CRMs, or Customer Relationship Management platforms, are masters of data management and storage. Pretty much everyone knows what a CRM is, but not everyone knows they come in two varieties: turnkey and custom.
There’s not necessarily a Hatfields vs. McCoys or Yankees vs. Red Sox rivalry regarding these camps of CRMs among advisors. However, your advisory firm has specific and unique needs when it comes to technology, and not all CRMs are equal.
So let’s look at the differences between turnkey and custom CRMs and the pros and cons of each to determine which your firm should be using.
Turnkey CRMs vs. Custom CRMs
All CRMs have the same basic function, which is housing client data, records, and communication. But not all CRMs are built the same way.
A turnkey CRM is ready to use. All you have to do is “turn the key.” Clever, right?
A turnkey CRM is prebuilt with a business like yours in mind. Using a turnkey solution is like going to a Men’s Wearhouse and getting a suit jacket off the shelf that is labeled in your size.
A custom CRM is also exactly what it sounds like. It’s built specifically for you and your needs. Not for businesses or people like you, but specifically for you and your business.
Custom solutions are like going to a tailor shop, getting measured, and having the tailor make you a suit jacket from scratch that is exactly your size from arm length, to chest size, and torso length — customized to a T.
Neither type of CRM is necessarily better or worse than the other. They’re just different, and the best solution for you depends on your needs.
Let’s break down the top pros and cons of each:
Pros and Cons of Turnkey CRM Solutions
Pro: Built for advisory businesses like yours
Turnkey CRMs are built with the needs of end-users in a specific vertical in mind. The financial industry has multiple solutions built just for advisors with unique features, such as compliance and financial planning and integrations to popular advisors apps, such as trading and rebalancing, and even connections to custodians.
Con: Built for other types of advisory businesses, too
Because turnkey systems are built to appeal to as many users as possible in that specific vertical, there will inevitably be at least some features and functionality you need or want that it won’t have.
Pro: Ready to use immediately
Turnkey solutions are designed to be ready to use right out of the box (mostly). This can be great when you’re ready to make a decision on what system is right for your firm and you want to get started right away.
Con: Little to no customization
Beyond changing the user interface color or dashboard, turnkey CRMs don’t leave much flexibility to tailor the systems to your business and your processes.
Pro: Typically cheaper than custom solutions
Because turnkey systems cater to wider audiences, they tend to be more affordable.
Con: You get what you pay for
On the flip side, you are paying less for a reason. Not to say it’s low quality, but as we said, turnkey solutions are less customizable.
Pros and Cons of Custom CRM Solutions
Pro: Totally customizable
When you build it yourself, you can make it do whatever you want, and you get to update it with what you need when you need it.
Con: Totally customizable
No, this isn’t a typo. Total customizability can be both a blessing and a curse and can lead to a disorder known as development paralysis, where you have so many options available to you that you never finish certain features or even get the product off the ground.
Con: More expensive
Building a custom solution from the ground up requires a team of software developers, which can get really pricey. And if you’re going to build your own solution, you’ll need an in-house team that can maintain it. It’s not a one-and-done expense.
Pro: Overlays can provide a hybrid solution that gives the best of both worlds
Working with a company that does an overlay on a turnkey system can allow you to have a custom system without having to do it from scratch and without having an in-house team to maintain it. That’s what we do at Skience, which lies on top of Salesforce.
Popular CRM Providers for Advisors
When looking for the right CRM for your firm, there are a lot of options out there, both turnkey and custom. According to the 2022 Kitces report, “The Technology that Independent Advisors Actually Use (and Like),” the three most popular turnkey CRM providers are:
- Redtail (33%)
- Wealthbox (24%)
- Salesforce (13%)
Just because something is a popular solution for other advisors doesn’t necessarily mean it’s the right fit for you.
Do your due diligence to make sure you’re making the right move before investing the time and money into a solution that turns out to be a bad fit.
Skience and Salesforce
Skience enhances the Salesforce user experience for wealth management firms, their advisors, and their clients. Schedule a demo today to learn more.