7 Insurance Bases for Successful CRM Implementation

7 Insurance Bases for Successful CRM Implementation

Nowadays, not even a well-organized team can keep up with data-driven insights that monitor customer behavior analysis and open doors to potential customer experience with the organization. However, with the growth in IT infrastructure over recent times, companies globally have integrated different tools that help accumulate policyholders’ information and capture prospects’ details that significantly impact sales and customer metrics to spread across non-related databases.

Thus, such a non-reliable single source of acquiring customer information results in data duplication that generates an unsynchronized pipeline and majorly impacts the customer lifecycle. In such cases, a cohesive CRM implementation becomes essential to gather real-time metrics such as purchase history, sales reports, and behavior patterns and get a 360-degree view of personalized customer preferences.

Successful insurance CRM implementation brings together a host of integrated technologies that ensure robust automation and optimize workflow systems that reduce operational costs and increase profitability by solidifying customer loyalty. Thus, implementing a CRM system with top-notch features tends to increase the policy sales cycle, manage marketing campaigns efficiently to capture potential leads and simplify the in-built insurance application process with a motive to strengthen the customer relationship.

According to Grand View Research, 82% of U.S. companies use this unified and flexible CRM interface that ensures they keep up with every customer touchpoint from marketing, sales, and service management.

CRM implementation process is ubiquitous with various challenges and complexities, insurance providers must be vigilant while approaching each process. Let us look at the importance of CRM implementation in the insurance industry and how to overcome significant challenges with effective CRM implementation measures that can positively impact the agency’s bottom line.

Why is CRM implementation in insurance important?

As the world is rapidly changing and dominated by digital engagements like instant fulfillment and customer onboarding experience are the key differentiator for insurers. In such cases, implementing insurance CRM software empowers insurers to radically cut costs, swiftly respond to changing customer behavior, monitor AI-driven KYC, and handle real-time customer data by maintaining security and regulatory compliance. Many customers opting for insurance products are not aware of the policies, claims and premium-related services to be rendered by the company.

Thus, it becomes crucial to maintain operational transparency between customers and the company. Therefore, CRM implementation provides insurers with a deep understanding of potentially new, existing customers and enables automation that not only nurtures potential leads into customers but also recommends customers with the right, personalized insurance product as per their preferences. Here are a few interesting CRM implementation trends relating to the insurance industry.

Interesting CRM Implementation Trends

CRM implementation strategy is based on assessing data-driven insights and streamlining day-to-day tasks throughout the customer journey and seamlessly locating potential prospects. Thus, implementing CRM services not only encourages buyer behavior with the re-purchase of an insurance product by the pre-existing customer but also reduces customer churn by increasing long-term relationships and enhance data-driven customer acquisition. According to a CIO magazine report, one-third of all customer relationship management projects fail due to unclear goals for new insurance CRM systems, lack of personalization, data silos, poor user adoption and omnichannel presence.

A Salesforce study estimated that CRM solutions exceed over 90% of expectations by delivering a more personalized experience for policyholders and essentially boosting sales.

To have a deeper understanding of how implementing insurance CRM software results in excellent customer-centric solutions. Let’s take an example of TATA AIA Life Insurance, where they struggled with customer data and processes that were fragmented in over 25 different systems which led to technological conflicts with reduced performance and sales efficiency. However, successful CRM implementation helped to integrate, refine, and adopt processes efficiently, diversifying product offerings, providing a unified platform, and accumulating data-driven insights to make better decisions with a powerful 360-degree view.

Challenges faced while implementing an insurance CRM system:

CRM implementations have become an indispensable component of businesses. Insurance agents tackle a myriad of challenges right from conducting menial tasks like lead capturing, tracking sales activity, and maintaining workflow engagement.

Here the below graph depicts some of the top challenges insurance companies face while implementing CRM systems.

Key Challenges of CRM

Let us have a look at the other challenges that significantly impact agents and sales reps from the insurance forefront.

