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Extracting Value from Data with Analytical CRM for Capital Markets

by | Nov 9, 2021

In the second of our three-part “Level Up Your CRM” blog series, Michael Norris discusses how capital markets firms can turn their data into meaningful information and actionable insights that lead to revenue generation and business growth.

Client relationship management has come a long way since the days of the ‘Rolodex’. Computerized spreadsheets were initially a huge step forward, enabling data to be entered, organized, updated, and shared quickly and easily. But spreadsheets also have their limitations, particularly the time-consuming and manual input process, which makes them highly error-prone and inefficient.

The development of CRM software and platforms dedicated to the needs of specific industry segments, such as capital markets and banking, transformed how sales teams engage with their prospects and clients – and opened a new world of revenue-generating opportunities. At its most basic, a CRM may only serve as a data repository or an administrative tool that captures client data, both of which still require human intervention.

However, capital markets firms looking to expand will need to ‘level up’ to operational CRM, which introduces essential automated capabilities to customer relationship workflows, eliminating manual processes and increasing efficiency. This is crucial for boosting firm-wide collaboration and productivity and lays a solid foundation for scaling the business.

Organizing data and automating workflows are vital. But as a firm grows, it must make sense of the ever-increasing volumes of data it captures and manages. More data can mean more opportunities, but any information not supported by a strategy possesses minimal potential.

Firms recognize this and are now investing more than ever in analytics. In a recent audience poll conducted during a Tier1 webinar with Refinitiv, 71% of respondents indicated that the majority of their 2022 technology/data budget would be spent on improving AI and analytics. This includes CRM, where the addition of analytics enables clients to derive reliable, actionable intelligence from data, in real-time, to make more informed decisions – before the window of opportunity closes.

Next Level: Analytical CRM for Capital Markets

The widely held misconception is that only professional data analysts can provide meaningful data analysis. Analytical CRM designed with the complex workflows of sell-side and capital markets firms in mind has reached a point in its evolution that allows it to serve as an extension to your team. It provides critical analysis, identifies patterns, and trends, and enables you to obtain feedback quickly, without downtime – ensuring you remain competitive.

“CRM software is no longer just a way to capture information from data – it is an enabler. When combined with powerful data and analytics, and configured to the specific needs of the business, today’s CRM allows you to make proactive decisions that generate success.”

James Mitchell, Managing Director – International, Tier1 Financial Solutions

A key advantage of capital markets-specific analytical CRM is its capacity to provide ‘visual explanations’ of data, such as graphs and charts, in whatever format is needed. This makes it easy for anyone in an organization, regardless of their role, to use the same set of foundational information and data for effective decision-making in client engagement activities, mitigating risk, and identifying growth opportunities. 

Just as data requires analytics to be of value, analytics do not reach their full potential without powerful reporting capabilities. Analytical CRM not only provides the analysis and insights you ask for (as is frequently the case); they also identify what you may have forgotten to ask – or even what you didn’t know you needed to ask.

The ability to evaluate its internal setup and performance allows a firm to understand if it has the foundation and operational resilience to support growth, which is no less important than being able to measure (external) data-driven client success and opportunity. Trends and patterns identified by analytical CRM for capital markets can also lead to cost savings and deliver insights that enable the development of optimal operating and business models. If the business is unable to track team information, performance, and scorecards with accuracy, client success will be elusive, as the two have a symbiotic relationship.

Businesses of all types, across industries and sectors, now find themselves sitting on goldmines of information – specialist analytical CRM is the key to extracting the gold.

Do you know what level of CRM you’re at? Is it time to level up? To learn more, download “Level Up Your CRM”, a Tier1 whitepaper, here or watch the “Revelations & Insights: Discovering Top-Line Growth through Innovation” webinar with Refinitiv here.

Financial Data Analytics

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