Crm in Insurance Final

8/6/2019 Crm in Insurance Final

1/62

TOPIC

CRM IN INSURANCE

SUBMITTED BY:

PREKSHA.D.FURIA

CLASS: T.Y.B Com (Banking and Insurance)

SEMESTER VI

SUBMITTED TO:

UNIVERSITY OF MUMBAI

PROJECT GUIDE:


2/62

Prof. SHUBHASHINI

RAJASTHANI SAMMELANS

GHANSHYAMDAS COLLEGE

AFFILIATED TO UNIVERSITY OF MUMBAI

ACCREDITED BY NAAC WITH A GRADE

AND

DURGADEVI SARAF JUNIOR COLLEGE

(ARTS & COMMERCE)

S.V. Road, Malad (W) Mumbai- 400 064

YEAR: 2011-12


3/62

DECLARATION

I Miss PREKSHA D FURIA of Ghanshyamdas SarafCollege of Arts and Commerce, Malad (W) of T.Y.BCBI

(Semester VI) has completed project on CRM IN

INSURANCE in the academic year 2011-12. This

information submitted is true and original to the best of

my knowledge.

Date: Signature of

student


4/62

RAJASTHANI SAMMELAN'S

GHANSYAMDAS SARAF COLLEGE

AND

DURGADEVI SARAF JUNIOR COLLEGE

(ARTS AND COMMERCE)

AFFILIATED TO UNIVERSITY OF MUMBAI

ACCREDITED 'A' GRADE BY NAAC

S.V.ROAD, MALAD (W),

MUMBAI- 400 064.

CERTIFICATE

I Prof. SHUBHASHINI hereby certify that Ms. PREKSHA

FURIA, of T.Y. BCBI (Semester VI) has completed project on

CRM IN INSURANCE in the Academic year 2011-12. This

information submitted is true and original to the best of my

knowledge.

Project co-coordinator: Principal:

External examiner:

Date:


5/62

ACKNOWLEDGEMENT

I would like to thank the University of Mumbai and my

college for giving me this opportunity for taking such a

challenging project, which has enhanced my knowledge

about " CRM IN INSURANCE"

It is with deep gratitude, I would like to thank

Prof. SHUBHASHINI MADAM under whose guidance I

was able to complete my project successfully. I wish to

thank him for all useful discussions and timely

suggestions of the related topic and invaluable help

during preceding the project. And at last I would like to

thank all the people who helped me to complete this

project by one way or the other.

Signature of student

Executive Summary


6/62

This report examines and provides a detailed analysis of Customer

Relationship Management (CRM) with respect to its implementation in the

organisations. The study investigates market trends, levels of its current

practice, levels of successes and failures and the factors associated with the

implementation of the same. In order to gain proper understanding of the

subject matter research, two different case studies are discussed in detail. At

the end, the study presents a proposed model of successful implementation of

CRM along with a set of recommendations following the conclusion.

The paper then discusses two different case studies with respect to the

implementation of CRM in the financial services industry Robeco Bank

(Switzerland) & a German Bank (Anonymous). Thus, analysing the issues

practically involved and raised in the implementation of the management

system aimed at creating customer value, and also putting forward the

experiences of two different companies in the same industry. Therefore,

looking into the challenges created for the management, causes/factors

associated with and resulting in the success/failure of CRM as a means of

creating customer value, and overall experience of the companies attempting

to implement CRM. The discussion therefore leads to a roadmap for

successful implementation of CRM with a recommendation of Ten Key

Steps for successful implementation of CRM in an organisation. Lastly, in the

light of the analysis presented and case studies discussed, an independent

conclusion under the subject matter research is formed along with a set of

recommendations/suggestions.

INDEX


7/62

SRNO

TOPICS PAGE

NO

1 INTRODUCTION

2 PHASES OF CRM

3 History of CRM

4 Benefits of CRM

5 CRM PROBLEMS

6 CHALLENGES OF CRM

7 Types/variations

8 STRATEGY OF CRM

9 The Importance of CRM Customer Relationship

Management

10 CRM RESOURCES


8/62


9/62

strategy. more...For whom is CUSTOMER RELATIONSHIP MANAGEMENT intended?

CUSTOMER RELATIONSHIP MANAGEMENT is a necessary solution for anyservice oriented company looking to maximize the potential of their customerrelationships. We specialize in providing tools for effective CRM in insurancecompanies.more...Why use CUSTOMER RELATIONSHIP MANAGEMENT?

Every insurance company faces the challenge of servicing their customers quicklyand with all the necessary background information. As the character of insurance

provider businesses expands to encompass a plethora of details, a proper CRM isespecially important in order to gain a complete view of the customer whichaddresses all the facts involved. No one can deny that the dynamic of a customer

service phone conversation should be different when handling requests for amotorhome insurance quote and when navigating questions about LifeSettlements.more...

Is CUSTOMER RELATIONSHIP MANAGEMENT practical for every

business?

For every business that relates to customers in multiple ways and from multipleaspects of the company. No matter what the business, a CRM can be tailored to fityour needs and integrate your existing applications.more...CRM for Merchant Account Integration?

Integrate your merchant account with your CRM! Connect your portfolio to yourcredit card receivables. Integrated merchant accounts including credit card

payments by phone and mail.

INTRODUCTION

Customer relationship management (CRM)is a widely-implemented strategy formanaging a companys interactions withcustomers, clients and sales prospects. Itinvolves using technology to organize, automate, and synchronize business

processesprincipally sales activities, but also those formarketing, customer
http://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Customers


10/62

service, and technical support. The overall goals are to find, attract, and win newclients, nurture and retain those the company already has, entice former clients

back into the fold, and reduce the costs of marketing and client service. Customerrelationship management describes a company-wide business strategy includingcustomer-interface departments as well as other departments.

CRM Definition

CRM softwarestands for Customer Relationship Management software. CRMprovides an integrated approach to identifying, acquiring, retaining and managing

customers. For most organizations, CRM is usually implemented through asoftware package - such as a database linked to a web interface - designed tosupport these processes.

CRM is about organizing and streamlining of processes and information. CRMsoftware enables companies to quickly and easily get and provide access to allaspects of business management and customer interactions, and also allowscustomers to quickly and easily find and use information on their own. Bystreamlining aspects of vendor-client interactions, CRM software helps

organizations manage and coordinate their businesses efficiently, as well asprovide excellent customer service.

No longer just for tech companies, industries such as the pharmaceutical,automotive, construction, and airline industries have been implementing CRM tomanage all aspects of business and customer managment. Hospitals, banks, andeducational institutions are are also using CRM to manage qualitative data - suchas a customer's favorite products and testimonials or a patient's history - making iteasier to respond quickly and easily to individual customer needs without having tolook through files or records.

CRM software makes it easier for businesses large and small to manage the vastamounts of information that running a business in today's world produces. CRMsoftware packages are highly customizable and are tailored to each organization'sindividual needs for data and resource management. CRM vendors implementsingle, easily navigable and user-friendly software systems that paperlessly bringall kinds of customer and product information to employee fingertips, thereby
http://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_support


11/62

reducing overhead costs and saving both the organization and client time andmoney.

PHASES OF CRM

The three phases in which CRM support the relationship between a business and itscustomers are to:


12/62

Acquire: CRM can help a business acquire new customers through contactmanagement, selling, and fulfillment.

Enhance: web-enabled CRM combined with customer service tools offerscustomers service from a team of sales and service specialists, which offerscustomers the convenience of one-stop shopping. Retain: CRM software anddatabases enable a business to identify and reward its loyal customers andfurther develop its targeted marketing and relationship marketing initiatives.

History of CRM

The History of CRM
http://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Relationship_marketing


13/62

CRM is an abbreviation for Customer Relationship Management, and refers to thesoftware and special programs used by businesses to identify customers and theirneeds. CRM software is used by companies in several different industries, butmany of the businesses use them for sales purposes.

What does CRM stand for?

Definition of CRM

What is CRM?

