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3 Ways Practifi Propel Helps Executives Make Data-Driven Decisions

By Allison Lasley

Executives in today’s wealth management firms need access to data to make informed business decisions. With extremely limited time, they’re responsible for creating and successfully executing the company’s strategy. However, while most firms are awash with data, executives can’t easily access the information they need to make data-driven decisions. 

Of those who can, 67% don’t enjoy using the analytics tools and resources available. As a result, key decision makers have to rely on partial data and intuition. This not only discourages a data-driven company culture but can also lead to adverse consequences in the future.

That’s where Practifi Propel comes in. Leveraging the power of CRM Analytics (formerly known as Tableau CRM), Practifi Propel surfaces whole-of-firm insights in an elegant and powerful business intelligence experience. With easy access to client, profitability and business health data, executives can future-proof the firm, reduce risk exposure and monitor business performance.

Here are a few ways Practifi Propel helps executives of leading RIAs, broker-dealers and network firms make better data-driven decisions.

Future-proof the firm

Digital transformation and shrinking margins put pressure on wealth management executives to adopt innovative business strategies. Leading businesses leverage technology to become more resilient and efficient — helping them thrive in the future.

However, to develop a comprehensive business strategy, executives need access to whole-of-firm analytics. If data only encompasses one team, practice or division, insights will be limited to that area of the business. In addition, if revenue and servicing cost data live in separate platforms, reporting on margin and overall profitability is manual and inefficient.

Track whole-of-firm revenue, servicing costs and gross margin over time. Identify opportunities to increase profitability in the future.

Practifi Propel’s power dashboards surface whole-of-firm data in an elegant and intuitive experience. With detailed information regarding historical revenue, servicing costs and margins, executives can monitor profitability trends across time. Additionally, age bands make it easy to see which segments drive the most revenue and expenses for the firm. By aggregating whole-of-firm data, executives can make informed decisions regarding efficiency and profitability, preparing the firm for the future.

Reduce risk exposure

Unstructured client data makes it difficult for executives to control the business, respond to regulatory inquiries and react to market changes in a timely manner. To build a successful firm, the customer needs to be at the heart of all decisions. However, in a recent survey, only 11% of respondents said customer-impacting decisions are backed with data insights, the rest being educated guesses. This not only negatively affects business strategy but also exposes the firm to greater risk.

View aggregated client data from across the firm. Better understand client demographics to identify potential risks and opportunities.

Practifi Propel surfaces the most important client data to help executives reduce risk exposure. With a better understanding of client demographics, age bands and tenure trends, executives can identify potential risks and make informed decisions for the business. 

For example, if a majority of clients are in the 70-79 age band, AUM and revenue are likely to shift as assets are divided or transferred out. In addition, if five years is the average client tenure and many clients are approaching this milestone, new clients should be prioritized. Furthermore, executives can see how many clients and AUM each advisor manages. This helps executives track client management and proactively adjust distribution to minimize risk in case of a sudden staff departure.

Monitor business performance

As senior leaders, executives are responsible for successful business strategy execution. Profitability and client demographic data provide real-time insights into how the firm is currently performing, but deals and prospects in the pipeline show where the firm is heading. 

The ability to develop strategic, forward-looking plans is a critical skill for senior leaders. However, without detailed pipeline data, executives struggle to monitor business performance and key milestones.

Monitor pipeline performance across prospects and deals. Ensure the business is focusing on strategic client types, services and add-ons.

Practifi Propel helps executives monitor performance with detailed pipeline data that encompasses potential revenue from prospective and existing clients. They can view prospects by age band, AUM and segmentation to ensure the business development team targets the right client types. They can also monitor deal creation by add-on, service type and advisor to fully understand what is moving the needle for the firm. 

With a comprehensive view of profitability, client demographic and pipeline data, executives can make informed decisions regarding the firm’s business strategy and monitor performance over time.

Power data-driven decision making

Today’s wealth management industry is awash with data but starved of insight. However, with 81% of executives surveyed this year indicating an optimistic outlook for data and AI within their firms, the future of data insights is bright. Executives that encourage a data-driven culture and adopt technology that help them leverage business intelligence will be best positioned in the future. 

Practifi Propel helps forward-thinking RIAs, broker-dealers and network firms make better data-driven decisions. To learn more, contact a member of our team today.

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