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Strategic Decision of Implementing E-Crm by Kotak Mahindra General
Insurance Company for its Effective Business Operation and Business Growth
Chapter · June 2022
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Strategic Decision of Implementing E-Crm by Kotak Mahindra General
Insurance Company for its Effective Business Operation and Business
Growth
S Lokesh, S Vasantha and Menaga Lokesh
Vels University, Chennai
Abstract
There is no successful business without an effective relationship between the Company and
Customers. We could see in recent years our direct involvement is getting diminished in
terms of connecting with service providers. Whereas it's more of digital relationship we
maintain, that is either through the computer or through telephone. Earlier when there was
not much technology development and whenever there is a query or dispute, we physically
go and meet the concerned executives to get it resolved. Most of the time our disputes
would have been resolved only by the effective relationship, we had built it gradually over
the years and there was always a personal touch. Whereas in the digital era it's more of only
digital communication between the company and the customers. The challenge that the
insurance industry faces or any other industry for that matter confronting to maintain the
balance of advancing technology and how effective that we utilize to keep up with
customers relationship as well the business growth. We will be studying the strategic
decision of Kotak Mahindra General Insurance Company Ltd., of implementing E-CRM,
to overcome the challenges it has faced in the market and how it backend and support its
business growth.
Keywords: E-CRM, Insurance, Kotak Mahindra, Strategic Decision
Introduction
Kotak Mahindra General Insurance Co. Ltd. is a Mumbai-based general insurance
company. It sells non-life insurance such as auto, health, and home insurance, among other
things. In April 2015, the Insurance Regulatory Development Authority of India (IRDAI)
granted Kotak General Insurance a license to undertake a general insurance business in
India.
In India, Kotak General Insurance offers a variety of general insurance plans, which are
listed below:
•
Car Insurance
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•
Two-Wheeler Insurance
•
Health Insurance
•
Home Insurance
•
Fire Insurance
•
Marine Insurance
•
Liability Insurance
•
Miscellaneous Insurance
In April 2015, Kotak General Insurance received the license to start the business and since
then it has had a national footprint of 19 branches spread across India as of September 2020.
The Internet is becoming increasingly significant in business; many businesses see it as a
way to cut customer service expenses, strengthen client relationships, and, most
importantly, tailor marketing messages and enable mass customization. Companies are
adopting E-CRM because it enhances customer loyalty and retention by boosting customer
happiness, which is one of the goals of E-CRM. E-loyalty benefits online retailers in the
long run since it lowers the cost of acquiring new customers while also increasing customer
retention. The trend of the forthcoming Internet can be considered as the cornerstone of
what we know as E-CRM today, along with the introduction of sales force automation
(SFA), where electronic methods were utilized to acquire data and analyze client
information.
Source: SPEC INDIA
There Are Three Steps in the Life Cycle of the E-CRM Process
•
Data collection: Information on customers' preferences via the website, email, and
questionnaire, both actively (answer knowledge) and passively (surfing record).
•
Data aggregation: Filter and analyze data to meet the needs of the company's customers.
•
Customer interaction: The organization provides appropriate feedback to customers
based on their needs.
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•
E-CRM is described as actions that use the Internet, web browsers, or other electronic
touchpoints to manage client relationships. The goal is to provide communication and
information on the correct topic, in the right amount, and at the right time to meet the
individual demands of the consumer.
Strategy components
Enterprises integrate their customer information, there are three E-CRM strategy
components:
•
Operational: Because of sharing information, the processes in business should make
customer's needs as first and seamlessly implement. This avoids multiple times bother
customers and redundant process.
•
Analytical: Analysis helps the company maintain a long-term relationship with
customers.
•
Collaborative: Due to improved communication technology, different departments in
the company implement (intraorganizational) or work with business partners (interorganizational) more efficiently by sharing information. (Nenad Jukic et al., 2003).
Factors to be Considered Before Implementation of e- CRM
•
Organization Objectives
•
Focus on All Business Aspects
•
Define the Business Problem
•
Establishing Proper Metrics
•
Business Processes not Technology
•
Implement Change
•
Using Skilled Managers
•
Choose the Right Vendors
•
Ease of Usage
Implementation of e-CRM
Several CRM software packages exist that can help companies in deploying CRM
activities. Besides choosing one of these packages, companies can also choose to design
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and build their solutions. To implement CRM effectively, one needs to consider the
following factors:
•
Create a customer-focused culture in the organization.
