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CRM

 Customer satisfaction in any sector is a multi-faceted dimension


which encompasses quality product and value addition through
value evidence
 CRM, or Customer Relationship Management, is a company-wide
business strategy designed to reduce costs and increase
profitability by solidifying customer loyalty
 There are three key elements to a successful CRM initiative:
people, process, and technology.
 CRM is perceived as an
 Information technology solution for ensuring a better customer
services by increasing business in competitive environment
 Meeting the demands of the market
 The needs of customers
 Evolved as Customer- Centric Philosophy for whole organization
Objectives of CRM
 CRM is an organizational strategy to develop mutually
profitable lifelong relationship with the customer
 The primary objectives of CRM are to build and maintain a
base of committed customers who are profitable for the
organization
 Use technology and human resources to understand the
needs and behavior of present and potential customers.
 Acquire, retain and establish mutually rewarding, one to one,
relationships with customers.
Objectives of CRM
 Provide better customer service to customers.
 Identify high value customers so that the organization can
serve them better with differential service.
 Increase customer revenues by cross selling and up selling.
 Simplify marketing and sales processes
 Collect customer information at all possible points and
making this information available to the entire organization
Need of CRM in Insurance Industry
 Insurance products are becoming more commoditized.
 Presence of numerous players.
 Advertising efforts are being countered by comparison
portals, insurance advisors and corporate alignments.
 A large share of business is driven through
intermediaries where information challenges exist for
effective management.
 Companies continue to face stiff revenue targets spread
across too many stakeholders.
 Stakeholders struggle to deal with too many processes,
systems and geographies
 Speedy documentation and processes at the time of issue of
policies
 Prompt redressal of customer grievances
PROCESS OF CRM
 Redesign Functional Activities
 Redesign the functional activities on implementing CRM while
working at cross-purposes functional Departments
 Customer-centric Business Strategy
 Plan around customer wants but not company goals,
 focus on listening to customers but not forcing them to listen to
you
 promote communication of marketing including database
marketing (e-database marketing, e-database, e-marketing, etc)
CRM Process
 CRM Initiative
 Introduce new technologies in System
 Communicate & Educate employees
 Identifying Customers
 Primary Customers : policyholders, beneficiaries, insured,
agents or brokers
 clear understanding of each of the customer segments
 build an infrastructure and strategy to provide customers with
products and services
 Collecting and owning customer data
 Capture and combine customer information from various offices &
sources
Existing CRM Facilities in Indian
Insurance Sector
 MAX NEW YORK LIFE
 The RATER strategy for its operations and for the
customers
 Reliability
 Assurance
 Tangibles
 Empathy
 Responsiveness
 CUSTOMER LISTENING SYSTEMS
 The company has a customer listening system
 The tools used for it are:
 Customer satisfaction surveys
 Agent satisfaction surveys
 Service scorecard (Customer touchpoint experience)
 Customer/Agent issues inventory
 Service monitoring questionnaire withpolicy pack
 Complaint questionnaires
VALUE CHAIN
 Product development
 Customer acquisition
 Policy issuance
 Post policy servicing
 Collections/renewals
 Claim settlement
 This process is supported by Customer Care/call
centres, IT, F& A, Actuarial, HR &facilities,
Marketing and legal processes.
LIFE INSURANCE CORPORATION
 e- CRM software by the help of Wipro and IBM .
 CRM project is the largest of its kind in India.
 Wipro and IBM work together to compile the data policy holders
of LIC.
 Data would reflect consumer behaviour of policy holders, nos of
customers going for loans
 Extensive network with a Web front-end to make policy
detail and services more accessible.
 EPS (Enterprise Portal System)
 Voice-
 enable it’s WAN and video
 Conferencing solutions
Benefits for LIC
 Streamlines processes
 Collections via the Web reduce time taken for
transactions & benefited LIC by 12% reduction in
costs.
 Single point of servicing of the customer.
 Single Window Operations for all products and
services for a customer
 Customer ID links all policies of a customer from
the branch data base.
HDFC ERGO GENERAL INSURANCE
 With the new system in place, field executives can now
upload leads generated from the market, third-party
databases, and existing customers into a central repository.
 The sales team then uses the Lead Tracking and Reporting
Mechanism tool to manage leads and track these leads
across the customer lifecycle, generate various reports for
top management
Benefits for HDFC ERGO
 The system has given the flexibility to customize the
products according the user's needs.

 A single repository of data enables the company to closely


track the sales pipeline and figure out where the gaps are, and
how to close them out.

