Salesforce CPQ for Health Insurance Payer – Quote to Card
There are still many industries that are just learning the benefits of Configure Price Quote (CPQ) Softwares. Health Insurance Payers are starting to join the party, and the industry is starting to notice. Salesforce offers a robust solution roadmap for Payers to expand down market, enable brokers, and improve internal efficiencies. Salesforce’s tools of enablement start with the Sales Cloud, continue with CPQ and Contract Lifecycle Management (CLM), and end with Integrations and Community Cloud. Let’s look at the pain points in the Payer industry.
To start, plan selection is very complex. There are State-specific mandates against benefits, plans, premiums, and more. Sales has a hard time setting up Proposals correctly with these rules in mind. Underwriting must manually create and edit Proposals and Rate Cards off details from Sales that can be inaccurate. A Broker may ask for multiple iterations and options. This process of creating a Proposal can take days, if not weeks. There is stress from operations and implementation teams knowing how often Proposals are inaccurate.
In a recent Spaulding Ridge case study of a Payer who has implemented CPQ, over 80% of Quotes had at least one error before implementing CPQ. After implementing CPQ, Quotes were 99% error free. That’s an improvement of almost 80%. In addition, Quote creation time decreased from an average of 10 days to an average of 20 minutes. This improvement has enabled Sales teams to move down stream to smaller prospects which has increased the Pipeline by over 100%.
The front end benefits to Sales are dramatic, but the downstream benefits are equally rewarding to Finance, Operations, Underwriting and Implementation teams. Salesforce CPQ is error-free quoting data stored directly in Salesforce for easy integration to CLM and E-signature software, such as DocuSign. Underwriting and Legal teams no longer need to worry about version control. This means no repeated data entry and the risks that go along with that manual keying.
Health Insurance Payers do most of their business through Renewals. This is another key area where Salesforce CPQ shines. The Renewals solution allows for quick processing of Renewal Opportunities by importing information from previous Contracts automatically. Account Management teams can be on lockdown for months processing Renewals, and the ability to expedite the creation of these Renewal Opportunities is a huge value-add.
Lastly, Implementation and Finance teams can finally have some piece of mind around what’s coming out of the Sales process. They know that appropriate approvals have been executed, and that plans were selected properly with the rules that have been established in CPQ.
When it comes to a phased approach, there are many opportunities to enhance Salesforce functionality in this industry. Outside of CLM, a Broker Community on the Salesforce platform will increase revenue and decrease overhead by miles. Billing is another option to look towards. An integrated Quote to Cash solution hosted on one platform allows for Sales and Finance to interact like they never have before.
The Quote to Card solution with Salesforce CPQ has major benefits for all departments in the Healthcare Insurance Payer space. It’s a very exciting time to see this industry discover these benefits. Look to Spaulding Ridge a certified Salesforce partner with experience in the industry to get the most out of your investment in Salesforce CPQ. Contact Eric Jacobson at firstname.lastname@example.org to learn more.