From Adviser Guide:
Back Office Systems 1hr
Q: How can software turn client data into a marketing tool?
Customer relationship management could be the key to transforming your new business prospects.
We are supposed to be moving to a service-orientated world and therefore the ability for the back-office database to be able to manage the client relationship is paramount. Customer relationship management software is a key element of any back office.
The principle differences between CRM and the traditional back office system is the increased focus on managing the client relationship, explains Richard Stanton, sales manager at Time4Advice.
“Traditional back office systems have largely been data repositories, with little or no client relationship management capabilities, whether this is related to the client or their current position.
“As a consequence, users have accumulated large volumes of irrelevant data which, as it is rarely updated due to the physical overhead involved, is not only not used but unusable.
“Furthermore, there is little point in storing data in the system, even if relevant, if it cannot be readily found.
“CRM systems have been designed with this in mind, allowing users with even a relatively basic knowledge to construct powerful and accurate searches and, importantly, for these to be stored within the system for re-use, by an individual, department, team or the business.”
Furthermore, regulatory changes will soon increase firms’ required level of customer data familiarity, notes Sue Nutall, owner and lead consultant at Jacana.
“Knowing when and how a client was last contacted, the outcome of that contact and whether the contact was in line with their service agreement is data that will be required post RDR.”
So if you want to grow your business, CRM is not something to scrimp on. As Steve Billingham, owner and director of Steve Billingham Consulting, says: “If you are actively marketing to clients and prospects and making sure you connect regularly with them, effective CRM software is crucial.”
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