How can CRM software help improve your client relationship management?

By Helen Fisher on June 4, 2018

Don't underestimate the added value of using a CRM system.

Clients are at the very heart of the financial services sector. As obvious as it sounds, without any clients to help or recommend products to, you would very quickly be out of business. It’s important that financial services professionals know the importance of focusing on client relationship management.

Whether you’re offering financial assistance for pensioners or low-cost financial advice for a couple moving into their first home, your client relationships are key. This is especially true for your ongoing relationships with existing customers. Taking the time to keep them happy will allow you to build a loyal base over the years, which just makes sound financial sense. Consider this interesting point:

  • It is six times more expensive to win a new customer than keep an existing one.

This can prove tricky in the financial services sector, however, as many organisations have a lot of clients on their books and numerous financial advisers looking after them all. Luckily, client relationship management (CRM) software can help. This software helps you record and collate data on your customers to aid in future interactions.

When you consider the cost of losing a customer as above, it makes perfect financial sense to use CRM software.

How else can a CRM system help your business?

If you’re involved in giving financial guidance or investment advice, then you need to effectively manage the client relationship process. Here are some ways that a decent CRM package can help:

  • Target allocation – Typically, around 20 to 30% of your clients account for 70 to 80% of your total revenue. A CRM system can help find the clients who pay the most per month or bring in the most money on larger, one-off projects. This means that you can confidently give these customers extra attention to keep them happy and loyal to you.
  • Regular updates – You‘ll soon find that your CRM software is a real goldmine of information on clients. You can leverage personal data such as their age or the financial products that they have used on your advice in the past to send out updates on services that might interest them personally. Consumers appreciate this personal level of customer service.
  • Quick handling of complaints – Many customers will base their opinion of your business on the service that they get when making a complaint. A CRM system will not only help you log any complaints received centrally but also keep track of them and resolve them quickly.

If you are already using a CRM system to manage your client relationships, then you will know how great this software is. If you are not, then it is worth investing in this type of business system. It will help you build strong connections with your existing clients that will keep them coming back to you for financial advice. Just be sure to get opt-in confirmation from clients under new General Data Protection Regulation (GDPR) laws that they are happy for you to keep their details in your CRM database.

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