1 THOUGHT LEADERSHIP KEY CONSIDERATIONS ABOUT SELECTING A CRM SYSTEM IN THE INSURANCE SECTOR I a market where it costs eight times more to wi ew customers tha retai the oes you already have, ay errors caused by your CRM system could well be costig you moey. You therefore have to be sure that your curret CRM system, if you have oe, is up to the job.
2 How do you go about choosig a ew CRM system, how do you get the most out of collaboratig with potetial suppliers ad how do you reduce the effort, cost ad risk of a selectio process? I the midst of the most serious fiacial crisis sice the Great Depressio the busiess of isurace ad fiacial services remais as challegig as it ever has. Reletless busiess pressure, immovable regulatio ad itese market scrutiy meas that uderwriters, brokers ad fiacial service maagers must act. Competitio also cotiues to icrease as baks ad brokers add isurace products to their portfolio, ad likewise, isurace orgaisatios add broader ad wider fiacial offerigs to their customers. Idustry cosolidatio has reduced the umber of players i the market but deepeed the capabilities of those remaiig, makig it more importat tha ever for firms to differetiate themselves i the market. As compaies merge, there is a critical eed to itegrate data from disparate sources ad systems. Historically, compaies have throw moey at techology to deliver solutios aimed at customer relatios but there have bee may horror stories so directors are rightly cautious. I a ecoomic dowtur techology will be deployed more carefully ad cautiously with cut backs i capital sped. But isurace compaies with visio ad foresight will ivest i affordable customer relatioship maagemet (CRM) techology that will ultimately lead to a more sustaiable future. Relyig o outdated systems that caot produce accurate, timely or reliable data offer little assurace, especially with the call for good goverace. If you are lookig to replace your curret customer, cliet or broker relatioship system with a moder itegrated applicatio, the selectio ad implemetatio of a ew system will probably be the most critical IT decisio you ad your orgaisatio will ever make. The warig sigs that show you may have outgrow your CRM system: A system with questioable compliacy to legislatio A lack of shared visio with little itegratio of systems (separate broker maagemet, cliet maagemet, policy maagemet ad reportig systems) Maually maipulatig or re-keyig of data A reliace o meaigful iformatio produced outside of the CRM system A lack of trasparecy ad a lack of flexibility Agig lie of busiess systems that are o loger supported Employees o loger usig curret system
3 The followig criteria will hopefully provide advice about how to approach a system selectio project. Some of the poits you will have cosidered ad others may be of iterest. It is importat to state, we re ot tryig to tell you how to ru a selectio project, rather state some of the poits you should be aware of. 1. Build a soud busiess case based o 'Itegratio'. May isurace compaies recogise the eed to idetify, attract ad retai profitable cliets, customers ad brokers, but they ofte lack a full 360 or holistic view of who they are. It is crucial that isurace compaies look for solutios that will eable employees to make smarter ad quicker decisios at first poit of cotact. They eed to have fuctioality at their figertips that provides a complete customer view which will bore greater customer itimacy ad loyalty. Armig your employees with tools such as these will support their ability to upsell ad cross-sell your full portfolio of isurace product ad services. To achieve this, orgaisatios eed to pull dow their iformatio silos ad esure all relevat cliet iformatio ad operatioal fuctios are cosidered. This ca oly be achieved by ivestig i automated ad itegrated processes that ecompass every part of the orgaisatio to allow cosistet, accurate ad real-time visibility. Look for a CRM solutio that will eable you to aggregate data from disparate lie of busiess sources to provide you with a fully itegrated, 360 degree customer view that icludes customer ad broker histories ad profiles, as well as the full rage of isurace products they hold or sell. With the ability to aalyse operatioal performace across the orgaisatio, your sales maagemet team is i the uique positio to idetify curret treds, forecast future results ad esure cosistecy. Maagemet ca the brig orgaisatio-wide forecasts together i a sigle comprehesive pla - providig cetralised policy maagemet reviews, broker maagemet, sales forecastig ad idetifyig performace across departmets. A GUIDE TO SELECTING A NEW INTEGRATED CRM SYSTEM
