Client & Sales KPIs

• Assets Under Management (AUM): Total value of assets that an investment firm or advisor manages on behalf of clients. Measures scale and growth.
• Customer Acquisition Cost (CAC): The average cost of acquiring a new customer. Helps manage marketing and sales expenses.
• Customer Lifetime Value (CLV): Projected total revenue a customer generates over their relationship with your firm.
• Client Retention Rate: Percentage of clients who continue using your services year over year. Strong retention is crucial.
• Net Promoter Score (NPS): Measures the likelihood of clients recommending your services. High NPS reflects loyalty.

Investment Performance KPIs

• Return on Investment (ROI): Percentage return on a portfolio or investment over a specific period. The core measure of investment success.
• Alpha: Measures the performance of an investment compared to a benchmark index, adjusted for risk. Positive alpha indicates outperformance.
• Beta: Measures a security’s volatility in relation to the overall market. High beta means higher risk and volatility.
• Sharpe Ratio: Measures risk-adjusted return. Higher Sharpe ratios indicate better investment performance relative to risk taken.
• Expense Ratio (for funds): Percentage of assets deducted each year to cover a fund’s operational costs. Lower is better for investors.

Financial KPIs

• Profit Margin: Percentage of revenue remaining after all expenses are accounted for. Measures overall profitability.
• Return on Assets (ROA): Net income divided by total assets. Measures how effectively a firm uses assets to generate profit.
• Return on Equity (ROE): Net income divided by shareholder equity. A vital measure of profitability for investors.
• Cost-to-Income Ratio: Operating expenses as a percentage of revenue. Lower ratios indicate greater efficiency.

Risk Management KPIs

• Value at Risk (VaR): Estimates the maximum potential loss on a portfolio over a given timeframe with a certain confidence level.
• Credit Risk Exposure: Measures potential losses from defaults by borrowers or counterparties.
• Liquidity Risk: Measures a firm’s ability to meet its financial obligations as they come due. Adequate liquidity is crucial.
• Regulatory Compliance: Track adherence to all relevant financial regulations and identify any potential violations.

Insurance-Specific KPIs

• Loss Ratio: Total losses incurred (claims paid) divided by premiums earned. Lower ratios suggest better underwriting and profitability.
• Combined Ratio: Loss ratio plus expense ratio. A ratio below 100% generally indicates an insurer is underwriting profitably.
• Policy Retention Rate: Percentage of policies renewed at the end of their term. High retention lowers acquisition costs.