KPIs to Understand, Build, and Refine Your Sales Dashboards

With the launch of our retail consumer products and optimized origination application flows in our digital channel, I've been thinking a lot about reporting lately. Specifically, how to filter these new account types into our Power BI reports, how we should measure them compared to the other products, and how our digital channel complements our retail channel and the Bank's customer base. I'm also curious about what else we need from our data that I'm not thinking about or don't know. I came to banking from UX Design, so I'm fully aware of my limitations in calculations and data analysis, and this part tends to jam my mind to the point of paralysis. And truthfully, some charts and reports add clutter to the story, and we need to be okay with trimming away the fat to keep the story clear and concise. Sometimes, we think that if a little is good, a lot is better. In the case of data and visualizations, we need to scale way back and get the basics of what we're tracking and slowly add charts, numbers, and graphs as the user stories unfold and the data rolls in. So, let's start with just a few of the KPIs we choose to track. But first;

Why KPIs Matter

In dashboard reporting and design, KPIs are like the main characters in the story—they drive the narrative, give your data purpose, and speak to the direction your sales are heading. Get them right, and your performance and financial dashboards will speak volumes. Get them wrong, and you risk telling a confusing or wrong story about what's truly happening in your sales funnel or customer attrition.

So, let’s dive into the first essential step: identifying the primary KPIs that will guide your dashboard design and tell the proper story.

The Core KPIs for Selling Financial Products

1. Number of New Accounts
   This is the obvious KPI that tells you how your sales and marketing efforts are performing in the real world. Are your campaigns bringing in new customers to the bank, and at what rate? What products have the best take rate, and are your feature benefits connecting with your audience? This metric answers those critical questions.
2. New vs. Existing Customers
   It’s not just about how many new accounts you’re opening but who these customers are. Are you deepening relationships with existing customers or only bringing in new faces? As we released new products, we saw what appeared to be some pent-up demand from our existing customers. Now, a few years later, we are seeing some leveling off and an even split between new and existing customers. We had a hunch this was true, and seeing it play out over time validated and helped us speak more confidently to executive leadership about the work we were doing and the results we were delivering for the bank. Understanding this balance is vital to building a loyal customer base and increasing the share of wallet metrics bankers love talking about.
3. Close Rate/Reason
   Not all stories have happy endings; this KPI helps you determine why. Are customers closing their accounts because they’re unhappy with the product or your bank, or are there other significant issues like fraud? Digital Account Opening is "inherently more risky" (according to our BSA Officer). I'm inherently paranoid about synthetic identities and fraud rings, so we're constantly studying and discussing these reports to help us understand the reasons for what's happening. At any rate, knowing the reasons behind closures can help you address problems before they escalate.
4. Funding Rate & Type
   Some banks offer a $0 funding option to attract younger customers, but the real story is in the follow-through. Are those accounts getting funded eventually? And how do these no-funding accounts perform compared to those funded at origination? Are there direct deposits going into the account, or are the Zelle and Venmo transactions that could indicate laundering or other nefarious activity (Not that these tools are nefarious, but fraudsters use them this way). This KPI gives your team insights into customer commitment, the effectiveness of your onboarding process, and how the customer intends to use the account.
5. Number of Products per Customer
   This KPI is all about depth—how invested are your customers, and what's your share of wallet? Are they just dipping their toes in with one product, or are they fully committed with a checking, savings, personal loan, or credit card? I read/heard a stat one time that the average banking customer stays with their primary bank for 17 years, so becoming the primary or solid secondary bank is a critical component to building a sound portfolio. Simply put, the more products customers have, the more likely they will stick around and refer others.
6. Debit Swipes/Transaction Rate & Amounts
   Here’s where you get into the day-to-day action. This KPI tracks how often and for how much customers use their debit cards. It’s a key income stream for consumer accounts and new-to-banking customers who use their debit cards for regular transactions. Are you top of wallet for your customers, so when they go to their digital wallet to pay at Lowe's, is your bank's debit/credit card the one showing up? This metric shows how engaged your customers are with your products and how much of their financial lives you have a part of.

Bringing It All Together

This is just a start, and we'll go deeper in the future but suffice it to say choosing the right KPIs is the foundation of any effective financial dashboard and helping you determine the relevancy of your bank and products. They set the stage for your story—one that should be clear, concise, and relevant to your audience (President, CEO, CFO). Keep these KPIs in mind as you start building and refining your dashboards. They’ll help you create an informative but also engaging and actionable narrative.

Next, in our series, we’ll explore how to categorize these KPIs into meaningful reports that tell a cohesive story. Stay tuned!