Three Mistakes Business Owners Make When Purchasing Finance CRM Software – part 2

In this series of articles we discuss  most common mistakes business owners make when buying finance CRM tools. In this article we’ll find out the last but not list mistake.

Here you can read the first part of the article:(link)

3 Mistakes Owners Make When Buying CRM Software

Most business owners get the ‘why’ of purchasing finance CRM tools. But they fail to take the right steps when making the purchase.

This leads them to believe that either CRM is overhyped or their business is just not right for these tools.

But results will only come when you avoid a few critical errors when choosing a CRM system. While the list is long, here are the three most common mistakes business owners make when buying finance CRM software:

1. Not Understanding What You Are Signing Up For

The global CRM market is growing at a rapid pace. The revenues in 2015 were $24 billion, which would predictably double to $49 billion by 2025.

This also means that the market is saturated with more than a dozen companies offering CRM system. With so many options available, it can get overwhelming to pick the right CRM software.

One of the biggest mistakes business leaders make is not understanding the type of finance CRM they’re investing in.

Basically, there are three types of CRM, which are:

Collaborative – These CRM tools, also known as strategic CRM, centralize data from various sources and present it in a single place. Collaborative CRM aims to enable collaboration among various departments. The two main elements of these CRM tools are interaction management and channel management.

Analytical – Analytical CRM tools present data in an aggregated format. Users must conduct proper analysis to derive meaningful information from this data. The main benefit of these types of CRM tools is that you can uncover information, insights, and patterns that are otherwise not visible to the human eye.

Operational – Operation CRM tools support the day-to-day operations of your business by automating various manual tasks. These can carry out repetitive tasks and processes accurately, thus reducing the workload of the team members.

A finance CRM software might have one or all of the three functionalities. But as a buyer, you should have proper knowledge of what you’re investing in. Then buy as per the business needs.

What to do?

To avoid making this mistake, always conduct proper research on the finance CRM tool. Learn about its core and supporting features, get acquainted with the UI, and check its deployment type (cloud, on-premises, or hybrid).

Along with that, it’s vital to go through the terms and conditions and pricing plans. Some CRM tools bill per user, while others adopt a pay-as-per-usage plan. It’s better to have clarity on the pricing before you commit.

2. Not Defining Objectives

The second common mistake owners make is not articulating the objectives. This is like setting out on a journey without knowing the destination.

A CRM allows you to meet a wide range of objectives. As long as you have access to the data, you can set any business objective you want.

What to do?

The solution to this problem is simple: define an objective before you purchase a Customer Relationship Management system. Or consult with the CRM maker and discuss your options.

Here are some of the objectives you can set for your business:

Increase sales – The main reason businesses invest in CRM is to increase sales figures. So by default, you can set your objective to improve sales numbers. Alternatively, it can be something more specific, like increasing value per customer or lowering customer acquisition costs.

Enhance the buyer’s journey – A finance CRM can help you pinpoint where customers are feeling the pain when interacting with your business. Thus, if you feel like you’re underdelivering, set your objective to enhance the buyer’s journey.

Improve customer retention – A CRM tool can also help you figure out precisely where your customers are dropping off. This offers you an opportunity to reclaim lost customers and retain them for the long term.

Improve operational efficiency – Certain CRM tools like the operational CRM software automate several mundane tasks. These not only consume excessive time but also increase error rates. So you can set your objective to improve operational efficiency to make your team more productive.

Better team collaboration – Some organizations suffer from isolation, wherein teams work in silos. It is not only unproductive but also unhealthy. CRM software allows you to share data and collaborate on projects with various departments. So, you can have team collaboration as your objective, in which case you’ll have to invest in collaborative CRM.

You can have more than one objective to begin with. But it’s recommended to assign each objective to a specific team or person to avoid complications.

3. Not Having a Software Strategy

The third mistake owners make when buying a finance CRM solution is not creating a software strategy beforehand.

CRM, at the end of the day, is merely a tool. Without a proper strategy to utilize it, the tool will only take you as far. Therefore, small businesses must create a software strategy and purchase a finance CRM that complements it.

What to do?

To avoid this issue, create a software strategy for the CRM first. Here are the steps you can follow for this purpose:

Audit your business – You must understand where your business stands at the moment. Therefore, conduct a thorough audit and pinpoint the exact process that your company is following. Along with that, carry out a SWOT analysis and identify the strength, weaknesses, threats, and opportunities.

Define goals and objectives – Objectives are core to strategizing. So borrow the objectives you have defined in the previous step and use them here. If you want to widen the scope, you may.

Identify customer persona – For the strategy to work, you must hone in on the customer persona. These are the ideal users you want to serve in your business. Chances are you have more than one customer persona to target. Therefore, create a separate persona for each customer segment.

Figure out the customer journey – Finally, you figure out the customer journey. This will help you target them at each stage of the journey.

These four components will help you craft the perfect CRM software strategy.

Consult with your team and determine the best way to utilize the CRM software. Also, consult with the CRM company and seek guidance to find the best finance CRM tool for your business.

How to Choose the Right Financial CRM for your company?

Picking the right financial CRM is a crucial step. Therefore, you must know the tips and tricks of how to select the CRM for your company.

Here are the things you need to answer first:

Is it specific to finance?

There are generic CRM tools and ones designed for all sector types. If you’re in the finance industry, it’s in your best interest to select financial CRM software.

It is designed for use by financial advisors and anyone within the finance department. Finance CRM software has all the fields necessary to support finance operations

Cloud or On-premise or hybrid?

You’ll find three different types of CRM tools: cloud, hybrid, and on-premise. Cloud CRM is hosted on the cloud and doesn’t require you to provision any server at your site.

On-premise CRM software is self-hosted and requires the provisioning of servers. Hybrid CRM hovers in the middle. This is an important consideration to make before you purchase CRM software. For simplicity, it’s best to opt for cloud finance CRM software.

What features and functionalities do you need?

Pen down the features you expect from the finance CRM tool. In many cases, large and smaller businesses get oversold on the out-of-the-box functionalities that they either do not need or do not use. But they keep paying for them month after month.

As a smart business owner, you should decide wisely and buy CRM software with only the necessary features.

Does it integrate with other applications?

One of the most crucial tasks of a CRM tool is to share data with other apps seamlessly. So if you’re using other tools at your company, like G Suite, Office 365, ERP, and Tally, and want to grab information from there, make sure the CRM tool integrates with them.

Check for available APIs and consult with the seller regarding this. The more number of services it integrates with natively, the better.

What’s the budget?

Lastly, consider your budget for the CRM solution and buy accordingly. The price will change depending on the type of tool you buy. Therefore, check the pricing plans of different vendors and proceed with the one that’s within your budget.

With the right set of business and marketing strategies, you can fill up your sales pipeline with qualified prospects. By choosing a CRM that fits your business needs, you can get there much faster.


What is CRM finance?

CRM finance is a CRM (Customer Relationship Management) tool designed specifically for the financial industry. Both large and small business owners can use it.

What should a CRM solution include?

CRM software solutions should include these functionalities: lead and customer management, workflow automation, third-party integration, real-time tracking, and customization, among others.

What CRM systems do banks use?

Banks use highly customized CRM software or Finance CRM software. They can use the latter right off the shelf without much customization since it’s designed for use in finance companies.

Does the CRM system integrate with other software?

Yes, CRM tools integrate with other software and apps. Most companies either do it manually or through the API.

How does a CRM system help customers?

CRM system helps customers by increasing their overall satisfaction. With the right set of data, companies can provide