These tools could help advisers improve ROI
CRM functions-Client relationship management (CRM) software is one of the most popular and vital components of the modern adviser’s desktop.
Software like Redtail Technology, Salesforce and Junxure are large, sophisticated pieces of technology with a ton of features. Outside of a few power users, though, most advisers probably aren’t aware of most features on their CRM or how they can increase productivity.
In a recent webinar, SEI Independent Advisor Solutions head of practice management John Anderson and Redtail Technology’s training team lead Rick Williamson shared the top five CRM functions that advisers might be overlooking — and how using them might help a firm grow.
CRMs provide dozens of fields for entering client data, but advisers may not be aware they can tweak these fields to match the exact terminology used in the office. By customizing the data fields, a CRM can be even more effective at segmenting clients and delivering targeted messaging to those segments.
“The idea with a CRM is it’s your data, it’s your clients,” Mr. Williamson said. “You should be able to track the things you care about.”
He recommends advisers define some high level statuses they can assign to each person — items like prospect, client, spouse, child or inactive. From there, firms can select various service levels or designations.
For example, perhaps one person is an “AA client” and “confident investor” who doesn’t need much help during market turbulence. Or, grouping clients in custom age groups can help advisers send different marketing materials to millennial clients versus older investors.
2. Personal Time Machine
When used correctly, a CRM can act as an adviser’s DeLorean through the history and future of client interactions. Recording comprehensive meeting notes, entering future events into a calendar and archiving conversations all provide a paper trail of working with a client.
This can help an adviser demonstrate value to clients, if they ever ask, as well as demonstrate fiduciary duties, should a regulator ever come knocking. With states passing their own fiduciary rules and the SEC looking at its own best interest regulation, this could help prove that decisions are being made for the right reason.
“It’s all about showing your work,” Mr. Williamson said.
3. Referral Tracking
While many advisers may use a separate tool for marketing, a CRM can help track campaign effectiveness by tracking growth and where clients are coming from. Advisers can take the information from the CRM to look for patterns. Some tools, like Salesforce, include artificial intelligence capabilities to do this automatically.