Tracking Key Performance Indicators (KPIs) as a wealth advisor helps you make smart decisions, improve strategies, and deliver better results to clients. It is especially important for dialing in your marketing efforts.
Tracking these metrics offers benefits beyond just numbers. It also leads to smarter business management by highlighting which initiatives are working well and which ones aren’t effective and could be draining resources.
Let’s explore the nine essential marketing KPIs every wealth advisor should know and how you can refine them to boost your financial firm's performance.
Marketing Key Performance Indicators (KPIs) are measurable values that help businesses understand the effectiveness of their marketing efforts. They provide a clear way to track and evaluate the performance of various marketing activities.
For wealth advisors, these KPIs show how well different strategies work to attract and retain clients.
Unlike other industries, their wealth management marketing strategies must convey expertise, reliability, and personalized service.
General marketing KPIs can provide some insights, but wealth advisors benefit most from specific KPIs tailored to their unique needs and goals.
Specific marketing KPIs help advisors track and improve the elements of their marketing that build trust. For instance, tracking client testimonials, reviews, and referral rates can show how effectively an advisor is building credibility.
High engagement rates on educational content, such as blog posts or webinars, can also indicate that potential clients view the advisor as a knowledgeable and trustworthy source.
Tracking the performance of different marketing channels, such as email campaigns or social media platforms helps advisors understand which methods are most effective in attracting new clients. It ensures that marketing resources are allocated to strategies that yield the highest return on investment.
CAC is the total cost of bringing in a new client. It includes all your marketing and sales expenses divided by the number of new clients you gain over a specific period. Understanding CAC is essential because it shows how efficiently you’re using your marketing budget.
Think of CAC as the price you pay to acquire each new client. To calculate it, add up all your marketing and sales expenses, such as advertising costs and salaries of your sales team. Then, divide that total by the number of new clients you’ve acquired during the same period.
Why is this number so important? It helps you measure the effectiveness of your marketing efforts. If your CAC is high, it might be a sign that your strategies need some adjustment. On the other hand, a lower CAC means you’re using your budget more efficiently.
Here’s how you can calculate CAC:
Lowering your CAC is key to improving your profitability. You should identify which marketing channels are bringing in the most clients at the lowest cost. For instance, if your social media ads are more effective than your email campaigns, allocate more budget to social media.
Lead to appointment rate measures the percentage of leads who schedule an appointment after initial contact. This metric reflects the effectiveness of a wealth advisor’s initial engagement and the appeal of their value proposition.
A higher lead to appointment rate means a more efficient sales funnel. Converting a larger percentage of leads into appointments can increase the chances of these leads becoming clients.
To calculate your lead to appointment rate, divide the number of leads who schedule an appointment by the total number of leads contacted, then multiplying by 100 to get a percentage.
Improve your lead to appointment rate by ensuring that your initial contact messages clearly convey the benefits of scheduling an appointment. You can highlight what prospects can gain from the meeting, such as personalized financial advice or a complimentary portfolio review.
Cost per lead (CPL) calculates the average cost of generating a new lead through various marketing channels. Understanding CPL helps advisors optimize their marketing budgets and ensure they are spending well to attract potential clients.
Cost per lead is calculated by dividing the total marketing expenditure by the number of leads generated within a specific period.
To reduce your cost per lead, you must focus on reaching the right audience through precise targeting. You can use data and analytics to identify the demographics and interests of your ideal clients, and tailor your campaigns accordingly.
You can also use retargeting strategies to re-engage visitors who have previously interacted with your website or ads but did not convert. Retargeting can be more cost-effective because it targets individuals who have already shown interest in your services.
Appointment show rate tracks the percentage of scheduled appointments that are actually attended by prospects. This metric is important because it highlights the effectiveness of your appointment setting and follow-up processes. A high show rate means your prospects are engaged and committed to exploring your services.
Appointment show rate is calculated by dividing the number of appointments that prospects attend by the total number of appointments scheduled, then multiplying by 100 to get a percentage.
To improve your appointment show rate, you can send multiple reminders leading up to the appointment. You may use a combination of emails, text messages, and phone calls to ensure the prospect clients remembers the appointment and understands its importance.
You can also offer flexible scheduling options to accommodate the prospect’s availability. The easier it is for them to find a convenient time, the more likely they are to attend.
Show to close rate measures the percentage of appointments that result in a new client. This KPI helps wealth advisors evaluate the effectiveness of their sales process. Improving this rate means more efficient closing techniques and higher conversion from appointments to clients.
This is calculated by dividing the number of appointments that lead to a client engagement by the number of attended appointments, then multiplying by 100 to get a percentage.
