Is your CRM like an exercise bike?

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.