Why Firms Should Get Everyone (Or At Least Most) Team Members On The CRM

Choosing the right technology to meet your firm’s immediate needs and long-term goals will not only streamline operations today but will position your firm to take on future challenges and flourish in an ever more competitive environment.

Your firm is like no other and your technology should be flexible enough to accommodate and improve your unique business processes. In the long run, technology will make new levels of efficiency and transparency available, and provide a way to differentiate your firm from the competition.

With executive sponsorship, company-wide buy-in, a strategic approach, and a collaborative round of testing and optimizing, you can be up and running with more transparency and efficiency than ever before.

Firm-Wide Effort

A data transformation takes firm-wide effort and a well-thought-out strategy. But once you are underway, you’ll quickly see your investment pay off.

  1. Drive the Implementation in the Right Direction

Software implementations of any type require planning, technical setup, training, and change management. None of this can be done effectively without proper buy-in from all levels of the organization.

Without the right people backing your decisions and driving the implementation in the right direction, even an ideal software solution can fall flat and wind up being a waste of time and money.

Having executive sponsorship is critical to a successful software implementation.

Executive sponsorship means a senior-level executive is responsible for the business success of a project. Usually, there is a small team of people in charge of making the decisions on whether or not to purchase a new technology solution. This can be troubling since implementing new software, like a CRM, will have lasting impacts on almost everyone in the business.

An executive sponsor on the software implementation team significantly increases a project’s likelihood of success. It helps ensure that the software is being set up in a way that will support business needs at a higher level of the organization. Plus, the sponsor should prove to be a valuable technology advocate for the rest of the firm.

  1. Increased Transparency & Visibility with LPs

Sharing information with Limited Partners often involves multiple phone calls and emails. Not only are these traditional communication methods slow, but they also don’t offer the kind of transparency Limited Partners require. Today’s solutions often include an investor portal that empowers Limited Partners to find the information they need quickly, easily, and efficiently. A robust investor portal will allow firms issuing documents in a secure platform to request signatures, track and manage documents, and see who has already viewed the document.

  1. Quicker Knowledge Exchange

Many firms have the information they need to be stored in siloed systems. Logging into and transferring information from various locations slows productivity and even increases human error if not checked properly. 

Today’s solutions are designed to work with one another—either within one solution or through a third-party integration that connects to other solutions. Private Equity firms can enjoy a faster, more efficient process when connected to important systems such as data and analytics reporting, financial accounting, investor relations, customer relationship management, and portfolio management.


A traditional crm was built for general ‘customer’ scenarios

Software platforms have made the world a better place by making work a better place. Indeed the world is better off when people enjoy their jobs even marginally more, and workplace applications on big CRM platforms like Salesforce.com have done that and much more.

But the potential that platforms like these offer presents diminishing returns: once the platform provider has engineered too many industry specific components into its platform, its usefulness for other industries begins to be threatened, and with that so do the usefulness of the component tools built into the platform.

So it is with the CRM category that Salesforce.com has defined: it is generic enough to work for many industries, and yet still offers the potential for others to round off the edges and nail more vertically-oriented and extremely tailored software solutions.

Private capital markets are actually a great demonstration of this dynamic. Where generic CRM platforms simplify — appropriately so — to assume there’s a business, a customer, a sale, and service of that customer, there are a few industry-specific pieces that are missing.

Take for example, that investors become customers by investing through legal entities the GP raises. It’s a subtle but important nuance that just doesn’t make sense at a platform-as-a-service level (because it’s overly complicated for a simple one-time sale that many industries require), but which can easily be added without 10 years or software engineering. Once provided, the rest of the platform’s components become tremendously powerful again and you’re set to take over the world.

As a traditional CRM in our pillars methodology, these nuances must be present to properly account for investors in these legal entities, potential target companies and which are owned by these entities, the context of all interactions with these parties (as well as the appropriate overlap, ie co-investments), and how you’re arriving at finding these opportunities on both sides of the equation, such that you’re able to piece together what’s effective and what’s not. Not just because we say so, but because these are the very relationships and data that are key to the motivation behind a CRM in any industry.

It’s critical, too, that the valuable publicly-available information that helps to enrich CRM systems and save users painful steps of entering it themselves is fully-integrated at the platform level.

Again, look no further than the 3,000+ pre-built integrations that Salesforce.com — the creator of the CRM platform concept — has at a platform level to do so, and which only exists by way of holding just short of overly-specifying certain industry workflows that would present challenges to properly integrate.

Stakeholder reporting and communication (investor relations) draws on a range of datasets

The traditional “customer service” model of CRM systems once again makes overly-simplified assumptions about the customer relationship when applied to private capital markets.

In fifteen years I personally have yet to hear the terms “warranty” or “service call” in this market because it’s just not the same. But make no mistake, as uncomfortable as it may be to say aloud, customer service is more important now than ever and it’s constantly happening; the industry is, after all, considered to be a financial “service”.

As it turns out, that service is primarily information-based — it’s driven by data and takes the form of reports and analysis that drive decisions, and then end up again in investor-facing reports and analysis.

The foundational elements of a private capital markets CRM must be built such that they accommodate this data (like we discussed above), but so too that it can accommodate additional supporting data that investors (customers!) need in the context of service.

Oftentimes this supporting data — financial metrics and time-based values, for example — is believed not to meet the traditional definition of CRM and the natural thought is “well, better do this in Excel!”.

While I happen to believe Excel is still the greatest software application ever built, its introduction to this value chain we’ve discussed herein actually creates the problem many firms suffer from: key data needed to provide customer service (again: effectively the entirety of a firm’s reports and analysis) is now in disparate systems and detached.

Both of those dynamics are important and distinct: not only is this supplemental data disparate, but when brought together there is no logical association that can be made between the two data sets.

Allow me, then, to make the point very simply: not only can this financial and time-based value data (you may be thinking about is as “portfolio monitoring” or “accounting”) be a part of a CRM, it is arguably the most important part of a CRM because it’s at the core of what providing service to the customer entails — information that comes out of data!

Firms need a digital method to engage stakeholders (ie investor portals)

Investor portals are not new; in fact, for many of us — including myself — they conjure up horrifying nightmares in which we’re aimlessly guessing at folders to find the newest document we need.

So in lies the opportunity: not only have the portals we’ve come to hate not simplified the process of acquiring information, they’ve failed to create an entirely new experience that is “customer service” driven.

To be fair, this is not a B2C market where you’d be long out of business for not having focused on customer service and thus the customer’s technology-driven experience. But don’t expect to be around too much longer if you aren’t thinking about this shift.

Today’s institutional investors increasingly expect this same consumer-like experience, and a massive opportunity is being missed by not providing it. It’s not about providing them the experience they desire; it’s more about the ability to measure engagement that is had in return.

Put simply: what’s keeping the market from providing this experience is the availability of the information that’s required to create the service that provides the experience.

If you’ve hung in this long, you know that by focusing on your CRM, you have the data that’s required to manage the customer relationship and the technology-driven experience through which that information is shared to create a differentiated and opportunistic customer experience.

investor relations tool