How to Evaluate Third-Party Vendors for Your CRM/AMS Needs

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When it comes to managing your CRM/AMS, outsourcing certain tasks to third-party vendors can streamline operations, whether you're migrating data, setting up workflows, or managing commissions. In this blog, we’ll break down the types of third-party vendors your agency can use, discuss how to evaluate them, and help you know which vendors are right for your team.

Four Types of Third-Party Vendors for Health Insurance Agencies

There are a lot of options available in the market for third-party vendors. However, these are the four types you’ll find when looking for your health insurance agency. Below is a breakdown of the types of vendors to consider.

A Breakdown of Third-Party Vendor Types:

• Virtual Assistants (VA): Virtual Assistants (US-based/Abroad) are budget-friendly for routine tasks and simple workflows. Best for small-scale needs, they offer general support but may lack deep, or the necessary, expertise in the health insurance industry or CRM/AMS systems.
• Freelancers or Service Providers (FSP) with CRM/AMS and/or Industry Expertise: This third-party vendor category is highly knowledgeable in specific CRM/AMS platforms or insurance industry processes (such as commissions processing). They are great options for specialized tasks and technical setups. Freelancers are individuals who often come at an affordable rate, while CRM/AMS-specific or industry-specific service providers typically have multiple people, which offers a redundancy of resources. 
• Development Companies (DC): For medium to large agencies requiring more complex or custom-built solutions, development companies can handle sophisticated needs like integrations/API or advanced automation.
• Professional Services Team: The vendor's professional services team is ideal for agencies needing comprehensive, expert support from the CRM/AMS vendor. This option is best for complex migrations, advanced setups, and large-scale user training. It’s important to note that not all professional services teams are the same. Discuss the options with each software vendor to know what they offer and how they can help. 

How to Evaluate Third-Party Vendors 

Consider the following matrix to guide your evaluation process. We’ve included which types of third-party vendors are best for each project or process. Additionally, we’ve included a general overview of when AgencyBloc’s Professional Services Team (the AgencyBloc logo) can assist. For more information about AgencyBloc’s Professional Services Team, schedule a demo or connect with your Client Success Manager.

Let's break each of these down.

Initial Data Migration: The vendor's Professional Services Team is the ideal option because they're well-versed in managing complex data transfers. While Development Companies could be a good secondary option, Freelancers and Virtual Assistants are not generally suited for this process due to their lack of access and knowledge. 

General Account Configuration: The vendor's Professional Services Team or Freelancers will be the best option for guiding and executing this type of project. A Virtual Assistant may be able to assist depending on their knowledge level, but Development Companies would not typically fit this project as it involves non-development work. 

Specialized Configuration: The vendor's Professional Services Team or Freelancers will be best suited for this type of project due to their extensive knowledge and familiarity. Depending on the project, a Development Company may be able to assist, but a Virtual Assistant wouldn't be a good fit due to their lack of technical knowledge. 

Specialized Ongoing Tasks: A Freelancer would be the best-suited option for anything that requires ongoing work. Depending on the scope of the project, a Virtual Assistant may be able to relieve workloads and assist. However, the vendor's Professional Services Team and Development Companies are not suited for ongoing tasks. 

One-Time Project Inside AMS/CRM: A Freelancer or Virtual Assistant is ideal for this type of project due to their availability and ability to execute. Depending on the scope of the project, the vendor's Professional Services Team could assist, but Development Companies won't typically do this type of work. 

One-Time Project Outside AMS/CRM: A Freelance or Development Company could be a great option for managing this type of project. The vendor's Professional Services Team may be able to assist, but Virtual Assistants aren't a good fit due to their lack of technical knowledge.

Ongoing Maintenance: A Virtual Assistant is the best, most cost-effective option for ongoing, routine tasks. Depending on the scope of the project, Freelancers and Development Companies could assist, but the vendor's Professional Services Team is not suited for ongoing tasks. 

Finding the Best Third-Party Type for Real-Life Scenarios

Here are specific scenarios illustrating how different vendor types can meet your agency’s various needs:

Scenario: General Account Configuration
You need to set up user accounts, workflows, and basic settings in your new system. You know what you want/need, but you and your team just can’t find the time to give it focus to get it done. 

• Best Option: Freelancer. Third-party experts can provide tailored guidance for setup best practices for specific software solutions.
• Alternative Option: Virtual Assistant. If the setup is straightforward and you can give guidance, a virtual assistant can efficiently manage basic tasks.  
• Note: If your setup is more complex, the vendor's Professional Services Team offering may be more appropriate.

Scenario: Specialized Configuration
You require a specific setup for specialized processes in your agency that require particular knowledge, technical capabilities, and industry best practices. Examples include setting up a VoIP to ensure you retain call recordings to regulatory standards or varied commission pay out structures.

• Best Option: Professional Services Team. The vendor’s internal team can work with you to configure your account for seamless functionality based on what they’ve learned over many implementations.
• Alternative Option: Freelancer. A third-party expert may also assist if they have the necessary experience with the software.

Scenario: Specialized Ongoing Tasks
Your commissions processor resigned, and you’d prefer to find a third-party resource rather than have a full-time team member.  

• Best Option: CRM/AMS Expert. Third-party experts with deep knowledge of the insurance industry and commission structures may be able to step in, process commissions for your team, and potentially even optimize processes.
• Alternative Option: Virtual Assistant. A virtual assistant may be able to manage routine commission-related tasks if they have the necessary knowledge. 

Scenario: One-Time Projects
You’ve been using your CRM/AMS for a few years now, and you want to utilize workflows, but your data is in bad shape. The workflows won’t be effective without clean data, but you have limited internal resources and would like help.

• Best Option: Freelancer. Third-party experts can assess your system and provide actionable recommendations. They may even have the capacity to take the project on and assist in getting workflows going for your team.
• Alternative Option: Virtual Assistant. A virtual assistant should be able to execute smaller clean-up tasks that prep your data for workflows in the long run.

Scenario: Ongoing Maintenance
Your agency requires consistent data entry and report generation to stay up-to-date.

• Best Option: Virtual Assistant. For ongoing and routine maintenance tasks, a virtual assistant can be cost-effective.
• Alternative Option: Freelancer or Development Company. For complex reporting needs, consider freelancer or partnering with a company for automation.

Finding Your Agency’s Best Third-Party Fit 

Do your due diligence to find the right option for your agency. Determine what the project is and then use the evaluation tool above to align it with the right third-party vendor.

Most of our clients find success using our industry-specific CRM, AMS+, by leveraging the resources we provide — whether it’s our Academy, live group training events, or one-on-one meetings with their Customer Success Manager (CSM). These tools and sessions are designed to ensure clients maximize the value of our software. 

However, when additional help is needed, knowing your team's options is important. Choosing the appropriate vendor type based on your specific needs can enhance efficiency and ensure successful project execution.

Posted by Kelly Kimmich on Thursday, October 31, 2024 in Insurance Agency Management System

1. data management
2. insurance automation
3. productivity