CRM Best Practices for Insurance to Maximize Business ROI

CRM Insurance Best Practices

As prior to the emerging technologies, companies were juggling with a way to improve customer interaction, retrieve accurate customer behavior analysis, and be top ahead on the sales ladder. In order to achieve impressive business results, insurers assessed various tools and techniques to build long-term business relationships with their target audience. Emerge of CRM systems – an interesting, industry-changing revolution that created a huge impact on the potential customer interaction and sales execution. Amidst the ferocious competitiveness in the insurance market, adhering to CRM best practices in insurance helps to stay on top of the game and leads to a path of sales and revenue growth to nurture potential prospects.

Did you know? A survey conducted by Grand View Research observed that around 91% of U.S. companies with 10 or more employees use CRM systems.

Modern insurance practices play a significant role in meeting strong customer relations and the growing requests of tech-savvy customers. In such scenarios, restricting human intervention with automated processes becomes a more prominent solution. Integrating well-designed CRM systems for insurance helps insurers write a success story and provide a customer-centric experience. Insurance CRM software streamlines workflows with ease and manages data allocation, thus, locating prospects and assigning lead scoring seamlessly while converting qualified leads into customers.

Gartner’s research notes CRM market exceeds $65 billion by 2022, making it the largest business application the insurance agency tracks.

In the early 90s when traditional software or Lead Management Systems (LMS) technologies were discovered, companies described it as a system where only customer information can be analyzed and recorded manually without any room for customization. But at the peak of today’s Internet bubble between 2010 to 2022 – a CRM system is a “must-have” tool for intuitive insurance companies to deliver personalized multichannel campaigns, nurture policyholders’ experience and add value by simplifying the way of managing workflow processes relating to customer support and sales with ease.

In this blog, we have outlined the best practices in CRM for the insurance sector. We will also walk you through how Customer Relationship Management can manage the company’s sales process and boost customer loyalty. Keeping that in mind, you will also learn the significant way to improve your insurance company’s ROI by taking your business one notch higher with the right CRM solution.

What Is CRM Insurance and How These Insurance Practices Will Fit Your Business Needs?

According to Salesforce, CRM stands for Customer Relationship Management and is a platform for managing a company’s relationship with its potential customers.

The CRM system was conceptualized with a simple goal and is specifically crafted to improve long-term business relationships. The key to accomplishing these goals is by having access to the best CRM for insurance companies where they can automate the menial tasks of clients.

However, from approaching the prospects, and lead capturing to closing deals, scheduling appointments, executing sales drills, and tracking workflow activity, you name it, and all will be taken care of in an instant. Therefore, according to Grand View Research, it was estimated that the U.S. customer relationship market size rose to $57.9 billion in 2022 and is anticipated to reach $157.6 billion by 2030 at a CAGR of 13.3%.

US customer relationship management market

In today’s digital world, when customers have access to a wide range of options and a myriad of information, it becomes even more challenging for insurers to withstand high competition, fragmented data mishaps, poor workflows and most importantly capturing and retaining leads. However, to stand out from competitors and overcome the challenges, insurance carriers must integrate an automated data procedure, which becomes a necessity for meeting a multitude of policy or claim requests and customer queries.

As per a Capgemini report, in 2021 around 60% of insurance executives have claimed that COVID-19 has massively impacted their agency’s customer acquisition efforts and an additional 40% have cited a significant impact on the retention rate.

What kind of CRM best practices help sales and marketing teams to perform multiple tasks quickly and efficiently – is one anticipated question nowadays. To give an answer to that – for instance, sending out promotional newsletters and emails to policyholders and prospects can be done in one go by targeting a segment of the group through a CRM automation feature which can be done in just a few clicks. The CRM software can send a customized email with a motive to capture leads. Additionally, CRM tools help insurers with complex documentation and policy management to keep a track of sales reports, claim filing, and settlement by uploading important images, videos, forms, and contracts relating to the coverage incurred. It validates each policyholder’s identity addressing the compliance issue, and is confined to legal processes.

CRM Best Practices for the Insurance industry

With such a wide and evolving range of CRM solutions, organizations need to determine set goals and a clear roadmap for achieving successful CRM integration. Let us look at 10 CRM best practices for insurance providers that can help them streamline their customer support and sales operations effortlessly.

Prep consistent workflow

The insurance business that acquires better results from CRM tools tends to create an effective and simplified process in place using automation. It is important for insurance companies to succeed in educating their workforce with all the in-built features, if they do not, then you as an insurer will end up just paying for a costly claim filing. In such cases, building a crystal-clear automated CRM process ensures that your workforce receives useful training resources and documentation.

