An orderly, timely and error-free orientation process for new clients can lay the foundation for long-lasting client relationships.
If you do a good job at “onboarding” clients, says Nadira Lawrence-Selan, marketing and communications consultant with Hathleigh Consulting in Woodbridge, Ont., you can “demonstrate that you are easy to do business with, which can, in turn, lead to greater trust, higher client retention and more referrals.”
If your onboarding process is cumbersome and unpleasant for clients, you can create doubt in their minds about why they chose to work with you in the first place.
To be effective, you must have standardized processes and offer customized solutions that enhance the client experience, says George Hartman, managing partner with Elite Advisors Canada Inc. in Toronto.
You should be striving both to meet the clients’ expectations you set and to enhance their experience from the time they walk in the door, says Joanne Ferguson, president of Advisor Pathways Inc. in Toronto.
One of the most important elements of the onboarding process is to have a checklist that covers all the details of bringing in a new client. Your list should include items such as the forms that must be completed; compliance requirements; identification documentation and permissions that must be obtained; and bank account information.
A consistent experience
“The checklist would ensure that nothing gets dropped,” Lawrence-Selan says, “and should facilitate a consistent experience from one client to the next.”
Heather Holjevac, senior wealth advisor with TriDelta Financial Partners Inc. in Oakville, Ont., says she has three checklists that cover three concurrent processes. The first checklist, which is at the advisor level, includes items related to financial planning; the second list is for compliance and includes account setup requirements; and the third list is for administration, covering items such as account application, transfer of funds, pre-authorized withdrawals and online access.
Even if you have checklists, some items can fall through the cracks, Ferguson warns.
For example, registering a power of attorney or transferring funds from another institution might be omitted. That’s why it’s helpful to also have a followup list, Ferguson adds – to ensure that errors or omissions are caught within a reasonable time frame.
You also should ensure that all your team members understand their roles in onboarding new clients.
“[Onboarding] is a good time to introduce team members and [explain] their roles,” Hartman says. “This reinforces the value of the team and lets clients know that you are not the only person they have to deal with.”
Introducing your clients to team members is important, Ferguson says. When a client visits your office for a scheduled meeting, the client should be greeted by name and be told that the advisor is expecting him or her. This step is a common shortfall during the onboarding process.
Successful onboarding also means that clients must understand the process.
“The process is much smoother if clients know what to expect from you and what you should expect from them,” Lawrence-Selan says. “Expectations often are not clearly defined, leading to hiccups in the relationship.”
This procedure presents an opportunity for you to reinforce your value with a long-term perspective in mind, Hartman says: “You are preempting any competition.”
Holjevac recommends that you set up a schedule of future client interactions for at least the next six months and book future meetings.
If the sequence of meetings and communication initiatives is clearly defined, Lawrence-Selan says, “Clients will have greater certainty regarding what to expect from you and will be kept engaged.”
Once clients have come on board, send them a welcome package, Ferguson says. The package can include a letter with profiles of team members, along with head shots and descriptions of their roles. The package also could include your brochure and relevant educational material.
Personal letter
Lawrence-Selan recommends that you send a personalized letter in addition to the welcome letter template.
As a final step in the onboarding process, Hartman suggests sending your new clients a survey, which, he says, has become a standard practice. The survey can help you assess the onboarding experience and uncover any weaknesses in the process.
Says Lawrence-Selan: “Your new clients will appreciate [you] asking for their opinions.”
© 2015 Investment Executive. All rights reserved.