12 Things You Should Expect in a Good CRM
(Caveat emptor!)If you're looking for a Customer Relationship Management (CRM) system for your lending business, please do consider the following recommendations which are designed to help you avoid some of the "gotchas"! LoanLinx is designed to cater for all of these needs but even if you don't get LoanLinx, at least you'll know what to look out for!
Industry Specific
The lending industry is unique. A CRM system designed for industrial selling, or car sales, or a garden centre wont know about lenders, LVR's, settlement dates, security properties or all the other details that lending specialists need. Shoe-horning a square peg into a round hole is a false economy and will soon lead to frustration.
Local Knowledge
Is it produced in Australia? Lending overseas (except, perhaps, New Zealand) is substantially different to Australia. US and UK systems use US and UK terminology and confuse more than clarify. It's not only patriotic to buy Australian but it makes sound business sense, too!
Simple Setup
You shouldn't need to pay a tech to install your new CRM system – costs can be up to $200/hr. A good system should be just "plug & play" and run on basic hardware with just Windows XP or Vista.
Easy to Use
People wont use software if it's hard to use. Many people in lending come from the B.C. era – Before Computers – and find it hard to adapt. When selecting your software invite such team members to sit in front of any software you are considering and see if it feels "natural" for them to use. Systems with screens that resemble paper forms will make for an easier transition for them. (A good system will have been designed by people with hands-on experience in lending, not by programmers!)
Good Support
Speak to other users – not to just one or two names provided by the vendor. You'll need support almost instantly, not when someone gets around to it. 24 hours is often too long – 24 minutes is more like it. Do the support personnel speak your language and understand the industry, or are they just tech-types? Only people who have done your job really understand your job. Also, will the vendor provide software upgrades as your needs, and those of the industry, change?
The Functions You Need
One person's CRM can be another person's nightmare. Don't assume "all the usual functions will be included" - write down your needs and include your Team Members in the planning as each may have a different perspective. For example, not all CRM systems have mail-merge, SMS alerts, data export, reminder systems etc. Don't be caught out later with a "Sorry, that's an optional extra." Even if they do offer the modules you need, the vendor's view on what is adequate may be completely different to yours.
Helps You Get Paid
Look beyond just the usual CRM features. Your business is not just about your Client base (however important). For example, think about how you are going to get paid. A good CRM will allow loan settlements to flow through to commission-checking so you can automatically capture every cent you are due, without extra work. Brokers and franchise offices need a system to "check the checker" – it's your money, after all! In Australia many brokers have reported typically around $500 missing each month from their payments, and this increases to $1500 for franchise offices with a number of loan writers.
Currently there is around $10M sitting unallocated in orphan commission accounts because current payment systems simply don’t work properly. It will get worse with the new trail structures so make sure your new CRM system will handle the changes.
Be specific about how you expect this feature to work - for example, one software vendor may feel it sufficient to provide a tick-sheet to check commissions while another may provide fully-automated electronic processing which then generates an arrears claim.
Multiple Sales Options
The lending industry is changing and there's a need to sell associated products and services like insurance and financial planning. Some brokers even sell real estate. Make sure your new CRM system can handle these options, recording all appropriate details, along with a system for checking you receive all your commissions for those additional services. Plan ahead for your potential future needs – changing systems later will most likely be extremely disruptive and expensive.
Referrers
Everyone in lending needs Referrers and yet most CRM systems forget all about them. A good system will have a dedicated area where you can develop and nurture your referral sources – with features like full contact details, mail-merge, diary, PDA interface and even a way to record and process any commission splits to them.
Reasonable Price
Is the price reasonable for what's on offer? If it's too cheap, will they remain in business and be there to provide meaningful support? If too dear, will you remain in business? Are all the costs on the table – initial costs, on-going costs, support costs, upgrade costs? Does the price include all the modules you are reasonably likely to need? Are there any penalties for exiting the contract early? Work out your total cost of ownership over a 2-year and 5-year term, or some horizon that is relevant to your business.
True Multi-User
Your whole team will stay connected with a true multi-user system, with everyone seeing the data in real-time. However, many systems require you to synchronise to update each other, meaning that, until this is done, no-one can be sure where a file is up to. With a true multi-user system, everyone knows what is going on and, if tasks are set for someone who is away, others will know about it immediately and can pick up the baton and run with it. Less missed deadlines and disappointed borrowers!
Data Security
Would you really be happy for a third-party to be able to view (and potentially "borrow") your data? Or perhaps do marketing of other services to your Clients? That's the risk with an on-line system, such as one hosted by an aggregator. Having an on-premise system means you stay in control and can never be cut off from your data. Don’t be fooled by "experts" who say Web-based systems are best. They are — for them! Read more here ...
Some say that on-line systems allow better access (such as when travelling) and secure backup, but this is something of a bluff. The same functionality can be achieved with on-premise systems – you can have access from any computer in the world and do automated, encrypted, off-site backups to totally-independent locations for little or no cost. (Drop us a line for details on how to do this).
If you'd like to have the above information in PDF form, please click here to view the article published by the FBAA.
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