How CRM Helps in Financial Services

Building Relationships / March 29, 2022 / Daylite Team

Modern technology has made it easier for businesses to reach customers where they are. From social media and emails to SEO and PPC campaigns, there are more channels of communicating with existing and prospective clients now more than ever before. 

Although this has opened tons of opportunities in building client relationships and boosting sales, it has also introduced new challenges. For example, how do you consolidate the segmented data to give your clients a seamless experience? Also, how do your employees keep track of all the data to do their job optimally?

That’s where a CRM software comes in. The CRM industry has seen significant growth in the last few years. Data projects that the CRM market will continue to grow for the foreseeable future.

What’s spurring the growth of the CRM market? All industries have recognized the importance of having all customer data in one place. That includes businesses in the financial industry.

Here’s how CRM helps wealth management and other financial services:

1. Take a 360-degree view of every client

A CRM financial services platform brings all client data in one place. It shows you all the activities and interactions a client has had with your organization. You will see when a customer avails of estate planning or retirement services. If a client decides to invest in real estate or buys or sells stock in a company, you will see that data on the CRM.

How exactly is that helpful, though? Having a 360-degree view of your clients makes it easier for you to deliver the best customer experience. You can tell your clients’ history and preferences based on the CRM data. That means you can also personalize the client experience. 

Your sales and marketing teams will also do a better job when they have more client data. For example, they can recommend products that clients are likely to accept based on their activities or previous interactions with your organization.

Take the story of Centerline Wealth Advisors, for example. The financial services company manages more than 250 households. Each household has different financial goals and needs. Keeping track of all those needs would be impossible without a robust CRM solution.

With the help of a CRM for financial services, the company manages to track each client project without losing any critical data in the process. Not only that, but the CRM has streamlined their processes so much that it’s made it possible for the company to bring in more clients. 

2. Strengthen client retention

A report by Invespcro shows it’s more expensive to acquire new customers than to retain existing customers. It also reports that increasing customer retention by 5% alone can increase profits by 25-95%.

Therefore, while attracting new clients is critical, your organization must also prioritize client retention.

One of the best ways of retaining clients is giving them a first-class experience. That’s exactly what a CRM financial services solution can help you do. The platform stores tons of client data that everyone in your team can use to deliver a seamless experience.

For example, your customer service team will resolve customer complaints swiftly when they have all the information in one place. Similarly, your financial advisors will use that data to recommend specific products that make sense to the client.

Showing the client that you understand their needs and recommend products that align with them will boost customer satisfaction. Increased satisfaction can quickly lead to client loyalty. In addition to boosting customer retention, satisfied and happy clients can also be your brand ambassadors.

3. Make processes run more quickly

Most modern financial firms provide multiple products across different departments. For example, you can have one firm providing wealth management, retirement and estate planning, accounting, and tax services. If each department runs in a silo, there will be a lot of friction which won’t just hurt the client experience; it will also lose your company some leads.

A CRM financial services platform enhances interdepartmental operations by housing client profiles in one place. Your staff can access each client profile and see their activities in just a few clicks. That means a single staff member can resolve client issues or recommend the appropriate way forward more efficiently. 

Plus, most clients will appreciate a seamless interaction with your brand instead of getting handed off between multiple departments.

It’s worth pointing out that a CRM financial services tool won’t just streamline business processes within a single firm. If your organization has multiple practices, it allows you to deliver an efficient and consistent client experience across all the departments. 

For example, a client could visit your office to inquire about tax services and investment advice. Someone from your tax department can create a note on the client’s profile in the CRM about what the inquiry was about and alert your firm’s investment unit of potential business. 

This way, when the client does decide to seek investment advice from your financial consulting group, the investment advisor assigned to the client will already have a good idea of the client’s needs even before they meet the client. This approach sends a signal to the client that your business is serious about client satisfaction and makes them confident that their money is in good hands.

4. Use insights to optimize sales and marketing efforts

As a company, you should be implementing strategies to make your financial service known. Whether that’s posting on social media or availing of online guest post services for guest posting, you need to make sure you go directly to the people who are likely to sign up for your services.   

Reaching the right person at the right time with the right message is critical in sales and marketing. That’s where CRM financial services software comes in.

For starters, CRM gives your sales and marketing team tons of data to work with. It can show how frequently a client seeks specific services, for example. It can also show some recurring trends or preferences and helps you identify service lines that make more money than others.

Your sales team can leverage that information to deliver personalized pitches or launch campaigns that are more likely to generate results. For example, they’ll know the best topics for when they use a webinar to generate leads or what images to use in email marketing to elicit the desired action. 

CRM data is also a goldmine of cross-selling and up-selling opportunities. For instance, your team can reach out to a wealth management client to cross-sell tax and accounting services.

CRM financial services platforms also make it easier to track potential leads. For example, a client may inquire about a specific tech stock they’re considering investing in. The consultant can note that inquiry down in the CRM. A few days down the road, the investment team can reach out to the client to suggest potential investment opportunities in the same niche.

5. Boost employee productivity

One client could contact a sales representative through social media, email marketing, a live chat function on the website, or a referral from another client. Unless all this data is harmonized in one place, your employees can waste so much time finding and retrieving information. 

Customer relationship management tools bring all this data in one place. That helps your employees get the job done more efficiently.

Look at Provincial Development Group, for example. The business management consulting firm uses the Daylite CRM platform to store details like client contact information, client movements, email correspondences, and any other client file in one place. They even have a calendar and reminders attached to the CRM.

All that allows their staff to stay on top of everything. The reminders ensure the sales team contacts prospective leads at the perfect time, for example. It basically eliminates lost opportunities.

But do you know what’s even more interesting? Your team can access the CRM from any device. Daylite, for instance, is accessible from MacBook, iPhone, and iPad. That means your team can collaborate and deliver optimal services from anywhere provided they have the software installed in their gadget, with or without an internet connection. That’s huge in the modern age of remote teams.

Bottom line

CRM software helps your company understand its clients better. That, in turn, helps you deliver excellent services, hence boosting client retention and loyalty. Your sales and marketing team will also have an easier time identifying and tracking leads.

CRM also streamlines financial institution operations and boosts employee productivity.

As you can see, customer relationship management software is no longer an option for financial institutions. Your business needs it to retain its competitive edge and meet client needs. So, evaluate your company needs then find the appropriate CRM for you. Make sure you include it as part of your software asset management, too, so you can make the most of your entire tech stack.

About the author: Matt Diggity is a search engine optimization expert and the founder and CEO of Diggity Marketing, The Search Initiative, Authority Builders, and LeadSpring LLC. He is also the host of the Chiang Mai SEO Conference.

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