Companies using CRM software for sales look at what products and services theirexisting customers use, and based on a number of factors such as age, geography,income, family status, and other demographic information, they can categorizetheir customers. Based on these categories, companies can use the information tocontact customers that dont have select products or non-customers. This dataallows the company to directly market to the best candidates for their products andservices.

In the 1980s businesses began to utilize databases for the purposes of marketing.This was the very beginnings of a simplified CRM programs. In the 90s, more

businesses began getting and utilizing CRM software, however, the hurdles ofexpense and not knowing how to efficiently use the software became stumbling

blocks to growing the CRM field.

In the 2000s the improvements in the technology of CRM software has meant anincrease in usage. The current software is easier to input information, and moreimportantly easier to use the output. In early days of CRM, companies needed torely on CRM providers to interpret the information, which added to the cost. Now,when companies use CRM software, they are provided training so that they can doit themselves.

History of CRM

CRM history

Salesboom history of CRM

With the global economy in a difficult position, it is important for companies touse resources properly. Those companies with CRM software are looking to workwith the software to help identify profit opportunities. Using CRM software has
http://www.crm-software-guide.com/what-does-crm-stand-for.htmhttp://www.crm-software-guide.com/crm-defining.htmhttp://www.crm-software-guide.com/what-is-crm.htmhttp://www.crm-software-guide.com/history-of-crm.htmhttp://ezinearticles.com/?The-History-of-CRM----Moving-Beyond-the-Customer-Database&id=6975http://www.salesboom.com/company/history_of_crm.htmlhttp://www.crm-software-guide.com/what-does-crm-stand-for.htmhttp://www.crm-software-guide.com/crm-defining.htmhttp://www.crm-software-guide.com/what-is-crm.htmhttp://www.crm-software-guide.com/history-of-crm.htmhttp://ezinearticles.com/?The-History-of-CRM----Moving-Beyond-the-Customer-Database&id=6975http://www.salesboom.com/company/history_of_crm.html


14/62

many benefits for businesses. Here are some links to websites which outline someof the benefits:

Benefits of CRM


15/62

The use of a CRM system will confer several advantages to a company:

Quality and efficiency Decreased costs Decision support Enterprise agility

Let's take a look at the advantages that a CRM or Customer RelationshipManagement system can bring.

Shared or distributed data

As companies realize that customer relationships are happening on manylevels (not just through customer service or a web presence), they start tounderstand the need for sharing all available data throughout the

organization. A CRM system is an enabler for making informed decisionsand follow-up, on all the different levels.

Cost reduction

A strong point in Customer Relationship Management is that it is making thecustomer a partner in your business, not just a subject. As customers aredoing their own order entry, and are empowered to find the info they need tocome to a buy decision, less order entry and customer support staff is

needed.

Better Customer Service

All data concerning interactions with customers is centralized. The customerservice department can greatly benefit from this, because they have all theinformation they need at their fingertips. No need to guess, no need to askthe customer for the n-th time. And through the use of push-technology,customer service reps can lead the customer towards the information they

need. And, most of the time, the customer can do this on their own, as theCRM system (remember, the 3 P's) is more and more able to anticipate theneed of the customer. The customer experience is greatly enhanced.


16/62

Increased Customer Satisfaction

The customer feels that he is more "part of the team" instead of just a subjectfor sales and marketing (the proverbial number), customer service is better,his needs are anticipated. There is no doubt that customer satisfaction willgo up. If the products sold exceed the customers expectation, of course, noCRM system can help you with shoddy products. In my opinion, the termstatisfaction is a contaminated. Many companies think that if customers aresatisfied that this is a good predictor for repeat business. However, this isnot the case. Only delighted customers have a great level of loyalty.

Better Customer Retention

If a CRM system can help to enchant customers, this will increase customer

loyalty, and they will keep coming back to buy again and again, hencecustomer retention.

More repeat business

The repeat business is coming from the delighted customers, who are turnedfrom doubting clients into loyal advocates.

More new business

If you are delivering the ultimate customer experience, this will seed theword-of-mouth buzz, which will spawn more new business.

More Profit!

More business at lower cost equals more profit.


17/62

CRM Solutions: Business Benefits

The benefits ofCRM solutions are multi-faceted and range from optimization ofcustomer service response times and satisfaction to reduction of operational cost.Employees can manage their own 401(k) plans online, employers can manage

project schedules and organize employees remotely, travelers can get flight timesand transportation updates automatically, and financial transactions are immediateand seamless. The goal ofCRM solutions is to establish relationships withcustomers on an individual basis, and then use that information to treat differentcustomers differently. The exchange between a customer and a company then

becomes mutually beneficial.

CRM benefits are multiple - both quantitative and qualitative - and as unique as thebusinesses using them. Any organization that suffers from information overload,whether it's keeping track of clients, transactions, or providing efficient customerservice, will benefit from implementing a CRM Solution. CRM works to organizeall aspects of the vendor-customer relationship into one easily navigable format.

Small businesses suffering from large amounts customer paperwork - due to thingslike credit cards and credit accounts - can use Customer Relationship Managementsoftware to keep track of transactions, and link that to their inventory. Call centerscan use CRM to identify a customer before the call is taken, and quickly accesstheir purchase history as well as any previous customer service transaction notes,thereby saving time and money. Medium size businesses can integrate CRMsolutions with their accounting records, automate quarterly customer reports andeliminate third party services. CRM can significantly cut the amount ofoutsourcing any business has to do for most aspects of Customer RelationshipManagement, and greatly reduce overhead costs.

CRM has also helped to increase access to and reliability of company, market, andclient information. CRM solution enables investment firms to significantly

increase investor activity by providing current and reliable investment information- including complete customer portfolio information - online. Consumers are moreconfident and comfortable making purchases online because they are able to readand access product reviews. People get better medical care because healthorganizations have accurate and immediate access to drug and health information.The benefits of CRM solutions - financially and sevice-wise, are both immediateand long-term for vendors and their customers.


18/62

CRM makes doing business online much faster and easier. Businesses small andlarge have found CRM solutions to be beneficial - and essential - to their success,growth, development, and return on investment (ROI).

More than just customer service, CRM combines all aspects of vendor-clientrelationships. CRM combines marketing, customer, and financial information sothat management, salespeople, customer service, and also the customer can accessthe same information. CRM enables companies to automatically remind customersof billing and service requirements, know what other products a customer has

purchased, and keep track of customer feedback in a detailed way. CRM integratesall these business functions together.

Business benefits of CRM

Implementing a customer relationship management (CRM) solution might involveconsiderable time and expense. However, there are many potential benefits.

A major benefit can be the development of better relations with your existingcustomers, which can lead to:

increased sales through better timing by anticipating needs based on historictrends

identifying needs more effectively by understanding specific customerrequirements

cross-selling of other products by highlighting and suggesting alternatives orenhancements

identifying which of your customers are profitable and which are not

This can lead to better marketing of your products or services by focusing on:

effective targeted marketing communications aimed specifically at customerneeds

a more personal approach and the development of new or improved productsand services in order to win more business in the future

Ultimately this could lead to:

enhanced customer satisfaction and retention, ensuring that your goodreputation in the marketplace continues to grow


19/62

increased value from your existing customers and reduced costs associatedwith supporting and servicing them, increasing your overall efficiency andreducing total cost of sales

improved profitability by focusing on the most profitable customers anddealing with the unprofitable in more cost effective ways

Once your business starts to look after its existing customers effectively, effortscan be concentrated on finding new customers and expanding your market. Themore you know about your customers, the easier it is to identify new prospects andincrease your customer base.

Even with years of accumulated knowledge, there's always room for improvement.Customer needs change over time, and technology can make it easier to find outmore about customers and ensure that everyone in an organisation can exploit this

information.

Disadvantages of crm

Disadvantages of CRM are as follows:

difficult to work with require additional work inputting data dehumanize a process that should be personal require continuous maintenance, information updating, and system

upgrading costly difficult to integrate with other management information systems


20/62

CRM PROBLEMS

Following are the major disadvantages that stops CRM systems from becominga perfect solution for any business:

Customer DissatisfactionAlthough several businesses have implemented CRM systems to focus oncustomers, several clients are still dissatisfied with its execution.

