Customer relationship management (CRM) software, when used properly, belongs at the center of your wealth management technology stack. Why? Because it holds all the important details about your client’s lives and, therefore, optimizes your ability to deliver positive outcomes for clients.
CRM is a technology that gathers all the data about your prospects and clients tracking all the ways they have interacted with you. It captures contact information, work history, relationships, interests, details of emails exchanged with your office, in-person and virtual meetings. With this information advisors can easily look up contact information, review past communications and run reports so they can support their clients and provide the best financial advice.
More and more wealth management firms are using CRM systems as the hub for their entire organization's data as it provides all the central data and analytics needed for their other integrations to function properly. However, it’s critical for firms to ensure advisors take the time to learn their CRM systems and update their data because it impacts all other technologies connected to it.
That’s why, at Responsive AI, we help advisors supercharge their CRMs using comprehensive data and AI-driven analytics to scale advice through next best actions. Learn how Responsive AI helps advisors see more, know more, and do more with personalized advice and powerful focus modes with our new Prioritize dashboard. Watch our recent demo video here.
Still not convinced that the CRM should be at the heart of your wealth tech stack? Here are seven key benefits a CRM provides banks and wealth management firms.
"By bringing all of the customer data into one centralized database, firms have both macro and micro views of the customer experience, retention rates, loyalty, and more."
A major advantage of a CRM is that it puts all your data in one place which you can access quickly and easily. It collects, stores and analyzes your client information and puts it in customized dashboards. By bringing all of the customer data into one centralized database, firms have both macro and micro views of the customer experience, retention rates, loyalty, and more. This, in turn, maximizes advisors’ productivity as they don’t need to look at multiple spreadsheets to find out information, giving them more time to focus on what matters most – supporting their clients.
“A CRM tracks all client communications so that when information is provided it is stored in the database to streamline communications."
Customers are looking for frictionless and consistent experiences. If a client provides information in an email and the next day there’s a phone call asking for the same information, this gives them a negative impression of their digital experience. A CRM tracks all client communications so that when information is provided it is stored in the database to streamline communications and build more trustworthy customer relationships.
“CRMs track history and can remind advisors when their client has a significant birthday, or has changed jobs or reached another life milestone so that advisors can craft a more personalized experience."
Clients are looking to their financial advisors for advice on their futures. They want to feel well looked after and not like they are talking to a machine. CRMs track history and can remind advisors when their client has a significant birthday, or has changed jobs or reached another life milestone so that advisors can craft a more personalized experience. If someone on your team reaches out to your client, they can bring up a past conversation an advisor had with them to create a personalized experience for each individual client. In a competitive market, being customer-centric is key to helping clients feel supported and happy.
“This lets firms examine trends and interests to create more opportunities, generate leads and retain more clients."
CRMs for financial advisors can produce many different kinds of reports, including detailed financial reports, past performance reports and transaction histories. This lets firms examine trends and interests to create more opportunities, generate leads and retain more clients. With this data companies can make data-driven decisions about the future of their business and how to best support their customers.
“Automating these tasks allow advisors to focus on more important areas of the business like customer service and business development."
Mundane tasks like follow-up emails are necessary to ensure advisors are supporting their clients, but they also eat up a significant amount of time. Automating these tasks allow advisors to focus on more important areas of the business like customer service and business development. Automation also decreases mistakes because when simple tasks are done quickly errors can happen. In the end, automating tasks saves firms money as time is better spent on other areas of the business.
“Without the right strategy, understanding what the technology can do and integrating your tech stack may cause more challenges than benefits."
By placing the CRM at the heart of the advisor tech stack, you create a powerful technology platform that improves the advisor experience, reduces costs and helps companies scale advice delivery. However, without the right strategy, understanding what the technology can do and integrating your tech stack may cause more challenges than benefits. It’s critical you understand the capabilities of your CRM software and how well it integrates with other tools. It’s so important, in fact, that Craig Iskowtiz has launched a new service dedicated to measuring the wealthtech integration score of almost 300 software applications.
Learn more in the Advice Architects podcast with Craig Iskowitz. Listen here.
“CRMs can greatly reduce time tracking things down and help speed up training employees as all information is in one place."
Aside from all the other benefits of a CRM listed above which work to improve advisors productivity, CRMs also have built in functions that help firms to be more efficient. Some of these include being able to schedule meetings and appointments, email tracking, integrations with social media, access from multiple devices and more. CRMs can greatly reduce time tracking things down and help speed up training employees as all information is in one place.
Technology is playing an increasingly important role in wealth management practices. When firms take the time to implement and use it properly, they see increases in their productivity and revenue. A properly executed CRM strategy can boost client relationships and bring in new prospects – ensuring all other marketing, financial planning and portfolio management software have the data they need to thrive.
