As a financial advisor, managing client relationships is crucial – one missed action can cause a rift.
A customer relationship management (CRM) system can help you stay organized.
A CRM improves your efficiency by automating dozens of client service tasks and simplifying the process of keeping tabs on all of your client interactions.
With a number of options available to advisors, choosing the right CRM for your practice can take time and effort. Let’s run through the key factors financial advisors should consider when selecting a CRM and we’ll examine some of the best CRMs in the market.
What is a CRM and why do financial advisors need it?
A CRM software system helps businesses manage their interactions with current and potential customers. It stores all customer data in one central location, making tracking and analyzing client interactions easier. For financial advisors, a CRM can be a valuable tool for managing client relationships, tracking financial goals and staying organized.
The role of a CRM in a financial advisory business
One of the main reasons why financial advisors need a CRM is to automate tasks. With a CRM, you can set up automated workflows for tasks such as sending follow-up emails, scheduling appointments and tracking client interactions. This saves you time and lets you focus on more important tasks, such as providing financial advice to your clients.
Moreover, a CRM can help you manage your client relationships more effectively. It can help you keep track of your client's financial goals and progress and provide insights to help you offer better financial advice. A CRM can also help you identify opportunities for upselling and cross-selling, helping you grow your business.
The benefits of using a CRM for financial advisors
Another benefit of using a CRM is the ability to track client interactions. A CRM can store all client communication, including emails, phone calls, and meetings. This allows you to have a complete view of your client's history and helps you provide personalized and tailored services.
In addition, a CRM can help you improve your overall efficiency. A CRM can help you streamline your workflow and reduce the time spent on administrative tasks by automating tasks and providing you with a centralized location for all client data – allowing you to focus more on providing financial advice and growing your business.
Key factors to consider when choosing a CRM for financial advisors
When choosing a CRM for your financial advisory business, it's important to consider your specific needs and goals. Here are some key factors to keep in mind:
Integration with other tools:
As a financial advisor, you may already use various tools and software to manage your business. It's essential to choose a CRM that integrates with these tools to avoid duplication of work and ensure a seamless workflow. For example, if you use financial planning software, ensure the CRM you choose can integrate.
Furthermore, consider the ease of integration. Some CRMs may require technical expertise to integrate with other tools, while others offer easy-to-use integration features. Choose a CRM that makes integration easy and seamless to save time and resources.
Every financial advisory business is unique, and your CRM should reflect that. Look for a CRM that offers customization options, such as the ability to create custom fields and workflows. This will allow you to tailor the CRM to your business needs and processes.
In addition, consider the flexibility of the customization options. Some CRMs offer limited customization options, while others offer a wide range of customization features. Choose a CRM that provides the level of customization that suits your business needs.
Security and compliance:
Financial advisors deal with sensitive client information, so choosing a CRM prioritizing security and compliance is crucial. Look for a CRM that offers data encryption, regular backups, and compliance with industry regulations such as CCPA/GDPR and HIPAA as relevant.
Moreover, consider the CRM's track record in terms of security and compliance. Look for a CRM with a strong reputation for maintaining high-security standards and complying with industry regulations. This can give you peace of mind that your client data is safe and secure.
A CRM is only useful if you and your team can easily navigate and use it. Look for a CRM with a user-friendly interface and intuitive features. This will save you time and resources in training and onboarding your team.
Also, consider the learning curve associated with the CRM. Some CRMs may be complex and require significant training, while others may be easy to use and require minimal training. Choose a CRM that is easy to learn and use to ensure that your team can start using it effectively as soon as possible.
In today's fast-paced world, access to your CRM on the go is important. Look for a CRM offering a mobile app or responsive website. This will allow you to access client information and manage tasks from anywhere.
Additionally, consider the functionality of the mobile app or website. Some CRMs offer limited functionality on their mobile platforms, while others offer full functionality. Choose a CRM that provides a robust mobile platform to ensure you can manage your business effectively while on the go.
Pricing and scalability:
CRM pricing can vary greatly, and choosing one that fits your budget is important. Some CRMs offer a flat monthly fee, while others charge per user or offer different pricing tiers. Consider your current and future needs and choose a scalable CRM with a pricing plan that works for your business.
Also, consider the value for money offered by the CRM. Some CRMs may provide a wide range of features at a high price, while others may offer fewer features at a lower price. Choose a CRM that offers the features you need at a price that fits your budget.
Best CRMs for financial advisors
Now that you have a better sense of the key factors to consider when choosing a CRM, let's take a look at some of the best CRMs in the market:
AdvisorEngine CRM® is designed specifically for financial advisors and is a comprehensive CRM solution that offers advanced customization options, automated workflows, client portals, integration with various tools, and a user-friendly interface. It also offers features such as financial goal tracking and compliance with applicable industry regulations. Pricing starts at $65 per user per month.
AdvisorEngine CRM offers a wide range of integration options, making it easy to integrate with other tools you may be using in your business. With a robust mobile platform, this CRM allows you to manage your business anywhere. AdvisorEngine CRM also includes security features, including data encryption and regular backups, ensuring your client data is safe and secure.
Redtail CRM is popular among financial advisors due to its user-friendly interface and affordable pricing. It offers integration with various tools, customization options, and mobile accessibility. Redtail CRM also offers compliance with industry regulations and pricing starts at $99 per user per month.
In addition to these features, Redtail CRM also offers a wide range of customization options, allowing you to tailor the CRM to your specific business needs. It also offers a robust mobile app, allowing you to manage your business on the go.
Salesforce Financial Services Cloud:
Salesforce Financial Services Cloud is a comprehensive CRM solution for financial advisors. It offers advanced customization options, integration with various tools, and a user-friendly interface. It also provides features such as financial goal tracking and compliance with industry regulations. Pricing starts at $150 per user per month.
Moreover, Salesforce Financial Services Cloud offers a robust mobile platform, allowing you to manage your business from anywhere. It also offers a wide range of security features, including data encryption and regular backups, ensuring your client data is safe and secure.
Wealthbox is a CRM specifically designed for financial advisors. It offers a user-friendly interface and integrates with popular financial planning software like eMoney and MoneyGuidePro. Wealthbox also offers customization options, mobile accessibility, and compliance with industry regulations. Pricing starts at $35 per user per month.
In addition to these features, Wealthbox also offers a robust mobile app, allowing you to manage your business on the go. It also provides a wide range of integration options, making it easy to integrate with other tools you may be using in your business.
Choosing the right CRM for your financial advisory business is crucial for managing client relationships and staying organized. Consider your specific needs and goals, and look for a CRM that offers integration with other tools, customization options, security and compliance, a user-friendly interface, mobile accessibility, and scalable pricing. With the right CRM, you can streamline your workflow, improve efficiency, and provide better services to your clients.
This blog is sponsored by AdvisorEngine Inc. The information, data and opinions in this commentary are as of the publication date, unless otherwise noted, and subject to change. This material is provided for informational purposes only and should not be considered a recommendation to use AdvisorEngine or deemed to be a specific offer to sell or provide, or a specific invitation to apply for, any financial product, instrument or service that may be mentioned. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of AdvisorEngine and are subject to change without notice. AdvisorEngine makes no representations as to the accuracy, completeness and validity of any statements made and will not be liable for any errors, omissions or representations. As a technology company, AdvisorEngine provides access to award-winning tools and will be compensated for providing such access. AdvisorEngine does not provide broker-dealer, custodian, investment advice or related investment services.