Action! Magazine Articles | AdvisorEngine

CRM or bust: Why RIAs who ignore their core systems are leaving money on the table

Written by Craig Iskowitz | May 12, 2025 7:36:32 PM

You can always spot the CRM power users in a firm.

They’re the ones who don’t spend ten minutes before every meeting digging through old emails. They don’t miss follow-ups. They don’t show up surprised by client life events they should’ve known about. And – almost without fail – they’re the ones bringing in the most business.

But they’re rare.

For every advisor who uses their CRM like a growth engine, there are five who treat it like a filing cabinet – at best. In many firms, even basic functions like client segmentation, pipeline tracking or relationship mapping go underused or ignored entirely. That’s not a software problem. It’s a strategy problem.

We’ve worked with dozens of RIAs who invested in top-tier CRM platforms, only to let them gather digital dust. But we’ve also seen what it takes to turn things around: specific workflows, smart training, executive buy-in and a relentless focus on usage.

In this article, we’re laying out the playbook we use with advisory firms to increase CRM utilization – not just as a data warehouse, but as an operational system that drives revenue, improves client service and saves valuable time.

Start with the reality: Advisors don't want to use CRM

The first thing to understand is that advisor pushback is almost guaranteed. CRM is seen as surveillance – Big Brother watching from the cloud. And in some cases, that paranoia is just cover for a deeper problem: underperformance.

We tell our clients this bluntly: if an advisor fights CRM adoption too hard, it often means they're not doing much worth tracking.

But most advisors aren’t trying to be difficult. They’re busy. They want more time, more revenue or both. So, the pitch shouldn’t be about compliance – focus on outcomes.

  • Want to make more money? Successful advisors use their CRM to identify top prospects, track lead conversion and replicate what works.
  • Want more time? A CRM can help automate follow-ups, centralize client data and reduce prep time before meetings.

This framing flips the conversation. CRM isn't a burden – it's a lever.

Clean the data or don’t bother

One of the biggest barriers to CRM adoption? Garbage data.

We worked with one firm that had 30,000 CRM records – but only 3,000 clients. The rest were decaying leads from third-party sources, former clients, and duplicates. Advisors had to wade through this mess to find anything useful.

If your CRM isn’t clean, no one will trust it. And if no one trusts it, no one will use it.

Key data hygiene steps include:

  • Purge low-quality records: Leads with no interaction in 12+ months? Archive them.
  • Standardize households, trusts and entities: Too many systems lump business data under individual client profiles. That’s a mistake. Set up entities as standalone records and link relationships clearly.
  • Track the right fields: If your CRM can’t tell you who your clients are, when they started, or what services they use, it’s failing. Don’t assume “it’s in the PDF.” Get it in the system.

CRM is only as good as the structure behind it. Build that foundation first.

Set expectations and monitor utilization

Software licenses and consulting fees aren’t cheap. If advisors aren’t using the system, you’re burning cash.

We create dashboards for our clients to track key usage metrics: tasks created, meetings logged, emails sent, pipeline entries updated. The numbers don’t lie. You’ll quickly spot which advisors are engaging and which are coasting.

Then you have choices:

  • Coach them up: Show them how CRM helps them close more business.
  • Call them out: If it’s passive-aggressive resistance, let them know it’s visible.
  • Cut them loose: Some advisors are quietly undermining the team. If they won't adapt, it may be time to part ways.

Technology won’t fix culture problems. But it will reveal them.

Train, market and repeat

Too many firms treat CRM implementation like a one-time project. Buy the software, run a week of training and hope for the best.

That doesn’t work.

CRM adoption needs the same ongoing attention you give to external client communication. In fact, you should think of it as internal marketing.

  • Tailor training to different learning styles: Some want to read documentation. Others need videos or live demos. Offer all three.
  • Communicate why it matters: Not just how to use the software, but why it makes their job easier.
  • Reinforce consistently: Reminders, refreshers, and one-on-one nudges go a long way.

You wouldn’t stop marketing to a client after onboarding. Don’t stop supporting your team after rollout.

Segment clients with purpose

Another CRM blind spot? Service-level segmentation.

Too many firm owners give every client equal time, regardless of AUM. That’s not sustainable. The 80/20 rule holds: 20% of your clients generate 80% of your revenue. Your best advisors should be spending time with them – not fielding emails from small accounts.

Use your CRM to:

  • Segment clients into quintiles or tiers
  • Align top advisors with top clients
  • Automate touches for lower-tier clients through call centers or digital channels

Yes, it sounds harsh. But every airline passenger gets to their destination – some just fly coach.

Standardize the lead-to-client journey

Most advisors treat every lead like a prospect. That’s a mistake.

You need clear qualification criteria – and your CRM needs to reflect them. We train firms to define:

  • Leads as unqualified contacts (e.g., bought lists, cold inquiries)
  • Prospects as leads that meet firm standards (e.g., AUM threshold, relationship potential)

Then, standardize how you handle them. Who follows up? When? With what content? CRM workflows should enforce this rhythm.

Done right, CRM becomes a playbook – not a passive database.

CRM is not optional, it’s infrastructure

Some advisors will always want to work “their way.” That might mean offline notes, private spreadsheets or skipping CRM altogether.

You can’t scale a business that way.

We tell clients this: If your star advisor gets hit by a bus, can someone else pick up their pipeline tomorrow? If not, you don’t have a business – you have a liability.

CRM isn’t a choice. It’s infrastructure. And it only works if it’s part of your culture.

Final thought: CRM success starts at the top

If firm leadership isn’t using the CRM, no one else will.

Executives need to lead by example – logging activity, pulling reports, and asking the right questions. Make CRM usage part of compensation conversations. Make it part of performance reviews. Make it the way you run the firm.

When you do, CRM stops being a nuisance. It becomes the system that runs your business – efficiently, intelligently, and at scale.