The old saying goes, “if you can’t measure it, you can’t manage it” or alternatively, “if you can’t measure it, you can’t improve it.”
This is especially true for servicing your existing clients, or simply “client service.” Presuming that the Investment Advisor has the mechanism already in place to measure and monitor, most presumably through their CRM and portfolio accounting system, most Advisors do not have any sort of Key Performance Indicators (or KPIs) in place to provide a clear analysis of their performance and trends. Below we will illustrate the importance and need for KPIs for client service. For KPIs that focus on the firm itself, please see: Data & Reporting: Why Its Important.
KPIs focused on staff productivity, processes and efficiency are integral windows to viewing the success or failure of your client service model and practice. Having KPIs will create (or highlight the lack of) efficiency and therefore make your firm more profitable. It also shows where your staff needs assistance and where they shine. KPIs also ensure that your staff is aligned in their objectives.
Client service activities include client meetings, emails, events, tasks, phone calls and even new client onboarding. Tracking these activities can be especially revealing when coupled with the particular client household revenue, to which it is linked. KPIs specifically tailored to measure how each client is being serviced, or by client segmentation, can assist in identifying attrition issues and also identify potential referral targets (i.e. Net Promoters) within your client base. KPIs can also be established to monitor the different services you are offering and which clients are partaking in each. These can better identify your profit centers and which activities are providing the most value and resulting in more engaged clients. KPIs can also help you monitor an individual advisor’s bandwidth, allowing you to better refine your overall client service model. Key metrics for this type of reporting concentrate on how long it takes your staff to complete specific tasks, and/or how often your staff is repeating the same workflows.