The findings in this blog post come from RIA in a Box’s annual survey, which was conducted in the first quarter of 2023.
In our last blog post, we talked about the top RIA risk tolerance software that RIA firms prefer. This time, we’ll be delving into the findings from our annual survey results in response to customer relationship management (CRM) systems used by RIA firms and exploring the trends over the years.
Adoption rate of CRM systems at RIA firms
A CRM system can be pivotal to an RIA firm’s success. By reliably collecting and presenting client information, CRM systems help advisers save time so they can focus on other tasks that add strategic value to their firms. What’s more – advisers who successfully implement a CRM system often report long-term cost savings, more scalable growth and noteworthy improvement in the quality of service they provide to their clients.
Interestingly, despite the value that CRM systems can provide to RIA firms, there has been a noticeable decrease in the number of firms surveyed that have adopted a CRM system. There was a slight increase from 2018 to 2019 from 52% to 53% of RIA firms that adopted a CRM system. That number remained steady until 2021 when there was a drop to 52%. 2022 has seen the greatest decrease so far in the number of RIA firms adopting CRM systems, as the current percentage is now 49%.
Typically, the adoption rate of a technological solution is related to the size of a firm, generally measured by the firm’s total assets under management (AUM). The same holds true for CRM system adoption rates. Firms with $5 million or less in AUM adopted CRM systems at lower rates, 20% or less, whereas firms with $25 million or more AUM had 30% or higher adoption rates.
Top CRM systems at RIA Firms
Redtail remains the dominant provider in RIA CRM systems, having 43% market share. Wealthbox and Salesforce are second and third most commonly used at 18% and 10% respectively.
An RIA CRM system is among a firm’s most powerful tools.
Ideally, an RIA CRM system should integrate with various adviser tools used for performance reporting, financial planning and investment and document management. This ensures that an RIA firm’s functions are seamless, enabling employees and advisers to do their best work.
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