Oftentimes, in an advisory setting, revenue and profitability are considered the leading indicators of positive momentum. But that’s a myopic view. Non-financial KPIs (Key Performance Indicators) matter and should enter the equation when planning and evaluating progress.
Such markers can provide an objective view of operational efficiency, client satisfaction, and long-term growth potential. By giving these KPIs due attention, you can ensure you’re not missing the forest through the trees. Here are six non-financial KPIs you should have on your radar this year and beyond.
Rethinking Success: 6 Non-Financial KPIs to Watch
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.
Measure and Improve KPIs With Docupace
The bottom line is to think beyond your bottom line when taking inventory of your firm’s financial health. If you’re too fixated on one dimensional elements like profit and loss, you might become blind to certain warning signs or even opportunities.
Technology can help you fill in those gaps — and that’s where we enter the picture. Docupace is built specifically for financial professionals and RIAs so they can master even the most complex of workflows and meet and exceed client expectations.
Sign up for a discovery call today and learn how we can help you measure success beyond the dollars.
