As a financial advisor, the tools you use can give you a clear snapshot of your business, just like a map shows you the best route to take. They help you understand where most of your business is coming from and which clients you work best with. While revenue and profitability are important, they’re just part of the picture. Non-financial KPIs (Key Performance Indicators) are like the extra details on that map that help you see your practice more clearly. These metrics show you how well you’re running things behind the scenes, like client satisfaction, efficiency, and your business’s potential for future growth. By paying attention to these KPIs, you’ll get a more complete view of your practice and be able to make smarter decisions. Here are six non-financial KPIs you should keep an eye on this year and beyond:
Measuring What Matters
1. Client Satisfaction and Retention Rates
Happy clients fuel growth. However, you might not know how clients feel unless you deliberately ask them. With that in mind, you can gauge the temperature of your client base with surveys (like Net Promoter Scores). Similarly, retention rates can reveal well you’re meeting client needs. A high retention rate is usually an indicator of strong bonds, trust, and loyalty. All of these create a foundation for referrals and sustainable growth.
2. Document Processing Time
Efficiency and profitability are inextricably connected. If you lose countless hours to processing client documents or onboarding new accounts, you’re in jeopardy of losing clients. That’s because these distractions take you away from focusing on the most mission-critical tasks, like relationship building. Implementing technology that can automate certain tasks and processes can inspire client confidence and help you turn up the volume on revenue.
3. Compliance Accuracy
Negligence can come at a cost to your firm. A simple oversight can mean oppressive fines and reputational damage. Both can put your firm in jeopardy financially and operationally.
Keeping tabs on your compliance accuracy rate provides peace of mind that you’re ticking all the boxes and there are no unpleasant surprises. This helps you get ahead of potential regulatory risks on the horizon that could stymie growth.
4. Employee Productivity
Your colleagues might not be working strategically enough to sustain optimal profitability. They might be bogged down by the minutia of following processes and procedures. This can take a toll on client engagement and the bottom line. Looking at the types of tasks and how long they take to complete can give you an idea of how to proceed. Reducing the number of redundant and resource-intensive processes allows professionals to dedicate more time and energy to business development.
5. Technology ROI
Your technology should empower your team to complete more tasks with a high degree of confidence. However, you might not be using the tools to the fullest extent. This can cost you in terms of time, money, accuracy, etc.
Conduct an assessment to see where you might be falling short when it comes to using platforms on the job. The insights might prompt you to conduct training so staff know how to get the most utility from solutions.
6. Employee and Advisor Retention
It’s a simple fact that unsatisfied staff will leave when given the opportunity. Employee turnover is costly. Tracking retention rates and coordinating staff surveys can reveal how and where you might be falling short. Low turnover is usually associated with a productive and engaged workforce that’s in it for the long haul.
Your Firm’s Future with PreciseFP
As you focus on these key non-financial KPIs to drive your practice’s growth, remember that tools like PreciseFP can help streamline many of these processes, from improving client satisfaction and retention to increasing operational efficiency. By using the right technology, you can save time, reduce errors, and foster deeper client relationships. Start your free trial of PreciseFP today and see how it can help you measure what truly matters for your business.