•
Adopt customer-based managers to assess satisfaction.
•
Develop an end-to-end process to serve customers.
•
Recommend questions to be asked to help a customer solve a problem.
•
Track all aspects of selling to customers, as well as prospects.
e- CRM solutions are more effective when they are integrated with the company's other
information systems. For example, a transaction processing system (TPS) can analyze data
in real-time and send it to the sales and finance departments to quickly and precisely
recalculate inventory and financial status. Once this data is given back to the CRM software
and services, customers may be unable to place an order because they believe an item is in
stock when it is not.
Background
Kotak Mahindra General Insurance Company Ltd. is a full subsidiary of India’s
renowned growing bank, Kotak Mahindra Bank Ltd. Kotak Mahindra General Insurance
was established to service the growing non-life insurance segment in India. The Kotak
Mahindra Group is one of the leading financial services conglomerates in India and
received its banking license from the Reserve Bank of India (RBI) in February 2003.
The company aims to cater to a wide range of customer segments & geographies,
offering an array of non-life insurance products like Motor, Health, etc.
As a practice, the company seeks to provide a differentiated value proposition
through customized products & services leveraging state-of-the-art technology & digital
infrastructure.
As of today, they have settled 1.5 lakhs of claims at the settlement of 98% with over
48 lakhs customers.
Since they are a new entrant to the market, the strategy and other preparation as to
be more effective to play in the market competitively
Challenges
Kotak General is not in the insurance league from the early stage they were the 29th
entrant in the General Insurance Industry and having the label of Kotak Bank’s subsidiary
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it also carried the equal expectation in the market which is not easy as all the insurers played
with different strategies and innovation. The distinct challenge it had carried compared to
the other insurers was its expectation as already their bank proved well-being an effective
banker. Now the actual battle is how to face the competition and come up with innovative
solutions to build customers.
The Following Plots Found and Addressed
•
To combine all customer service methods under one roof by combing communication
channels and service-providing channels.
•
To implement measurable customer experience framework across the Contact Center,
Online Portals, Emails, online Chats, social pages, direct Walk-ins, SMS, etc.
•
To create claims HUB which means one point contact service for claim registration and
claim settlement.
•
The customer grievances management, where all the relative complaints countered and
addressed timely.
•
The insurance has a regulatory body called IRDAI (The Insurance Regulatory and
Development Authority of India ) where the business operations should be aligned
together.
•
Creation of customer leads that are sourced through tele-calling, direct walk-in, posters,
digital marketing, sales representatives, advertisements, etc
•
To conduct CSATs and Quality audits to continuously evaluate service quality for
improvement. Thus, enabling continuous learning and improving customer experience.
•
To implement a CRM which had its learnings from the General Insurance industry and
which required the least customization and lead time, and a reasonable license cost with
less number of users initially. Thus, providing scalability and cost-effectiveness in the
long run.
To ensure the efficiency of the service representatives and for faster delivery of
responses, KGI was sure that it wanted a single system that could serve their needs. As this
would restrict access to Policy Admin System and avoid users navigating to multiple
systems to provide resolution.
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Proposed Solution
KGI then came up with the solution of implementing E-CRM after analyzing the
importance and the need for it. Then they had approached one of the leading software
companies Talisma. They worked together to understand the actual need of the insurer
along with how efficiently that could also enable business growth.
The following solutions were proposed in their E-CRM system.
•
Multi-Channel Capabilities – Talisma has enabled a multi-channel capability at KGI
covering Email, Phone, Chat, and SMS for successfully managing high volumes of
inquiries received by KGI daily.
•
360-Degree View of Customer – One view of Customer for an Agent to handle
different types of requests and queries by displaying data from various KGI systems.
•
Service Request Workflows – Talisma has provided workflows to handle simple to
complex service requests such as Contact details change, Claim intimation, etc. with
smooth integration with the KGI core system.
•
IGMS Integration – Talisma has implemented IGMS integration for the smooth
flow of new complaints as well as complaint status updates between Talisma and IRDA.