 An increased lead conversion rate which stands at 30%. A


30% conversion rate of 20,000 leads equals 6,000 policies.
Strategies for Success of CRM
 Comprehensive Repository
 A repository of customer information incorporating data of the entire
organization and all its locations should be created
 A system should be built to allow real time data access
 Localize
 CRM systems’ mid-point contact software must be in local language for
customers and employees
 Should adhere to local security and privacy laws, management of currency
related issues
 productive integration of local business processes
 Phased implementation
 Single point testing
 MNCs must begin with identifying their most successful and revenue
generating country
 Reduces risk of failure of overall system
Strategies for Success of CRM
 Collaborating with all stakeholders
 Organizations should involve existing business partners
 business and channel partners offer valuable inputs from their
expertise area
 help acquire buy-in for new technologies and processes.
 Integration
 Effective cross-channel integration helps all departments to be
actively involved in sales and service through a single customer
view
 Integration between front office and back office systems is a
must.
 User coaching
Successful CRM Implementation in
Insurance Sector
 Reliance General Insurance
 Leading provider of Health, Car, Home, Travel and Business
insurance.
 Network of over 200 offices spread across 173 cities in 22 states
of India.
 Founded in 2000.
 Challenges Faced:
 Different processes for different customer segments.
 Reorganize and streamline reporting systems.
 Eliminate multiple reporting tools and constant data
reconciliation.
 Implement "one version of the truth" solution across
information silos.
Solution
 Effective lead management through direct channel & telesales
 Effective customer servicing by intelligent allocation of cases
to specialist teams & closures within SLA.
 Integration between various core systems for effective
customer servicing/operations management.
 Lead capture through various source & distribution across
agencies for a quicker inspection & sale of policy.
 Sales Force Automation, Marketing Automation, Customer
Service & Support along with Analytics module
 Starting with 500 users in 2008, Reliance General Insurance
has now a CRMnext user base of 10000
Benefits
 Enhanced the capabilities of customer servicing by
increasing first time right (FTR) and turnaround
time (TAT) adherence by 400%.
 Reduced the cost of servicing by a great margin.
 Improved lead conversion.
 Increased the capability of customer retention.
 Reduced time and IT resource requirements for regulatory
reporting.
TATA AIA Life Insurance
 Background
 Tata AIA Life Insurance Company Limited (Tata AIA Life) is a
joint venture company, formed by Tata Sons and AIA Group
Limited (AIA).
 It struggled with multiple systems, technologies and
stakeholder conflicts. Customer information and processes were
fragmented in over 25 systems.
 Challenges
 Inter-department coordination
 No unified system of customer information available
 Manual assignment for premium collections over spreadsheets and emails
created delays
 Manual assignment of new applications for verification, validations
 Challenges
 Knowledge retention
 No effective tracking of channel, branch and vendor persistency and
performance.
 Lack of reliable measures to track feedback of customers on products and
service.
 Standard Customer Communication
 No standardized platform for communication between internal team and
customers.
 Process control and inefficiency
 No single system to monitor new application issuance across all touch-points.
 No cataloguing of undelivered or invalid cheques
 Manual extraction and analysis of customer data for execution of campaign.
 Incorrect capturing of service requests due to lack of validations leading to
increase in wait time for customer
Solution
 Convenient New Business Process
 Single system for Branch, operations, agents
 Reduced departmental dependencies
 Pending Management
 Policy Dispatch Management
 Integrated Customer Services Process
 Across Touch-points - call center, branch, email, web, mail,
 Across Request Types - Enquiry, Complaints, Requests,
 Across Departments- Customer service, POS, New Business
Solution
 Marketing and Lead Management System
 Touch point unification - call center, branch, email, web, mail,
SMS, portal
 Single system for managing Leads - New Acquisition Leads,
Cross-sell Leads
 Models for Intelligent Cross-selling
 Cross-sell campaign set-up

 Collections Management System (Business Conservation)


 Single system across Agencies both internal and external
Benefits
 Increased customer retention

 Improved inter-departmental teamwork


 Categorization of customers
 Availability of information on a single platform

 Business Conservation and New Business


 Profit goes up 402 percent - from Rs.51.79 crore to Rs. 260.31
crore.
 New business premium from traditional business at 45 percent -
up from 29 percent.
Benefits
 Customer Service Management
 TAT for customer service request has improved from 4.05 days
to 2.74 days.
 Adherence to SLA has increased to 95%.

 Better process control


 Increased visibility through automated reports, escalations
leading to better control.
 Process consolidation of pre-submission calling, cross sell
calling, new lead calling, campaign designing
 Availability of information with regular updates on the
campaigns with offer statuses and customer information
SBI Life
 Background:
 SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas
Cardif., wherein SBI owns 74 percent of the total capital and BNP Paribas Cardif
the remaining 26%.

