KPI Dashboard: Granite Peak Gains 18% Efficiency

KPI Dashboard: Granite Peak Gains 18% Efficiency

Executive Summary

Granite Peak Advisors, a growing RIA managing over $300 million in assets, struggled to gain real-time insights into key performance indicators (KPIs), hindering their ability to optimize operational efficiency and drive growth. Golden Door Asset developed a customized KPI dashboard that integrated data from disparate systems, providing Granite Peak with actionable intelligence to streamline processes. The result was an 18% improvement in operational efficiency, freeing up valuable time for client relationships and strategic planning.

The Challenge

Granite Peak Advisors had experienced rapid growth over the past five years, expanding their client base from 200 to over 600 households. While this growth was positive, it also created operational challenges. Data was siloed across multiple systems, including Redtail CRM for client management, eMoney Advisor for financial planning, and a separate accounting software for tracking revenue and expenses.

Pulling together a monthly performance report was a laborious process, often taking two full days of a senior advisor's time to manually extract and consolidate data. This meant that by the time the report was generated, the information was already outdated. More importantly, the lack of real-time visibility into key metrics hindered Granite Peak's ability to proactively identify and address inefficiencies.

Specifically, Granite Peak struggled with:

• Client Acquisition Cost: They were spending an average of $5,000 per new client acquired through marketing and referral programs, but didn't have a clear understanding of which channels were most effective. They suspected that some of their marketing spend was yielding minimal returns, potentially wasting upwards of $25,000 per quarter.

• Client Retention Rate: While their overall retention rate was around 92%, they noticed a concerning trend of losing high-net-worth clients with an average portfolio size of $1 million or more. Understanding why these clients were leaving and implementing preventative measures was crucial. The loss of even a few of these clients represented a significant revenue impact.

• Average Revenue Per Client: This metric was difficult to calculate accurately due to the complexities of fee structures and tiered pricing. Granite Peak suspected that they were under-charging some clients based on the level of service they were receiving, potentially leaving $50,000 - $75,000 in annual revenue on the table.

• Advisor Productivity: With advisors spending a significant amount of time on administrative tasks, they had less time to dedicate to client interaction and business development. Granite Peak needed to identify ways to streamline processes and free up advisor time.

The manual nature of data collection and analysis meant that Granite Peak was making decisions based on lagging indicators, hindering their ability to react quickly to changing market conditions and client needs. They needed a solution that would provide real-time visibility into their key performance indicators, enabling them to make data-driven decisions and optimize their operations.

The Approach

Golden Door Asset worked closely with Granite Peak Advisors to understand their specific business needs and challenges. Our approach involved a multi-step process:

1. Requirements Gathering: We conducted in-depth interviews with key stakeholders, including the CEO, senior advisors, and operations manager, to identify the most critical KPIs that needed to be tracked. We focused on metrics that directly impacted revenue, profitability, and client satisfaction.

2. Data Integration Strategy: We developed a comprehensive data integration strategy to connect Granite Peak's disparate systems, including Redtail CRM, eMoney Advisor, and their accounting software. This involved identifying the relevant data points in each system and establishing a secure and reliable data pipeline. We also had to account for different data formats and ensure data consistency across all systems.

3. Dashboard Design and Development: We utilized Tableau to design and develop a customized KPI dashboard that provided real-time visibility into the key metrics. The dashboard was designed to be user-friendly and visually appealing, with interactive charts and graphs that allowed users to drill down into the data and identify trends. We incorporated filters to allow advisors to segment data by client type, portfolio size, and other relevant criteria.

4. Training and Support: We provided comprehensive training to Granite Peak's staff on how to use the KPI dashboard and interpret the data. We also offered ongoing support to address any questions or issues that arose.

Our strategic thinking was centered around the following principles:

• Focus on Actionable Insights: The dashboard was designed to not only track KPIs but also provide actionable insights that could be used to improve business performance. For example, the dashboard included alerts that notified advisors when a client's portfolio was underperforming or when a client was at risk of attrition.

• Data-Driven Decision Making: The goal was to shift Granite Peak's decision-making process from being based on intuition to being based on data. The dashboard provided advisors with the information they needed to make informed decisions about client acquisition, retention, and pricing.

• Continuous Improvement: We emphasized the importance of continuously monitoring the KPIs and making adjustments to the dashboard as needed. We encouraged Granite Peak to experiment with different strategies and track the impact on their key metrics.

Technical Implementation

The technical implementation involved several key steps:

1. Data Extraction and Transformation: We used Tableau Prep Builder to extract data from Redtail CRM, eMoney Advisor, and Granite Peak's accounting software. Tableau Prep Builder allowed us to clean, transform, and shape the data into a format that was suitable for analysis. This involved standardizing data formats, resolving inconsistencies, and creating calculated fields. For example, we created a calculated field to determine client profitability based on revenue and expenses associated with each client.

