Customer Relationship Management (CRM) is now a much talked about subject. Like lots of tools and equipments required for mountaineering and hiking projects, CRM has become an important strategic tool for businesses to climb the success-ladder. Without doubt, it finds mention in present days’ business related articles, strategy write-ups, and books geared to give guidance to budding business owners.
While we talk about insurers, it is important not to overlook the importance of CRM for their success. With stiff competition growing in the health insurance sector, it is challengingly imperative for insurers to acquire, retain and support their customers through the sales they make. Winning the trust of customers is of prime importance in today’s business world…
Welcome to the new world, transitioned through the healthcare reforms
With the implementation of healthcare reforms, opportunities and risks of great scale have emerged for insurers. Unlike complaining about huge cost involvements, if the insurers want, they can take positive sides of healthcare reforms in their stride and ride over the obligations that they have to fulfill in order to stay in the market.
Without doubt, the affordable care act means cost rise, increased monitoring and potential restrictions imposed on the insurers. Instead, why not talk about the positive side of these reforms: The health insurance becomes affordable and mandatory for everybody. As a business organization, this is a huge opportunity to grab new customers, try to establish systems that can retain them, and to introduce better ways to support the existing ones.
All this can be covered under the canopy of one strategy— Improved CRM.
What is CRM?
Simply put, CRM means maintaining the customer relationship with tactics that could induce win-
Benefits of CRM strategy:
win situations for both the seller and the buyer. In health insurance, a good CRM would mean that the enrollees are getting desired level of medical care coverage within an affordable price, while they are able to maintain an effective communication with the insurers; whereas, for insurers, it would mean that they have a better share of market with margins that seem lucrative.
As a strategy, CRM helps to:
- Identify the most potential customer for the business
- Understand the needs and buying patterns of potential customers
- Interact with them so as to meet their expectations on a proactive basis
By evaluating these points, it can be easily inferred that all these steps would mean a lot for health insurers who would be looking to expand their market share to make sure they are not suffering loss due to cost increase.
How insurers can benefit from better CRM
Technological upgrade will be the call of the day when insurers are confronted with the challenge to conform to the healthcare reforms. To make sure they avoid confusion for the customers, they will have to overhaul their sales portals, customer service centers, as well as their information banks.
CRM strategy would mean that they get to know the customers’ confusions and concerns, able to address them through newly built systems, and ready to address issues that consumers might have when they do business with the insurers.
Insurers, in the past, have not been too keen on this strategy; however, in the present day’s situation, insurers have to look proactively at the healthcare reforms. To outdo the risks and obligations, they have to adopt a better strategy to tap the huge potential consumers bring to the market.
It is crystal clear that insurers who are able to service their members in an effective way would be able to get more customer-base as compared to the ones who don’t strategize according to the situation. Insurers who are looking for profitability during these crises need to focus on increasing their customer base through better service. After all, Geoffrey Moore, author of Crossing the Chasm, mentioned that the proportion of profitability to market share is exponential. If insurers have market share, they have profitability.