Consistent CRM best practices using workflow management help insurance agents save time and effort by automating tasks based on lead nurturing. For example, you can schedule an automated introductory email for all the leads in your database.

One big misconception is that CRM tool is customer-centric. On the contrary, it is more than that, you can attain the highest revenue by ensuring marketing, sales, analytics, and operation roles are active that can track and record customer behavior, customer intent, and various other information.

Pursue an automated sync

One of the key challenges insurers come across is often bogged down to conduct repetitive, manual tasks relating to policy administration that take a prolonged time and effort to solve. However, 60% of the insurance executives feel without a responsive customer and sales support tool, valuable activities like client meetings, and policy creation are not well-managed as insurance agents and insurance sales reps spend most of their time solving complex manual processes. With the presence of CRM systems, insurers or agents can automatically synchronize their business calendar to import customer-related meetings as well as record buyer analysis and information.

According to a Forbes report, CRM for insurance allows agents to build custom automation procedures that save time and efficiently hit their sales quota and customer relationship in one go.

Automated Action

It’s been observed that few insurance CRM providers have not integrated the concept of automated sync within their business operations. CRM automation can be instructed to send an email instantly from anywhere and anytime using a scheduler, track pending claim processes, and notify policyholders about renewals. Thus, automated synchronization with your other campaigns like Outlook or Google Calendar via smartphone to send potential prospects or clients invites. Moreover, insurers can move to the next step of keeping up with the sales pipeline and closing the deal.

Integrate Omnichannel framework

Offering a compelling and convincing customer journey by simplifying each customer service process and workflow isn’t easy. For a hassle-free, smooth experience, companies need to integrate an omnichannel framework that can provide unified customer support across multiple channels. Thereby, the motive is to mark their product offering presence spanning all customer touchpoints like company websites, email, social media, live chat, and live agent assistance portal to seamlessly connect and deliver services by synchronized operations across every popular channel.

According to a Gartner report, 75% suggest that insurance CRM software with an omnichannel functionality helps companies attain a unified view of customer data, buyer behavior and optimize collaboration efforts with potential prospects.

Integration of CRM for insurance allows agents to serve all potential customers with their needs – from policy documentation, coverage filled, and claim submission to renewing existing policies on a centralized dashboard to acquire a value-added experience.

Enable customized product offering

Providing a customized outreach strategy can do wonders by capturing new leads from multiple channels and converting them efficiently into a customer. CRM tool has proven to be a key ingredient for insurance companies to raise competitiveness and is highly beneficial for streamlining the internal workforce by automating manual day-to-day tasks. In general, insurers offer different insurance-related products like policy buy-out, claim forms etc., so customers must check whether the CRM opted conveys in-built personalization capabilities or not.

According to a Business Insider report, 88% of customers prefer custom-made approaches from their insurance providers

360 Personalized Customer Support

Although implementing CRM insurance practices – companies can gain access to critical insights about customer preferences, age, family member details and number of dependents etc. Such information can help approach niche insurance policies instead of selling generic policies. This extensive degree of customization for insurance product offerings plays an essential role in boosting positive customer experience.

Leverage self-service capabilities

In this digital-age customers are gravitating toward self-service functionalities as one of the primary features provided by the CRM software. According to a study commissioned by American Express, 63% of customers prefer using self-service capabilities. Experts cite self-service options are a great way to help customers resolve simple problems using an intelligent AI-powered chatbot service, and when a complex issue arises customers require the assistance of agents’ skills and knowledge to resolve it.

As per a Microsoft study, 77% of consumers have already used a self-service portal to resolve problems and received exemplary results

CRM software that optimizes workflows and provides client self-service features focuses on lead conversion, and retention and improves efficiency in all aspects of customer management. Activating AI-powered agent assistance with client self-service options allows individuals to deal with complex pressing issues and provide customers with easy access to captivating knowledge management and enrich communities with rich data insights.

Synchronized policy management

An insurance CRM enables agents to stay connected with past, and present client details and anticipate future buyer behavior using automatic messages and email sequences. With the unified in-built feature insurance providers can regularly share updates regarding any policy changes.