 CRM Highlights:
 An in-house CRM system that serve as a complaint and lead management system
 SBI's CRM system handles customer complaints efficiently through multiple
channels
 New CRM system has improved transparency, brought down complaint
resolution time and cuts across all customer touch points
 Allows a single view of the customer and follows it within the hierarchy

 SBI Life can efficiently service any query/compliant because they have a
consolidated view of all the past payments and history of customer interaction

 New system allowed to capture the initial interactions with potential customers.
This helped in understanding customer behavior; what people are looking for
Benefits
 The central monitoring team helped in customer service
escalation hierarchy decision.
 It allows a single view of the customer and follows it within
the hierarchy, and offers a summarized view
 Improved transparency, brought down complaint resolution
time
 First insurer in India to complaint with IRDA rules
effectively.
Reasons for CRM Failure

 Customer – if clients are dissatisfied with execution of CRM system


 Data – Data stored should be complete. Any inconsistency can lead
to problems
 CRM is implemented for enterprise & not customer
 Cost – Cost incurred in for support, maintenance & ongoing
upgrade. As business grows this becomes quite expensive
 Security - A lot of security patches needs to get installed. If not
done on time it can lead to problems.
Failure in CRM Implementation – MetLife Insurance
Problem

 Happened when several databases across enterprise were integrated


 Data organized around product groups & not customers
 Data across systems was inconsistent
 Wanted to increase automation & amount of data available to
customers
 Goals of users was not explored
 Voice response system was installed
 Customer wish was not taken into consideration
Failure in CRM Implementation – MetLife Insurance
Result

 Resulted in customer attrition, wasted financial resources, and lost


opportunities
 The customer was not willing to punch through a bunch of
numbers
 Insurance agents complained of losing deals because of poor service
 Cost of the implementation project ran into seven figures
 Cost of implementation was less than the likely losses suffered by
MetLife due to loss of customer
Failure in CRM Implementation – Cigna
Problem

 Cigna HealthCare was operating with IT systems that were nearly


two decades old
 It had separate units for enrolment, processing medical claims and
verifying customer eligibility
 The customer information pertaining to medical claims was spread
across 15 distinct IT systems
 The claims and eligibility information systems were not inter-
connected
 Customer service representatives found it difficult to process the
120 million claims per year that Cigna HealthCare received
Failure in CRM Implementation – Cigna
Results

 Develop an integrated system


 This system would
 Generate one bill across products and divisions
 Process the medical claims of customers
 Provide case histories of all the customers to the customer service
representatives
 Facilitate exchange of information with customers
Failure in CRM Implementation – Cigna
Where the system failed
 Failure in integration of huge database
 Implementation of system without optimally checking it
 The front-end applications, used by service representatives could
not retrieve data from the back-end systems easily
 The back-end database was not filtered and sorted out
 Customers also faced difficulties in obtaining information relating
to health coverage plans
 Cigna was unable to confirm the registration to customers for many
days
 Cigna issued identity cards with incorrect numbers and services
were provided incorrectly
 Cigna lost .89 million customers & $ 398 million in revenue
CHALLENGES
 Effectively collaborate with network of agents and
intermediaries to get better visibility of sales processes,
reduce cycle times and prevent revenue leaks?
 How to provide valid, up-to-date intermediary-wise
performance data to help relationship managers drive
revenues?
 How to influence corporate buying decisions, while
working to forward relationship width?
 How to ensure optimal service quality to customers
&intermediaries, across a multi-source eco-system?
CHALLENGES
 How to evolve a complete 360 view of customers along
with their policy holdings, risk profile, premium
payments, claims history, to judge true value
of relationship?
 How to tap complete household/ account potential to
offer personalized products as per requirement and
propensity, using cross-sell/ up-sell techniques?
 How to provide proactive real-time insights into
processes for actions, with intelligent reports
&dashboards?
 How to comply with ever changing insurance
regulations?
Conclusion
 Insurance sector in India is a booming sector and has seen a
tremendous growth in the past few years.
 Affirmative view of customers about owning an insurance policy
which proved that Insurance is the need of the day.
 Insurance companies have started developing specific CRM
initiatives to retain their customers.
 Policy holders also acknowledge the presence of such CRM
initiatives.
 Though many initiatives have been taken up by companies, still
CRM in the Insurance sector is at a nascent stage
 CRM solutions can go a long way in helping companies implement
effective measures to manage risks.
 CRM solutions can help the sales team make clear decisions

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