Are You Measuring The Wrong Metrics In Your Advisor Dashboard?

Are you measuring what you should in your advisor dashboard? Hopefully you have one! If you’re like most advisors, you’re probably keeping track of the core metrics such as your AUM or your gross revenue. Maybe you even break it down further to track a cost per client or revenue per client. But the issue is that these metrics aren’t quiet enough. These are all lagging indicators as to how you’re doing and they’re not predictive leading indicators as to how you’re growing.

You can’t successfully build your business without a vision in mind of where you want to go, and you can’t go in that direction without a way to measure how you’re doing in getting there. This is where measuring those leading indications (not just the lagging ones) comes in.

Tracking Leading Indicators

So what are some leading indicators that you could be measuring to keep a pulse on how you’re growing?

• Try tracking the number of referrals received over the last month or quarter.
• Track the number of events you hold within a specific timeframe.
• Track PR articles and mentions.
• Track contacts with clients via social media.
• Track hours per week spent on marketing activities.
• Track social media shares, likes and impressions.

Process Improvement

Beyond just improving your tracking and metrics, you can also work on improving your processes. Take a look through your current workflows and see how you can improve them to streamline and make them more efficient. This can become a new metric for you to track. You can also review the close ratio for your prospects, and how long the lead-to-client timeline is, and work on improving those processes and metrics. Look through your tech stack and see what can be reduced and streamlined.

When it comes to your clients, ensure that you’re measuring client satisfaction and improving on that process. You can track the number of meetings attended yearly, and the number of pro-active client calls or client touch points. Think about what is important to your practice specifically, and implement a measurable performance indicator so that you can ensure the metric is being monitored.