Client Onboarding
The past few months have created unprecedented challenges for plan sponsors. They are grappling with regulatory changes such as the Coronavirus Aid, Relief and Economic Security (CARES) Act, dealing with the impact of a volatile stock market, and may be handling worker furloughs and layoffs. The strain has also turned a spotlight on their retirement plan advisers.
“This year, some businesses were in survival mode, and some were flourishing, but both were looking for the right partner to help them alleviate the stress of what was happening in the retirement space,” says Jamie Greenleaf, lead adviser and principal at Cafaro Greenleaf, a OneDigital company, in Red Bank, New Jersey.
Of course, even in years without a pandemic, many plan sponsors are open to switching advisers. More than 60% evaluate their adviser at least once a year, and 25% do so even more often, according to Fidelity Investments.
That creates an opportunity for advisers to win new business, but it also means there is no guarantee that new clients will stick around. Key to creating long-term client relationships is having an onboarding process that makes the transition as seamless as possible, plus ensures that all client expectations get met, says Kathleen Dulko, a Certified Plan Fiduciary Advisor with Ashford Investment Advisors in Daytona Beach, Florida.
“The first 100 days of the relationships are so important,” says Jeffrey M. Petrone, managing director, SageView Advisory Group in West Palm Beach, Florida. “You have to nail that. If you don’t, you’ll pay for it for years, and, in many cases, you’ll never get the relationship to the point you could have if you’d started off better.”
Given the importance of proper onboarding, SageView, three years ago, started devoting a portion of every weekly meeting to discussing clients it had signed in the past 100 days to make sure it was delivering on everything it had promised in the requests for proposals (RFP).
Customize the Process
The approach has had a demonstrable, positive impact on customer satisfaction, as measured through both third-party satisfaction surveys and anecdotal feedback. Sageview has a standard checklist for all new clients but also tweaks the list based on each individual RFP and client’s needs.
The requirements of a large plan with a dedicated human resources (HR) benefits contact may differ from those of a midsize plan that is run through the finance department, or of a small company building its first plan. The onboarding process may also change as the relationship progresses.
“We have a blueprint, but we’re also constantly looking inward to see what we can change or do better,” Petrone says. “[Our] managing directors working group is constantly having those conversations and adapting to create a better experience for the customer.”
These days, for example, many clients say they come to SageView specifically for the firm’s participant education and financial wellness offerings, so the firm may stress starting up such initiatives as quickly as possible.
Advisers say the first step to a smooth onboarding actually takes place during the RFP process, even before the client has signed on. Getting sufficient information about the client and setting clear expectations about what your firm can realistically do—and how much that will cost—can prevent a host of issues from cropping up when onboarding starts.
Dulko says she begins creating a summary-of-terms document after reading through an initial RFP, continuing to add information from subsequent conversations with the potential client. That process quickly shows her whether the company is a good match for her firm’s service offerings and whether she needs further information or clarifications from it in order to give accurate pricing estimates.
“You don’t want the plan to feel like it’s just been in a bait-and-switch where it had a fun salesperson who said you can do anything the client wants, then they close the deal and you can’t do those things that were promised,” Dulko says. “That’s an important part of the process.”
Kicking Off on the Right Foot
After signing the new client, Ashford Investment Advisors presents the summary document to the plan sponsor at the kickoff meeting. The firm uses that meeting to discuss how and when the two entities will best communicate, plus to get a sense of client priorities and collect any necessary data.
“It can be frustrating when we schedule a kickoff meeting with a new client and not everyone attends,” Dulko says. “So we emphasize how important it is for everyone to be there. We want everyone’s input, to make sure we’re all on the same page as we’re starting a new relationship.”
Proper Introductions
At Cafaro Greenleaf, part of the onboarding process is to introduce the entire team to the new client at the first meeting, so it knows with whom it will be working, then to call the client monthly. For the first few calls, the firm invites the plan provider to join in, Greenleaf says.
“That way we can assess whether there are any problems we need to nip in the bud,” she says. “Keeping that communication process open solidifies the long-term relationship because you start to understand what the client’s goals are.”
Often a recordkeeper and an adviser already have a relationship, but other times they are getting to know each other, too.
“There’s a ‘getting to know you’ phase,” when we’re not familiar with the adviser,” says Phil Chisholm, vice president, adviser research and insights at Fidelity Investments in Smithfield, Rhode Island. “You just want to make sure you’re not stepping on each other’s toes.”
To help new relationships start smoothly, Fidelity tries to build dedicated partnerships with advisers, pairing them with the same Fidelity implementation representative, so they can acclimate to each other’s methods and style.
“You want to build the same positive relationship with other service providers as you do with your client to ensure that everyone works together efficiently for the ultimate benefit of the plan participants,” Dulko says.
Ongoing Communication
Going forward, Greenleaf says, her firm continues to check in with the client, asking during the monthly calls whether the firm is still meeting the client’s goals and expectations.
“We ask it what we can be doing better, or if it is facing challenges we can take off its plate,” she says. “That’s our job: to make sure we’re understanding its challenges and finding areas where we can add value. We’re not a financial broker who’s just going to sell them something and walk away.”
The most successful partnerships between an adviser and plan sponsor have clear, open lines of communication. That may require some adjustments on the adviser’s part.
“Clients have different ways they like to communicate,” says David Swallow, managing director of consultant relations at TIAA in New York City. “Good advisers know those nuances and set expectations as to how often the client will hear from them, and what it should reach out to them about.”
Art by Uijung Kim