Crm - an Effective Tool in Insurance Sector

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“RECENT DEVELOPMENTS IN BANKING AND FINANCIAL SECTORS-ITS IMPACT ON OTHER SECTORS”

SUB THEME: CRM - AN EFFECTIVE TOOL IN INSURANCE SECTOR

INTRODUCTION

Developing close, co-operative relationship with customers is more important in the current era of intense competition and demanding customers, than it has ever been before. CRM is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies. CRM is a combination of policies, processes and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones. Customer Relationship Management is a comprehensive approach which provides seamless integration of every area of business that touches the customer-namely marketing, sales, customer service and field support-through the integration of people, process and technology, taking advantage of the revolutionary impact of the Internet.

Customer Relationship Management (CRM) is a fundamental business of every enterprise and it requires a holistic strategy and process to make it successful. (Jagdish N Sheth 2001)[1]. Advancements in technology have made relationship marketing a reality in recent years. Technologies such as data warehousing, data mining, and campaign management software have made customer relationship management a new area where firms can gain a competitive advantage. DEFINITION OF CRM

Customer Relationship Management is the establishment, development, maintenance and optimisation of long-term mutually valuable relationships between consumers and organizations. CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer viz., marketing, sales, customer service and field support-through the integration of people, process and technology, taking advantage of the revolutionary impact of the Internet.

CRM is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM,the more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. It helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. The key to customer relationship marketing is to "treat different customers differently," according to Martha Rogers, a partner in the Stamford, Conn.-based Peppers and Rogers Group. This involves four steps, she said: • Identifying each customer individually.

• Differentiating customers by value to your organization and needs from your organization. • Interacting with customers on a more cost-efficient basis. • Customizing some aspect of your enterprise's behavior. NEED AND IMPORTANCE OF THE STUDY

Insurance companies today are focused on improving relationships with policyholders, brokers, and agents to increase policies in force and grow share of wallet, while at the same time reducing costs by streamlining internal operations. The key is improving profitability and growing revenues with personalized retention and cross-selling campaigns across multiple channels. There’s also a need to manage changing operations and practices, compete for new customers, maximize customer relationships, leverage existing technology and infrastructure investments

CRM enables insurance companies to increase cross-sell effectiveness and reduce attrition for stronger, more profitable long-term customer relationships. Real-time analytics make it easy to recommend...
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