How Custom CRM Boosts Client Relationships For Financial Advisors

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In today’s highly competitive financial advisory sector, every detail matters when it comes to managing client relationships. The tools you use can significantly impact how you interact with clients, streamline processes, and ultimately, grow your business. This is where Customer Relationship Management (CRM) systems come in, with their potential to reshape and enhance the client-advisor interaction. However, not all CRMs are created equal. Opting for a custom CRM solution designed specifically for financial advisors can bring a myriad of benefits. It can help enhance your productivity, boost your client relationships, and allow you to deliver a level of service that sets you apart from the competition.


Who Should Use A Custom CRM?

Custom CRMs aren’t only for large-scale financial institutions; they can bring tremendous value to financial advisors and firms of all sizes. Whether you’re an independent financial advisor, part of a small team, or work within a larger firm, a custom CRM can provide a competitive edge. These systems are especially beneficial if you deal with a complex client base, manage a vast amount of data, or want to personalize your services to enhance client relationships and satisfaction.

In order to optimize your CRM, consider customizing fields such as status, category, keywords, and UDFs (User Defined Fields). These customizations will give you a more holistic view of your client, allowing you to understand their position in your sales cycle and gain insights into your relationship-building endeavors. It’s also beneficial to customize the “source” field to easily identify where the bulk of your business is coming from, whether it’s referrals, marketing campaigns, or other channels. Don’t forget to record family and professional relationships. Knowing your client’s friends, family, and professional contacts can deepen your understanding of their social and professional networks. Finally, customizing workflows ensures your sales process and client reviews are documented and repeatable. This customization not only streamlines your processes but also ensures consistency and quality of service.


Why Should You Use A Custom CRM?

Using a generic CRM system can feel like trying to fit a square peg into a round hole – it’s not tailored to the unique needs and nuances of the financial advisory sector. A custom CRM, however, is built to address the specific challenges and requirements of financial advisors. It allows for a more streamlined workflow, more effective communication with clients, and enhanced tracking of financial goals and milestones. This improved efficiency can save time, minimize errors, and allow you to focus more on building strong relationships with your clients.

When a CRM is tailored to the specific language, tasks, and processes that your team members are already familiar with, it reduces the learning curve and integrates seamlessly into their daily workflow. This not only makes the system more intuitive to use but also resonates with the team, increasing buy-in and engagement. As the system mirrors their tasks and responsibilities, the team is more likely to utilize it fully and effectively. This, in turn, enhances productivity, improves client service, and ensures you’re truly getting the most value from your CRM investment. In essence, a customized CRM speaks your team’s language and aligns with their work processes, making it a tool they’ll want to use, not have to use.


How Custom CRM Boosts Client Relationships For Financial Advisors

Building and maintaining strong relationships with clients is essential for success in the financial advisory sector. A custom CRM can provide a significant boost in this regard. Here’s how:

Personalized Service

Custom CRMs can store a wide array of client information, including personal preferences, financial goals, risk tolerance, and communication style. This data allows you to deliver a personalized service tailored to each client’s unique needs and preferences.

Improved Communication

With a comprehensive overview of client interactions, a custom CRM facilitates timely and effective communication. You can easily keep track of follow-ups, schedule meetings, and send out personalized notifications or alerts based on the stored data.

Enhanced Trust

By demonstrating that you understand and cater to your client’s specific needs, a custom CRM can significantly enhance trust. Clients are more likely to stick with a financial advisor they feel understands them and has their best interests at heart.


How To Customize Your CRM

To reap the full benefits of a custom CRM, you need to tailor it to your specific needs and preferences. Here are some tips to help you do just that:


Create a CRM Manual

A CRM Manual can help ensure consistency in how you use your CRM, which can enhance productivity and prevent confusion. This manual can outline how to categorize clients, log interactions, and track financial goals, among other things.

Creating a CRM Manual is a proactive strategy to ensure that everyone on your team understands and utilizes your CRM system to its full potential. This manual clearly outlines the significance of each field and explains why specific items are included. For instance, it could elaborate on client segmentation such as ‘Financial Planning Only’ or ‘Financial Planning & AUM’. This not only provides clarity to the team members but also streamlines the training process for new staff, as they have a definitive resource to refer to. Ultimately, a CRM Manual fosters a shared understanding, ensures consistent usage of the system, and unlocks the power of data for more informed decision-making.

Use Custom Features To Personalize Data

Most custom CRMs allow you to add or modify features to suit your needs. For instance, you can create custom fields for specific client information, build unique workflows, or even integrate with other financial management tools. These customizations allow you to personalize data and workflows, which can enhance your understanding of each client and improve service delivery.

Among the myriad of ways to customize your CRM, one of the most valuable strategies I’ve seen implemented in various offices is the use of User Defined Fields (UDFs) in Redtail CRM and Custom Fields in Wealthbox CRM. These fields allow for flexibility to capture a vast array of personalized information that goes beyond the typical data fields. Some examples include:

  • Trust Date
  • Rep Code
  • RMD Start Date

These customizations, tailored to your clients’ unique situations, can provide valuable insights and contribute to a more personalized and effective service. Make sure to put in the front end work to customize this field. 


Final Thoughts On How Custom CRM Boosts Client Relationships

In conclusion, a custom CRM is not just a tool for managing client information; it’s a powerful resource that can revolutionize how you interact with clients, enhance your service delivery, and ultimately, grow your business. By allowing you to deliver a personalized service, communicate effectively, and build trust, a custom CRM can significantly boost client relationships. However, it’s essential to customize your CRM to your specific needs and preferences to reap these benefits. With the right customization, your CRM can become a pivotal tool in building and maintaining strong relationships with your clients.

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