Executive Summary
Operating a financial advisory firm often requires managing large amounts of data, from prospective client contact details to current clients' investment performance, which can create bottlenecks as advisory firms scale and their data systems multiply. The process can be particularly time-consuming when data is stored across multiple systems (or, worse, on paper) and must be manually transferred between software programs, such as scheduling tools and CRMs. However, automation tools offer advisors a way to connect these disparate systems, improving efficiency and reducing manual workload in firm operations.
In this guest post, Matthew Benson, owner of Sonmore Financial, discusses how he has streamlined his lead management process using the automation tool Zapier. By creating automations, Matthew has saved time for himself and his team while reducing the potential for data entry errors and increasing his firm's overall operational efficiency.
Matthew chose Zapier for its robust library of integrations – connecting tools his firm already used from CRMs to email platforms and scheduling software – as well as for the strong support offered by the company and its broader user community. He started his automation journey with a simple, single-step task: migrating lead data from email into a spreadsheet. This task is not only time-intensive and monotonous but also prone to error. This automation simplified data entry and allowed the firm to send timely follow-ups to leads without manual effort, improving efficiency and client engagement. From there, he moved on to more complex workflows, such as setting up automated text messages, which required a custom API integration due to the capabilities of his texting software.
While automation brings significant benefits, it also takes time and money to implement. Initial setup and ongoing maintenance are essential, particularly as the automated workflows grow more complex. For example, Zapier will notify the user when an automation has failed, which requires the user to diagnose, troubleshoot, and retest. Furthermore, automation tools like Zapier involve monetary costs for ongoing subscription fees, which can vary based on usage, with optional consulting fees for support creating or fixing workflows.
Compliance is another consideration for advisors implementing automations, especially for client-facing communications like text messages and emails. Tools are available to help ensure that communications are securely archived and include necessary disclosures to meet regulatory requirements, promoting transparency and ensuring that firms are prepared for audits.
Ultimately, the key point is that while implementing automations requires upfront and ongoing investments of time and money, the time saved over the long term can be substantial and well worth the investment. By reducing manual data management and improving accuracy, advisors can dedicate more time to high-value, client-facing activities, enhancing both productivity and client service!
In seventh grade, I was tasked with creating a Rube Goldberg machine designed to perform a simple task – putting a golf ball into a cup starting with the drop of a weight – through a complex series of steps. Just like in that early experiment, when I began implementing multi-step automations in my financial planning practice, I quickly learned that if any step malfunctioned, the final action would fail to occur. This early lesson has stayed with me and shapes how I approach automations today: as intricate systems where precision in every step ensures the success of the whole.
This prompted us to explore tools that could provide the reliability and scalability we needed. Enter Zapier, a platform that enables users to connect apps and automate workflows with minimal effort.
With Zapier, we began building out the processes that transformed how we manage leads and follow-ups, enhancing both our efficiency and effectiveness. These systems have not only streamlined our operations but also increased our consistency and profitability, aligning perfectly with Tim Ferriss's advice in "The 4-Hour Workweek": "Never automate something that can be eliminated, and never delegate something that can be automated or streamlined."
Our Journey With Zapier: Transforming Efficiency And Client Service Through Automation
When we decided to automate our processes, 2 criteria guided our choice of an automation tool: 1) the breadth and quality of integrations, and 2) the availability of reliable support. Zapier excelled in both areas. With over 7,000 app integrations – including several tools we were already using – it offered the versatility we needed to streamline our complex financial planning processes.
Additionally, Zapier's active community and support network proved invaluable as we ventured into building more advanced automations involving multiple steps and conditions. Its seamless compatibility with popular software made it the ideal choice for managing the complex workflows required to improve efficiency and consistency in our practice.
Initial Steps, Challenges, And Early Successes
Our journey with automation started with a simple, single-step workflow: migrating data from one source to another. This straightforward task was an excellent starting point because it introduced efficiency without adding unnecessary complexity or error risk.