They term CRM as "technology that delays" or "stops service". For instance,lots of them find automated voice systems (or Interactive Voice Response) as a

big headache and look for companies which have eased its use.

As per a recent study conducted by Accenture, receiving poor customer service

remains the number one reason why consumers abandon one service providerand move on to another, be it a mobile service supplier or a credit card provider.

Other factors weighing heavily in consumer defections include lack ofcustomised products and senseless corporate bureaucracies.

Authenticity of Remotely Hosted CRM ServicesLots of businesses these days tend to contract out CRM. At times, cost becomesthe driving factor in outsourcing CRM systems and not the vendor reputation.

In such scenarios, it's possible that the CRM service provider can disappearovernight, along with all official records. It is also possible that informationkept with the service provider might get used for other purposes.

A good CRM service always allows the company to back up/export data so thatthe outsourcing company has a control over the information. Also, in somecases corporate and government laws stops the businesses from keeping allclient information (such as Social Security Number, Home Number, etc.) at anexternal location.

Cost and Complexity Involved In Setting Up Locally Hosted CRM SoftwareFrequent technical expertise required for setups and upgrades of CRM systems,makes the businesses pay for ongoing support of the application.

Security becomes company's responsibility, which can cause a few headaches -especially as is the case with many applications, security patches are rolled outand one needs to install them very quickly.


21/62

As the business grows, needs from a CRM package also changes and addingthese extra features can be quite expensive.

Improper Vision For Tomorrow's NeedsBottom line is that salespeople are only interested in things that help them sellmore now.

A sales representative's only resource is time; their most important goal ismeeting quota or budget for this month, quarter, or year.

Yes, they are concerned about the long run, but if they don't make quota now,they know that they probably won't be around to worry about the long-term.

It's not completely fair to say that CRM doesn't benefit a salesperson in meetingshort-range goals because in some respects it does, but most salesrepresentatives feel that they can be just about as effective in selling in the shortterm without it.

In other words, the benefits of CRM don't seem significantly greater than theinvestment of time and effort required to use the system each day.

Training Sales StaffAs the CRM is still evolving, businesses are required to devote enough time andrevenue in training sales personnel. The workforce should be able to judge howto use the stored data in best possible manner.

If they don't use it (or the information they do put in is out of date, inaccurate,or spotty) then they can be of little value to the company who "rolls up" all this"junk data". Inept call center employees can further worsen the situation.

Essentially, companies that don't provide service representatives with sufficienttraining or information, or forms that make people fight their way through

repetitive, fruitless support systems are going to lose more customers. That's nobig surprise.


22/62

CHALLENGES OF CRM

Tools and workflows can be complex, especially for large businesses. Previouslythese tools were generally limited to contact management: monitoring andrecording interactions and communications. Software solutions then expanded toembrace deal tracking, territories, opportunities, and at the sales pipeline itself.

Next came the advent of tools for other client-interface business functions, asdescribed below. These tools have been, and still are, offered as on-premisessoftware that companies purchase and run on their own IT infrastructure.

Often, implementations are fragmentedisolated initiatives by individualdepartments to address their own needs. Systems that start disunited usually staythat way: siloed thinking and decision processes frequently lead to separate andincompatible systems, and dysfunctional processes.

Business reputation has become a growing challenge. The outcome of internalfragmentation that is observed and commented upon by customers is now visible tothe rest of the world in the era of the social customer, where in the past, onlyemployees or partners were aware of it. Addressing the fragmentation requires ashift in philosophy and mindset within an organization so that everyone considersthe impact to the customer of policy, decisions and actions. Human response at alllevels of the organization can affect the customer experience for good or ill. Evenone unhappy customer can deliver a body blow to a business.
http://en.wikipedia.org/wiki/Contact_managementhttp://en.wikipedia.org/wiki/Information_silohttp://en.wikipedia.org/wiki/Contact_managementhttp://en.wikipedia.org/wiki/Information_silo


23/62

Types/variations

Sales force automation:-

Sales force automation (SFA) involves using software to streamline all phases ofthe sales process, minimizing the time that sales representatives need to spend oneach phase. This allows sales representatives to pursue more clients in a shorteramount of time than would otherwise be possible. At the heart of SFA is a contactmanagement system for tracking and recording every stage in the sales process foreach prospective client, from initial contact to final disposition. Many SFAapplications also include insights into opportunities, territories, sales forecasts andworkflow automation, quote generation, and product knowledge. Modules for Web2.0 e-commerce and pricing are new, emerging interests in SFA.

Marketing:-

CRM systems for marketing help the enterprise identify and target potential clientsand generate leads for the sales team. A key marketing capability is tracking andmeasuring multichannel campaigns, including email, search, social media,telephone and direct mail. Metrics monitored include clicks, responses, leads,deals, and revenue. This has been superseded by marketing automation andProspect Relationship Management (PRM) solutions which track customer

behaviour and nurture them from first contact to sale, often cutting out the activesales process altogether.

Customer service and support:-

Recognizing that service is an important factor in attracting and retainingcustomers, organizations are increasingly turning to technology to help themimprove their clients experience while aiming to increase efficiency and minimizecosts. Even so, a 2009 study revealed that only 39% of corporate executives

believe their employees have the right tools and authority to solve clientproblems.. The core for these applications has been and still is comprehensive callcenter solutions, including such features as intelligent call routing, computertelephone integration (CTI), and escalation capabilities.

Analytics:-

Relevant analytics capabilities are often interwoven into applications for sales,marketing, and service. These features can be complemented and augmented withlinks to separate, purpose-built applications for analytics and business intelligence.
http://en.wikipedia.org/wiki/Sales_force_automationhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Sales_force_automationhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Contact_management_systemhttp://en.wikipedia.org/wiki/Computer_telephone_integrationhttp://en.wikipedia.org/wiki/Computer_telephone_integration


24/62

Sales analytics let companies monitor and understand client actions andpreferences, through sales forecasting and data quality.

Marketing applications generally come withpredictive analytics to improvesegmentation and targeting, and features for measuring the effectiveness of online,offline, and search marketing campaign. Web analytics have evolved significantlyfrom their starting point of merely tracking mouse clicks on Web sites. Byevaluating buy signals, marketers can see which prospects are most likely totransact and also identify those who are bogged down in a sales process and needassistance. Marketing and finance personnel also use analytics to assess the valueof multi-faceted programs as a whole.

These types of analytics are increasing in popularity as companies demand greatervisibility into the performance of call centers and other service and support

channels, in order to correct problems before they affect satisfaction levels.Support-focused applications typically include dashboards similar to those forsales, plus capabilities to measure and analyze response times, service quality,agent performance, and the frequency of various issues.

Integrated/Collaborative:-

Departments within enterprises especially large enterprises tend to functionwith little collaboration. More recently, the development and adoption of thesetools and services have fostered greater fluidity and cooperation among sales,

service, and marketing. This finds expression in the concept of collaborativesystems which uses technology to build bridges between departments. Forexample, feedback from a technical support center can enlighten marketers aboutspecific services and product features clients are asking for. Reps, in their turn,want to be able to pursue these opportunities without the burden of re-enteringrecords and contact data into a separate SFA system.

Small business:-

Forsmall business, basic client service can be accomplished by a contact manager

system: an integrated solution that lets organizations and individuals efficientlytrack and record interactions, including emails, documents, jobs, faxes, scheduling,and more. These tools usually focus on accounts rather than on individual contacts.They also generally include opportunity insight for tracking sales pipelines plusadded functionality for marketing and service. As with larger enterprises, small

businesses are finding value in online solutions, especially for mobile andtelecommuting workers.
http://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Small_businesshttp://en.wikipedia.org/wiki/Telecommutinghttp://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Small_businesshttp://en.wikipedia.org/wiki/Telecommuting


25/62

Social media:-

Social media sites like Twitter, LinkedIn and Facebookare amplifying the voice ofpeople in the marketplace and are having profound and far-reaching effects on theways in which people buy. Customers can now research companies online and thenask for recommendations through social media channels, making their buyingdecision without contacting the company.

