What is a CRM and why are they so popular?

What is a CRM?

CRM stands for Customer Relationship Management. Customer Relationship Management is a marketing and sales strategy devised and applied by a business with the intention of developing loyal clients, resulting in business growth. Each company’s CRM strategy is specific to the business, however they all have one thing in common: client focus.

CRM software is a tool that supports and assists in implementing a company’s CRM strategy and support an insurance broker’s Advice Model. While some firms resort to primitive means to fulfill this role, such as excel spreadsheets, email and even hand-written notes; a CRM can deliver a level of clarity, efficiency and focus that no spreadsheet will ever reach.

Why are CRMs so popular?

CRMs continue to gain popularity because of the value they provide. At a basic level a CRM performs as a central database of all a business’ client information. It gives access to this client data across multiple devices, from anywhere in the world with an internet connection. Furthermore the entire firm has access to the same client information, whether it’s a staff of two people or a staff of thousands!

What does this mean for clients?

  • Clients get a consistent experience every time they interact with the company.
  • They don’t have to repeat themselves every time they speak to someone different.
  • There is minimal impact when a staff member leaves the company.
  • The company has a record of the client’s entire history, what they like, what they don’t like and what products would be of interest to them. Clients thus receive a personalised experience and even customised service.

Overall, the clients will feel like the company “knows them”, increasing their loyalty to the firm and making it harder for them to switch to a competitor.

See Blog Post: 5 Ways to Retain Clients and Increase Sales Using Tech

How is this different to an Excel Spreadsheet?

At first glance it may seem that the difference between using a CRM and an Excel spreadsheet are minimal. A closer look reveals that not only is a CRM much easier and efficient than using a spreadsheet, but a CRM’s recording capabilities can bring immeasurable value.

See Blog Post: How to Make a CRM Work For You

A CRM can:

  • Tell you which staff member dealt with the client last, when it took place and what interaction occurred
  • Remind staff that a prospect or client needs to be followed up
  • Prompt staff of the next action to be taken within the sales process
  • Reduce the impact of staff departures by minimising the possibility of former staff taking client knowledge with them, as well as providing new staff with entire client history. (A spreadsheet is a lot easier to steal or lose than data stored in CRM software!)
  • Assist with sales and cross selling by having all client information in the one place
  • Provide insight into marketing spend and performance
  • Give guidance and support to an insurance broker’s Advice Model

Myth – Small businesses don’t need a CRM

It is never too early for a business to take advantage of a CRM. In fact a CRM will help a business scale, not just through business growth but also allowing the business to manage a larger client base when things really start to take off. Businesses of all sizes can benefit from the attributes listed above. The good news is that most CRM software is priced per user through a subscription based model, making it very affordable and great value.

See Blog Post: Why a CRM is an Insurance Broker’s Bestfriend

If you have any questions about CRM systems or any other insurance software please email info@ebix.com.au.



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