By Matthew Mancini
A dynamic, integrated, and automated client communications system is more important now than it has ever been. Today’s clients, whether they are individuals or institutions, expect easily accessible investment information and increased transparency. Technology has changed clients’ expectations in virtually every aspect of their lives; money management is no different.
The direct cost savings and value-added benefits of a client communications system far outweigh the cost of the software. So, when does it make sense to implement a client reporting system?
Let’s start by looking at the hard and soft savings of a well-built system.
Hard Savings: An off-the-shelf report generation software with a manual process can take an individual employee anywhere from 30 to 90 minutes to create. What is the cost of an employee to an organization? When you factor in multipliers, the numbers can be high. In addition, what happens when business increases?
A good client communications system will greatly reduce employee costs. In most cases, a firm will not reduce its employee head count, but will redeploy staff to more important activities. The right solution will allow an organization to grow without incurring additional operational costs. While a manual reporting process is prone to errors, a well-designed automated solution provides data integrity checks that ensure data is valid before reports are created and distributed.
Soft Savings: Client retention is your number one return on investment with a well-built client communications solution.
All clients are different and many of them expect customized statements and reports. A cookie-cutter approach to servicing your client base is an outdated model, and today’s clients expect more.
An organization may provide great returns in client portfolios, but there are other, non-alpha related reasons clients continue to stay loyal. Client communications and reporting is high on that list.