It's time to build a data strategy

New whitepaper from Croesus lays out the data tools and techniques advisors can use to take the next step

It's time to build a data strategy

Today we all need to leverage technology. That’s the mantra in an age of remote work, zoom meetings, and networking over social media. An emphasis on technology can generate a wealth of crucial data for an advisor, but how do you turn that data into wins for your business?

A new whitepaper from Croesus talks through the range of tools and strategies advisors can make use of to truly turn their practice into a data-driven operation. If done right, that data driver can itself turn around and pay huge dividends for the business, whether it informs asset management, communications strategy, or the overall business trajectory.

“Having a consistent source of analytics provides objective insights that are often undervalued,” says Lori Goodfellow, director of business architecture at Croesus and the author of the whitepaper. “The insights and trends can identify business opportunities and also celebrate successes.”

Goodfellow says that different advisors will rely on different datasets to inform their success. Their objectives and unique business strategies will inform that set, but she says that every advisor should be looking at key efficiency and profitability metrics, both short and long-term, to measure their performance.

One of the challenges with data is turning a wall of numbers into action items. While the whitepaper goes into greater detail on the subject, Goodfellow says advisors need to understand that everyday actions will move their results in the right direction. It can be useful, she says, to bring on a coach who can help develop an actionable plan. That plan, she says, should be informed by a handful of key performance metrics most important to an individual advisor.

It’s easy to misunderstand the data, Goodfellow says, especially when facing that wall of numbers. Data is one thing, but analysis is another. Advisors and their teams need to take time to analyze the data presented and understand the story it’s telling them. Support staff, too, play a crucial role in turning data into action and any data-driven decisions need to incorporate the whole team.

Data can be the key to a successful practice in our new world, but it’s crucial that advisors take the time to understand it. That’s why Goodfellow and the team at Croesus put this whitepaper together, to guide advisors through all the data tools and strategies in front of them.

“These days we have lots of information coming our way,” Goodfellow says. “The quality and depth of business insight analytics ranges from firm to firm. You might have internal analytics dashboards, 3rd party insight tools, or ad hoc reporting.  Take the time to understand what is available and continue to advocate for more.”

Click here to download the whitepaper and learn more about data from Lori Goodfellow and Croesus.