CRM Best Practices for Financial Professionals

Customer Relationship Management (CRM) has long been a key part of building and maintaining strong business relationships. Over time, these systems have evolved into powerful tools for managing data, improving sales processes, and enhancing client relationships. Today, with modern technology and cloud-based platforms, CRM systems are essential for any business focused on sales or service.

In my work with financial companies, I’ve seen first-hand how effective CRM systems can transform a company’s business. Whether you're selecting a system, customizing it, or managing it day-to-day, a well-organized CRM can make all the difference in maintaining the status quo, growing, or scaling your business.

Data Quality: The Cornerstone of Effective CRM Usage

The backbone of any CRM system is the quality of your data. Ensuring high-quality data allows the system that overlays your data to reach its full potential. At 3G, we focus on three key areas to ensure your CRM system is effective:

• Gather – Understanding where the data is coming from, who owns it, and how it’s currently being organized and integrated into your CRM system.
• Generate – Creating the documentation that structures your system, defining key fields and objects that are unique to your business, and setting up reports and dashboards to streamline the workday for your owners, producers, and employees.
• Ground – Embedding these changes into day-to-day operations, reinforcing the habit of using the system through quality controls, reporting, dashboards, and company-specific training materials.

CRM Variations for Financial Advisors

There are hundreds of CRM options in the market, so finding the right fit for your company can be challenging. Below are my takeaways and opinions on some of the key CRM options in the Financial Services Industry:

• SmartOffice – Comprehensive financial planning with a strong insurance focus, integrated tools for commission tracking, and access to DTCC feeds for updated policy information. Ideal for: Insurance-focused producers, MGAs, IMOs, and PPGAs
• RedTail – Streamlines wealth management workflows, operations and compliance. Ideal for: Wealth focused producers, RIAs and broker-dealers.
• Salesforce – Highly customizable, supporting multiple product lines, teams, and marketing capabilities. Ideal for: Companies focused on sales or service that have the ability and need for a flexible, customizable solution.
• Wealthbox – Simple and straightforward system, with a focus on wealth management. Ideal for: Investment producers, broker-dealers and enterprise firms.

Although not ideal, some companies may choose to use more than one CRM system. At 3G, we are technology-agnostic, working with your company and partners (e.g., broker-dealers, general agents) to identify the best path forward to meet your goals. We often serve as your CRM Administrator, helping to rebuild systems and increase adoption while partnering with your teams.

Best Practices on Creating and Structuring a CRM System

Once you’ve chosen your CRM system, the next step is determining how to structure it. What data fields do you need to capture? How will you use this information? Having managed multiple CRM databases throughout my career, here are a few best practices that I’ve identified over the years when setting up a CRM:

• Create the Model – From charting software to Excel, map out how you plan to structure your quality data. Generally, these are Account, Contact, Lead, Prospect, and Opportunity options. Decide how you want to label them and when to move a contact through the process. Identify standard workflows in your business that can be integrated into your system using these fields.
• Ownership – While I wouldn’t suggest excluding your sales team from inputting data, if you have the resources, assign ownership of key data entry to two people. This provides backup and allows your sales team to focus on logging their activities (calls, emails, tasks, etc.) versus data input. Having a quality control person review a weekly, monthly or quarterly report for accuracy is ideal.
• Don’t Over-Customize – This is where many companies fall into a trap. Most systems offer “out-of-the-box” options, so be deliberate when making custom changes. Customization can have downstream effects on other parts of the system. When you do customize lists or labels, make sure to document and define those changes so other users can quickly understand them.
• Segment – Categorize your clients into different subtypes. While your contacts will never see this, and your staff should be trained not to mention it to them, it allows you to run your company more effectively. Segment based on factors like revenue, production, service time, referrals, or net worth. I have also built a multi-factored automation to give contacts a more defined score.

o Record Type: Account = Household/Business, Contact = Business Owner, Type = Client, Subtype Example – Tier 2 or B Contact can be determined using an algorithmic score based on factors like net worth > X, product lines > 3, service level < 5, etc. This formula-based approach helps to remove subjectivity from the evaluation.

• Bonus Tip – Most systems allow for bulk modifications. Use this feature for large-scale updates and record adjustments. I recommend having this done by an administrator or an experienced user.

Advance Uses for your CRM System

Entering clean contact data into the system is just the first step of your newly structured CRM, but it’s certainly not the last. Managing your CRM is just as important as setting it up. Here are some recommendations:

• Workflow – Incorporate workflows like new client onboarding, task management, and available communication features to promote transparency and collaboration within your team.
• Reports and Dashboards – Most systems offer these, and they’re a great way to move from static files to dynamic dashboards or reports that can be used in your weekly team meetings.
• Key Performance Indicators – Set KPIs for your team and use reports and dashboards to track the level of service your company is providing to clients.
• Integrations – As technology and AI evolve, more tools are available to integrate with your CRM system. These integrations enrich your data and provide greater insight into your overall business.

How a CRM System + 3G Practice Consulting Can Help You

A well-structured and managed CRM system is more than just a tool—it’s a powerful asset that can transform how your business operates and grows. By focusing on data quality, streamlining workflows, and utilizing reports, dashboards, and integrations, financial professionals and producer groups can optimize client relationships and enhance their overall business performance.

Whether you’re just starting with a CRM or looking to take your current system to the next level, these best practices can help ensure your CRM becomes a cornerstone of your success. At 3G Practice Consulting, we’re here to guide you through the process, offering practical solutions and tailored support to meet your company’s unique needs. If you have any questions about CRM, please don’t hesitate to outreach at [email protected]?

If there are any topics about CRM systems that piques your interest, or if you would like me to deep dive on some of the above topics, let me know and I can add them to 3G Insights! As they say, “a rising tide lifts all boats.” ?Your success is my success!