The Difference Between Agency Management and CRM Software

Insurance agencies have lots choices when it comes to technology. Take the software side of things. Software aimed at helping insurance agencies grow their business comes in all shapes and sizes. Well, not so much shape and sizes given that they’re basically zeros-and-ones. They do, however, come with different functions.

Two types of software are easily confused: agency management systems (AMS) and customer relationship management systems (CRM). This isn’t surprising. There’s considerable overlap. Each can help you sell more. Each can help you be more organized. CRM and AMS software are not the same, however. Understanding the differences can help you decide which type of software you need.

This article will focus on CRM and agency management software designed for insurance agents – and, in particular, agencies focusing on benefits, senior and life products. If you’re interested in an AMS system for your realty company, there’s probably a blog out there for you. This is not it.

What is Customer Relationship Management?

There’s a slight difference of opinion concerning what a CRM platform is. Some people claim customer relationship management is a strategy, not a technology. They define CRM as making the customer the center of everything you do. Technology may help implement this strategy, but the software is incidental to a customer-centric strategy.

Other folks focus on technology when discussing CRM. Salesforce defines CRM as “a technology for managing all your company’s relationships and interactions with customers and potential customers.” That Salesforce focuses on the software, rather than the philosophy, is not surprising. They are, one of the world’s largest customer relationship management platforms. That doesn’t make their definition a bad one, however.

These two definitions of CRM are not mutually exclusive. CRM can be a strategy for putting customers first. It can also be the technology that enables this. For purposes of this post, we’ll define CRMs as software that helps agencies manage contacts, track sales, measure productivity, and understand the history of their customer interaction.

What is an Agency Management System?

An agency management system is software. Someone somewhere may claim that AMS is a strategy. If so, I can’t find their posts. Agency management systems help you organize your agency. It helps with sales, but goes further. AMS helps you manage information about carriers, general agencies and your own agency. Agency management software helps you deliver better customer service, track your commissions, keep commitments and more.

Agency management systems are a subset of data management software. Techopedia defines data management as. “Data management refers to an organization’s management of information and data for secure and structured access and storage.” When data management software is built for insurance agencies it’s called an agency management system. But at the end of the day, it’s a data management system.

Comparing CRM and Agency Management Systems

Whether an agency management system or CRM software is the better choice for you depends on what you want to accomplish. CRM tools are great if your goal is to dive deep into customer interactions. Agency management systems are better if you’re looking to improve more than just sales issues.

Customer Relationship Management Systems

Strong customer relationship management systems go beyond just tracking client data. They may offer auto dialers and caller ID. They may have built-in text systems. More sophisticated customer relationship management systems can adapt your web site to the status of the visitor. Prospects see certain content. Clients see different content. (Fair warning: systems with these tools are usually expensive and are rarely designed for insurance agencies).

Because CRMs are fixated on sales, they can seem like one-trick ponies. They aren’t much help beyond selling. Sales are critical. But customer relationship management systems don’t help you run a more efficient agency. Agency management systems do.

Agency Management Systems

AMS software usually include CRM tools. Improving customer relations is, however, is just a part of what an agency management system delivers. For example, NextAgency helps you track prospects through your sales pipelines. NextAgency also helps you store notes and automatically associate emails related to each prospect and client. NextAgency makes renewing — and cross-selling — your clients easier. Our software makes it simple to implement a drip marketing campaign. The platform also helps you assign policies to specific employees. These are all CRM tools.

NextAgency is an agency management system, however. Which means it does more than help you sell. NextAgency helps you deliver better customer service with service pipelines and benefit portals for your clients. Our software helps you manage your carrier, general agent and vendor relationships. NextAgency helps you keep commitments made to clients and others. NextAgency includes a built-in agency library. This keeps your forms, documents and collateral handy wherever you are. NextAgency helps you manage commissions. NextAgency syncs with your existing email account. Not all agency management systems do everything NextAgency does. Most do not. However, all agency management systems deliver more than just sales tools.

Which is Best for You, an Agency Management System or CRM software?

How to choose between a CRM or an agency management system? The answer depends on what’s most important to you. Customer relationship management software has a narrow focus: sales. Do you need – and will you use – every sales tool available? We all want to improve sales. But buying tools you won’t or can’t use wastes money. If you will use all the sales tools available in a CRM, however, that may be the right choice for you.

Are you looking for software to address more than sales? A strong agency management platform will include CRM tools, just not as many as dedicated customer service software. Agency management software will do more, however. AMS can help you track commissions, manage documents and carrier appointments. And much more. If you want to make your agency smarter and increase sales, you probably want an agency management system.

A number of agencies have come to NextAgency from CRM systems. They thought they only needed help with sales. These agencies realized that managing their client relationships was critical. However, they realized they needed something more. These insurance agencies needed to run a more effective and efficient insurance agency.

They found that CRM tools were a part of the solution, just not the entire solution. They needed an agency management system. You know, one like NextAgency.

Whether you sell benefits, senior or life products, NextAgency can save you time, money and clients. NextAgency is a powerful, modern agency management system (NextBroker) featuring CRM and commission management tools. It also includes benefit portals insurance agencies can give to their clients for free (NextHR). Please visit www.NextAgency.com to learn more. And to see NextAgency in action, please sign-up for a free demonstration at one of our regular webinars.

 

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