As the universe of customer relationship management continues to evolve, wealth managers who previously didn’t have a CRM system or aren’t satisfied with their present system have more options than ever. For many wealth managers, CRM needs change as their businesses evolve, says Bill Winterberg, a technology consultant for financial advisors based in Dallas, Texas.

“Advisors should consider the ways they feel CRM can help improve their business and client service,” says Winterberg. “Essentially, when they find themselves saying, ‘There has to be a better way to do this,’ they should turn to their CRM and see if the program can help solve their bottlenecks in workflow processes or simplify access to information spread across all of their clients.”

Essentially, if you’re still working with spreadsheets or a relatively simple CRM such as Goldmine, it’s probably worth your time to explore the options available in mainstream CRM systems . The major CRM systems include Microsoft Dynamics, Junxure, NexJ, Pivotal CRM, Pareto Systems and RedTail CRM.

Switching systems

Noah Rosenfarb, managing director at Freedom Divorce Advisors and a wealth manager at Freedom Wealth Advisors in Short Hills, New Jersey, has switched CRM system several times. He first used Goldmine and now uses RedTail. “I grew up in the accounting industry where there isn’t widespread use of CRM systems,” he recalled. “I chose RedTail after consulting with Jen Goldman at MyVirtualCOO. I wanted a system that could create workflows around financial life planning and divorce planning.”

While the process of documenting workflows and setting up processes surrounding those workflows has been more daunting than Rosenfarb expected, he believes all the work will be worth it in the end because he will be able to expand his firm, to create a franchise, more easily. “If you use workflows to create an operational manual, it’s much easier to onboard new employees and get them up to speed,” he says.

Rosenfarb acknowledges that his firm may very well grow out of RedTail at some point, but that it is currently the most cost-effective and useful bundle of features for him and his firm. “You can’t get everything you need in one CRM package, because everyone’s needs are so unique” he says.

If you’re in the market for a new CRM system or are just exploring the CRM market for the first time, consider carefully what features are the most important for you and what’s optional. “Must haves for first time users include comprehensive contact information storage, including government identity numbers such as Social Security numbers, a robust calendar to manage tasks, client appointments and company meetings and an easy-to-use interface that doesn’t require days or weeks of training,” notes Winterberg.

As more advisors carry mobile devices such as SmartPhones and tablet computers, mobile applications are increasingly important to advisors, Winterberg adds. “Personally, I wouldn’t recommend a CRM that could not be accessed in some way through a mobile device,” he says. “It’s important that advisors be able to connect to their business information and service clients no matter where they are.”

Given the variables involved, Sophie Schmitt, a consultant with Aite Group who wrote the report CRM for Wealth Management: Approaching Total Practice Management for wealth managers seeking advice on CRM solutions, proposed several “best-in-class” options for small-, medium- and large-size wealth management firms. These include:

Small-sized firms: For flexibility, Salesforce.com; for wealth management capabilities, RedTail CRM

Medium-sized firms: For both flexibility and wealth management capabilities, Pivotal CRM

Large-sized firms: For flexibility, Microsoft Dynamics; for wealth management capabilities, NexJ Contact for Finance

An overview

Below is an overview of CRM vendor features :

Dynamics; Microsoft ; initially released 2005; 20 per cent of all financial institutions clients are wealth management customers; wealth management partners - Salentica, Customer Experience; CRM modeling capabilities include client roll-up to relationships, multiple relationship types.

Junxure; Junxure ; initially released 1998; 100 per cent of all financial institutions clients are wealth management customers; wealth management partners - many including Schwab Advisor Services; CRM modeling capabilities include client roll-up to relationships, multiple relationship types.

NexJ; NexJ Contact for Finance ; initially released 2006; 77 per cent wealth management customers of all financial institution clients; wealth management partners - Glass Client Programs, Portfolio Aid, SunGard; CRM modeling capabilities include client roll-up to relationships, multiple relationship types, info roll-ups to relationships, hierarchical relationship tree view.

Pivotal CRM; CDC Software ; initially released 2001; 13 per cent wealth management customers of all financial institution clients; wealth management partners - N/A; CRM modeling capabilities include client roll-up to relationships, multiple relationship types, info roll-ups to relationships, and hierarchical relationship tree view.

Pareto Systems;  Pareto by Microsoft ; initially released 2010; 100 per cent share wealth management customers of all financial institution clients; wealth management partners - Albridge, MoneyGuide Pro; CRM modeling capabilities include client roll-up to relationships and multiple relationship types.

Redtail CRM; Retail Technology ; initially released 2003; 100 per cent wealth management customers of all financial institution clients; wealth management partners - many, including Pershing; CRM modeling capabilities include client roll-up to relationships, multiple relationship types and info roll-ups to relationships.

Salesforce for Wealth Management; Salesforce.com ; initially released 2007; percentage of wealth management customers of all financial institution clients – N/A; wealth management partners – Schwab; CRM modeling capabilities include client roll-up to relationships, multiple relationship types and info roll-ups to relationships.

To view previous articles on: CRM systems and iPad apps click here; and smartphone apps click here; and cloud, work flow tools click here.