Russell Hopcraft, co-founder of ContactPartners, explains common pitfalls for wealth managers looking to upgrade their CRM system.

From time to time, technology so completely revolutionises how we do something that we question how we ever managed without it.  The same is true of customer relationship management or “CRM” - software that manages sales, marketing campaigns, and customer service operations – which is widely recognised as a solution businesses just can't do without.

But, far too often we hear how CRM deployments have not gone well: firms have trouble integrating with existing systems, new systems can be highly complex to implement and use, there may be limited end-user adoption, and significant amounts of money (and time) can be wasted.  But the thing is, CRM isn’t just a “nice to have”, it’s an essential business tool for private banks and wealth management organisations in order to compete and thrive.  And although it really doesn’t have to be complex and hugely expensive, it does need to be intelligent.  Here’s how:

1.    Align to the bank’s strategy

Your bank has a strategy, so make sure your CRM system underpins it.  Ensure you can quickly and easily integrate with existing systems to support your business processes and make best use of historical and real-time data.  For instance, if the strategic objective is to make more regular contact with those customers where you have limited “share of wallet”, then you need to identify as much of the “wealth elsewhere” insight as possible, ensure that all non-bank product information is captured and that appropriate reasons to contact are prompted at exactly the right time (even for peripatetic workers).  You’ll also need consistent management reporting to ensure everyone is heading in the right direction and to pinpoint performance issues accurately.

2.    Design it with/for the users

The number one failing of technology is not convincing and equipping your employees to use it, so it’s really important to “win hearts and minds” at the outset.  Hold workshops with executives, relationship managers and relevant support staff across all customer departments to capture objectives, requirements, experience and ideas.  Train all users thoroughly.  And, once implemented, do not underestimate the "network multiplier effect" i.e. the more people that use the solution, the more valuable it becomes.  So, actively encourage all employees to contribute ideas and feedback and ensure solution enhancements are to their benefit.

3.    Develop a customer contact strategy

It’s a fact: many organisations don’t have a customer contact strategy.  Many don’t have a single view of the customer – not just customer contact details and current holdings, but information such as soft facts, lifetime contact history and non-bank product holdings.   Not having them will certainly prevent you from optimising customer service and revenue potential at every opportunity.  Design your customer contact strategy from the customers’ point of view as well as your own:  What could they need or want? How and when do they want contact with you?  What customer experience do they expect? How can you ensure compliance?  Empower your relationship managers with all of the information they need so that they can have rewarding conversations and drive the best possible outcomes for the customer and your organisation. 

4.    Cut across silos

Far too often, hard-earned lead generation efforts (read: money) go to waste.  Marketing attracts an enquiry; relationship manager identifies a need; specialist knowledge is required to make the sale; then the sale never happens.  A common key failure point is that the customer falls through the cracks of being “handed off” between colleagues.  When a relationship manager identifies a customer need (in conversation or when automatically prompted), they need to ensure it’s followed up in a timely fashion.  Lead progression should be scheduled and tracked to ensure things happen when they should.  To succeed, the whole team needs to act as one and your systems need to support that.

5.    Maintain, maintain, maintain

“Garbage in, garbage out” (I’m being polite), should as ever be front of mind.  In order to make the right contact to the right customer at the right time, you must have… the right data!  If the information is not maintained and kept current and fresh, then every resulting activity that is based on it fails to hit the mark and worse still, risks damaging the relationship with the customer.  Establish processes to keep data fresh and accurate as any investment in systems will quickly underperform if you don’t.  Forward thinking and rigour really will help you maximise your investment and business results.  It will also keep your systems fit for purpose and so prevent damaging user and customer dissatisfaction.

If you follow these rules, chances are you'll create an intelligent customer management experience that rewards your employees, your customers and your organisation.