In our case, the first automation we built relied on a parsing tool built into Zapier, which transferred
These early efforts laid the groundwork for more advanced systems, such as automating client communications (this short video outlines how we did this). One of our first major successes was implementing a trigger in a Google Sheet that automatically sent emails to clients or prospects. This early win showed us the power of these tools and inspired us to keep pushing the boundaries of what we could achieve.
How Automation Has Impacted Our Business
Embracing automation in our financial planning practice has revolutionized how we operate, delivering impressive gains in efficiency, reliability, and client service. By integrating technology into our workflows, we've achieved more with fewer resources, demonstrating the actual value of automation in everyday business practices.
These changes have delivered measurable outcomes in 3 key areas: time savings, consistency, and error reduction. Together, these improvements have streamlined our operations and freed up time for more meaningful client interactions, allowing us to focus on what matters most – building stronger relationships, delivering strategic advice, and delivering exceptional service.
Significant Time Savings
One of the most tangible benefits of automation has been reclaiming time previously spent on routine tasks. By streamlining data entry and follow-up processes, our team has gained several hours each week to focus on meaningful activities like client consultations and strategic planning. Automated lead communication – triggering emails and texts the moment a lead enters our system – ensures prompt engagement without the need for manual effort.
Managing 15–20 leads at any given time, our automated system significantly reduces the workload of follow-up communications. By handling texts and emails, this system saves us approximately 5 hours every week, equating to a potential annual time saving that, at an average financial planner's hourly rate, could easily exceed $10,000!
Beyond just saving time, automation allows our team to focus on critical, skill-intensive tasks that require their expertise. This shift hasn't just improved productivity; it also enhances job satisfaction by reducing the monotony of repetitive work, ensuring our team remains engaged and effective.
Enhanced Consistency In Client Follow-Up
Consistent client engagement may be one of the greatest advantages of automation, which has standardized our follow-up process, ensuring that every lead receives timely and professional communication every day of the week – including weekends and off-hours. This has been crucial for maintaining strong engagement and reducing the likelihood of leads slipping through the cracks, increasing our chances of converting inquiries into consultations.
Reduction In Errors
Another critical benefit has been the significant reduction in manual error often associated with data entry and scheduling tasks. Automating these processes ensures accuracy in our client records and communication, which has bolstered our professionalism, strengthened client trust, and minimized risks associated with human error.
By automating routine, time-consuming, and error-prone tasks, our practice has become more responsive, efficient, and focused on delivering value. The transformation we've experienced is a testament to how technology can significantly enhance business processes and client satisfaction in the financial planning industry.
Reflection On The Costs And ROI Of Automation For Our Firm
When we decided to integrate automation into our practice, we knew it was important to weigh the costs against the potential benefits. Investing in tools like Zapier and other supporting software, along with consulting experts to troubleshoot more complex workflows, required financial resources and time. However, these upfront costs were balanced by the long-term efficiency gains and operational improvements we've achieved. Reflecting on these investments and calculating their impact has been a key part of understanding the true value these innovations have brought to our firm.
Breaking Down The Costs Of Automation
Zapier offers several pricing tiers that cater to different business needs, from basic setups to advanced functionalities. Currently, our practice subscribes to a plan costing approximately $600 annually, which supports up to 2,000 tasks per month and allows us to maintain an unlimited number of automations. This level of service has been sufficient for our needs.
In addition to software costs, we occasionally require external expertise to troubleshoot complex processes that exceed our in-house capabilities. Engaging a Zapier expert at an average rate of $150 per hour adds to our project costs but ensures that our automations are set up efficiently and effectively. These investments ultimately save us time and reduce long-term issues and maintenance costs.
Beyond Zapier, we rely on several complementary tools that integrate seamlessly with Zapier into our workflows. The table below details these tools, how we use them, and their associated costs.
Notably, we would be paying for all the subscriptions above regardless of our automations, except for Zapier and MailParser. As a result, our additional cost for automation software is $80 per month.
