Simplified Service Agreement Signing with 90% Digital Adoption

Simplified Service Agreement Signing with 90% Digital Adoption

Executive Summary

Luminary Wealth Partners, facing a cumbersome and slow client onboarding process due to reliance on paper-based service agreements, sought to modernize its operations and improve client satisfaction. By implementing a secure e-signature platform integrated directly with their Salesforce CRM, they achieved a 90% digital adoption rate for service agreements. This transformation streamlined the onboarding process, reduced administrative overhead, and enhanced the overall client experience, leading to faster revenue generation and improved client retention.

The Challenge

Luminary Wealth Partners, a growing RIA managing over $750 million in assets under management (AUM), faced significant challenges related to their traditional, paper-based service agreement process. The process was slow, inefficient, and created friction in the initial client engagement phase.

Specifically, the challenges included:

• Lengthy Onboarding Times: The average time to onboard a new client was 14 days, largely due to the back-and-forth involved in printing, mailing, signing, and returning physical service agreements. This delay impacted revenue recognition, pushing out the timeline to start managing a client's portfolio and generating fees, which typically average 1% of AUM.
• High Administrative Costs: Printing, mailing, and physically storing paper agreements incurred significant administrative costs. For example, Luminary estimated spending approximately $5 per agreement on printing and mailing, totaling over $2,500 annually based on onboarding 50 new clients. More significant were the labor costs associated with chasing down signed agreements, which consumed approximately 10 hours per week of staff time, costing the firm an estimated $7,500 annually in staff wages.
• Increased Risk of Errors: Paper-based agreements were prone to errors, such as missing signatures, incorrect information, and illegible handwriting. These errors required manual correction, further delaying the onboarding process and potentially exposing the firm to compliance risks. Each error could cost the firm up to 0.05% AUM, the estimated value of time spent correcting these.
• Negative Client Experience: Clients expressed frustration with the cumbersome process of printing, signing, and mailing back documents. This created a poor first impression and detracted from the otherwise high-touch, personalized service Luminary strived to provide. Data showed that clients rated the onboarding process a 6 out of 10 in satisfaction, significantly lower than other aspects of their service.
• Compliance Burdens: Maintaining a secure and organized archive of paper agreements was a complex and time-consuming task, creating potential compliance issues. Audits were slowed by the search for paper files, adding additional stress and potentially leading to fines, costing the firm as much as $10,000 annually in labor.

These challenges highlighted the need for a more efficient and client-friendly service agreement process. Luminary realized that digitizing this critical aspect of their business was essential for scaling their operations and maintaining a competitive edge.

The Approach

Luminary Wealth Partners adopted a strategic, phased approach to modernize its service agreement signing process. The core objective was to implement a solution that was secure, efficient, and user-friendly for both the firm and its clients.

1. Needs Assessment: The first step involved a comprehensive needs assessment. This included gathering feedback from advisors, administrative staff, and clients regarding the pain points of the existing paper-based process. Luminary mapped out the entire service agreement workflow, identifying bottlenecks and areas for improvement. This also meant analyzing and comparing the current process's direct and indirect costs with potential solutions, including third-party vendors and internal development.
2. Vendor Selection: Based on the needs assessment, Luminary evaluated several e-signature platforms, focusing on factors such as security, integration capabilities, user interface, and pricing. After a thorough evaluation, DocuSign was selected for its robust security features, seamless integration with Salesforce (Luminary's CRM), and intuitive user experience. The team also factored in scalability, ensuring the solution could handle future growth in client volume.
3. Customization & Integration: The next step involved customizing DocuSign to align with Luminary's specific service agreement templates and branding. This included creating custom fields for required information, such as client names, addresses, and investment objectives. Furthermore, DocuSign was integrated with Salesforce to automatically track the status of service agreements, trigger follow-up reminders, and update client records upon completion. The Salesforce integration included custom objects and workflows, ensuring data consistency and eliminating manual data entry.
4. Pilot Program: Before rolling out the new system firm-wide, Luminary conducted a pilot program with a small group of advisors and clients. This allowed them to identify and address any potential issues and refine the process based on real-world feedback. The pilot program involved approximately 10 clients and five advisors and lasted for one month. Data on time to signature and client satisfaction was gathered.
5. Training & Rollout: Following the successful pilot program, Luminary provided comprehensive training to all advisors and administrative staff on how to use the new e-signature system. This included online tutorials, live webinars, and one-on-one coaching sessions. The firm also created user-friendly guides and FAQs to address common questions.
6. Ongoing Monitoring & Optimization: Luminary continuously monitored the performance of the new system, tracking metrics such as adoption rates, time to signature, and client satisfaction. They also solicited feedback from users and made ongoing adjustments to the process to optimize efficiency and user experience. For example, Luminary began A/B testing the email subject lines and reminders, finding that more personalized messages increased client engagement.

This methodical approach ensured a smooth transition to a digital service agreement process, maximizing adoption rates and minimizing disruption to existing operations.