High market competition:

Have you ever experienced a client inquiry popping up and with no instant response they move to knock on the competitor’s door? Well, in this new-age digital world such scenarios are bound to happen as potential prospects are quicker than ever before, with a slight delay in reverting and then you as a company miss out on potential leads. Similarly, insurance agents despite going the extra mile to attract and capture leads, still face cutting-edge competition when it comes to acquiring more clients.

Therefore, the main reason is due to manual data entry by using outdated processes instead of using CRM automation to its full potential. CRM software can seamlessly maintain policy services and speed-up claim settlement, generate successful sales deal closure, and develop a strong customer relationship.

Fragmented sales process:

A survey of CRM service reviews conducted by IBM observed that many insurance executives still use spreadsheets and excel as a go-to source of storing insightful data. However, instead of spreading customer records, policy information and interactions across spreadsheets, it can be stored and easily accessible from a unified CRM platform. Whereas CRM implementation help in keeping up with the regulatory challenges that can be a chore for insurance companies. So, most insurance CRMs offer the use of an archival system which makes crucial policy documentation and claim filing information search friendly.

Did you know? As per a Gartner report, 70% of CRM applications with custom-built features improve sales process optimization more effectively.

Retain new customers:

From the challenges mentioned so far, this is one of the most common challenges that occur to businesses now and then. Companies can easily wade through this hurdle only with the right supportive CRM software that will increase overall growth, sales, and revenue. Once insurers have realized the real reason for poor customer retention, then it is simple to just take a leap and implement an intelligent CRM tool that efficiently streamlines the insurance leads tracking, actively notifies policy status, and upcoming renewals and provides premium policy services. Thus, with these definite advantages of CRM implementation, insurers can focus on product offerings and track the sales pipeline for enriching each purchase touchpoint.

Economic downturn:

Customers are way smarter in comparing insurance-related prices or best deals with different agencies. Nowadays, customers are also buying policies or claiming services from independent insurance agents. Thus, it is true companies are making reluctant changes by investing in CRM software. But just integrating such services won’t bring wonders in one day. CRM implementation can only be successful if there is consistent execution shown. Therefore, insurance providers must realize customers are the biggest asset to the company and if there is a continuous execution made in the software then CRM can pay off in maximizing profitability and efficiency.

Top 7 Insurance Bases to Cover for Successful CRM Implementation

Insurance CRM implementation offers an array of tailor-made perks and cost-effective methods that connect customers with a sales rep or agents and break down data silos by giving personalized customer views. This gives insurance providers an ability to efficiently use the opportunity to cross-sell and up-sell more often as well as capture leads and close sales deals in a data-centric manner.

Therefore, before implementing insurance CRM software, it is crucial to understand that CRM do not solely benefit customer relationship, sales, and revenue but it also aids in fostering collaboration and internal communication across the workplace. For seamlessly deploying and implementing CRM systems – Let us have a quick peek at the Top 7 bases to keep in mind while building a successful CRM implementation for the insurance industry.

Top 7 Insurance bases for Successful CRM Implementation

Identifying Customer needs with personalization:

The first and foremost step in CRM implementation is to assess customer needs. Offering such a personalized experience makes each customer feel valued and with multiple competing insurance agents, customers will choose the company that understands their needs, preferences, and requirements. As per a McKinsey report, personalization is the future of insurance marketing, as reaching prospects or customers with tailor-made targeted messages, offers and pricing deals helps companies understand each customer’s preferences and propose sales accordingly.

On the other hand, an Accenture survey also found that insurance providers who understand each customer’s needs using CRM software attained over 80% customer acquisition and retention rate. Therefore, the CRM database can easily gain access to customer insights like policy name, claim coverage details, dependent information, etc. Such information referring to insurance policies can generate an extensive degree of personalization instead of generic policy selling while boosting sales closure.

Build end-to-end workforce collaboration:

Implementing CRM software is not just enough, building an engaging and collaborative team also plays a vital role. The arrangement of the CRM implementation team in insurance companies depends on different factors such as the size of the business, number of existing policyholders, sales expectations, and customization. In such cases, the implementation team must consist of agents for customer support, and a sales rep appointed for sales and marketing mainly during cross-sell and up-sell opportunities. Other representatives will be given the role and responsibility based on the nature of policy and task. Thus, ensuring a smooth end-to-end workforce collaboration to provide an engaging digital customer journey is essential.