While our setup focuses on tools we already use, many other software solutions tailored specifically to financial planners are designed to integrate with Zapier. Some of these include PreciseFP, Wealthbox, and Elements. These tools, along with more general business software widely supported by Zapier, highlight the platform's versatility in catering to diverse needs.
The Real Value Of Automation: Calculating ROI
The cost of implementing tools like Zapier and Mailparser is remarkably low, with both tools totaling under $1,000 annually. Adding another $1,000 for consultant support for more complex automations brings our total investment to approximately $2,000 per year.
The return on this investment is through the roof – by streamlining tasks that would otherwise require manual input from our operations team, we save far more than $2,000 each year. At an average hourly rate of $30, it only takes automating 66 hours of work per year to break even – something we easily surpass.
The real measure of ROI lies in evaluating whether the amount of time setting up each system is worth the time it ultimately saves. For example, automating high-frequency tasks is an ideal starting point: If setting up a process takes 3 hours, and the task itself takes 2 minutes to perform manually, the breakeven point occurs after 3 hours ÷ 2 minutes = 90 iterations of that task.
This substantial time-saving benefit extends beyond cost efficiency; by freeing up our team to focus on strategic planning and client engagement, we've enhanced our service delivery and client satisfaction. By thoughtfully managing costs and leveraging expert help when necessary, we've improved our operational efficiency and achieved measurable financial returns – demonstrating the practical and transformative benefits of these tools for our business.
The Evolution Of Our Automations
In the early stages, our focus was on capturing data efficiently. Once we had mastered this, the next logical step was to integrate this data into our CRM system. This integration not only saved time by eliminating manual data entry but also ensured that communication archives were linked to specific client records in our CRM. This proved invaluable when onboarding clients, as all historical data was readily available from the beginning.
With these foundational processes in place, we shifted our focus to streamlining client communications. Initially, this started with sending automated emails triggered by new entries in our Google Sheet. Soon after, we integrated text messaging through a more complex build through MyRepChat. Each iteration refined the content and timing of these communications, making them increasingly personalized and responsive to client interactions.
The most significant enhancement came when we implemented delays, filters, and interconnected workflows. These improvements allowed us to customize communications dynamically based on specific client behaviors, such as pausing follow-ups when a client responded. This approach ensured we maintained a personal touch while maximizing efficiency.
Implementation Strategies For Financial Advisors
Implementing automation in a financial planning firm can be transformative, but the process often begins with a steep learning curve. Early efforts typically involve trial and error, requiring time to troubleshoot bugs and fine-tune workflows. In complex workflows, the initial setup will often take more time than it saves in the short run.
However, these early challenges lay the groundwork for substantial long-term benefits. And as advisors gain experience and refine their systems, the return on investments grows exponentially. Over time, optimized tools take over repetitive tasks, freeing up valuable hours for higher-impact activities like strategic planning and building deeper client relationships.
Adopting new technology – particularly automation tools like Zapier – comes with its share of obstacles, but the rewards make the effort worthwhile. Firms that embrace these innovations can more easily position themselves as proactive, responsive, and better equipped to meet client needs in today's fast-paced environment. By approaching the implementation thoughtfully and following key steps to navigate the learning curve, advisors can overcome hurdles and benefit from the full potential that automation can offer.
Understanding The Basics
At its core, automation involves moving information between tools to create seamless workflows. Imagine if all the software tools used by a financial advisory firm could share and integrate the information the advisors already know – how much more efficient could the business become? That's the power of automation. While saving time is often highlighted as a key benefit, its greatest strength may be that it improves job satisfaction by automating necessary but tedious tasks.
For us, the first task we chose to automate was simple: transferring lead information from emails to a spreadsheet. This simple project introduced us to Zapier's capabilities while helping us build confidence in allowing the software to handle these routine workflows.
A practical example is using a scheduling tool like Calendly or Acuity to trigger CRM workflows based on the type of meeting scheduled. This kind of integration saves time and ensures client interactions are timely and relevant. For instance, scheduling a discovery call might trigger an automated email with pre-meeting instructions or add follow-up tasks to a CRM like Redtail.
