Top advisors have an average client attrition rate of 1% while all Canadian advisors on average have an attrition rate of 10%, according to recent research by Vancouver-based Maximizer Services, Inc., a provider of client relationship management (CRM) software.

What distinguishes those top advisors from their peers is not limited to client and revenue growth, but includes the effect that advanced use of technology and CRM systems have on those top advisors’ relationships with clients.

CRM systems can actually help advisors keep their own attrition rates low, according to Maximizer Services’ 2014 research, which found that 69% of advisors who use a CRM system had an annual attrition rate of 5% or less.

CRM systems allow advisors to organize and systemize their practices, which is key to developing personalized client relationships.

“The future independent wealth management advisor needs to become a highly organized knowledge manager at the core, able to easily access precise information on a client at the right times in order to establish a stronger rapport and capitalize on opportunities as they present themselves,” states the report.

This area of personalization is where advisors at smaller firms and independent firms can distinguish themselves, according to John Easton, director of strategic accounts at Maximizer Services.

“Smaller financial advisors also have to be able to demonstrate to clients that they know them better than the big players can and be able to provide a more personalized and tailored service,” says Easton.

CRMs allow advisors to capture information that can contribute to remembering those key details about clients, such as important dates and information about family. It also allows advisors to record the responses to important questions during client discussions so clients are not forced to provide the same answers more than once.

Advisors should not underestimate the value of a positive relationship to a client. Maximizer Services cites research conducted by Phoenix Marketing International and Cerulli Associates, which states that 19% of investors left their advisors because they were dissatisfied with those relationships while 39% of investors started working with their current advisor because they were promised a better relationship.

CRM systems also provide the necessary documentation of client discussions that can be provided in case of an audit and also allows advisory teams to track key performance indicators such as follow-up discussions with clients and prospects as well as close ratios, according to the whitepaper.