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5 reasons why insurance agents need CRM software


Insurance agents need crm software

The insurance industry has been undergoing a digital transformation of late. Independent insurance agents, nowadays, have access to state-of-the-art insurance CRM software, which was only available to large organizations, until recently. Unlike their counterparts in large organizations, independent insurance agents need to handle a wide range of operations to support their sales, as well as their back-office operations. Selecting an insurance CRM software can become a daunting task. Our team compiled a short list of 5 reasons why insurance agents need CRM software to support their sales operation.

1. Identify opportunities


Your mind is set on expanding your book. It is very important to ensure that you stay on top of your clients’ needs. Listen to what they say and take notes. Stay up to date about their life-changing events, a new child, a new job, a new address. These are milestones that cause people to rethink their personal finances; and an insurance agent should be there to identify new opportunities. After all, these are people who already know you; who have already trusted you with their business. They do not know how an otherwise insignificant change in their family can affect their financial planning.

Stay alert by being organized. Do you have an opportunity calendar? If no, go create one. You can thank yourself later. Keep your book up to date. Then, let your book remind you when to take action on those events. Pen and paper is a trustworthy method to keep track of your opportunities, but it is error-prone; using a CRM is way better. In effect, today insurance agents need CRM software to stay abreast of the ever increasing competition. The volume of information, combined with the available channels of communication, make it way too complex for agents to do without a CRM.

2. Communication management with prospects


The size of your book does not matter, as long as you are not prepared to put yourself to work and start doing the right things, in the right way. One of the things that you need to be doing is to start talking and listening to your contacts. Often, talking and listening comes in the form of exchanging emails. This takes us to the next ingredient, which is effective management of communication. Agents adapt their mode of communication to what is preferred by their contacts.

So, you might give someone a call and, in response, get back a text message. In another instance you might send an email and get back a phone call, asking for details. The next day you might receive a text causing you to respond with an email. As you can understand, it is a challenge trying to keep a trail of when, who and what was sent, or said, back and forth.

Besides, when you need to get the big picture about a prospect, you need to have all past communication in one place, in a traceable format; that means all calls, all texts and all emails. But, clearly, contact management is not the only reason why insurance agents need CRM software.


3. Improve customer experience


Do you know how to engage your contacts? You better answer Yes to this question; otherwise, someone else will. Knowing when and how to engage your prospects is a trait that is built with time. Using a CRM just shortens this time to your advantage. Having all your communication channels under the same roof makes certain that nothing gets lost and lets you focus on what matters most; closing the sale.


4. Track referral opportunities


You already know what is the value-differential between a hard-earned contact and a referral from a client or a friend. Referrals come to you already warmed up. By integrating your CRM account with your social media account, you can identify referral opportunities. Then, you can set up a referral program and reward those friends and clients who help you grow your business.

You need to ensure that your insurance CRM software can support this type of operation. Referral leads have a 7 to 1 close-ratio, as compared to non-referral leads. Do you have a plan to identify and track referral opportunities through your current network of friends and family? As a proactive insurance agent, you should identify these opportunities; and then ensure that your insurance CRM software supports your sales pipeline to nurture them and turn them into clients.


5. Measure ROI on purchased leads


Despite your best efforts to get those referrals last month, or last quarter, you didn’t. So, to keep your business going, you invested in purchasing leads from one of several insurance lead vendors that exist out there. Like with all investments, business acumen requires you to know what was the Return On Investment (ROI) on this last list that you bought. How many clients did you get out of the total? What was your total production that came out of that list? Should you buy from this lead-vendor again? You should be able to answer these questions each time you consider which lead-vendor to buy from. This is a characteristic case where insurance agents need CRM software.

But, how will this help an insurance agent? Like with everything that you can compare, agents have to compare the ROI of leads purchased from different vendors. This way you will know where to put your money on, next time. Consider this scenario: you buy a list of leads from your favorite vendor and you don’t shop from them again for a long time. Then go back and compare the ROI of list A to the ROI of list B. This is your business; therefore, you must invest wisely and review your KPIs. Compare between lists from different vendors, or compare between lists from the same vendor.

Insurance agents need CRM software!


All things considered, if you are an insurance agent, you’ll find that you most definitely need a CRM, yourself. If not to deal with competition, increased productivity and deal flow should be the one star to lead you. So, there you have it! 5 reasons why insurance agents need CRM software; we’re confident at least one of them fits your own daily routine.


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