To help advisors get started, here's a short video demonstrating how we achieved this with our CRM overlay, Hubly, and how it works with Redtail alone.
By focusing on straightforward, impactful automations like this, advisors can quickly experience the benefits of automation while laying the groundwork for more advanced workflows. Here are some additional examples of starter projects financial advisors can consider:
- Scheduling triggers from scheduling software:
- Update sales pipelines
- Start a workflow or activity
- Add new leads to a CRM or email campaign
- Incoming lead information:
- Parse information from emails or social media platforms like Facebook and LinkedIn
- Add details to a lead database like Google Sheets or a CRM (or both)
- Send automated email and text messages (this can be a bit more advanced)
- Add prospect details to a CRM and initiate a workflow
- Meeting scheduled by a client:
- Add or remove the client from a tag group in the CRM
Exploring Your Tech Stack Integrations
The image below shows some of the automations we use for lead follow-up. We rely heavily on tools like Outlook, Mailchimp, MailParser, Redtail, and – central to our workflows – Google Sheets.
A good starting point for advisors is to review their firm's existing tech stack. Explore what triggers and actions Zapier already supports for the firm's tools and brainstorm potential workflows. This process helps identify automations that can streamline existing processes while ensuring that advisors will be able to leverage the full capabilities of the tools already in place.
Building Multi-Step Automations
After becoming comfortable with single-step automations, the next phase is to create multi-step workflows. These workflows are more complex, involving multiple conditions that direct data through various stages to achieve customized outcomes. Starting with simpler sequences and gradually increasing complexity lets users build confidence while understanding dependencies and outcomes.
The image below highlights a portion of one of our workflows. While it may appear complex at first glance, this 30-step process consists mainly of repeating steps with variations, such as different delay intervals and tailored communications via text and email. It demonstrates how breaking down intricate workflows into manageable components can make designing automations more approachable and less overwhelming.
This video walkthrough shows how we created this workflow and how it has evolved over time.
Refining And Debugging: Overcoming Roadblocks In Automation For Financial Planning
In the world of automation, encountering roadblocks is inevitable, especially as advisors delve into more complex systems. While tools like Zapier can greatly enhance efficiency, they also require a systematic approach to troubleshooting when issues arise. Here's an approach that financial planners can take to effectively navigate this process in Zapier:
- Review The Initial Notification. The first sign of an issue usually comes from an automated notification – usually an email – alerting that a Zap has failed. These alerts are crucial, as they prompt immediate attention to issues that could disrupt client communications or compromise data integrity.
- Review The Zap Run. The next step is to log into Zapier and review the specific Zap Run associated with the failure. Zapier provides a detailed log for each automation attempt, which includes step-by-step records of action taken, inputs and outputs, and any errors encountered. This log is invaluable for pinpointing where the failure occurred and understanding the root cause.
The image below shows a Zap run that was stopped, highlighting where to find the reason for the interruption. If the failure is due to an error, locating this information is important, as it will help advisors pinpoint the specific part of the automation that encountered a hiccup, making it easier to identify and implement a solution.
- Identify The Failure Point. By analyzing the Zap Run logs, firms can determine the step where the failure occurred. Common failure points include incorrect data inputs, broken connections with external platforms, or errors in the logic of the Zap setup. For example, a text messaging automation may fail due to incorrect API credentials, as was the case in one instance when our MyRepChat system was not correctly configured, causing it to encounter authentication errors.
- Problem Solving And Testing. Once the cause of the failure is identified, the automation can be adjusted to address the issue. This might involve correcting data fields, updating access credentials, or altering the filters used in the Zap workflow. After making these adjustments, thoroughly testing the Zap multiple times is important to ensure the workflow is stable and the automation functions reliably. For example, when we repaired our API integration with MyRepChat, we conducted multiple test runs to ensure our text messaging process was stable and functioning reliably.