4 2. Fuctioal fit with poit or suite? As with may discussios about specific approaches to IT, the aswer is highly subjective. Whether you decide to go with a eterprise suite of applicatios or a specific departmet-led implemetatio, the decisio should be based o your orgaisatio's eeds, maagemet strategy ad appetite for chage. CRM is ot ew to the isurace idustry, ad has bee a importat tool i the sector for a umber of years. Most compaies will have some form of customer maagemet reportig. The problem for may isurace compaies is that it is commo for their customer iformatio to exist i a umber of disparate lie - of - busiess systems or departmetal applicatios. Ofte these systems are poit i ature ad are specific to certai persoel ad departmets, ad as such creatig a sigle view of a customer or relatioship ad their iteractios withi your compay is extremely difficult. Worst case sceario is that your future pipelie exists i employees' heads or order books ad as such poor visibility makes accurate forecastig ad reportig impossible! Review your overall processes ad look at how a CRM system could beefit you by pullig together iformatio from other systems to allow accurate policy reewal maagemet, pipelie maagemet reportig ad profitability. At this stage of the process you should be cosiderig: Creatig a task ad evaluatio team Determiig selectio ad approval processes Esurig seior maagemet is sposorig the project Settig your CRM goals Esurig seior maagemet represetatio from all ivolved departmets As part of this exercise you eed to establish whether you're chagig oe outdated system or process, or all of them. A key compoet should be about gaiig the required visibility ad cotrol of your orgaisatio ad improvig the level of busiess isight from your lie of busiess applicatios. Whichever you decide, usig a sigle techology or commo IT platform will avoid complex/expesive itegratio issues ad iformatio silos. CIBER ca work with you to defie a overall visio ad road map to phase the delivery of IT capability. CIBER recogises it is ot always possible to implemet a total solutio i oe go; agai by deployig a moder IT architecture, it is possible to plug-i the various capabilities as ad whe required, alogside your existig systems.
5 3. Create a shortlist by arrowig the field. At this stage, review the market ad try to arrive at a short list of 5-6 suppliers, with whom at this exploratory level, you feel ca provide a solutio to deliver the required process capability improvemets. The reduce dow to 2-3 suppliers through itroductory presetatios, Request for Iformatio (RFI) documetatio, ad if you do ot have the expertise i-house, look to a selectio cosultat's process. Evaluate the RFI resposes ad arrage a briefig with vedors to go through the RFI ad explai requiremets. Additioally, udertake iitial explaatory meetigs with the short-listed vedors to form relatioships. A typical selectio process is usually 3-9 moths from the first meetig to cotract. (Aythig less tha 3 moths, start to become wary, as the supplier may ot have coducted the required due diligece). Aythig over 9 moths the project usually rus out of steam ad rarely happes. The suggested format of a RFI is as follows: Backgroud iformatio o the buyer orgaisatio Hardware requiremets (operatig platform, database preferece, commuicatio ifrastructure) Summary of applicatio requiremets Data volumes Number of Users Scope (Iteratioal requiremets or group operatios) Project timescale ad key objectives Budget expectatios A GUIDE TO SELECTING A NEW INTEGRATED CRM SYSTEM
6 4. Review market leadig applicatios Today's moder CRM systems are flexible, idustry specific ad where ecessary ca be cofigured to meet most requiremets. Look for established ad prove packaged applicatios that have bee built upo idustry-best practices. Packaged solutios ofte iclude software, implemetatio cosultacy, traiig ad hardware. Purchasig leadig out-of-the-box CRM software ca brig a series of beefits but beware as your processes may differ greatly from may of your competitors ad it may ot deliver all that you eed: Optios to cosider by choosig idustry specific software: A faster project time to completio ca be expected because the developmet phase is already completed (with aroud 50-80% fit with idustry best practice processes, right from the start) A sigle istace - stadard itegratio capability ad ope architecture A expertise ijectio from a software package that is idustry-specific Improved busiess itelligece ad reportig capabilities Lower i-house techical capabilities required because developmet is already doe Expert software support available 24/7 A soud IT platform for future growth A soud message to shareholders, customers, suppliers ad parters that you are ivestig i your busiess with prove techology Reasos for evaluatig ew solutios: Are your customer iformatio maagemet systems limitig your ability to maage ad retai your most profitable broker ad customer parterships ad to grow your busiess? Ca they support the icreased operatioal efficiecies ad automate more processes to deliver a better customer experiece? Do they eable you to fully uderstad your distributio chaels ad the parters that deliver most value to you ad focus your efforts o developig these?
