Salesforce expands data analytics in financial services CRM program

Salesforce is tapping into the world of data analytics for its financial services-specific CRM, attempting to pair advisers with the power of sifting through their own client information.

Advisers will view their clients by segments, including age, gender, wealth accumulation and goal progress, with the Wave for Financial Services Cloud. Capitalizing on data aggregation and analytics allows advisers to understand their practice better and see where their clients stand.

“It’s not just about running reports, but taking action on here,” said Rohit Mahna, general manager of financial services at Salesforce.

The client relationship management software provider will incorporate Quovo’s data aggregation and Addepar’s data platform to create an added tab for advisers to sift through their client information, from the financial institutions they work with as well as their program. There is no additional cost for using the service.

Salesforce will be joining other adviser-focused CRMs that offer this feature. With Redtail, advisers can identify details on their clients to understand them better and Junxure shows metrics on a variety of categories. Along with seeing client types and demographics, analyzing data provides advisers with an overall view of their entire book of business, experts say.

“The obvious is identifying opportunities,” said Greg Friedman, chief executive of Junxure. “This is again really standard fare for a CRM.”

CRMs are a fitting match for data analytics because it houses so much of the advisers’ client information.

“It is the first thing advisers will work with,” said Lowell Putnam, chief executive of Quovo, a data analytics company working with Salesforce. “CRMs will help them streamline their daily workflows and processes.”

Data aggregation and analytics is a hot trend in the financial services industry, but it’s one advisers are adopting slowly. Analyzing data can be beneficial to the business, but it can be time-consuming for an adviser’s otherwise busy schedule.

“Traditionally it is just looking at the bigger picture,” said David Mehlhorn, director of sales at Redtail. “It is easy to get caught up in what do I need to get done today and looking at the bigger picture, instead of down the road and what makes me more successful in the long run.”

Advisers probably aren’t using their technology to its fullest extent either, he added.

To avoid being overwhelmed, advisers should start simple, said Mike Wilson, chief operating officer at AdvisoryWorld, which builds applications to integrate with numerous technology vendors, including Salesforce.

“You need to focus in on one element and as you become an expert, then you will be able to harness all other capabilities,” Mr. Wilson said.

Financial institutions around the industry have begun embracing data analytics. Envestnet solidified the technology’s promise when it acquired Yodlee last year. Morningstar acquired ByAllAccounts the year before.