- Monitor And Refine. Resolving immediate issues is only part of the process. Continuous monitoring and regular audits are crucial for identifying potential problems early and ensuring long-term reliability. Taking a proactive approach minimizes disruptions and maintains the efficiency of automated workflows.
Continuous Learning And Community Engagement
Engaging with the Zapier community and using forums and tutorials can provide invaluable support for addressing complex challenges and enhancing automation capabilities. These communities offer practical insights through shared experiences and solutions, while Zapier's responsive live chat feature is an additional resource for troubleshooting workflows.
Implementing automation successfully requires a blend of technical expertise and strategic thinking. While the firm must provide the strategic vision, technical knowledge can be developed internally or outsourced to professionals. Either way, understanding the possibilities within the tools is key to effective planning and building reliable, high-impact workflows.
Navigating Compliance In Automation
Maintaining compliant operations is crucial for fostering client trust and adhering to regulatory standards, especially when integrating automations into a financial planning practice. Effectively managing compliance requires distinguishing between client-facing automations and internal processes, each with unique considerations.
For client-facing workflows, such as text messages and emails, compliance relies on proper archiving and including necessary disclosures. Tools like Message Watcher and MyRepChat streamline compliance by securely storing communications and making them easily retrievable for audits. It is also important to integrate necessary disclosures into automated messages, ensuring transparency and meeting legal requirements.
By contrast, internal workflows triggered by automation require a different approach. While they might not directly interact with clients, they still benefit from periodic reviews to ensure their ongoing relevance and accuracy. Establishing a routine audit process helps maintain alignment with current business practices and regulatory requirements, preserving the effectiveness of these automations over time.
Advisors can maintain compliance by adopting these best practices:
- Archiving Communications: Use specialized tools to securely archive emails and texts, ensuring all communications are retrievable for audits.
- Incorporating Disclosures: Embed required legal disclosures in automated messages to maintain transparency and compliance with industry standards.
- Monitoring And Updates: Conduct regular reviews of all automated processes to identify potential errors and ensure they comply with current regulations.
By leveraging these best practices, financial advisors can maintain operational efficiency while upholding compliance standards. Routine internal audits and updates to automated systems are essential steps in maintaining a compliant and trustworthy practice.
Future Directions And Innovations In Automation
As financial planning practices continue to refine their use of automation, integrating advanced technologies such as OpenAI's ChatGPT presents exciting new possibilities that will unlock even greater efficiencies and capabilities that have the potential to redefine how we manage and interact with client data.
AI has inspired us to explore opportunities in areas such as automating meeting agendas for client meetings, generating prospect folders, and drafting preliminary financial plans. Many of these automations may be built using tools like Microsoft's Power Automate to streamline Microsoft-specific workflows.
Incorporating AI Into Client Communications
One of the most promising applications of AI in our practice has been in automating meeting agendas. Using AI tools, we've developed a system that incorporates follow-up notes from previous meetings into agendas for upcoming ones. When a meeting is scheduled via Calendly, an automation triggers the creation of a personalized agenda based on past interactions and discussed topics.
Refining AI-Driven Automations
Our initial foray into AI-driven agenda automation highlighted the potential for simplification and error reduction. The initial setup was a learning experience, and we plan to streamline its operations and minimize potential errors by fine-tuning the AI's input and output parameters, ensuring that agendas are not only accurate but also highly relevant to each client's specific needs.
Future Automation Goals
Looking ahead, our goal is to expand AI's role in automating more complex processes, which could further revolutionize the efficiency and effectiveness of our practice. These advancements can empower us to deliver even more tailored and proactive advice to clients, reinforcing our commitment to exceptional service.
The journey from manual data entry to sophisticated automations has been instrumental in streamlining our operations and has significantly enhanced our responsiveness and consistency in lead management. Each step forward in automation has been a step toward more reliable and personalized client interactions, mirroring the intricate connections of my early Rube Goldberg machine—where every component, no matter how small, is crucial to the ultimate goal.
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