People also use social media to share opinions and experiences on companies,products and services. As social media is not as widely moderated or censored asmainstream media, individuals can say anything they want about a company or

brand, positive or negative.

Increasingly, companies are looking to gain access to these conversations and take

part in the dialogue. More than a few systems are now integrating to socialnetworking sites. Social media promoters cite a number of business advantages,such as using online communities as a source of high-quality leads and a vehicleforcrowd sourcing solutions to client-support problems. Companies can alsoleverage client stated habits and preferences to "hyper-target" their sales andmarketing communications. Some analysts take the view that business-to-businessmarketers should proceed cautiously when weaving social media into their

business processes. These observers recommend careful market research todetermine if and where the phenomenon can provide measurable benefits for clientinteractions, sales and support. It is statedthat people feel their interactions are

peer-to-peer between them and their contacts, and resent company involvement,sometimes responding with negatives about that company.

Non-profit and membership-based:-

Systems for non-profit and membership-based organizations help trackconstituents and their involvement in the organization. Capabilities typicallyinclude tracking the following: fund-raising, demographics, membership levels,membership directories, volunteering and communications with individuals.

Many include tools for identifying potential donors based on previous donationsand participation. In light of the growth of social networking tools, there may be
http://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Twitterhttp://en.wikipedia.org/wiki/LinkedInhttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Crowd_sourcinghttp://en.wikipedia.org/wiki/Social_mediahttp://en.wikipedia.org/wiki/Twitterhttp://en.wikipedia.org/wiki/LinkedInhttp://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Crowd_sourcing


26/62

STRATEGY OF CRM

For larger-scale enterprises, a complete and detailed plan is required to obtain thefunding, resources, and company-wide support that can make the initiative ofchoosing and implementing a system successful. Benefits must be defined, risksassessed, and cost quantified in three general areas:

Processes: Though these systems have many technological components,business processes lie at its core. It can be seen as a more client-centric wayof doing business, enabled by technology that consolidates and intelligentlydistributes pertinent information about clients, sales, marketingeffectiveness, responsiveness, and market trends. Therefore, a companymust analyze its business workflows and processes before choosing atechnology platform; some will likely need re-engineering to better serve the

overall goal of winning and satisfying clients. Moreover, planners need todetermine the types of client information that are most relevant, and how

best to employ them. People: For an initiative to be effective, an organization must convince its

staff that the new technology and workflows will benefit employees as wellas clients. Senior executives need to be strong and visible advocates who canclearly state and support the case for change. Collaboration, teamwork, andtwo-way communication should be encouraged across hierarchical

boundaries, especially with respect to process improvement.

Technology: In evaluating technology, key factors include alignment with

the companys business process strategy and goals, including the ability todeliver the right data to the right employees and sufficient ease of adoptionand use. Platform selection is best undertaken by a carefully chosen group ofexecutives who understand the business processes to be automated as well asthe software issues. Depending upon the size of the company and the breadthof data, choosing an application can take anywhere from a few weeks to ayear or more.


27/62

What Is Open Source CRM?

Open source CRM is a group of software products that provides business users

with the tools required to manage their customers. Customer relationship

management (CRM) software has experienced a huge increase in demand as morecompanies begin to understand the increased efficiency available with this tool.

Open source software is developed through a collaborative effort. The difference

between open source and commercial software is the ability to access the source

code.

How Do I Manage a Customer Relationship?

Managing a relationship with customers is extremely important today or they mayturn to your competition. Maintaining a good customer relationship doesn't, andshouldn't, mean that you almost have to give your products away to keep business.Rather, an effective customer relationship means respecting him or her. Customerswho feel respected by being recognized by name and having any complaintshandled fairly are likely to remain loyal.

Customer loyalty cards, such as memberships with discount prices, are a good startin building good relationships with consumers. These types of offers can showcustomers that the business does care about their concerns for reasonable pricing.

Treating customers as members makes them feel welcome and like they belong toa business and are not just entering a store to purchase something. Friendly servicewith a genuine smile only adds to the great shopping experience.
http://www.wisegeek.com/how-do-i-manage-a-customer-relationship.htmhttp://www.wisegeek.com/what-is-open-source-software.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/how-do-i-maintain-customer-loyalty.htmhttp://www.wisegeek.com/how-many-muscles-are-used-to-smile.htmhttp://www.wisegeek.com/how-can-i-improve-my-shopping-experience.htmhttp://www.wisegeek.com/how-do-i-manage-a-customer-relationship.htmhttp://www.wisegeek.com/what-is-open-source-software.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/what-is-source-code.htmhttp://www.wisegeek.com/how-do-i-maintain-customer-loyalty.htmhttp://www.wisegeek.com/how-many-muscles-are-used-to-smile.htmhttp://www.wisegeek.com/how-can-i-improve-my-shopping-experience.htm


28/62

The Importance of CRM Customer Relationship Management

CRM Customer Relationship Management is one of the newest innovations incustomer service today. CRM stands for customer relationship management and

helps the management and customer service staffs cope with customer concernsand issues. CRM involves gathering a lot of data about the customer. The data isthen used to facilitate customer service transactions by making the informationneeded to resolve the issue or concern readily available to those dealing with thecustomers. This results in more satisfied customers, a more profitable business andmore resources available to the support staff. Furthermore, CRM CustomerRelationship Management systems are a great help to the management in decidingon the future course of the company.

As mentioned, there is much data needed for the CRM system to work. These

fields include the customer name, address, date of transactions, pending andfinished transactions, issues and complaints, status of order, shipping andfulfillment dates, account information, demographic data and many more. Thisinformation is important in providing the customer the answer that he or she needsto resolve the issue without having to wait for a long time and without going toseveral departments. With just a few mouse clicks, a customer supportrepresentative for example can track the location of the customer's package ororder. This is infinitely better than the cumbersome process of tracking shipments

previously. Furthermore, the customer service representative will also be able to

see the previous concerns of the customer. This is a great help especially if thecustomer is calling about the same issue since he or she will not have to repeat thestory all over again. This results in less time in resolving the issue, thus, higher

productivity of the support staff.

CRM Customer Relationship Management systems are also important to the topmanagement because it provides crucial data like customer satisfaction andefficiency of service by the frontline crews. A piece of customer relationshipmanagement software will also be able to generate the needed reports for productdevelopment or new concepts. Furthermore, this system will also be a great help

for the top management in deciding the company's future course of action, whetherit involves phasing out one of the products on the shelves or making adjustments toone of the products sold.

The reports generated by CRM systems are also invaluable to your advertising andmarketing planners, as they will be able to pinpoint which ideas works and whichdo not. Because of CRM systems, you will be able to release advertisements or


29/62

plan marketing campaigns more in tune with your target market. This will also leadto more responses to your advertisement and a more effective marketing campaign.

Successful integration of a CRM Customer Relationship Management system inyour company, however, might not be as easy as it seems. The following mightgive you an insight why CRM systems fail in some companies... Most companiesfail to prepare for CRM systems. By this, I mean that most companies fail tointegrate all the departments that need to share the information for it to beeffective. Furthermore, CRM units scattered all over the company's departments isoften more effective than just making one big CRM department. This will ensurethat each department will get the information and data that they need.

A CRM system will also help you a lot in expanding your business. As CRMsystems are capable of handling enormous amounts of data, CRM systems will

help you a lot in coping with the increased numbers of customers and data. With aCRM Customer Relationship Management system installed and properly utilized,you can be sure that all data is maximized and used to ensure that your businesswill be successful and your customers a lot more satisfied than before.


30/62

CRM RESOURCES

There are several publications and websites dedicated to CRM news, systemreviews, resources, guides, and customer reviews available online. The following

is a brief list of resources that are useful when researching CRM solutions and forkeeping up to date with the most recent CRM technology.

