“I have no interest in using a CRM.” First off, don’t let this be you. If you’re a growing firm, your CRM (Client Relationship Management) software will quickly become your and your teams’ BFF.
A recent wealth management colleague presented the following challenge. It’s a topic I see often and each time I see it, I’m wondering why some financial advisors refuse to use best fit CRM (Client Relationship Management) software solutions in their practice!?
Do you like doing things the hard way?!
A one-owner RIA (Registered Investment Advisor) in year 4 of his advisory business has 25 clients and found no need for a CRM (Client Relationship Management) software platform when he first started.
Here’s what he shared with us (in a panic):
“I have an examination coming up. State regulator wants me to upload all client emails from a specific date range as pdf files. I use Gmail. Is there an easy way to do this in a batch format rather than opening each email and saving as a pdf?”
Hate to tell you, there’s no real easy way to fix this.
He’s now shopping Redtail and Wealthbox, two popular CRM options for financial advisory firms, but he’s already behind the eight ball. These two CRMs could absolutely solve his problem, but he chose not to adopt any CRM and integrate the functionality into his day-to-day operations. Now he’s stuck with a state regulator asking for this information!
Not a great place to be!
If you’re thinking of going this route, stop right now. Maybe you’re trying to save money, possibly because you don’t think there’s a need; delaying using a CRM because you’re still in startup mode and don’t want to commit the time? Think again.
When your state or SEC regulators ask for compliance information you’ve got to provide it or find a way to remedy the solution BEFORE you’ll see “passed” on your examination report.
Regulators are going to ask for proof and if you can’t produce it easily through the other tools you’re using (e.g., Google sheet, Word doc, Excel spreadsheets) ditch using these tools as your CRM. It will be difficult to generate the necessary reports when asked. The time savings you’ll experience being able to run a quick report to get what the auditor needs is so worth it.
Here are 19 CRM best practices (truths) to adopt today as you start, grow and maintain your financial advisory firm.
- It’s the brains of your business.
- Understand your CRM has a unique role in the financial advisory space.
- You have to maintain your own books and records.
- Your CRM can save your a$$ in the event of an audit
- It’s easier to get in place from the beginning and adapt as you go.
- It’s a form of risk management to keep your notes and conversations time-stamped (CYA).
- Use your CRM as the ‘source of truth” so that anything that needs recording is under regulation.
- Your CRM is for MORE than just workflows and it meets regulatory requirements.
- Contact management, tasks, calendar management, one click email template for common messages, bulk emails, client activity, birthday reminders, compliance tasks. It pretty much runs everything.
- CRMs are perfect for documentation, organization, communication and keeping track of the work you’re doing.
- Ability to send client data seamlessly from one platform to another (i.e., Wealthbox to Altruist, Advice Pay, Right Capital)
- Having to migrate data from one place to another is the worst (i.e., Google to Redtail)
- Can integrate with many financial planning tools
- Consult with a compliance expert and have your books/records/retention practices nailed down to avoid any regulatory nightmares.
- CRMs are relatively affordable and will help keep you in business if/when you get audited.
- Plan on growing? Keeping everything organized in a CRM is a must.
- It can help you build your processes faster and scale more efficiently, contributing to helping you deliver better service.
- Prepares you for best practices of a growing firm.
- Documenting workflows and processes for other areas of your business becomes a breeze.
At the end of the day, adopting a best fit CRM tool can help your business maintain good operations. On an annual basis consider performing an audit with your tech providers and compliance consultants to make sure you’re doing the right things to maintain your records. These steps will save you time, money and headaches down the road!
Are you tired of hitting operational roadblocks that are preventing you from growing your firm?
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Cameo Roberson manages Atlas Park Consulting, helping firms execute their growth strategy, improve business processes, streamline operations, and systematize the day-to-day; without feeling overwhelmed so you can be prepared for next level growth
