Moneyball: The Art of Winning an Unfair Game, the book by Michael Lewis — and the ensuing movie starring Brad Pitt — tells the story of Billy Beane, the crafty general manager of Major League Baseball’s Oakland Athletics. Faced with a budget that prevented him from signing big-salary stars, Beane famously used analytical tools to build a team that ultimately became a playoff contender.
As a financial advisor, you could use a Moneyball-like strategy to build your business, according to Sara Gilbert, founder of Strategist in Montreal.
“Using analytical tools can help advisors find more potential in their books of business — beyond what their firms can provide,” Gilbert says.
Gilbert offers some tips on how offline analytical tools, such as spreadsheets, can help you build a more profitable practice:
> Embrace Excel
If you are well-versed in running basic to advanced formulas in Excel, then you are ahead of the game. If not, then it’s time to learn, Gilbert says.
Start by inquiring to see if your firm provides Excel training. Alternatively, you might choose to take a tutorial from a third-party provider.
Whichever option you choose, you should be able to track important data, such as which client or center of influence (COI) gives you the most referrals each quarter.
“Every advisor should always have an Excel document up and running,” Gilbert says. “It’s quick and easy. And it’s not another huge system to navigate.”
> Know your clients — better
Your firm likely provides you with detailed reporting on your book of business, such as numbers on your total assets under management and assets per household.
What is often missing from those reports, however, are breakdowns in areas such as revenue per client; clients’ saving rates; or the value of assets with another advisor. “These are areas,” Gilbert says, “in which advisors have to take it upon themselves to find where the new business opportunities are.”
For example, you might have a client who has $250,000 in assets with you, but $1 million with another advisor.
As you pose questions to your clients during meetings, use your contact management system to record and compile this information. Over time, you should be able to collect enough information to indicate where your clients’ other assets may lie and how you might bring them into your book.
> Know what to discuss
Analytical tools can give you a distinct advantage by enabling you to “know your client” before he or she walks through your door.
For example, after sending out your e-newsletter, check the reports to see which articles your readers are clicking on. You can get this information online, but the data can also be exported into a spreadsheet format that you can customize to present the information you want.
You might notice that many of your readers are interested in philanthropy. So, you’ll know to bring up the topic in upcoming client meetings or plan a seminar on charitable giving.
“Analytics,” Gilbert says, “is about getting warmer leads and a stronger prospecting pipeline.”
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