CRM is the strategy of creating, expanding and sustaining the customer relationship.
CRM in the insurance industry aims at two main objectives:
An integrated CRM strategy should win the customer, build a relationship and intensify it by anticipating his needs and concerns through all phases of customer lifetime.
Lifecycle management integrates all appropriate activities that should be taken during the customers lifecycles in order to maximize customer lifetime value.
Typical behavioral segments that can be found in insurance industry include:
Basic Relationship: Customers with only the mandatory insurance products such as car insurance etc. Households with low financial status or just people who do not plan the future.
Safety Seekers: Individuals or households focusing on safety for themselves and their children. Interested in life & health policies.
Full Portfolio: People who plan their future owning bank assurance/retirement products as well as life/health and content insurance products. Households with medium / high financial status.
Performance Seekers: Wealthy customers with not much of safety considerations wishing focusing on wealth growth and insurance investment products.
Behavioral segmentation is mostly used for greater understanding of customer needs, greater differentiation, new product development tailored to differentiated needs and maximization of return on investment through targeted marketing.