CRM plays an integral role in enabling advisors to operate efficiently and concentrate on what matters most: helping their clients make money. Most financial professionals are aware of the need for effective CRM, and do utilize some type of CRM tool, but, just like the financial services industry itself, it’s a rapidly evolving technology. However, advisors who don’t take the time to learn about the most efficient CRM tools run the risk of losing their competitive edge.
“I would have a hard time understanding how any advisor could operate without CRM software these days, although we do run into wealth managers who attempt to run their businesses solely on spreadsheets,” explains Founder and CEO of Satuit Technologies, Karen Maguire. “From a compliance perspective, modern CRM is essential for knowing your client. It is also a central repository for all business, contact, account activity, document management and marketing information and communication.”
As the investment management industry has grown increasingly competitive, the demand for CRM has steadily risen. In the modern market, client service is often what sets organizations apart, and companies without great CRM often find it hard to compete. “Those firms may struggle to be competitive in the client service arena due to a lack of retention of client information, or the lack of operational efficiency that comes from having to jump around between three different software tools when a client calls,” says Maguire.
Clients who do invest in innovative CRM tools are able to record all client communication with ease, whether they’re in the office or on the road, and have all account information on hand the second a client calls. “CRM can identify new opportunities and allow for negligence reports to alert advisors when there are issues needing attention or simply highlight a lack of communication, which can be a big red flag,” Maguire says. “It also easily organizes the sales process to drive new revenue and retain current clients.”