2. Data Modeling: We created a data model in Tableau Desktop to establish relationships between the different data sources. This allowed us to combine data from multiple systems and perform more sophisticated analysis. For example, we linked client data from Redtail CRM to financial planning data from eMoney Advisor to gain a holistic view of each client's financial situation.

3. Dashboard Development: We used Tableau Desktop to design and develop the KPI dashboard. The dashboard included a variety of interactive charts and graphs, including:

   • Client Acquisition Cost (CAC) Tracker: This chart tracked the CAC by marketing channel, allowing Granite Peak to identify which channels were most cost-effective. The CAC was calculated as total marketing spend divided by the number of new clients acquired.

   • Client Retention Rate Trend: This chart tracked the client retention rate over time, highlighting any significant changes or trends. The retention rate was calculated as the number of clients at the end of the period divided by the number of clients at the beginning of the period.

   • Average Revenue Per Client (ARPC) Analysis: This chart analyzed the ARPC by client segment, allowing Granite Peak to identify opportunities to increase revenue. The ARPC was calculated as total revenue divided by the number of clients.

   • Assets Under Management (AUM) Growth: This chart tracked the growth of AUM over time, providing a high-level view of the firm's performance. AUM growth was calculated as (current AUM - previous AUM) / previous AUM.

   • Client Churn Rate: This visualization displayed the percentage of clients lost, segmented by the reason for attrition (e.g., moved, passed away, switched advisors). This allowed Granite Peak to address the root causes of client loss.

4. Real-time Data Updates: We configured Tableau Server to automatically refresh the data on a daily basis, ensuring that the dashboard always displayed the most up-to-date information. We used Tableau's data extract feature to optimize performance and minimize the impact on Granite Peak's systems.

5. Security: We implemented robust security measures to protect sensitive client data. This included using encrypted connections and restricting access to the dashboard to authorized personnel only. We also ensured that the dashboard was compliant with all relevant privacy regulations.

Results & ROI

The implementation of the KPI dashboard had a significant impact on Granite Peak Advisors' business:

• Operational Efficiency Improvement: By automating data collection and analysis, Granite Peak reduced the time spent on monthly performance reporting from two days to just a few hours, resulting in an 18% improvement in operational efficiency. This freed up valuable time for advisors to focus on client relationships and business development.

• Client Acquisition Cost Reduction: By tracking CAC by marketing channel, Granite Peak identified that their online advertising campaign was underperforming. They reallocated their marketing budget to more effective channels, such as referral programs and networking events, resulting in a 12% reduction in CAC. They saved $15,000 in marketing expenses per quarter.

• Client Retention Rate Increase: By analyzing client churn data, Granite Peak identified that a significant number of high-net-worth clients were leaving due to a lack of personalized service. They implemented a proactive outreach program to these clients, resulting in a 5% increase in client retention rate for that segment, saving approximately $500,000 in AUM from attrition.

• Revenue Optimization: By analyzing ARPC by client segment, Granite Peak identified opportunities to increase revenue by adjusting their fee structure. They implemented a new tiered pricing model that better reflected the level of service provided to each client, resulting in a 7% increase in average revenue per client, representing an additional $60,000 in annual revenue.

• Advisor Productivity Boost: The improved visibility into KPIs allowed advisors to proactively manage their book of business and identify opportunities to provide additional value to clients. This resulted in a 10% increase in advisor productivity, measured by the number of client meetings and financial plans completed per advisor per month.

The total ROI of the KPI dashboard was significant, with Granite Peak realizing a return of over 300% on their investment within the first year. The dashboard not only improved operational efficiency but also enabled Granite Peak to make better decisions about client acquisition, retention, and pricing, leading to increased revenue and profitability.

Key Takeaways

Here are some key takeaways for other advisors considering implementing a KPI dashboard:

1. Identify the Right KPIs: Focus on metrics that directly impact your firm's revenue, profitability, and client satisfaction. Don't get bogged down in tracking too many metrics; instead, prioritize the ones that are most important to your business.

2. Integrate Your Data: Connect your disparate systems to create a single source of truth for your data. This will provide you with a more holistic view of your business and enable you to make more informed decisions.

3. Visualize Your Data: Use interactive charts and graphs to make your data more accessible and easier to understand. This will help you identify trends and patterns that you might otherwise miss.

4. Take Action on Your Data: Don't just track KPIs; use the insights you gain to take action and improve your business performance. This might involve adjusting your marketing strategy, improving client service, or optimizing your pricing.

5. Continuous Monitoring and Improvement: Regularly review your KPIs and make adjustments to your dashboard as needed. The key is to use your data to continuously improve your business and stay ahead of the competition.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors leverage data to make better decisions, optimize their operations, and enhance client relationships. Visit our tools to see how we can help your practice.