Using CRM Software to Retain Hedge Fund Investors

Figures show that it’s cheaper to retain customers than to invest in new customers (the Chartered Institute of Marketing sets it at around 10 times cheaper) and never is this more true than in the investment sector. Losing investors through poor communication and poor management won’t only affect your profit margins, but they’ll affect the overall health of the fund. New investors take time and resources to attract, resources that you could be using to solidify and improve the relationship with your current investors. So how can CRM (customer relationship management) software be used to leverage better relationships with your investors?

Communication is the key to client retention, and investor CRM systems can help simplify the way that hedge funds interact with their investors by improving access and data share of investor accounts and past, current and future interactions. CRM software helps you to build a profile and track behaviour and satisfaction levels, allowing you to keep on top of the often unique demands of your investors.

Tracking every instance of communication with each and every investor, including emails, calls, and interactions with any intranet or extranet will give you the ability to set schedules for further communication, ensuring that no client gets left out of the loop and no client is left out of important news, developments or reports.

Automation can improve the efficiency of reporting, and reports can be scheduled and delivered as and when they are produced to all investors. The ability to segment investors into groups allows you to send out reports and communications that are entirely relevant to their needs, allowing for more time to be spent where it matters, supporting and nurturing the investors who are most in need of attention.

Hedge fund CRM software can also be extended to offer investors access to their own account details, allowing them to track their investment, read relevant documentation and view reports. Many of these solutions are also compatible with mobile devices as well, meaning your investors can access the information that matters to them where and when they want it.

Investors who are treated well are far more likely to make further investment in the fund or new investments in partner funds you are currently marketing to the sector. Ensuring you build relationships that are long lasting, transparent and above all else, healthy and beneficial for both you and your investors will ensure that your fund stays buoyant and your investors stay happy. It’s a simple formula for success; work hard to retain your customers and you’ll reap the benefits.