The Customer Management Community by insightexec

www.insightexec.como The customer management community, Europe's leading CRM

service, provides a highly valuable set of tools, techniques, advice,specialist events and best practice case studies to help members makethe most of customer management activities, achieve core businessobjectives and help improve the return on investment (ROI) of your

CRM programs.o [news, forum, articles, events, whitepapers]

CRM Guru

www.crmguru.como CRMGuru is an online community focused on Customer Relationship

Management.o [articles, forum, news, events, newsletters]

CRM Daily Newsfactor

crm-daily.newsfactor.como NewsFactor Network features an outstanding team of journalists who

produce daily news and industry analysis. Through syndicationagreements, the Network also features editors' picks of other top techstories from around the Web.

o [news, articles, whitepapers, newsletters]

IT Toolbox CRM Knowledge Base

crm.ittoolbox.como ITtoolbox is an interactive website that enables users to evaluate

vendor solutions, solve technical problems, research industry trends,stay current on specific segments of technology, exchange
http://www.insightexec.com/http://www.crmguru.com/http://crm-daily.newsfactor.com/http://crm.ittoolbox.com/http://www.insightexec.com/http://www.crmguru.com/http://crm-daily.newsfactor.com/http://crm.ittoolbox.com/


31/62

information with other users, manage their careers, and even start theirown IT-oriented blog.

o [blogs, forum, case studies, news, white papers, articles]

CRMCommunity

www.crmcommunity.como CRMCommunity is a community-oriented Web source for

comprehensive, targeted information on evaluating, purchasing andimplementing customer relationship management technology andsolutions.

o [news portal, articles, events, webcasts]

destinationCRM

www.destinationcrm.como From the editors of CRM Magazine, destinationCRM is designed to

serve leaders engaged in the development of customer-centricbusiness initiatives and ventures. destinationCRM.com's internetgateway is ideal for companies that have identified customerrelationship management as a key strategy for creating enhancedcustomer value across many industries including technology,

communications, finance, retail, advertising, and healthcare. Includesa Q&A section and sections dedicated to specific CRM topics.

o [news, events, webcasts, expert advice]

CRM Today

www.crm2day.como CRM Today is a business community and resource center for CRM

and Customer Economy information. CRM Today focuses on every

business function - Marketing, Sales, Human Resources, Technology -and business sector - Finance, Retail, Health, Insurance, IT, Telecoms,Internet, Call Centers - in order to provide its members withinformation and knowledge that is indispensable in today'scompetitive business environment.

intelligentCRM
http://www.crmcommunity.com/http://www.destinationcrm.com/http://www.crm2day.com/http://www.crmcommunity.com/http://www.destinationcrm.com/http://www.crm2day.com/


32/62

www.intelligentcrm.como The Intelligent Enterprise online communities focus on business

software strategies that provide competitive advantage by improvingbusiness decision-making, enhancing business performance, andmaximizing the lifetime value of customer relationships. Theircollective mission is to be strategic guidebooks that show IT and

business managers how to collect, analyze, understand, and actdecisively on enterprise business information in order to make theircompanies smarter, faster, and more profitable. Provides current newson CRM customers and solutions, analyses of CRM solutions, andeditorials on CRM subject ranging from financial to operationalaspects of specific CRM solutions.

o [news, articles, events, webcasts, whitepapers]
http://www.intelligentcrm.com/http://www.intelligentcrm.com/


33/62

Implementation

Implementation issues

Increases in revenue, higher rates of client satisfaction, and significant savings inoperating costs are some of the benefits to an enterprise. Proponents emphasizethat technology should be implemented only in the context of careful strategic andoperational planning. Implementations almost invariably fall short when one ormore facets of this prescription are ignored:

Poor planning: Initiatives can easily fail when efforts are limited to choosingand deploying software, without an accompanying rationale, context, andsupport for the workforce. In other instances, enterprises simply automateflawed client-facing processes rather than redesign them according to best

practices.

Poor integration: For many companies, integrations are piecemeal initiativesthat address a glaring need: improving a particular client-facing process ortwo or automating a favored sales or client support channel. Such pointsolutions offer little or no integration or alignment with a companysoverall strategy. They offer a less than complete client view and often leadto unsatisfactory user experiences.

Toward a solution: overcoming siloed thinking. Experts advise organizations

to recognize the immense value of integrating their client-facing operations.In this view, internally-focused, department-centric views should bediscarded in favor of reorienting processes toward information-sharingacross marketing, sales, and service. For example, sales representatives needto know about current issues and relevant marketing promotions beforeattempting to cross-sell to a specific client. Marketing staff should be able toleverage client information from sales and service to better target campaignsand offers. And support agents require quick and complete access to aclients sales and service history.


34/62

Adoption issues

Historically, the landscape is littered with instances of low adoption rates. In 2003,a Gartner report estimated that more than $1 billion had been spent on softwarethat was not being used. More recent research indicates that the problem, while

perhaps less severe, is a long way from being solved. According to CSO Insights,less than 40 percent of 1,275 participating companies had end-user adoption ratesabove 90 percent.

In a 2007 survey from the U.K., four-fifths of senior executives reported that theirbiggest challenge is getting their staff to use the systems they had installed.Further, 43 percent of respondents said they use less than half the functionality oftheir existing system; 72 percent indicated they would trade functionality for easeof use; 51 percent cited data synchronization as a major issue; and 67 percent said

that finding time to evaluate systems was a major problem. With expendituresexpected to exceed $11 billion in 2010, enterprises need to address and overcome

persistent adoption challenges. Specialists offer these recommendations forboosting adoptions rates and coaxing users to blend these tools into their dailyworkflow:

Choose a system that is easy to use: not all solutions are created equal; somevendors offer applications that are more user-friendly a factor that should

be as important to the decision as is functionality.

Choose appropriate capabilities: employees need to know that the time theyinvest in learning and in using the new system will not be wasted, indeedthat it will yieldpersonaladvantages; otherwise, they will ignore orcircumvent the system.

Provide training: changing the way people work is no small task; to besuccessful, some familiarization training and help-desk support are usuallyrequired, even with todays more usable systems.

Lead by example: upper management must use the new application

themselves, thereby showing employees that the top leaders fully support theapplication or else it will skew the ultimate course of the initiative towardfailure, by risking a greatly reduced rate of adoption by employees.


35/62

Market structures

This market grew by 12.5 percent in 2008, from revenue of $8.13 billion in 2007 to $9.15 billionin 2008. The following table lists the top vendors in 2006-2008 (figures in millions of USdollars) published in Gartnerstudies.

Vendor2008

Revenue

2008 Share

(%)

2007

Revenue

2007 Share

(%)

2006

Revenue

2006 Share

(%)

SAP 2,055 22.5 (-2.8) 2,050.8 25.3 1,681.726.6

Oracle 1,475 16.1 1,319.8 16.3 1,016.815.5

Salesforce.com 965 10.6 676.5 8.3 451.76.9

Microsoft 581 6.4 332.1 4.1 176.12.7

Amdocs 451 4.9 421.0 5.2 365.95.6

Others 3,620 39.6 3,289.1 40.6 2,881.643.7

Total 9,147 100 8,089.3 100 6,573.8 100

Related trends

Many CRM vendors offer Web-based tools (cloud computing) and software as aservice (SaaS), which are accessed via a secure Internet connection and displayedin a Web browser. These applications are sold as subscriptions, with customers notneeding to invest in purchasing and maintaining IT hardware, and subscription fees

are a fraction of the cost of purchasing software outright.

The era of the "social customer"[ refers to the use of social media (Twitter,Facebook, LinkedIn, Yelp, customer reviews in Amazon etc) by customers in waysthat allow other potential customers to glimpse real world experience of currentcustomers with the seller's products and services. This shift increases the power ofcustomers to make purchase decisions that are informed by other parties sometimes
http://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/Salesforce.comhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Amdocshttp://en.wikipedia.org/wiki/Cloud_computinghttp://en.wikipedia.org/wiki/Software_as_a_servicehttp://en.wikipedia.org/wiki/Software_as_a_servicehttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/SAP_AGhttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/Salesforce.comhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Amdocshttp://en.wikipedia.org/wiki/Cloud_computinghttp://en.wikipedia.org/wiki/Software_as_a_servicehttp://en.wikipedia.org/wiki/Software_as_a_service


36/62

outside of the control of the seller or seller's network. In response, CRMphilosophy and strategy has shifted to encompass social networks and usercommunities, podcasting, and personalization in addition to internally generatedmarketing, advertising and webpage design. With the spread of self-initiatedcustomer reviews, the user experience of a product or service requires increasedattention to design and simplicity, as customer expectations have risen. CRM as a

philosophy and strategy is growing to encompass these broader components of thecustomer relationship, so that businesses may anticipate and innovate to betterserve customers, referred to as "Social CRM".

