Customer relationship management (CRM) systems have become essential in the financial services sector because they enable advisory firms and other businesses to better understand their clients, create the right products and solutions for them when they need them, remain connected to customers, streamline their processes and boost their profitability.
But advisory firms can’t simply establish CRM platforms and not follow up with maintenance or improvement. CRM data will often include outdated or redundant information. CRM platforms, meanwhile, must remain in compliance with customer data protection and reporting requirements.
We caught up with Tim Highland, Head of Product Strategy at Practifi, to ask him what specific steps advisory firms need to take to maintain and enhance their CRM platforms to get the most out of them.
WSR: When reviewing CRM data, what key indicators should advisors look for to determine which information is outdated, redundant or no longer useful?
Highland: Before archiving or deleting records, think about whether there’s an opportunity to re-engage the people reflected in the records. If so, update their information and set reminders to follow up. If not, consider archiving instead. Next, keep an eye out for duplicate entries. Merging these is crucial for maintaining a clean database.
Think about whether there’s an opportunity to re-engage the people reflected in the records.
It’s also important to check for incomplete records missing critical details, such as addresses or client preferences, as these gaps can hinder effective communication. Flag them for review.
In addition, regularly verify contact information to avoid missed communications from outdated emails or phone numbers.
Lastly, review stagnant opportunities that haven’t progressed – either close out non-viable leads or update their status. By addressing these areas, advisors can ensure their CRM data remains relevant and actionable.
WSR: How can they decide what needs to go? How often should financial advisors review and clean their CRM system?
Highland: When deciding what to remove from a CRM, advisors should consider whether the data can be of use in the future. Information about long-term clients can still be valuable, even if they’re inactive, while details on leads that didn’t pan out may be less helpful.
It’s also important to review legal and compliance rules regarding data retention. Wealth management firms must adhere to strict guidelines, so keeping information needed for audits is essential.
Finally, outdated data can offer valuable insights for future marketing strategies. To keep everything up to date, make regular data reviews a part of your quarterly client check-ins.
WSR: Once advisors have identified outdated or redundant information, what are the most effective strategies for reorganizing their CRM data to improve usability and client management? Are there specific approaches that work well for maintaining clean, actionable data moving forward?
Highland: To reorganize your CRM data effectively, begin with a thorough audit. Review all data points, identify duplicates and flag incomplete or outdated information. This will provide a clear picture of areas that need attention.
Next, establish data quality standards. Define what constitutes accurate and complete information, emphasizing key details such as client contact information, financial records and interaction history.
Using CRM-integrated tools can streamline the data cleaning process. These tools can merge duplicates, fix formatting errors and highlight incomplete records, saving you time and effort.
Also, segment your data into categories like active clients and prospects. This allows you to prioritize what needs your immediate focus.
Finally, schedule regular audits and cleanups – quarterly or biannually. Bringing on a data manager can further ensure data integrity over time.
WSR: What are some ways wealth management firms can work more closely with their CRM provider to ensure ongoing data accuracy and efficiency?
Highland: To keep data accurate and efficient, wealth management firms should set up regular meetings with their CRM provider. These check-ins can focus on system performance, data quality and new features, ensuring everyone is on the same page about current needs and future goals.
It’s also helpful to work with your provider to customize features or workflows that fit your firm’s unique needs. This can really boost efficiency and help align tasks with your data standards.
Ongoing training for your team is important too. Regularly updating staff on features and best practices minimizes data entry errors. Many providers also offer expert support tailored to specific training needs.
Create a simple feedback system for users to share issues or suggestions.
Create a simple feedback system for users to share issues or suggestions. Whether it’s through instant messaging or a portal, this lets the CRM provider address concerns quickly.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
