In family office management, the role of Customer Relationship Management (CRM) software has evolved significantly. Traditional CRM systems have paved the way for a new breed of software tailored specifically for family offices. This insight explores how next-gen CRM solutions go beyond simple contact management, transforming how family offices manage relationships, harness data, and optimise operational efficiency.
Basic functions of traditional CRM software
When thinking of traditional CRM software, companies like SAGE, SAP and Salesforce come to mind. They’ve helped companies manage customer interactions for years. And as businesses digitised, they’ve been at the forefront of automating processes and managing data.
Some of their basic functions include storing customer contact information, automating sales, and managing workflow activities. They also facilitate customer support by tracking customer inquiries, issues, and requests. Their ultimate goal is centralising customer data and providing actionable insights to drive business growth – usually for sales or marketing teams.
Shortcomings of traditional CRM for family office management
Traditional CRM systems are great at building sales pipelines, generating client leads or driving marketing campaigns. However, family offices are generally not looking for a prospect, a lead, or a sale. Their main concern is preserving wealth and looking after family members’ interests. They often manage the interests of multiple generations. And also work with various stakeholders, including advisors, attorneys, hedge funds, and private equity firms. As such, relying on traditional CRM systems, designed with a one-size-fits-all mentality, falls short of meeting the demands of their intricate ecosystems.
The need for more intelligent software solutions
Family offices require CRM tools that offer relationship intelligence beyond contact storage and interaction tracking. On average, a single-family office can have up to 27 external advisors, making it challenging to find conventional CRM software to integrate everything onto a single platform.
Luckily, a new breed of family office CRM software has emerged to provide innovative and customised solutions that cater to the unique needs of family office operations.
Unlike traditional CRM software, the new breed of digital software uses advanced technologies and features to better serve family offices’ unique needs.
Cloud-based
The latest CRM software solutions for family offices are cloud-based, allowing easy and secure data access. That means family office staff can work remotely and collaborate with family members and clients, no matter where they are in the world. In addition, cloud-based systems do not require IT maintenance. They are relatively easy to set up, accessible on mobile and provide a user-friendly experience.
For example, Wealthbox offers a cloud-based CRM solution that family offices can use to manage client relationships. Their solution is so intuitive that it doesn’t require training. And the software is so personalised that users can even engage on Twitter and make instant telephone calls with a click of a button.
AI-Driven
New CRM solutions for family offices also leverage artificial intelligence (AI). They can help family office enhance their data analysis, automate routine tasks, and provide predictive insights into client relationships.
A good example is Affinity, which uses AI to drive relationship intelligence. Affinity synchs all emails and calendar data, creating a directory of all the organisations and individuals to which the family office is connected. The tool automatically generates profiles for each connection and uses a patent algorithm to calculate their relationship strength. Family offices can use Affinity to simplify deal management processes and deliver comprehensive insights to family members.
Other advanced features
New family office software solutions are not limited to financial investments. For example, Nines is a one-of-a-kind software solution focused on real estate and household management for high-net-worth individuals and families.
Based on the needs of family offices, the new software solutions can be classified into three categories: engagement platforms, operating systems, and client portals.
Engagement platforms
Engagement platforms facilitate meaningful interactions between family office staff and their stakeholders. They go beyond simple communication tools by offering advanced features.
For example, Summitas provides a holistic engagement platform for family office operations. They enhance the client experience by enabling family offices to share documents with their external advisors and initiate eSignatures from one secure, centralised portal. It also improves the family experience by providing a safe, go-to hub that enhances connections and access to information from the family office.
Operating systems
Family office operating software systems serve as centralised hubs for managing various aspects of family office operations. For example, companies such as Way2b1 and iPaladin provide centralised platforms for family offices to connect with clients and family members.
They also facilitate collaboration among team members, enabling them to work together on tasks, projects, and client-related activities.
Client portals
Client portal software allows family offices to easily monitor and handle intricate client relationships through a user-friendly interface. They commonly come with messaging and chat features that enable clients to communicate directly with their advisors and receive prompt responses.
An example is Moxo’s OneStop Client Hub for managing client interactions through modern digital automation. Businesses can streamline deadline-driven client interactions, including onboarding, account servicing, and exception handling.
To sum up, the latest software solutions provide family offices with improved client engagement and collaboration. They include operating systems that simplify family office tasks and client portals, allowing clients to securely access information and communicate with advisors. These advanced features are tailored to meet the unique needs of service providers in family offices, resulting in increased efficiency, transparency, and improved user experience.