Another related development is Vendor Relationship Management, or VRM, whichis the customer-side counterpart of CRM: tools and services that equip customersto be both independent of vendors and better able to engage with them. VRMdevelopment has grown out of efforts by ProjectVRM at Harvard's Berkman

Center for Internet & Society and Identity Commons' Internet Identity Workshops,as well as by a growing number of startups and established companies. VRM wasthe subject of a cover story in the May 2010 issue ofCRMMagazine.

In a 2001 research note, META Group (now Gartner) analyst Doug Laney firstproposed, defined and coined the term Extended Relationship Management. Hedefined XRM as the principle and practice of applying CRM disciplines andtechnologies to other core enterprise constituents, primarily partners, employeesand suppliers...as well as other secondary allies including government, press, andindustry consortia.

Manage customer relationships more profitably
http://en.wikipedia.org/wiki/Vendor_Relationship_Managementhttp://en.wikipedia.org/wiki/Berkman_Center_for_Internet_%26_Societyhttp://en.wikipedia.org/wiki/Berkman_Center_for_Internet_%26_Societyhttp://en.wikipedia.org/wiki/Identity_Commonshttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Extended_Relationship_Managementhttp://en.wikipedia.org/wiki/XRMhttp://en.wikipedia.org/wiki/Vendor_Relationship_Managementhttp://en.wikipedia.org/wiki/Berkman_Center_for_Internet_%26_Societyhttp://en.wikipedia.org/wiki/Berkman_Center_for_Internet_%26_Societyhttp://en.wikipedia.org/wiki/Identity_Commonshttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Extended_Relationship_Managementhttp://en.wikipedia.org/wiki/XRM


37/62

As insurance companies face increasing competition, they are focusing on gettingto know their customers betterincluding claims status, history, channel

preferences, and individual profiles. Gathering and leveraging this informationhelps you personalize your relationships with each customerand applying

predictive analytics enables them to offer products and services that can helpincrease the value of every client.

SPSS predictive analytics solutions for CRM help you manage your customerrelationships by integrating real-time analysis within your existing systems and

processes. Predictive analytics make it possible to take advantage of data fromevery channelWeb data, claims data, and textual data like notes from call centers

in closed-loop analysis that applies results to improve interactions.

Empower agents, adjusters, call center representatives, and other employees

throughout your organization with the predictive insight they need. Optimize yourcustomer interactions for the greatest mutual value while minimizing yourcompanys exposure to risk.

Discover how SPSS solutions for insurance can support your organizations CRMobjectives, including:

Customer Segmentation

Customer Acquisition

Customer Growth Customer Retention

Role of CRM in Insurance
http://www.spss.com/vertical_markets/insurance/segmentation.htmhttp://www.spss.com/vertical_markets/insurance/acquisition.htmhttp://www.spss.com/vertical_markets/insurance/growth.htmhttp://www.spss.com/vertical_markets/insurance/retention.htmhttp://www.spss.com/vertical_markets/insurance/segmentation.htmhttp://www.spss.com/vertical_markets/insurance/acquisition.htmhttp://www.spss.com/vertical_markets/insurance/growth.htmhttp://www.spss.com/vertical_markets/insurance/retention.htm


38/62

ByBethany Harris, eHow Contributor

updated: June 25, 2010

Role of CRM in Insurance

CustomerRelationship Management, or CRM, is a catalyst in insurance industrygrowth. Replacing the traditional in person encounter of door-to-door sales, theCRM system engages solid business relationships to meet customer demands for

better results. Customer relationship management technology is proficient inqualifying leads, policy administration and streamlines various work functions tosuccessfully service an insurance business. Continuing developments are providing

the insurance industry with customized solutions to satisfy consumers and increaseprofits.

CRM SOFTWARE FOR INSURANCE & FINANCIAL SERVICES
http://www.ehow.com/members/ds_bethan27595.htmlhttp://www.ehow.com/relationships-and-family/http://www.ehow.com/relationships-and-family/http://i.ehow.com/images/a06/bb/dg/role-crm-insurance-800X800.jpghttp://www.ehow.com/members/ds_bethan27595.htmlhttp://www.ehow.com/relationships-and-family/http://www.ehow.com/relationships-and-family/


39/62

Salesboom CRM Software supports business lines for the Financial ServicesSector with highly scalable on demand solutions and support. Financial Sector is a

broad term that includes banks, investment banks, and insurance companies(including brokerage, underwriting and reinsurance).

Salesboom CRM software addresses and integrates Financial Sector organizationalrequirements from three key areas. Operational, Analytical, and Collaborative. Thedegree of detail and integration is scalable, and can be modified by owners asneeded. Salesboom offers solid customer support, training and professionalservices

Salesboom CRM Solutions offers customers in the Insurance Segment of FinancialServices Sector an opportunity to assess, streamline and improve:

Operational activities with the automation of basic business processes(marketing, sales, service) Methods of analyzing customer behaviour and incorporating business

intelligence strategies Collaboration with customers on multiple communications channels Collaboration between organizational team members to ensure a quality

customer service experience and follow up Front and back end integration (supply chain) Workflow and assignment processes

CRM Solution Success Stories


40/62

How are companies using CRM solutions? The range of organizations using CRMsystems today varies widely. While CRM was developed largely for service

providers such as banks, hospitals, and universities, businesses small and largehave found CRM to be beneficial to their bottom lines, regardless of size. Small

businesses are finding CRM solutions save them time and money by organzingtheir client information, making it easier to provide quick and easy customerservice without all the paperwork and staffing. Larger companies are using CRMto not only manage their clients, but also identify and retain new customers.

Below are a few customer stories about their experiences using CRM in differentindustries worldwide.

Alta Resources

Alta Resources is an outsourcer of customized sales and service applications such

as call center management and customer data analysis applications. To keep upwith increasing internet and global demands, Alta needed a CRM solution that

integrates its clients' business processes with its own applications to create mutual

customized call center solutions for its clients. Alta Resources turned to PeopleSoft

to help them create a unified, seamless CRM solution that resulted in their ability

to expand their business, enter new markets, take on more clients, and increase

revenue significantly within a relatively short period of time.

IBM

As a longstanding technology organization, IBM suffered from too many

departments running on different platforms and applications that were no longer

compatible, as some upgraded while others didn't and new systems were

introduced. IBM was already using Sieble's CRM solution for it's call centers and

technical support, so when IBM needed help with it's sales and marketing, they

turned to Siebelonce again to create a single integrated, company-wide CRM

solution platform that supports IBM sales and marketing worldwide by providing a

single source for customer and marketplace data, in several different languages and

currencies.

Bedfordshire County Council

It's not surprising that the public sector has turned to higher-tech CRM solutions in

the past few years. Government and public agencies are responsible for interfacing

with and servicing everyone from private citizens to public corporations and
http://www.peoplesoft.com/corp/en/doc_archive/success_story/alta_ss.jsphttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_studyhttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_studyhttp://www.peoplesoft.com/corp/en/doc_archive/success_story/alta_ss.jsphttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_study


41/62

military agencies, and even small organizations can be overwhelmed with

management issues. Bedforshire City Council in the U.K. was experiencing

significant growth and a rapidly changing economy. SAP worked with the Council

to create a CRM solution that makes the Council more efficient and enhances

communications within its own department, with private companies, and with thegeneral public. Bedfordshire County, and other communities worldwide, has

realized that CRM has huge potential benefits to the efficiency of our government

agencies, and can change the way government interacts with the public.

