Financial institutions increasingly rely on benchmarking data analysis to make informed decisions about pricing, staffing, profitability, and service delivery. But while data is plentiful, insight is not automatic. The real challenge lies in turning benchmarking numbers into meaningful strategic action—a process that requires more than just pulling reports. It demands context, interpretation, and a framework for decision-making that’s grounded in the firm’s goals and market realities.
Many organizations participate in benchmarking studies with the best intentions: to see how they stack up against peers and uncover opportunities for improvement. But once the results come in, they’re often met with a familiar set of questions: What do these numbers actually mean for us? Are we ahead or behind the curve? Should we change something based on this, and if so—what exactly? Without expert guidance, the risk is making hasty adjustments based on isolated data points or, worse, doing nothing at all.
The effectiveness of benchmarking data analysis depends largely on how well the data is aligned with the organization’s unique structure, client base, and strategy. A national average might be informative, but it isn’t necessarily actionable. A firm serving complex multigenerational trusts in the Northeast can’t draw conclusions based solely on averages from firms focused on simple estates in the Midwest. Context matters—and that’s where tailored consulting support becomes invaluable.
There’s also a common tendency to focus solely on outliers: the areas where the firm is most over- or under-performing relative to peers. While these gaps can be illuminating, the real value often lies in exploring why those gaps exist. Higher-than-average fees might signal a pricing problem—or they might reflect superior service to a niche client segment. Lower revenue per relationship could be an efficiency issue—or a deliberate choice tied to firm strategy. Interpreting these patterns correctly is essential to avoid chasing the wrong problems.
Equally important is the internal conversation that follows benchmarking analysis. Numbers alone don’t drive change—people do. When staff and leadership understand how the data relates to their roles and goals, they’re more likely to engage in meaningful discussions about how to improve. That’s why benchmarking should be part of a broader organizational development process, not just a one-time review. When used effectively, it can help align teams, prioritize initiatives, and track progress year over year.
For firms in the trust and wealth management space, benchmarking data analysis can provide crucial insights into how staffing levels, administrative practices, and fee structures compare across the industry. At Pohl Consulting, we offer a structured benchmarking platform—TrustCompare—that allows firms to go beyond the averages and get to the data that matters for their specific business model.
Ultimately, the goal isn’t just to be above average—it’s to be aligned, intentional, and strategically informed. With the right data and the right lens, benchmarking can become a powerful tool for continuous improvement and long-term success.