Drive omnichannel sales approach:

An insurer’s work doesn’t limit until the sale deal closure, but insurance providers also need to go that extra mile to take care of post-sales operations. Although, this can be done by effectively opting for an omnichannel approach that gives customers full visibility and freedom to interact with agents or sales reps over different communication mediums of their choice. This omnichannel framework can seamlessly track the status of the policy, claims, etc.

CRM Implementation

Additionally, this multitude of channels can render cohesive customer service to the potentially new and existing policyholders in a consistent manner. A salesforce study depicted CRM as the key to monitoring omnichannel experiences that improve customer engagement rate to 3x times while increasing the digital expectation, customer retention and purchase efficiency.

Ability to track data-driven insights:

Implementing an insurance CRM system can help agents prepare specific reports relating to customer preference, and buying history and predict future customer insights efficiently with minimal or no human intervention. Such data-driven metrics improve productivity, enable strategic customer-centric decision making and majorly save time spent on retrieving tedious analysis or sales funnel. Therefore, monitoring each customer profile using the CRM database allows AI-driven tools to predict effective future requirements with estimated insights.

CRM Implementation

Set realistic CRM budget plan:

Regardless of the scale of CRM implementation or level of lead generation and sales cycle opens the door towards attaining unforeseen costs to the company. For example, insurance CRM implementation costs may increase if there is any level of added customization required or any additional service that may shoot up the expenses. To overcome such cases, setting aside an allocated budget for CRM software implementation for many other business requirements such as:

  • Customer onboarding
  • Training and resources
  • Data handling and migration
  • Software subscription fees
  • Security and regulatory compliance
  • Software support and maintenance
  • One-time implementation costs

Thus, planning a CRM budget plan can help reduce unnecessary costs and set a realistic timeline or a buffer time for implementation purposes.

Deploy an implementation strategy:

Once the budget is fixed as per the set CRM goals, insurance companies must compose an insurance CRM implementation roadmap that depicts a clear understanding of how the agents and sales reps can participate in the implementation process with equipped training and resources. With the insurance CRM implementation strategy in place, insurers can start the deployment process by performing a continuous evaluation process. Furthermore, over an extended period – companies can refurnish their new CRM software in increments that help keep up with the efficiency and performance of the tool.

Monitor constant updates in CRM systems:

CRM implementation job does not end with the deployment stage. Insurance providers to get the most out of their investments should progress on achieving long-term goals and benefits. A Capterra study says 41% of companies are not fully aware of the post-deployment capabilities a CRM implementation process offers. In such cases, insurance companies should gather regular feedback regarding the tool functionality from end-to-end users and consistently track and evaluate the CRM system in place. Thus, this will help companies set a benchmark for their CRM performance and can efficiently modify minimal errors in relevant areas. Therefore, a continuous update time-to-time can generate a positive impact on business efficiency, customer loyalty, retention, and sales growth

Bottom Line:

Every insurance provider needs CRM implementation software that is intuitive, flexible, and user-friendly. CRM software is an excellent way for the insurance provider to offer feature-rich functionalities and build valuable customer relationships.

Implementing CRM for insurance is vital for every insurer to stay on top of their game. Whether it is automating workflow systems, optimizing sales growth, capturing potential leads, and converting them to customers – A CRM implementation is a unified software solution that takes care of every little detail. Thus, having such centralized tools is proven to be highly beneficial for performing all customer support and sales-related talks is a boon for every insurance company as it accelerates profitability and revenue.

To learn more about building a successful CRM implementation that will help scale your insurance sales and customer experience then check out our blog Insurance CRM best practices that will drive you through every touchpoint of sales and customer journey.

Are you ready to future-proof your insurance business with effective CRM software? Then consult our expert team who drive high-value insurance sales and customer service within minimal time.

Aishwarya Chandrasekhar

A content marketing enthusiast, currently on a quest to channel my vision, creative thinking and innovative strategies through my writing. I believe that each day presents itself as an opportunity to learn, grow, and set path for driven goals

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