Technical Implementation

The implementation of the digital service agreement signing process involved the following technical steps:

• DocuSign Configuration: Luminary configured DocuSign to support their specific service agreement templates. This involved creating custom fields for capturing required client information, such as name, address, social security number, and investment objectives. These fields were mapped directly to corresponding fields in Salesforce, ensuring data consistency.
• Salesforce Integration: The integration with Salesforce was critical for automating the service agreement workflow. Luminary utilized the DocuSign for Salesforce AppExchange package to establish a seamless connection between the two systems. This integration allowed advisors to initiate service agreements directly from within Salesforce, track their status in real-time, and automatically update client records upon completion.
• Workflow Automation: Salesforce workflows were configured to automate several key steps in the process. For example, when a new client record was created in Salesforce, a workflow automatically generated a service agreement document and sent it to the client for signature via DocuSign. Upon completion of the agreement, another workflow updated the client record with the signed document and triggered a notification to the advisor.
• Security Measures: Security was a top priority throughout the implementation process. Luminary implemented DocuSign's advanced security features, including multi-factor authentication, audit trails, and tamper-evident seals. They also configured data encryption both in transit and at rest to protect sensitive client information. This was accomplished through integration with the firm's existing security protocols.
• Reporting & Analytics: Luminary leveraged Salesforce's reporting and analytics capabilities to track the performance of the new service agreement process. They created custom dashboards to monitor key metrics such as adoption rates, time to signature, and client satisfaction. This data provided valuable insights for ongoing optimization and improvement. Calculations included tracking the average time to signature using the old paper process and comparing it to the new digital process.
• API Usage: Luminary used the DocuSign API to build custom integrations and automate specific tasks. For example, they integrated DocuSign with their internal compliance system to automatically flag any service agreements that contained potential red flags or required additional review. This helped to ensure compliance with regulatory requirements and mitigate risk.
• Cost Calculation: The total technology implementation cost was $15,000, which included vendor fees, staff training time, and any potential disruption to operations. This cost was calculated to be recovered in reduced labor and materials, with the process achieving break even in 9 months.

Results & ROI

The implementation of the digital service agreement signing process yielded significant positive results for Luminary Wealth Partners.

• 90% Digital Adoption Rate: Within three months of implementation, 90% of new clients were signing service agreements electronically. This significantly reduced the firm's reliance on paper and streamlined the onboarding process. The remaining 10% of clients who preferred paper agreements were accommodated, demonstrating flexibility and client-centricity.
• Reduced Onboarding Time by 60%: The average time to onboard a new client decreased from 14 days to 5 days, representing a 60% reduction. This accelerated revenue recognition and allowed Luminary to start managing client assets more quickly. This reduction was achieved by eliminating the delays associated with printing, mailing, and physically handling paper documents.
• Saved $10,000 Annually in Administrative Costs: By eliminating paper, printing, mailing, and physical storage, Luminary saved approximately $10,000 annually in administrative costs. This included savings on paper, toner, postage, and storage space. The firm's ROI on the digital solution was realized within nine months.
• Reduced Staff Time on Agreement Tracking by 75%: The Salesforce integration automated the process of tracking service agreement status, freeing up administrative staff to focus on more value-added tasks. Luminary estimated that the integration reduced staff time spent on agreement tracking by 75%, saving approximately 7.5 hours per week.
• Improved Client Satisfaction: Client feedback on the onboarding process significantly improved. Clients rated the digital service agreement process an average of 9 out of 10 in satisfaction, indicating a positive client experience. This improved satisfaction contributed to increased client retention and referrals.
• Enhanced Compliance: The digital service agreement process enhanced Luminary's compliance efforts by providing a secure and auditable record of all signed agreements. The system automatically tracked all changes to service agreements, providing a clear audit trail for regulatory purposes.
• Increased Advisor Productivity: Advisors spent less time chasing down signed agreements and more time focusing on client relationships and business development. Luminary estimated that the increased efficiency improved advisor productivity by 10%.

Overall, the implementation of the digital service agreement signing process delivered a significant return on investment for Luminary Wealth Partners, improving efficiency, reducing costs, enhancing client satisfaction, and strengthening compliance.

Key Takeaways

Here are three key takeaways for other RIAs and wealth managers considering a similar transition:

1. Prioritize Integration: Seamless integration between your e-signature platform and CRM is crucial for automating the service agreement workflow and maximizing efficiency. Invest time in planning and configuring the integration to ensure data consistency and avoid manual data entry.
2. Focus on the Client Experience: Choose an e-signature platform that is user-friendly and provides a positive client experience. Make sure the signing process is simple and intuitive, and provide clear instructions and support to clients.
3. Measure and Optimize: Continuously monitor the performance of your digital service agreement process, track key metrics, and solicit feedback from users. Use this data to identify areas for improvement and optimize the process over time.
4. Security is paramount. Ensure your e-signature solution has sufficient security protocols and meets all compliance requirements.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify new clients, personalize investment strategies, and automate compliance tasks. Visit our tools to see how we can help your practice.