FPA Releases First-Ever CRM Software Study

New tool for advisers eases the burden of finding the right technology solutions

For Release:  February 3, 2010

Denver, Colo. – The Financial Planning Association® (FPA®) today released the first-ever comprehensive, financial services customer relationship manager (CRM) software research report. The study is groundbreaking because it provides a thorough review, testing and analysis of 16 CRM software programs built specifically for financial planners and advisers.

The report, "FPA-ActiFi Adviser Technology Reports: CRM Edition", published by FPA Press, reflects data gathered from FPA members, CRM customers, CRM vendors and comprehensive functionality testing of each CRM solution. The research was conducted from July to September 2009 by FPA and ActiFi Inc. and is sponsored by TD AMERITRADE Institutional.

The FPA-ActiFi Adviser Technology Reports: CRM Edition gives financial advisers comprehensive tools and analysis to find the CRM software that is best suited for their business. According to the research, 83 percent of advisers who currently have CRM software believe they are more productive because of it, and report spending more than 10 hours per week using it. Having detailed analysis of CRM options available, advisers can now make the right technology purchase decisions without wasting time or money.

"If financial planners had to review and evaluate hundreds of existing practice management tools, it would be a very daunting task," said Marvin W. Tuttle, CAE, FPA's executive director/CEO. "We conducted this CRM study to give advisers an easy-to-use guide to help them make smart software decisions to improve their work flow, increase profits and advance their business."

The FPA-ActiFi Compass, a new tool introduced in the study, provides a rating of CRM software based on ten functional and eight general categories. It was created to help advisers rule out CRM programs that aren't relevant to their business and focus on solutions that are best suited for their practice – thus, saving time and money. For example, an adviser who owns a small firm can use the Compass to compare CRM programs that specialize in small business management, or compare what products other small firm owners are using. The Compass also guides advisers through demographic comparisons and which CRM programs are compatible with other software solutions.

Each CRM software solution was rated, using a proprietary FPA-ActiFi scoring system, on a scale of zero to four, representing limited capability to best in class, respectively. Based on this scale, research findings revealed:

1. CRM vendors overall excel at providing basic contact management with an average industry score of 6 out of 4. Individual vendor scores ranged from 2.6 to 4.
2. CRM vendors' weakness is 360 degree client management with an average industry score of 2.4 out of 4. Only one vendor received 4 points, several received a zero.
3. When comparing various vendor benefits such as support and set-up, vendors most widely differed in price followed closely by scalability.

"This research is the most in-depth ever conducted on advisor technology, and the CRM study should prove invaluable to advisors looking to purchase a CRM," said Spenser Segal, CEO of ActiFi Inc. "The research insights and findings on vendor capabilities will save advisors both time and money: time saved because we've already assessed and documented each vendor's capabilities in great detail, and money saved by helping advisors make the right purchase decision for their business. Furthermore, advisors will benefit from the insights into CRM strategy, implementation, and utilization – all of which will further help maximize their technology ROI."

"A CRM program is often considered the technology hub of an advisory business. Now choosing a system to serve as an important foundation for client and prospect workflow just got easier," said George Tamer, director of strategic relationships, TD AMERITRADE Institutional. "TD AMERITRADE Institutional supports this significant effort to help independent advisors make more informed technology decisions and realize the full business benefits of CRM systems to increase their productivity and profitability."

More survey details will be featured in the March issue of Practice Management Solutions magazine and Research Spotlight. A free copy of the report will be distributed to FPA members, and the report, market research and evaluation data is available for $5,000 for FPA institutional members ($7,500 for nonmember firms) through the FPA Research Center.

The FPA-ActiFi Adviser Technology Reports: CRM Edition is the first in a series of seven technology research reports that will compare various software and technology platforms. The technology report series will be released over the next two years.

About FPA Research Center
FPA has been conducting research since its inception in 2000. The FPA Research Center was officially formed in 2007 to further empower the financial services sector with knowledge and an understanding of the financial planning process, including how it affects consumers, planners and firms.

About ActiFi
ActiFi™is a software and solutions company focused on delivering scalable practice management programs to the financial services industry. By implementing ActiFi’s proven people, process, and technology solutions based on research, best-practices, and industry benchmarks, clients run more effective and profitable businesses. Learn more at http://www.actifi.com

About TD AMERITRADE Institutional
TD AMERITRADE Institutional is a leading provider of comprehensive brokerage and custody services to over 4,000 fee-based, independent Registered Investment Advisers and their clients. 1 Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisers to run their practices more efficiently and effectively while optimizing time with clients.

1 TD AMERITRADE participated as a custodian respondent in the study. TD AMERITRADE is separate and not affiliated with Financial Planning Association or ActiFi and is not responsible for the policies or services of any third-party, except to the limited extent that TD AMERITRADE participated in the study. TD AMERITRADE does not guarantee nor is it responsible for the completeness or accuracy of the data provided or for the quality of any third-party product or service. TD AMERITRADE makes no warranty or representation with respect to the service as to suitability or fitness for a particular purpose. In no instance should the listing of a third party be construed as a recommendation or endorsement by TD AMERITRADE. TD AMERITRADE Institutional, Division of TD AMERITRADE Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org). TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. Used with permission