7 5. Sigle Sourcig - Ca your supplier offer this? May CRM projects ivolve itegratig with other back office fuctios such as fiace. Therefore look for a parter who has depth of experiece i CRM ad i systems itegratio. Additioally, if you are lookig to go the fully itegrated route ad lookig to get the most out of your system you will eed efficiet tools to help you collect, cosolidate, aalyse ad preset data. Therefore, esure your preferred IT parter also has the skills ad expertise to advise ad implemet suitable itelligece applicatios for your orgaisatio. If a poit solutio is your chose solutio, this ofte results i may compaies havig to ivest i 3rd party reportig tools from other suppliers that have to be itegrated with these systems to improve visibility ad esure compliace. Therefore try to avoid egagig with multiple implemetatio parters who oly focus o a specialist area. By selectig a sigle parter (with all of the required skills ad expertise), if there are ay issues arisig i the project, there will be a sigle poit to go to for a resolutio. This will esure your project limits risk, keeps to the agreed timescale, ad allows your implemetatio parter to call upo the required resources. A GUIDE TO SELECTING A NEW INTEGRATED CRM SYSTEM
8 6. Assess risk of implemetatio parter. Esure you select your parter based o the lowest risk to you ad your orgaisatio. Look for log term viability of your supplier, check their fiaces ad cofirm they are well established, also check they have the required certificatios. Review case study material from the potetial IT parters to lear more about i.) Who they have implemeted similar systems with previously ii.) How the implemetatio wet iii.) The beefits beig realised iv.) Future plas ad cotiuous busiess improvemet strategies. Additioally, ask for referece visits to see the solutio i a workig eviromet ad meet the people who wet through a similar system selectio exercise. This will provide a ideal opportuity to lear from their experieces ad gai a idepedet view of your shortlisted IT parter. Fially, review the Research & Developmet sped ad roadmap of your preferred solutio to esure that oce the software is purchased today, it will be capable of meetig the eeds of tomorrow, esurig you stay oe step ahead i these challegig times. 7. Egage shortlisted suppliers i detailed demostratios. Whe you are dow to the fial 1 or 2 suppliers, eter ito detailed commercial/cotractual egotiatios ad sed out your RFP (Request for Proposal) for completio. Review pricig optios - fiacig, leasig ad hostig, ad orgaise detailed demostratios where the supplier proves the solutio has the capability to deliver the processes required. Fially, idetify ad reserve the ecessary resources for the start of the project.
9 8. Defie a agreed project scope ad implemetatio approach. Itroducig ay iformatio techology ito a orgaisatio presets risk ad it is essetial that the process is maaged effectively to deliver the fastest beefits, at the lowest risk, with the least disruptio. Therefore it is vitally importat that before a project commeces, both parties have a crystal clear ad documeted uderstadig of what will be implemeted (i.e. the scope) ad the who, how ad whe of the implemetatio approach. Additioally, defie the level of post-implemetatio support based o your resources, skills ad aspiratios. May orgaisatios prefer a approach whereby after a iitial high level of support ad phased kowledge trasfer, they ultimately ow the solutio with a high level of self sufficiecy i operatig, maitaiig ad developig the system, movig forwards. 9. Esure you're gettig best value. Review all costs icludig aual maiteace costs to esure the best total cost of owership over a give period. Additioally, i these closig stages, try to have a back up strategy, just i case you ca't reach a agreemet i the cotractual egotiatios with your preferred supplier. A GUIDE TO SELECTING A NEW INTEGRATED CRM SYSTEM
10 10. Lessos leared. Do't focus too exclusively o the techology. The project should be about process improvemets. If you are lookig at market leadig solutios, the techology should take care of itself ad therefore require less of a focus As far as is possible, uderstad what you wat, ad esure you cosult with other areas of the busiess to clarify eeds ad requiremets Do't review too may suppliers - try to keep the short list dow Be coscious of exteral iflueces that may disrupt your selectio process (e.g. If there is a acquisitio or seior level appoitmet withi the busiess who may have differig views to yourself with regards to IT) Fially, exteral selectio cosultats have a key role i helpig orgaisatios select IT systems, but ultimately the orgaisatio itself has to take owership of the decisio. Do't be over-reliat o them