America OnLine

America Online, the world's largest Internet Service Provider, turned to

SalesForce.com to help it manage its extensive customer base and, on the IT end,

their customer - server interactions. AOL also had an increasingly complex sales

and marketing process that involved multiple external partners, and managing

information across multiple groups and contracts. SalesForce.com provided AOL

with a CRM solution that directs customers and employees through the fastest and

most efficient channels when seeking information or solutions, increasing

productivity for the entire organization.

Three Rivers Pharmeceuticals (3RP)

3RP is an example of a start-up company that implemented a CRM solution from

the beginning in order to maximize its profits and efficiency during this mostimportant growth period. 3RP had planned to do its CRM in-house, but after

researching the amount of staff and financial resources it would take to do so,

especially considering the FDA requirements they would be subject to, 3RP opted

to outsource their software services to Oracle. Oracle quickly implemented an e-

business solution that allows 3RP to focus on it's research and business

development while the Oracle solutions work to manage its contracts, business

transactions, and helps to automate reports.

Blue Cross Blue ShieldBlue Cross Blue Shield worked with Pegasystems to organize and implement a

CRM system to provide accurate information via one application that could do

several functions, as opposed to several, disconnected information centers. BCBS

saw the time it took to train new employees diminish significantly because of less

time spent teaching system navigation - only having to teach them to navigate one
http://www.sap.com/solutions/business-suite/crm/customersuccess/index.aspxhttp://www.oracle.com/pls/cis/Profiles.print_html?p_profile_id=6791http://www.pegasystems.com/http://www.sap.com/solutions/business-suite/crm/customersuccess/index.aspxhttp://www.oracle.com/pls/cis/Profiles.print_html?p_profile_id=6791http://www.pegasystems.com/


42/62

or two screens instead of six or eight - and more time focusing on quality

customer-service interactions. Employees now have more time to focus on

customers instead of searching for information from several sources. The CRM

solution also allows them to automate processes such as updating an address or

requesting a member card, saving company time. Not only that, but the amount oftechnical support now needed to maintain the system is decreased.

American Airlines

American Airlines wanted to better understand its growing customer base,

specifically the members of its AAdvantage Travel Awards program. AA worked

with Epiphany to create a unique system that helps recognize customer differences

through company-wide sources of data. Using this system, the airline and it's

individual employees can offer personalized services to its most loyal customers -

frequent fliers - and potentially greatly increase their profitability by retaining

customers in an increasingly dynamic and competitive industry.

Boehringer Ingelheim

In 2003, Boehringer Ingelheim (BI), a pharmaceutical company, implemented the

Siebel ePharma customer relationship management (CRM) suite to create a new

way of approaching the companys markets and to standardize information. As a

global company, BI needed to standardize its sales and marketing practices

worldwide. The Siebel system allows BI to compile and track product and clientinformation in order for it to be deployed at any time, to any client, worldwide.

The CRM solution, combined with other factors, optimized the company's

effectiveness in such a way that BI saw their revenues double in a two-year period.

Case study:-1

Insurance and Securities Agency Streamlines Processes and Data Integration Using

Microsoft Dynamics CRM Software

By: Mike Hauck of Valmark Securities
http://www.epiphany.com/customers/spotlight/aa_snapshot.htmlhttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_study=http://www.epiphany.com/customers/spotlight/aa_snapshot.htmlhttp://www.siebel.com/resource-library/search-result.shtm?content_type=case_study=


43/62

For 45 years, Akron, Ohio-based ValMark Securities, a leading insurance brokerage agency and

securities broker dealer, has provided sales, underwriting and administrative support to its

network of over 300 wealth managers and insurance agents. ValMark maintains a targeted

member broker and agent network that relies on ValMarks expertise in preparing investment

and insurance packages for high-net worth individuals. These insurance packages are typically

valued at three times the national average for insurance sales. In the spring of 2007, ValMark

identified the need to update its business processes and began the search for software solutions

that could address its demands to track workflows and manage complex business relationships

with multiple insurance companies, financial institutions and investment firms.

Managing complex interactions between partners and its member sales network was one of the

core business issues for ValMark Securities. On the insurance side of the business for example,

member insurance agents may submit sales opportunities to ValMark for customized

recommendations on financial products from a partner database of 35 insurance carriers. Each

sales opportunity for these clients is unique. High-net worth clients typically purchase multiple

securities and insurance products through the member agent. Product recommendations are

based on many client criteria using data obtained during the underwriting process. ValMark

needed a system to track each insurance case from the preliminary stages until the final decision

or sale is closed.

Data integration was another important requirement for ValMark Securities in designing a new

customer management system. Many insurance products require intensive data gathering during

the underwriting process, which can be repetitive and time consuming if data is not easily

accessible. ValMark wanted assistance in migrating and sharing client-related data. In addition,

the insurance brokerage community recommends that agencies adopt ACORD XML standards

for insurance-related data in order to facilitate electronic data interfaces. These feeds include


44/62

insurance case status, requirements ordering and status, policy information and commission

feeds. The new system would need to support these data standards and requirements in order for

ValMark to operate efficiently.

When the company realized it would be difficult to find a system to meet their needs from

existing agency management software, they explored the idea of building the software

themselves. However, expertise and resources were needed to do so. A few years ago, ValMark

Securities contracted with Customer Effective, a value-added reseller and Microsoft Gold

Certified Partner, to replace their initial contact management system with Microsoft Dynamics

CRM 1.2. Over time, ValMark realized the need for more customized applications to improve

data integration and track activities of its increasingly complex relationships between

independent sales agents, brokers and the insurance carriers and investment houses that provide

financial products.

ValMark contacted Customer Effective and together they worked to build a customized agency

management system within the Microsoft Dynamics CRM platform. ValMark adopted the

solution from Customer Effective known today as Capital Effective, a relationship management

solution based on the Microsoft Dynamics CRM platform, designed exclusively for the financial

services market. ValMark chose to call their version of Capital Effective VBOSS or ValMark

Back Office Support System to emphasize that their solution is not off the shelf but uniquely

capable of supporting their business model. Employees benefit from the solutions native

integration with the Microsoft Office Outlook, which provides a familiar, easy-to-use interface to

access critical information.

To further speed adoption of the CRM solution among ValMarks employees, Customer

Effective used a unique approach to its implementation for the financial industry, branded as

User First Design FormulaTM. This approach begins with a definition phase using input directly

from the end users, designing corresponding workflows, and modeling all potential customer

interactions. Following the design phase, Customer Effective created a strategic deployment


45/62

plan to test and train employees at every stage, integrating CRM use as part of their daily routine.

Results: CRM System Expedites Business Procedures

Since implementing the Capital Effective CRM solution, ValMark has improved its client

interaction activities and expedited the time involved in integrating data to complete the

insurance underwriting process. Accessing the system within the Outlook environment made it

easier and more intuitive for employees to use. As a result, the CRM implementation did not

entail an extensive training process, and the learning curve was much shorter in comparison to

ValMarks previous agency management system.

Additionally, Capital Effective can be changed quickly based on user needs and ValMarks everchanging

business requirements (such as quickly adapting to industry regulations and standards,

like ACORD XML). During the rollout of the new system, ValMarks users requested that the

system be reconfigured to reduce the number of keystrokes necessary to track case information

in the system. Within a week, the system was altered to require fewer keystrokes, allowing

employees to conduct business through a more convenient process.

ValMark needed a unique solution to solve unique business requirements. For this agency, the

Microsoft Dynamics CRM platform provided the perfect environment to address user needs for

data sharing and management needs to speed business process and sales reporting. Additionally,

selecting the right implementation partner, Customer Effective, who took the time to evaluate

needs from every level in the company, was a key part of their success in finding the right

solution.

Mike Hauckcurrently serves on the management team for ValMark Securities, a leading

insurance brokerage agency and securities broker dealer in the wealth management and

insurance industries.


