocacy and potential for increased referrals.

The Challenge

Montgomery Retirement Solutions, like many RIAs, recognized the importance of fostering strong client relationships to drive growth and retention. While they excelled at providing financial advice and managing portfolios, they wanted to elevate their client experience beyond standard industry practices. Their client retention rate was a solid 92% annually, but they aimed for even higher levels of engagement and advocacy. They realized that a more personal touch could be the key.

Specifically, Montgomery Retirement Solutions observed a plateau in client referrals. While existing clients expressed satisfaction with their investment performance, reflected in an average portfolio growth of 8% annually, the firm aimed to leverage that satisfaction to generate more organic growth. They knew that happy clients are often the best source of new business, but needed a more proactive approach to encourage referrals. For every 100 clients, they were averaging 3 new referrals per year. They aimed to increase this to 4.

The firm also recognized that simply meeting financial goals wasn't enough to build truly lasting relationships. In an era of robo-advisors and commoditized investment products, they needed to differentiate themselves through genuine connection and personalized service. Furthermore, studies showed that clients who felt emotionally connected to their advisor were more likely to consolidate assets under management and remain loyal over the long term. A client with $500,000 under management, for example, who feels a strong connection is more likely to entrust an additional $100,000 from a 401(k) rollover or inheritance.

Their existing client communication strategy included quarterly market updates, annual portfolio reviews, and occasional email newsletters. While informative, these interactions lacked the personal touch needed to truly deepen relationships. They sought a scalable, cost-effective way to demonstrate that they genuinely cared about their clients as individuals, not just as accounts.

The Approach

Claire, the Client Relations Manager at Montgomery Retirement Solutions, championed the idea of personalized birthday videos. She believed that a short, sincere birthday message could create a powerful emotional connection and leave a lasting positive impression.

The strategic decision framework was based on the following principles:

• Personalization: The videos had to be genuinely personalized, reflecting the advisor's knowledge of the client's life and interests.
• Authenticity: The messages needed to be sincere and heartfelt, conveying genuine well wishes.
• Scalability: The process had to be efficient and scalable, allowing the team to manage videos for all clients without overwhelming their workload.
• Cost-Effectiveness: The solution had to be budget-friendly, leveraging existing resources and technology.

To implement this, Claire mapped out a simple yet effective workflow:

1. CRM Integration: Leverage their existing CRM (Redtail) to flag upcoming birthdays at least two weeks in advance.
2. Advisor Assignment: Assign each birthday video to the client's primary advisor.
3. Personalized Message: Advisors were instructed to research the client’s file and social media profiles (where appropriate) to identify personal details to mention in the video. This could include referencing hobbies, family milestones, or recent life events.
4. Video Recording: Advisors used their smartphones to record short, informal videos (30-60 seconds).
5. Simple Editing: Claire used a free video editing app (CapCut) to add a simple opening title with the client’s name and a closing screen with the Montgomery Retirement Solutions logo.
6. Delivery: The videos were delivered via email on the client's birthday, with a personalized message wishing them a happy birthday and inviting them to schedule a call to discuss their financial goals.

Claire understood the importance of making each video unique. For example, if a client mentioned a love for golf, the advisor might say, "Happy birthday, John! I hope you get to hit the links this weekend. Let's schedule a call next week to discuss how we can help you achieve your retirement goals so you can spend more time on the course."

Technical Implementation

The technical implementation of the birthday video initiative was designed to be simple and cost-effective, leveraging existing technology and resources.

• CRM Integration: Montgomery Retirement Solutions used Redtail CRM to manage client data. Claire created a custom field to track the date each video was sent. A workflow was set up to generate a task two weeks before each client's birthday, reminding the advisor to create the video. The CRM also automated the email delivery of the video on the client's birthday.

• Video Recording: Advisors used their personal smartphones (iPhones and Android devices) to record the videos. The smartphones were used for their built-in camera functionality and ease of use. Advisors were provided with a brief training session on how to record a clear and well-lit video.

• Video Editing: Claire used CapCut, a free and user-friendly video editing app available on both iOS and Android. She created a standardized template with an opening title featuring the client's name and a closing screen with the Montgomery Retirement Solutions logo and contact information. This ensured brand consistency and a professional look. The app was used to trim the videos, add the opening and closing screens, and adjust audio levels.

• Email Delivery: The videos were sent via email using a secure email platform that offered encryption to protect client data. The email included a personalized message and a link to the video, hosted on a secure video hosting platform (Vimeo).

The entire process was streamlined to minimize the time commitment required from advisors. Each video took approximately 15-20 minutes to record and edit. The integration with Redtail CRM ensured that no birthdays were missed and that the videos were delivered on time.

Results & ROI

The personalized birthday video initiative yielded significant positive results for Montgomery Retirement Solutions.

• Client Advocacy (NPS): The Net Promoter Score (NPS) increased by 5 percentage points, from 45 to 50, indicating a significant improvement in client advocacy and willingness to recommend the firm. This was calculated based on client surveys conducted before and after the implementation of the video initiative. An increase of 5 points is considered a substantial improvement in client sentiment.

• Client Referrals: The number of client referrals increased by 33%, from an average of 3 referrals per 100 clients per year to 4 referrals per 100 clients per year. This translated to an additional $1 million in new assets under management within the first year of implementation, assuming an average initial investment of $250,000 per referral.

• Client Engagement: Client engagement, as measured by the number of clients opening and responding to emails, increased by 15%. Clients also expressed positive feedback about the videos in their annual review meetings, often commenting on the personal touch and thoughtfulness.

• Client Retention: While the client retention rate was already high at 92%, it saw a slight increase to 93% after the implementation of the birthday videos. This 1% increase translates to retaining approximately $2.5 million in assets under management annually, assuming a total asset base of $250 million.

• Client Satisfaction: Anecdotal evidence suggests a noticeable improvement in client satisfaction. Advisors reported receiving numerous thank-you notes and positive feedback from clients who received the birthday videos.

Key Takeaways

1. Personalization Matters: Small, personalized gestures can have a significant impact on client relationships and advocacy. Clients appreciate the extra effort and personal touch.
2. Leverage Existing Technology: You don't need expensive or complex technology to implement a personalized video strategy. Smartphones and free video editing apps can be highly effective.
3. Automate Where Possible: Automate birthday reminders and email delivery to streamline the process and ensure consistency. CRM integration is key.
4. Empower Your Team: Encourage advisors to be creative and authentic in their videos. The more personal and genuine the message, the greater the impact.
5. Track and Measure Results: Monitor key metrics such as NPS, client referrals, and client engagement to assess the effectiveness of your personalized video strategy and make adjustments as needed.

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