The Hidden Power Behind Your Business Data


Today’s financial advisors conduct an increasing amount of their business operations online. And as a result, they create and aggregate thousands – sometimes even millions – of data points around their own actions and those of their clients.

Here are the few of the ways technology can help you to organize and analyze your data to harnesses its power and act upon it in just a few clicks. 

1. Determine client profitability

How much is your time worth? Analyzing simple business analytics such as time spent preparing financial plans or proposals and client call history, you can determine the profitability of every client down to each individual communication. Using this information, you can create a segmentation strategy, assess fee types and amounts, and even inform everyday client tasks and interactions.

2. Analyze the Health of Your Business

Setting goals for your business starts with understanding its current health. Data on the source and stability of your revenue, insights into your growth over time and metrics on your client base like age, profitability per client, and opportunities can help to pinpoint areas of strength and where there’s room for improvement in your practice.

3. Create New Business Opportunity Reports

Where will your next prospect come from? What is the likeliness it will close?  How long will it take to move through your sales funnel? Knowing the answers to these questions will help assess your business development efforts and predict the ongoing success and growth of your practice. 

4. Quantify Your Value to Clients

Advisors are always looking for new ways to not only provide, but also demonstrate their value to clients. Tracking interactions with clients – whether that’s the number of phone calls, the time you spent prepping for your meetings, the research you did on products you suggested or the financial plans you’ve created – enables you to bring up tangible evidence of your level of service.

5. Improve Your Client Experience

Automated investing platforms pose a threat to your business and not just because of their low fees. Several robos have already begun using data analytics to provide clients with more personalized advice. Where you can win however, is by using the metrics at your fingertips to improve your level of service. With access to insights into each client you can  uncover trends in their behavior that inform your conversations, your level of outreach, and even the products and/or strategies you recommend.

As it turns out, there’s a lot of opportunity hiding in the data you already have access to. Maybe it’s time to unleash its potential. See how Advisor Metrix can help you do just that.

Thom Hall