11 Ivestig i a CRM system ca prove less expesive tha you may have first thought. By streamliig ad itegratig sales, marketig ad customer service fuctios you could deliver direct cost savigs plus umerous beefits oce users get more accurate ad up-to-the-miute data, with a solid uderstadig of the dyamics of the orgaisatio. Beefits of a moder itegrated CRM system A sigle view of iformatio - helpig you to capture cliet ad broker iformatio at every cotact poit, helpig employees build strategic customer ad broker kowledge isight over time. Cetralised Policy Holder ad Broker Iformatio - eablig your employees ad agets to access ad share complete iformatio across departmets, product lies, chaels or itermediaries. Improved performace - givig you the ability to quickly read, evaluate ad respod to chagig coditios with effective strategies - such as defiig sales targets, developig a suitable busiess ad marketig pla ad moitorig costs ad reveue durig executio. Aget productivity - collect ad share deeper levels of customer kowledge to improve service levels at key poits of the cliet relatioship, such as durig reewal, ad to eable cliet-facig professioals to idetify the most appropriate products, whether term life, auity, car or home. Marketig - idetify high-value cliets ad develop appropriate, targeted marketig campaigs. Attract ew cliets by easily trackig leads ad better maagig opportuities. Idetify coectios betwee primary policy holders ad family members. Automated alerts ad customisable workflow ca help agets ad brokers improve service at reewal, maximise opportuities to cross-sell products ad services, maage policy reewals, ad reduce the time required to resolve customer equiries. Compliace Maagemet - icorporate regulatory ad compliace chages to help esure products ad policies are beig sold ad maaged i full compliace. Itegratio with existig lie of busiess systems - providig employees with a 360 view i CRM from uderwritig, policy ad claims admiistratio systems. A choice of deploymet optios - icludig o premise, hosted ad cloud based techology platforms. A GUIDE TO SELECTING A NEW INTEGRATED CRM SYSTEM
12 VIEWPOINT: Microsoft Dyamics CRM will go from stregth to stregth i the isurace sector, says Rob Alla Isurers are startig to realise the value of CRM techology as they look for ways to stregthe their busiess. Microsoft Dyamics CRM offers isurace compaies the opportuity to have a sigle view of the customer. This drives better maagemet of iformatio, marketig commuicatios ad allows compaies to apply audit/structured process to the sales ad relatioship maagemet fuctios of the busiess. For too log isurace busiess have relied o legacy IT that has created a raft of challeges for them to tackle. Techology should eable busiess processes, ot hold them back. The highly cofigurable ature of Dyamics CRM eables system chage tasks to be delegated to o-techical users, addig huge value i improvig the agility of the busiess to meet ew market demads. This creates true busiess agility, o IT bottleecks for delivery ad ultimately a more effective system. At Ciber, we believe Dyamics CRM will go from stregth to stregth i the isurace sector, especially as we are already seeig icreased demad from the sector. Major implemetatios of Dyamics CRM withi tier oe isurace ad other fiacial orgaisatios are givig the sector cofidece that the solutio ca scale to meet their eeds. Ad, much like what happeed with Microsoft SharePoit, as busiess ad IT uderstadig of Dyamics CRM's system capabilities icreases, may will also start discoverig ways they ca use the solutio i other busiess scearios examples beig supplier relatioship maagemet ad IT service desk icidet maagemet. I additio, ivestmets i the 'Dyamics Customer Care accelerator,' offerig a techical foudatio for a sigle, process drive aget desktop, will drive the uptake of Dyamics CRM i the call cetres of the isurace sector. Rob Alla, Busiess Maager, Ciber UK
13 Why you eed Microsoft Dyamics CRM Ehacig productivity ad savig costs i your orgaisatio is depedet o esurig that your employees ad busiess parters ca iteract with the right iformatio i the right place at the right time. This icreasigly meas providig a itegrated eviromet that cosolidates data, iformatio ad processes from across the orgaisatio i a trasparet ad cotrolled maer. Microsoft Dyamics CRM 2011 provides isurace compaies with the framework ad techologies to address may of the busiess challeges aroud broker maagemet, documet cotrol ad compliace, operatioal efficiecies, cost reductio, iformatio retrieval, cetralised policy holder iformatio ad maagemet iformatio. Ciber - Your policy to succeed Ciber UK, i partership with Microsoft, is workig closely with leadig isurace compaies, may of whom are i the Lodo Market, as well as the wider fiacial services marketplace. Together we are leadig the way with iovative techology applicatios that are helpig these orgaisatios collaborate ad maage relatioships with parters ad customers more effectively. Ciber customers iclude orgaisatios such as Brit Isurace, Ecclesiastical Isurace, Edsleigh Isurace, Hiscox, Irish Life ad may more. About Ciber Ciber is a global IT cosultig compay with 7,000 cosultats i North America, Europe ad Asia/Pacific, ad approximately $1 billio i aual reveue. Cliet focused ad results drive, Ciber parters with orgaisatios to develop techology strategies ad solutios that deliver tagible busiess value. Fouded i 1974, the compay trades o the New York Stock Exchage (NYSE: CBR). For more iformatio, visit
14 CIBER UK : 35 Portma Square, Lodo, W1H 6LR t +44 (0) CIBER UK Marketig : 2 Watlig Drive, Sketchley Meadows Busiess Park, Hickley, Leicestershire, LE10 3EY t +44 (0)