Why Wealth Manager CRM Satisfaction Is Plummeting
- Tom Schorn
- Nov 14, 2023
- 2 min read
Updated: Dec 2, 2023
In 2020, Doug Fritz, founder and CEO of F2 Strategy, a technology consultant to wealth management firms, asked 40 prominent companies how they would rate the effectiveness of their client relationship management (CRM) system on a scale of one to 10. The average rating was low. This year, F2 asked 70 wealth management firms the same question and the average rating fell even further. (1)
F2 calculated the results of its CRM survey using a net promoter score (NPS) calculation so that scores for each company can be measured and benchmarked against others. Scores between zero and six are considered negative, seven to eight are neutral, and a nine or 10 are positive ratings. The scores are then weighted to show the consensus. (1)
Here is F2's Insights and Actionable Intel (2)
Wealth management firms collectively express deep dissatisfaction with their CRMs
In 2020, F2 Strategy’s research showed a CRM Net Promoter Score (NPS) at a painfully low -26; in 2022 the NPS has dropped to an abysmal -46
There are now more detractors than neutrals and promoters combined
Firms cite various possible causes of their dissatisfaction: the CRM was overhyped at the time of sale and has yet to deliver on expectations; advisors all want to use it differently; CRMs don’t age well as firms grow and change; and firms underinvest in the CRM which leads to a disappointing performance versus its potential
Take Action: Firms can use best practices to raise their CRM satisfaction: clearly define your CRM goals; avoid “shiny object syndrome” (don’t just buy the household name CRM without research); actively engage—CRMs are too often bought and put on the shelf; and fully buy into the idea of the CRM as the central hub at all levels of the organization
Survey participants shared a few reasons for their dissatisfaction with their CRMs: “The CRM was overhyped at the time of sale and has yet to deliver on expectations; advisors all want to use it differently; CRMs don’t age well as firms grow and change; and firms underinvest in the CRM which leads to a disappointing performance versus its potential.”
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(2) https://www.f2strategy.com/insight/wealth-managements-satisfaction-crms-in-apparent-free-fall
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