To improve your show to close rate, ensure that your sales pitch is clear, compelling, and tailored to address the specific needs and concerns of each prospect. Focus on the unique value your services offer.
You must also establish trust and rapport with prospects during the appointment. This can be achieved through active listening, empathy, and providing relevant case studies or testimonials.
Conversion rate measures the percentage of visitors who take a desired action, such as filling out a form or booking a consultation. A high conversion rate indicates effective marketing and a compelling value proposition.
To calculate your conversion rate:
To improve your conversion rate, make sure your landing pages are clear, persuasive, and relevant to your target audience. Your call to action should also be obvious and compelling. Tell visitors exactly what you want them to do in a way that resonates with their needs.
Website traffic refers to the total number of people who visit your site. It's a key measure of your site's popularity and the initial step in the client conversion process. High traffic means more opportunities to engage with potential clients and showcase your services.
To get the most out of your website traffic data, focus on identifying whether visitors come from search engines, social media, referrals, or direct visits. This insight helps you understand which marketing activities are most effective.
You can also track how visitors interact with your site, including which pages they visit, how long they stay, and what actions they take. This will help with improvements to your site's content and design.
To increase your website traffic, consider these strategies:
Email marketing performance tracks how well email campaigns perform. Good performance in email marketing ensures that your communications are reaching your audience and compelling them to respond.
Key metrics include open rates, click-through rates, and conversion rates.
To maximize the effectiveness of your email marketing, you must customize your emails to address the recipient by name or tailoring content based on their interests. This will help increase open and click-through rates.
Your subject line is the first impression and deciding factor for many recipients. Make sure it's engaging and prompts curiosity or urgency. Remember to send emails at the right time so it won’t affect their performance.
Return on Investment (ROI) assesses how much revenue your marketing efforts generate compared to the cost of implementing them.
A positive ROI means that the marketing strategies are covering their costs and also profitable, which indicates successful campaigns. Conversely, a negative ROI suggests that the strategies are losing money, which might require reevaluation or discontinuation.
To calculate your ROI:
ROI = (Net Profit / Cost of Investment) × 100
Make sure your marketing campaigns are aimed at the right demographic. More targeted marketing tends to have a higher ROI because it directly addresses the needs and preferences of a specific audience.
Also, identify which marketing channels yield the best ROI and increase your investment in these areas. For instance, if webinars are converting clients effectively, consider hosting them more frequently.
Before you start tracking, you need to know what you’re aiming for.
Define clear, measurable goals that align with your financial firm’s objectives. Whether it’s increasing client acquisition, improving client retention, or boosting overall profitability, your KPIs should directly reflect these goals.
You should also choose KPIs that directly measure the success of your goals. For example, if your goal is to improve client acquisition, relevant KPIs might include Client Acquisition Cost (CAC) and conversion rates.
Which KPIs are you tracking? Do you need real-time data? Will you be integrating data from multiple sources? Answers to these questions will guide your choice.
You must choose tools that can scale with your firm and easily integrate with other systems you’re using, like your CRM or financial software. This ensures that as your firm grows, your ability to track and analyze KPIs remains seamless.
CRM tools like AdvisorEngine and Redtail are invaluable for tracking client interactions, sales conversions, and other client-related KPIs. They provide a comprehensive view of customer journeys and can automate the collection of important metrics.
You can also check out this guide about marketing tools you can integrate for better marketing efforts:
Top 25 Free Marketing Tools and Techniques for Wealth Advisors
You must establish a consistent schedule for reviewing your KPIs. This could be monthly, quarterly, or annually, depending on the nature of the KPI and how quickly changes might affect your firm.
For more dynamic areas like marketing, monthly reviews might be appropriate, while annual reviews might suffice for long-term financial goals.
Based on your findings, make necessary adjustments to your strategies. You can reallocate resources, shift focus to more effective tactics, or set new targets. The key is to be responsive and flexible, allowing your strategy to evolve based on what the data tells you.
At AUM Growth Marketing, we're here to help you master your KPIs and elevate your practice with targeted, data-driven advertising strategies.
We know the challenges wealth advisors face, that's why we focus on creating custom marketing solutions that connect with your audience and lead to real growth.
Ready to see what targeted and strategic marketing can do for your wealth advisory business? Reach out to AUM Growth Marketing today!
A Husband, Father, and Business Owner. He is also a Digital Marketer and Finance Nerd with over a decade of lead generation experience managing a results-driven marketing agency for Wealth Management Companies. Aaron loves studying marketing, markets, video production, and strategy to better serve his clients.
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