CRM for insurance allows agents to seamlessly manage client policies, coverage, renewals, and claim issuing and settlement all under a centralized platform. With CRM features companies can easily configure or notify agents on policy renewals dates, approval for coverage incurred and enable cross-sell and up-sell capabilities via automated processes

Avoid data silos

When it comes to decision-making data is hugely involved in qualitative and quantitative aspects documented in the business application or spreadsheet. Along the way, companies may come across data silos which are a frequent friction point within companies retrieving duplicate entries, outdated customer information and many human-made errors that harness your insurance business to function smoothly. In general, data silos function as a big blocker for productivity, operational efficiency and ROI which ends up getting in the way of business growth.

A study conducted by InsurTech cited that data silos could be due to agents lacking oversight of sales leads, or sales rep being unaware of why their closed deals are churning.

Keep track of sales pipeline

For attracting and retaining better sales leads, insurance providers should implement a well-designed marketing strategy that makes companies aware of the latest customer behavior and sales growth. However, even those with finely tuned procedures and techniques find themselves struggling to implement systematic policy documentation or visualize lead scoring without a responsive tool. That is where CRM for insurance come into play!

According to a study, with an insurance CRM in place, agents can instantly pull up sales report pertaining to average deal size, stage specific conversion rales, every sales velocity and compare agent to agent metrics.

CRM software with its single dashboard functionality can track up-to-date insights and sales reports where agents can compare past sales figures with the current trends. Furthermore, this customer and sales support tool also accurately builds a custom sales pipeline and reports that forecast main factors like what is affecting poor sales growth, engages with new leads and analyzes key metrics like the average number of days spent between each sales stage. Therefore, without a unified CRM system, such sales reports take insurance providers pro-longed hours of effort and cost them valuable selling time.

Prioritize prospects with lead allocation

As insurance agents capture new clients, receiving an influx of new leads – challenges are inevitable. In such cases, integrating an Insurance CRM in action should be prioritized. Agents or sales reps can practice lead scoring which measures aspects of new leads according to specific criteria and then such leads are ranked based on their value. Going forward such leads can easily be allotted to sales reps and agents using automated lead management and allocation so that there is no miss out on any potential leads

A Salesforce data says, 85% insurance believed that CRM system enable streamlined allocation, allowing sales rep or agents to save time, effort and managing potential prospects all from a single dashboard

Lead Generation and Distribution

A centralized online CRM can capture the information via website, social media, emails etc. even before agents approach leads. A recent survey on consumer behavior depicts that 67% of customers interact about policies and claim settlements with insurance providers using an online CRM portal. Therefore, a well-designed, comprehensive CRM tool helps insurance providers seamlessly segregate clients’ databases on the bases of each action taken like classifying as per inbound leads, outbound or cold leads.

Continuous CRM implementation

Setting up a well-designed CRM insurance tool is not just enough, leveraging a new CRM system or upgrading the current one not only maximizes the marketing ROI of the business but also boosts operational efficiency, streamlines complex policy tactics, and plays a pivotal role in aligning loyal customers. A pulled-out detailed report by Forrester estimated that 500+ reporting observed poor user adoption, inadequate employee training management and lack of optimized business performance impact the long-term success of CRM systems.

Challenges to a successful CRM Implementation

Insurance providers are also in a huge competition of getting ahead of all and sometimes they fail to understand the concept of constantly evolving with modern technologies. Thus, CRM implementations optimize existing workflow processes, centralize product offering initiatives or get comprehensive customer insights. Overall, studies have shown implementation of CRM for insurance has proven highly beneficial for business revenue and improved productivity.

How can CRM best practices help improve business ROI?

A big misconception is that CRM best practices just helps automate workflow systems, but companies don’t realize their real potential. As per the recent Finances Online survey, the right CRM system in place can improve customer relationships by 74% with an increased sales quota by 65% and lower down to reduced labor costs by 40%. However, these statistics are factual indicators of how a CRM system functions and how it can have a significant impact on business revenue.

Max ROI using CRM Systems

Insurance providers getting a CRM will add value to work, manage all customer policies, and get full visibility of sales cycle and forecast lead scoring. Therefore, if insurance companies are willing to get the most ROI out of their CRM, sales reps need to use in-built analytical features to understand buyer behavior and retrieve most policy information for a seamless customer experience.

The Bottom line:

Insurance CRM best practices can enrich agents’ scale their outreach, improve customer support, and even stay connected with low or high-priority prospects effortlessly with reduced operational cost. The truth is not every insurance CRM is built the same, so its important insurers follow due diligence and set clear goals before diving straight into a solution.

So, are you ready to leverage an intelligent CRM tool to scale your insurance sales and CRM customer support? Then talk to one of our experts who can find out a clear strategy and skyrocket your customer experience and sales growth.

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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