Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a way for brokers to manage the firm’s contacts with existing and potential clients.

The firm is using data available from the customer’s trading activity to determine an appropriate course of action when aiming to retain or onboard the customer.

This technology is also an effective tool in managing a company's interaction with both current and potential clients.

CRMs use data analysis regarding clients’ history with a company to improve business relationships with customers, specifically focusing on customer retention and ultimately driving sales growth.

One noteworthy component of a CRM is the systems it relies on to help compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media.

CRMs are very important for brokers in helping them learn more about their targeted audiences and how to best cater to their needs.

Why CRMs Have Reshaped the Industry

Brokers use different CRM systems in order to maximize their potential sales or provide support via live chat, telephone or email.

In general, CRM systems also provide brokers with useful data on how to execute their marketing campaigns and how to better service the needs of their clients.

Historically speaking, firms had been allowed more latitude to be proactive, though recent regulatory tightening has limited these means of retaining clients and providing them with incentives.

The data analysis which companies do typically provide the broker with cues about when is a good time to remind a client to make a new deposit and therefore increase the company’s turnover.

CRM technology has become a premium amongst brokers as competition has increased in the FX industry.

The outbreak of the Coronavirus Pandemic in 2020 has also created larger swaths of potential clients, making technology such as CRMs even more instrumental to brokerage operations.