Uniting People and Insurance Processes with Sales Performance Management Technology
Introduction
In times when competition is heightened, insurance carriers need to examine their people, process and technology in place to optimize operational efficiency. Skilled manpower resources and streamlined processes inevitably result in healthy and sustainable revenue.
For an insurance company, the major differentiating factor on business and revenue is the producer channel. Given the impact of producers’ selling habits on the carrier’s bottom line, companies who invest in sales performance management have the best chance of capturing market share and maintaining leadership positions.
Many insurers find it difficult to influence producers to sell the company’s most profitable products and recruit the most desirable potential clients. The task can be made simpler with the right technology solution: a Sales Performance Management (SPM) system designed to work with the insurance business model.
SPM solutions for insurance integrate technology, people, and process by streamlining the sales process and directing people towards performance that will benefit the company.
People
Producers tend to be more loyal to and productive for a carrier who makes it easy for them to succeed. If a carrier has difficulty in areas related to payment accuracy, payment information and to-producer communication, then churn or low productivity can result.
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Payment accuracy is extremely important. Agents are motivated by sales commissions, and many of
their concerns involve their payments. However, when manual processes are involved, accuracy is
difficult to achieve. Frequent errors can distract producers. Shadow accounting—where an agent
tracks and audits every payment to verify its accuracy—can begin to consume time that should
be spent selling. Additional time is often spent on the phone with customer service, and
any resulting irritation or frustration adds to an increasingly poor impression of the
carrier—potentially decreasing sales.
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SPM technology streamlines the sales process and directs people towards
performance that will benefit the company.
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Payment information is another area of concern. When producers have ready access to detailed, itemized, accurate payment information—not just a total with the check—shadow accounting is less likely. When they know what was paid and why, they are more at ease and motivated to sell. They also prefer a carrier who has visibility into all payments and resolves any disputes very quickly and amicably.
The way a carrier communicates with agents is also crucial. Channel members want the ability to access current, relevant information at any time. They value clear, consistent communication of incentives, new business status, new programs and opportunities, and general carrier information. Streamlined, efficient, easy-to-follow processes and well targeted answers to questions
are required to put a carrier in a positive light.
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Streamlined, efficient processes and well targeted answers to questions are
required to put a carrier in a positive light.
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Process
Manual processes cannot deliver the accuracy, information and communication consistency
that build a motivated, productive, loyal channel. The good news is that carriers executing
on a loyalty strategy—that is, making it easy for producers to succeed—can effectively leverage
technology to meet and exceed agent expectations and make them eager to write business.
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The right technology solution works in a way that mimics the processes of insurance carriers while providing payment accuracy, detailed information delivery, 24/7 communication and sophistication—all of which appeal to agents and facilitate large sales volumes by saving time and effort. With such a solution, a carrier can easily scale to a growing number of producers while
continuing to extend superior service to each individual. With the right SPM solution, insurers benefit from efficient business processes and the capability to launch innovative incentive programs on the part of the carrier.
Role of SPM for Insurance
An automated system affords numerous benefits to the carrier’s people and processes. Accurate payments and detailed commission statements clarify the calculation process to all agents. The carrier benefits from a drastic reduction of time spent on commission calculations, less wasted money from overpayments due to errors, less time spent on manual adjustments, and greater agent mindshare and loyalty.
The most effective solutions for SPM for insurance companies are Compensation Management (Commission) systems integrated in real-time with a Customer Relationship Management (CRM) solution, making the entire updated client database and agent sales history easily accessible. 24/7 access to the complete sales cycle empowers producers to work in a coordinated environment and make informed decisions on-the-fly. Additionally, with customer history at the agents’ fingertips, they are better positioned to tailor their interactions to meet a customer’s needs. Timely communication builds a professional relationship with insureds to ensure customer satisfaction and improved retention rates.
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Overall, SPM solutions for insurance bring real-time visibility to key metrics required to
make informed decisions. Insurance-focused SPM technology puts management in control by
providing agility to pay on multiple factors, quickly introduce new products and new
compensation structures and communicate effectively with the channel. Accurate, efficient
processes that include ad hoc reporting and easy data access for analytics are part of
the package.
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Timely communication builds a professional relationship with insureds.
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The tangible benefits of insurance SPM solutions include increased revenue, lower costs and improved predictability, affording the confidence and control that insurance organizations require to gain a competitive advantage in a challenging marketplace.
For more information on Sales Performance Management Solutions download our White paper:
“Winning Sales Performance Management for Insurance Organizations: One Size Does Not Fit All”
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