A technology timesaver

Customer relationship management is defined as the methodologies, technology and capabilities that help
manage customer relationships. In everyday-speak, CRM refers to computer software capable of managing customer relationships in a single, easy-to-use location. What can CRM do for a busy financial advisor?

Speaking with an advisor recently, I found that his day is devoted to the delicate task of communicating with his clients. He generally starts by reviewing client files and then goes immediately into meetings with those clients to discuss and update their portfolios. Any time left is spent on outgoing calls to touch base with other clients and prospecting for new accounts. By the end of the day, he has just enough time to print and sign a stack of letters. On his way home, he might stop to have dinner with a prospect while taking notes in the same bound notebook in
which all interactions are recorded.

So how can CRM help? As a small-business owner, the advisor needs a networked CRM system (one that lets multiple users share the same data) that is hosted in a secure environment and accessed over the Internet. Many hosted CRM systems have a minimal footprint inside the advisor's office and require little administration.

Current clients -- The first step in getting started with a CRM is to enter all clients' contact information into the system. Include with this data any additional information you know about the client (birthday, wife's name, etc.) as well as a ranking that will help you categorize and prioritize via the CRM's reporting functionality.

Prospects -- Each prospect is added to the CRM with as much data as possible. Because you start at the beginning with each prospect, the CRM will be the best and only place to recover information on that prospect.

Templates -- Take the letters you generally send to clients and prospects and recreate them within the CRM system as standard templates. Salesforce.com, for example, will allow you to merge any client data fields you
like (first name, company name, spouse) and will send via e-mail (when no sensitive data are being transmitted), or by traditional mail. Templates can be a significant timesaver.

Customization -- A CRM system will allow you to customize the data fields you use, making it possible to create an information architecture that suits your exact needs. If, on the day you set it up, the CRM does not have fields for all the data you collect on a client, you can, with no programming experience, add fields to the system that will accept your additional information.

Team work -- A networked CRM will allow you and your teammates to see as much or as little of each other's data as you determine acceptable. If your administrator answers the phones, information from those phone calls
can be added directly to the client record via the CRM, so that the next time you log in, the information will be displayed.

THE RESULTS SO FAR
Because the advisor is able to access his client data securely over the Internet, he is also able to work from any location that has a connection. He now starts his day in his home office, prepping client calls and meetings via the CRM. When he gets to work, he runs a report that segments his A-level clients and displays their contact information so he can make quick morning calls. He will hit his B-level and C-level clients later in the day. At 10 a.m., a client visits his office unexpectedly, so he takes a moment to review the client's file on the screen. It looks like the last time they spoke was in May, and at the time, the client was visiting his daughter in Omaha, Neb., who was preparing for her first daughter. The advisor grabs the College Savings Plan of Nebraska 529 overview sheet, slides it under his notebook and walks into the meeting room. Upon the completion of the meeting, he adds an activity to the client's file, noting their discussion, and creates an activity request for his administrator, which will automatically send the administrator a reminder to send the 529 enrollment package to the client. The rest of the day goes on much like the first meeting, with the advisor initiating meetings and calls with greater client intelligence, which results in his ability to offer better service in search of higher return. At the end of the day, the CRM system has created a pile of customized letters based on his meetings and calls, and all the advisor has to do is sign them.

Christopher Willis is executive vice president of Pyxis Mobile, a Boston-based provider of wireless applications designed to meet the needs of the financial services industry. He can be reached at cwillis@boomermarketadvisor.com.