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6 Reasons Why Your Insurance Agency Needs a CRM


Customer Relationship Management (CRM) software can make all the difference for insurance agents. It can help you keep track of customer interactions, ensure there are no missed opportunities, and help convert easier in the future. 

With the right insurance CRM software, your insurance agency can run smoother and more efficiently, build stronger customer relationships, automate marketing campaigns and communications, and most importantly, grow—all faster and with less hassle than traditional methods. 

What is a CRM?

CRMs are designed to allow users in all industries, including the insurance sector, to manage contacts and a low-level of task management. Industry specific CRMs are designed to support industry nuances and streamline workflows by offering features such as: 

  • Contact management
  • Pipeline / funnel monitoring
  • Sales automation
  • Automated marketing campaigns
  • Lead generation 

Why do I need a CRM?

A CRM is an investment in your business. If chosen correctly, that investment will be worth every penny. In 2021, Dynamic Consultants Group calculated the return on investment for implementing a CRM was a staggering $30.48 for every dollar spent. This was a 338% jump from 2014, when Nucleus Research determined that the ROI was less than $9.  

As an insurance agent, you’re juggling many tasks. A tool, like an insurance CRM system, that can automate tasks for you and track customer data frees up time and ensures administrative accuracy. But those aren’t the only benefits.

Here are the top six reasons why a CRM will set your business up for success.

1. Nurtures relationships

A CRM provides you with a comprehensive view of client information and insights into client interactions, enabling you to communicate more effectively. 

74% of companies say CRMs give them better access to client data, resulting in improved relationships and customer satisfaction. By collecting and tracking contact details, communication preferences, invoicing, etc, insurance agents can use this information to tailor the customer experience to each client.  

2. Enhances the customer experience

If there’s one thing that CRM platforms promise, it’s that they can enhance the customer experience. CRM software creates a more personalized interaction between client and agent and allows agents to track customer behaviors and preferences by analyzing interactions.

By understanding and evaluating interactions, businesses can better serve clients. A Capterra survey showed that a CRM can improve customer satisfaction of clients by 47%, leading to a 47% increase in customer retention, 45% increase in revenue, and 39% increased chance of upselling or cross-selling. 

3. Process Automation 

Another benefit of CRMs is automation. Automations help your sales team become more efficient, productive and effective through automating follow up processes and communications, and by moving prospects through the sales pipeline. 

When things get hectic at an agency, it can be difficult to find time for follow-up calls, to return messages, or to pursue new leads. With automated communications, a CRM can not only send those follow-up emails and texts, but they can schedule calendar reminders and emails. By doing so, you’ll now have time to return those phone calls that have been piling up—and build a more productive and positive relationship with your clients. 

Productivity increases as much as 14.6% when using CRMs, according to Nucleus Research. A great CRM keeps things organized so that no important details are lost along the way, and translates into an increase in productivity, or in other words, revenue.

4. Lead management

A CRM solution can segment leads and current clients based on specific criteria, such as line of business, location or even premium size. Tracking and prioritizing leads manually can be time consuming. CRMs help agents sort, prioritize and assign prospects to the right producers. 

5. Data management 

Agents spend a lot of time and energy on administrative tasks. CRM systems help drive efficiency by integrating with other agency systems and resources, like an agency’s website. By integrating directly with your site, clients can submit contact forms or quote requests, and a CRM will automatically capture the data.

Not only do CRMs capture client data, they also track procedures, carrier information, client documents, and other data, leaving agents with more time to focus on the client.

6. Advanced sales and marketing tools

CRMs have a number of features that support sales and marketing endeavors, including: 

  • Capturing leads from your website and collecting feedback 
  • Tracking leads from inquiries to customer conversions
  • Creating marketing campaigns to nurture leads

Drawing from data it stores, CRMs help identify trends and forecast sales opportunities. Agents are enabled to make data-driven decisions for marketing campaigns, budgets, and so forth. By identifying what’s working and what’s not, your team can scale processes accordingly and grow your business.

The right CRM helps agents succeed

As with any type of software or technology, it takes time to learn. But once you experience the benefits of a CRM, you’ll be grateful you spent the time, money, and effort to integrate it into your business operations.

Simply put, a CRM is a tool that helps agents do their job better. Whether you are in the home insurance business or another sector of the insurance industry, implementing a CRM will have a positive impact on customer engagement, policy management, and ultimately, your bottom line. 

With so many platforms on the market, choosing  the best CRM can be daunting. If you are looking for a place to start, check out the following popular CRMs: Agent Cubed, Freshworks, Insureio, and perhaps the most well-known, Salesforce. Remember to evaluate your business needs, assess your options, and select a platform that meets your needs and will set your agency up for success. 

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About the Author

Alyssa Little | Senior Content Strategist

Alyssa is the Senior Content Strategist at Openly, collaborating with industry thought leaders to provide insightful and informative content in the home insurance space. With over 15 years experience in content marketing strategy, copywriting, and editing, Alyssa has refined her expertise through her work at such companies as Gartner, Nike, and Trupanion. Alyssa holds a BA in History from the University of Puget Sound and an MA in Museum Studies from Newcastle University.

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