46/62

Case study:-2

The Challenge:

The company needed to replace their existing CRM application that had been

supporting the Call Center activity for the past year. The existing CRM package (a

leading product in the market) had the following limitations:

Lack of performance in handling the growing number of incoming calls;


47/62

High cost to extend activities to backoffice departments the new application

needed to support communication between departments to fulfill requests initiated

at the Call Center;

Lack of flexibility and ability to change - as a package the application was noteasily customizable to address the evolving, specific needs of the insurance

business;

Integration with existing systems (claims processing and policy management) was

extremely difficult to do - users distrusted the data that was presented to them

wince it was constantly outdated. A trusted, single view of customer data didn't

exist;

The web interface was not tailored to the specific needs of insurance call agents - it

was missing concrete processes and form handling, and it was too complex in other

areas;

Deficient analytical data - operational data was encoded in the specific metadata

format of the CRM package and too complex for 3rd party reporting systems to

use.

The Solution:

The company developed a custom Call Center and Fulfillment system with the

OutSystems Agile Platform, in just 6 weeks. The application was targeted at 100

call center agents and 150 employees from different departments that support the

backoffice follow-up process of more complex customer requests. To support the

complete caller contact/response process, the system included the following

features:

Automatic inbound handling - When a phone call is received the applicationautomatically pops-up so the operators can start registering the customer

interaction. The application is integrated with the companys Cisco ACD system;

Contact identification and definition- simple to use form where the contact

center agent classifies the contact (inbound or outbound call), its origin (e-mail,

phone, fax, mobile, or other) and identifies the number where the call is coming


48/62

from. The operator must also identify the calling entity: first its type (Customer,

Supplier, Agent, Employee, Third Party, etc) and then a specific person from the

database, creating a typified contact record. Depending on the contact nature, more

data can be entered, like a claim ID, a policy number or even a supplier key;

Contact automatic prioritization SLAs are defined (in the back office)

according to contacts type and reason, and the application automatically decides

whether a call should be immediately answered, transferred or even if a task should

be opened. It also fills the deadline date for resolution automatically;

Intelligent customer routing Based on the defined SLAs, calls are

automatically transferred to the right person without any intervention from the

operator. Likewise, notifications of new tasks are automatically sent to the

responsible department. The operator no longer needs to look up a phone numberor write an email to send a notification. The whole process just became faster and

easier;

Contact Management and Analytics 84 types of contacts are catalogued and

associated to a specific workflow and SLA. From new product simulations to

claims or policy information, billing information or even agent related information

and campaigns, the call center agent is able to efficiently address and answer all

customer and partner agents calls;

Profile Management profiles and groups are managed through the backoffice

allowing the tasks to be viewed and owned by a group of people. When a specific

task is forwarded to a team, anyone belonging to the team can open the task and

become its owner. At any time the task owner can forward it to another team

member;

Contact and Task monitoring users can search on a list of all contacts and their

related details (general data, comments, tasks and history). A progress bar is shown

for all open data as well as the time remaining for closing a particular task;

Portal Integration - data collected by the contact center is available to all

applications under a portal, allowing any employee to check, for example, the

entire contacts history for a specific insurance policy;

Real time Integration with existing claims and policy systems;


49/62

True analytics and flexible reporting capacity.

Results:

Accurate and complete collection of relevant contact data the company has

accurate contact data regarding reasons of contact, number of contacts, times of

resolution meshed with the relevant insurance business data;

No more on-the-side" tactical applications or spreadsheets. Critical, unforeseen

demands from the Call Center are deployed, in some cases, in as little as 2 days;

High user satisfaction and adoption. The use of agile methodologies assured that

users were deeply involved during the whole development process, and that the

final system addressed their specific needs;

Integration with existing legacy systems was simplified and ensured that multiple

customer's related data was accurate in all systems.

INSURANCE

Salesboom CRM software offers services in support of personal and commercial insuranceoperations.The table below addresses standard sales and support activities supported by Salesboom CRMSoftware Solutions.

BUSINESS ACTIVITY SALESBOOM - INSURANCE SECTOR

Sale of financial

products such as

life insurance,

property

insurance,

RRSP, etc.

Marketing, sales, productspecification, pricing,targeting activities.

Salesboom CRM lets you create highlypersonalized marketing campaigns andexecute them across multiple channels. Withneed analysis and product recommendationcapabilities, Salesboom CRM helps agentsclose the sale by providing the right product


50/62

choices.

Salesboom CRM Referral management Automatically create leads for everyreferral captured

Easily view the most valued sourceof referrals

Targeted sales Maximize cross-selling opportunities

Streamline account origination formultiple product sales

Call list management Accurate, complete and timely calllists triggered by events, meetings,predefined conditions

track, assign, escalate call activities

appropriately

deliver personalized investmentadvice to clients in timely basis

Household management View data on familial and ad hochouseholds

Roll up of portfolios, leads,activities, notes, opportunities

Identify client values

Consistent view of client portfoliosacross multiple platforms Accurately assess client value and

profitability Segment clients for appropriate

marketing initiatives

Retain high value clients withexceptional customer service

Self serve Universal sign up Cross-channel application processing Targeted cross-selling

Multi-channel distribution offinancial research in support ofmarketing and decision making

Advisory services Improve co-ordination with team


51/62

members

Representative

Productivity

Improve representative'sproductivity

Automatic tracking and assignmentof activities to appropriateemployees through workflow

Electronic tracking and viewing ofdecisions by the relationshipmanager, credit officers and bankexecutives

Policy Support utilization ofcomprehensive policymanagement

Capture new business processes Track status of all policy-trailing

documents

Initiate order for underwriting

documentationClaims Processing claims

verification, policy review,authorizations, payments

Amalgamate customer information fromagents, brokers, call center representatives,mobile claims adjusters for good decisionmaking.

Contextual

Information

Gather, collate and assessclient files in context forbetter pricing and decisionmaking.

Consolidates all information sources(including external) to a single source.

Billing Manage and TrackAccounting activities Salesboom will track and generate invoicesand payments according to various triggersprogrammed into the system.

Product

Description

Comprehensive and up todate product descriptionsfor sharing

Create, update and disseminate productinformation that is consistent for all users.

Pricing and

Quotations

Produce and track quotesfor customers based onpricing andpackaging/incentive

programs

Maintain history of quotations fromcommon pricing tables, document incentivesand successes on file.

Risk Assessment Proceed to underwritingwith solid client profileand history in evidence.

Improves risk assessment as agents haveaccess to comprehensive of customerspecific underwriting from all business lines

Document

Management

Generate policy documentssuch as quote packages,

Can be generated automatically and can besent directly from the system to customer by


52/62

declarations, certificates ofinsurance, and paymentreceipts

email, fax, mail.

Salesboom CRM services has capacity to integrate andsupport the following business lines on-demand and as-

needed to deliver successfully in your financial enterprise:

BUSINESS

ACTIVITIES

ACTIVITIES

Marketing

Analysis

Develop marketing strategies and maintain campaign history in acompany repository available as a working file, a reference repository forlessons learned, a resources for decision making, training purposes, etc.

Sales Track sales activities, strengthen sales strategies, incorporate salesprotocols, study sales successes/failures to finesse future sales strategies,provide instant overview for team overview and action. As a result it iseasier to develop better targeted sales offers, up-sell and cross-sellopportunities.

Customer Service Deliver exemplary customer service with instant access to productmarketing collateral and partner product information.

Customer and

Partner

Manage information and activities for customer and partner relationshipsfrom within one system to ensure good information exchange in supportof sales, supply management, customer and product support.

Management

Call Center Manage call center services with on-line software that links the service

team in real-time to sales information, product information, pricing and

billing options and self service options.

Policy

Enforcement

CRM implementation enables consistent enforcement of organizationalpolicy. This capacity enhances areas where policy is important in termsof revenue generation, legal responsibility, regulatory compliance,Occupational Health and Safety, demonstration of fiscal due diligence.

Work-flow Embed business processes into Salesboom CRM to promote consistencyand reduce costly training activities.

BUYING IN ACTIVITIES


53/62

Customization Consider customization in the

Date post:	07-Apr-2018
Category:	Documents
Upload:	preshu-furia
View:	218 times
Download:	0 times

Crm in Insurance Final

Documents