Is your CRM like an exercise bike?

Customer relationship management systems can be extremely valuable ... if you put them to use.
SEP 08, 2014
Advisers are convinced that client relationship management (CRM) is essential to a successful RIA practice. While I agree that a CRM can be quite valuable, it's of no use unless it is put to use. It's sort of like the exercise bike in your bedroom. It's a great tool for getting in shape, but if you're using it as a clothes rack, it won't help you lose weight. In my (humble) opinion, there are three main reasons why CRM never quite takes hold in a firm: 1) You don't get buy-in from the entire staff. 2) It doesn't become automatic. 3) The software is, or seems to be, too complicated. To address the first issue, how can an adviser convince partners and employees to use the CRM? The obvious first step is to use it yourself. After all, if you're not utilizing the CRM, how can you expect others to make the effort? To increase the likelihood of adoption, the next step will be to convince partners and managers to use the system. Again, the example must be set from the top. Persuasive points can include enabling better management of tasks and assignments, a centralized place to keep notes of phone conversations with clients, and a one-stop place to find client information, including phone numbers, emails, portfolio values, birthdays, etc. With the example set and direction from above, the remaining employees will feel the pressure to jump on the bandwagon. A CRM is not a one-time experience. To be effective, it must be accessed and updated every day. It needs to be as automatic as opening Outlook at the beginning of each day or checking Facebook. In other words, implement an office rule that the CRM must be open at all times. When taking notes in a meeting, do it directly into the CRM (or scan or enter immediately after the meeting). When assigning a project, enter it in the CRM. Check the CRM frequently to view updates, new task assignments and completed tasks. In our office (and many others), we say, "If it's not in Junxure, it doesn't exist." (This also applies to Redtail or any other CRM of your choosing.) Finally, no matter which CRM you choose, it might seem overwhelming at first. The many functionalities can be very helpful, but they can also make using the system too difficult — initially. The solution to the complexity is to take on a little at a time. For example, start by using the system to view client information and portfolio balances prior to meetings. Then begin entering notes after each client meeting. From there, begin adding assignments with deadlines to yourself or other firm members. This is just one example of progressively taking on CRM functionalities. The general tactic is to start slow and add as you go along. Once using your CRM is second nature, it becomes "command central" for your firm. For us, it does much more than function as an electronic file cabinet. Our CRM tracks assignments, contains work flows, sends blast emails, sorts clients by different criteria, provides reports, automatically retains emails and more. It is an investment that pays off manifold. Sheryl Rowling is chief executive of Total Rebalance Expert and principal at Rowling & Associates. She considers herself a non-techie user of technology.

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave