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A Tale of Two Financial Advisors: The Power of Benchmarking

Once upon a time in the bustling world of financial advising, there were two advisors, Sarah and Mark. Both had started their practices around the same time, had similar client bases, and shared a passion for helping people achieve financial freedom. Yet, a few years down the road, their journeys diverged significantly.

The Plateau

Mark was skilled and hard-working. His early success had brought him a steady stream of clients, but over time, his practice seemed to hit a plateau. The growth he had once enjoyed began to stagnate, and he found himself stuck in the weeds of day-to-day operations—too busy to step back and analyze his business performance. While he still provided good service, he had no clear plan for improvement or innovation.

The Turning Point

Sarah, on the other hand, decided early on to approach her practice like an investor analyzes a portfolio. She knew that understanding her own performance was just as important as understanding her clients’ investments. She came across the concept of benchmarking and decided to take action. She now had real numbers comparing her performance to 14,000 other advisors across the country. 

When Sarah first opened the benchmarking report, she was startled. Her growth rates were lower than the industry average, and her operating costs were higher than her peers. For a moment, self-doubt crept in. Maybe I’m not as good at this as I thought, she wondered. But as she delved further, she realized the report wasn’t a critique—it was a roadmap.

The Strategy

Armed with this newfound insight, Sarah created a clear action plan with her coach. She introduced a client appreciation program and a client feedback process to enhance relationships and build loyalty. She streamlined her operations by adopting key practice management processes and started delegating more routine tasks. She also sets scalable and measurable goals for herself and her team, tracking progress every step of the way.

She didn’t stop there. Benchmarking also introduced Sarah to industry trends she hadn’t considered before. She learned what many top-performing firms were successfully engaging in for their practice. Inspired, she revamped her marketing strategy and client satisfaction, and her growth of ideal clients started to soar through introductions. Her expenses dropped, and her revenue climbed steadily. Even her team noticed the difference—processes were smoother, and the office felt energized by a renewed sense of purpose.

The Transformation

Over the next few years, Sarah’s practice thrived. Her client base grew, her revenue increased, and her operations became more efficient. However, perhaps the most rewarding outcome was the trust and confidence her clients had in her. They saw her continuous efforts to improve and were reassured knowing they were working with someone who was always striving for excellence.

Meanwhile, Mark’s practice remained steady but unremarkable. While his experience and dedication kept him afloat, he often wondered what more he could do to reignite growth and innovation. He never realized the untapped potential that benchmarking could have unlocked.

The Lesson

Financial advisors, have you ever wondered how your practice measures up? Like Sarah, you might be one benchmarking report away from uncovering transformative insights. Take the leap, analyze your performance, and embrace the journey toward continuous improvement. After all, the most successful advisors aren’t just helping their clients grow—they’re growing their practices too.

To learn more about how you can benchmark your practice, click here https://www.advisorpracticemanagement.com/benchmark

Get a sample comprehensive benchmark to see what Sarah used for her practice click here

https://benchmark.getresponsepages.com/

We are here to serve your practice, let’s talk

Contact us to help get your benchmark and marketing strategy today by contacting Jeff at jeff@jeffthorsteinson.com  or Grant Hicks, CIM at grant@ghicks.com regardless if we work together, let’s have a chat and listen to your biggest practice management concerns to help you get clarity around your future business.

To book a NO obligation conversation with me to discuss practice management or coaching click the following link https://calendly.com/jeffthorsteinson/30-minute-q-a-explore-apm and let’s talk 

Connect with me on LinkedIn: linkedin.com/in/jeffthorsteinson

Jeff Thorsteinson, Grant Hicks and Advisor Practice Management's combined financial advisor clients manage over 8 billion AUM, and earn over $80 million dollars combined!



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