•
Quality Assessment – Critical for measuring quality based on parameters specific
to the channels such as Chat/Email/Phone used by Agents. It provides a process to
maintain systematic review for Agents/Supervisors.
•
Website Queries/Feedback – All queries/feedback received by KGI on its website
are created and resolved in Talisma Digital Platform.
•
Knowledge Base Management – Provides a repository of data required by
Agent/Supervisor with real-time access to do their job much more efficiently.
•
Reports
➢
Detailed reports are provided to analyze, identify, and improve processes.
➢
Specific reports are available that uncover patterns that are otherwise tough to see
such as performance reports for each platform, channel, and the blended Agents’ data.
➢
Data points are presented on a dashboard that is easy to use and can help improve
customer experience and consistency of service delivery across channels. Thus,
highlighting shortcomings, service mismatch, improving staff training, and promoting
better interactions.
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Results of Implementing e-CRM
•
Tracking resolutions to customers’ needs has become simpler. This has helped KGI
meet and exceed customer expectations.
•
Automation and real-time sync of service requests with KGI’s core system have helped
multiply productivity, maintain quality, and improve efficiency.
•
360-degree customer view provides instant access to all the requisite customer
information to enable “first time right” services improving KGI’s reliability amongst
customers.
•
Talisma Digital Platform has helped KGI automate customer interaction management
across all touchpoints and all modes of communication.
•
Identifying needs more effectively by understanding specific customer requirements as
products are mapped to individual customers in KGI’s implementation of Talisma
Digital Platform.
•
Workflow-based and Time-bound assignment of interactions to multiple departments
has helped KGI improve its turnaround time drastically.
•
By tracking Claim registrations in Talisma Digital Platform, which is directly integrated
with KGI’s Core Policy Admin System, KGI can offer the best services to its customers,
when they need them
KGI'S Key Results After Utilizing Talisma
Enhanced customer satisfaction, ensuring KGI's positive market reputation continues to
flourish.
•
Expanded value from existing KGI clients, as well as cost savings associated with
maintaining and servicing their needs.
•
Enhancing KGI's overall efficiency and lowering total service costs.
•
Advanced analysis of service trends.
•
Standardization was achieved across all touchpoints.
•
Data availability for numerous marketing campaigns is improved.
•
The quality assessment module provides a transparent picture of agent performance.
Recommendations
The technology is growing at the lightning phase and in parallel, the insurers have
to balance their needs to meet their customer's requirements accordingly. The
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implementation of E-CRM is not just a one-time task. The Software is to be modified day
today as there is a new requirement in the market and whenever there is an alternative
method found to be more effective. Many factors play a part in ensuring that the
implementation of any level of E-CRM is successful. One obvious way it could be
measured is by the ability of the system to add value to the existing business. Four
suggested implementation steps affect the viability of a project like Developing customercentric strategies, Redesigning workflow management systems, Re-engineering work
processes, and Supporting with the right technologies. Every Insurers E-CRM differs as
per their company policies and strategies, and they will be no similar to the other insurers.
The basic objective of E-CRM to be always in check should be how effective and how
quickly we respond and address positively to customer's needs.
References
1. Adebanjo, D. (2003). Classifying and selecting e-CRM applications: an analysis-based
proposal. Management Decision, 41(6), 570–577.
2. Tseng, S. M., & Wu, P. H. (2014). The impact of customer knowledge and customer
relationship management on service quality. International Journal of Quality and Service
Sciences, 6(1), 77–96.
3. Long, C. S., Khalafinezhad, R., Ismail, W. K. W., & Rasid, S. Z. A. (2013). Impact of
CRM factors on customer satisfaction and loyalty. Asian Social Science, 9(10), 247–253.
4. https://www.talisma.com/kotak-general-insurance-case-study/
5. https://saylordotorg.github.io/text_emarketing-the-essential-guide-to-onlinemarketing/index.html
6. https://en.wikipedia.org/wiki/Kotak_Mahindra_General_Insurance
7. https://www.irdai.gov.in/
8. https://www.fynsis.com/e-commerce-crm/an-overview-of-e-crm-and-its-applications-inthe-digital-arena/
Abbrevation
KGI: Kotak Mahindra General Insurance Company Ltd.
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