Why Advisors Are Ditching Their CRMs

Solid tech stacks are a must-have for advisors, and that usually starts with the CRM. 

But now, advisors are growing increasingly dissatisfied with customer relationship management software, and some are finding alternatives. Market penetration for CRM programs has fallen more than 10 percentage points in the past two years, with roughly 86% of advisors now using them, according to the latest T3 Software Survey. It surprised survey authors Joel Bruckenstein and Bob Veres so much that they actually had to “double-check” the data. 

“We don’t really know what’s going on,” Veres told Advisor Upside, theorizing that project management programs, like Asana and Microsoft Dynamics, could be taking market share away from CRMs, and they may not be a top priority for younger advisors with only a handful of clients.

Use it or Lose It

CRMs do a lot — store contact information, manage leads, automate workflows — but they don’t do everything, and that’s what’s beginning to frustrate advisors. The trend for the past few years has been advisors moving to all-in-one platforms, where CRMs are just one piece of the puzzle, said John Mackowiak, Advyzon chief revenue officer. But at the same time, some of the smaller firms might avoid the software because a smartphone can already handle their needs, he told Advisor Upside. “It’s very, very easy for Siri to set a reminder.”

Some feel the platforms are simply stagnating in terms of new features, Oasis Group founder John O’Connell told Advisor Upside. “Note-takers were all the rage in 2024, so why aren’t CRM vendors just building those AI capabilities into their software?” he asked.

Win Some, Lose Some. There’s been a major shift among the CRM sector’s top names, too:

• Redtail still holds the most market share at 26%, but that’s a large drop from the 46% it held last year, the survey found.
• Meanwhile, Advyzon and Wealthbox saw their market shares jump to 12% and 22%, respectively.

“We’ve tried to focus on a great user experience,” Mackowiak said. “It’s a little more engaging than just a spreadsheet.”