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The Power of Numbers: How Data Can Improve Your Client Relationships


Data is everywhere. It influences the ads we see, the shows we binge watch (hello, Yellowstone), the people we interact with on social media and even how we’re treated by medical professionals. The right data can be massively influential in how we experience and receive information.

In fact, 2.5 quintillion bytes of data are created each day. When we organize groups of that information into usable and insightful pieces, we’re given “big data” – which can unveil trends and patterns that aren’t obvious on the surface.

Big data changes our lives in both big and small ways. For advisory firms, big data is essential to not only knowing your clients, but interacting with them in a positive and fruitful capacity.

The Role of Data in Improving Client Relationships for Advisory Firms

Think about what role data plays in your firm’s client relationships.

Your clients likely used data to choose your firm in the first place, scouring the web for information on your services and investing style. Even if they were referred from another client, the marketing information and digital content you published probably made an impression before you even met this person.

As you draw in prospects and onboard new clients, it’s important to employ robust marketing strategies that target audiences effectively. You need to serve the right content at the right time, and then track activity through your online platforms. The data you collect from these interactions can deliver valuable feedback and create more informed conversations from day one.

But data collection is often a lot easier said than done. Manual data collection can be costly and time consuming, and even present more opportunities for errors.

Plus, Harvard Business School reported that data-driven organizations are three times more likely to report significant improvements in decision-making compared to those who rely less on data.

That’s why automated data collection is so vital to your firm’s overall client onboarding and retention processes – it can reduce form filling, create a more personalized experience and deliver happier clients.

How to Leverage Data in Everyday Conversations

There are many ways to collect data: web tracking, surveys, product testing, client demographics – the list goes on.

But what do you do with that data once you have it, and how can you leverage that information in your firm’s everyday conversations?

1. Anticipate Client Needs with Proactive Outreach

A key part of delivering a superb client experience is taking a proactive approach. You need to anticipate their needs and have answers before their questions even form.

Of course, that takes time, as well as an ability to have a pulse on what your clients are feeling. Luckily, there are tools that can help you do the (seemingly) impossible.

Take Riskalyze’s Check-ins feature, for instance. With Check-ins, you can automatically know how your clients feel about current markets and their financial future. With data points on how your clients are doing psychologically, you can easily send a message or show adaptive analytics to keep their perspective on track.

2. Tailor More Specific Advice

The first step to better advice is to truly know your client. What do they expect from your firm as far as regular communication and portfolio management? How do they feel when the markets turn south? Your clients want to feel heard and understood.

Adding the Risk Number® to your client’s portfolio reviews sets better expectations from the start, especially if you employ our Marketing Playbook.

This comprehensive guide shows how you can help your clients outline their wants, needs, current standing and should haves. From there, you can use Riskalyze to create an easy-to-follow visual guide of their unique plan. Your clients don’t need to call you asking what’s going on with their portfolio, because they know their own “normals.”

3. Back Up Your Advice with Data

Compliance makes the financial planning world go ‘round, and the SEC is always looking for evidence that you’ve done your due diligence. That means completing research and knowing your client—because people, their goals, and their financial situations change, you have to constantly show that the advice and recommendations you’re providing are in line with a client’s true life path. KYC doesn’t stop once a client has been onboarded.

And while you always hope for the best, sometimes relationships aren’t always a hit. Data protects your firm in the event that a client becomes unhappy. It serves as evidence that you recommended a specific strategy, that you reviewed it with the client, and that they personally signed off on the approach you mutually agreed to take.

All in all, big data can help your firm jumpstart a proactive approach to client relationships – creating happier, longer-lasting clients for your firm.

Learn More with Riskalyze

Riskalyze can help your firm harness the power of big data with easy-to-use tools that deliver robust client and advisor experiences. Click here to sign up for a free tour of Riskalyze today.