It's a win for your company, a win for agents/agents and a win for customers." Similarly, Japanese manufacturers treat a defect as. Our latest research shows that the Insurance Industry is highly susceptible to similar threats. " (e-business: Insurance Industry @Risk).
MOTIVATION FOR THIS STUDY
VALUE OF THE STUDY
PROBLEM STATEMENT
OBJECTIVES
Null hypothesis: Building client loyalty is not dependent on the client's relationship with the intermediary.
LIMITATIONS
STRUCTURE OF THESIS
CHAPTER TWO LITERATURE REVIEW
UNDERSTANDING WHY CUSTOMERS CHURN
In other words, while focusing on customer retention rather than customer acquisition has a disproportionately positive effect on profits, it also helps the cost side of the equation.” (Customers are looking for a company they can trust: Laura Manzur, Marketing UK. One of the few companies, who have caught this mood and grown with it is Virgin. If most loyalty cards are thinly veiled sales promotion tools, Tesco's is one of the few that is widely recognized as having some real loyalty "hooks".
STRATEGIC RATIONALE FOR LOYALTY
Although the additional profits allow the company to invest in new activities that increase value and broaden customer appeal, strengthening loyalty is generally not a matter of simply lowering prices or adding product features. The better economy means the company can pay workers better, which sets off a whole chain of events. At State Farm Insurance Companies, another champion of customer loyalty, small increases in customer retention add up to significant benefits for the company and its policyholders.
LOYALIT AND THE RIGHT CUSTOMERS
- SANLAM'S DEFINITION OF CRM
- SANLAM LIFE'S CRM VISION
- SANLAM LIFE'S CRM OBJECTIVES
Geographic segmentation: An approach where customers are segmented based on where they are located. Customer segmentation often requires a combination of certain criteria depending on the type of product. This calculator is based on the customer's age group, gender, income group, market segment, policy type, monthly premium and sum assured.
CRM COMMENT
Business respondents rated “identifying what customers expect from their business” as the most difficult CRM objective to achieve, followed by “integrating processes and technology across the business.” But companies had differing views on the difficulty of the integration process. He cites “incentives to convert CRM into an expensive sales force automation system” as “perhaps the most widespread trend.” 34;Companies implement only a fraction of the capabilities of their CRM systems, use them to generate more pitches and expect the sales force to push more products.".
SOUTH AFRICAN LOYALTY PROGRAMMES
- SOUTH AFRICAN AIRWAY'S VOYAGER MILES
- DISCOVERY'S VITALITY PROGRAMME
- REASON'S FOR VITALITY'S SUCCESS
Discovery Health would mark the era of the medical aid revolution in South Africa. Lower status memberships are constantly encouraged to raise their status for higher rewards. Del Jones talks about the importance of not confusing your communication with other spam a customer receives.
It also serves as an extremely successful customer retention tool, and also builds brand equity among subordinates of key members. With the lowest ticket prices, the company still ranks first in customer service and safety. Not only does each employee wear the company's values embedded in an ID badge, but all rewards are also contingent on meeting customer satisfaction goals.
Northwestern Mutual, Milwaukee, WI - the company that has consistently focused on creating superior value for its policyholders. Strict adherence to the rule has produced some decisions that at first glance appear to be bad business. He completed the application and sent in his first premium payment, but the company could not issue a policy because the baby's doctor had not yet sent in the necessary medical paperwork.
New York Times, New York, NY - where customer retention is monitored as carefully as profit, and where retention rates (over 90%) are head and shoulders above the rest of the newspaper competition, which churns out readers at rates of 25-50%.
INSURANCE CONSUMPTION TRENDS IN THE USA AND THE UK
- BRITISH TRENDS
- NORTH AMERICAN TRENDS
Forrester spoke to executives at 30 of the UK's largest life insurers and the life insurance divisions of major UK banks to find out the effects of the internet on UK life and pensions provision. One of the main concerns in the UK seems to be distribution and how to reach the customer in the most economical and efficient way. Forrester conducted a similar survey in the North American market and interviewed 40 of the largest US life insurers.
Forrester's research into the UK and US life insurance markets highlights two different schools of thought on distribution. The Americans still believe in the role of the intermediary despite the developments of technology and its role in creating greater efficiency. Each company, as highlighted in the case of Northwestern Mutual, individually addresses the issue of customer retention and loyalty.
The brand image adds value to the offering in the mind of the consumer when they see the familiar Coke package and logo. Another reason consumers are more brand loyal with services is the recognition of the need for repeat patronage to achieve optimal satisfaction from the seller. Becoming a "regular customer" allows the seller to learn about the customer's tastes and preferences, ensures better treatment and encourages more interest.
Metropolitan's position most closely reflects the mass market segment in which it is presented.
WHAT SATISFIES INVESTORS?
The Momentum is believed to be closer to this target market than the Liberty. features - from the quality of the advice they receive to the speed at which their trades are executed. More than 85% of broker clients are satisfied with the accuracy of account information and statements across channels, 80% have no complaints about trade execution, either on- or omine. Online customer service is improving, but customers are still less satisfied with it than they are with in-person service: 70% think call center representatives are helpful, but only 60% are satisfied with online customer service. Not entirely satisfied with advice.
Fewer than two out of three clients with an adviser are satisfied with the knowledge of their adviser and the quality of the advice they receive. When investors were asked what they would value when choosing a new brokerage firm, they highlighted what they are currently least satisfied with. Fees and commissions are at the bottom of the instant gratification barrel and among the first things investors would look for in a new company.
Eighty-one percent of brokerage clients say price would be "very" or "extremely" important when choosing a new firm. While tips have died down in current satisfaction ratings, they are rising to the top of the list of what clients want from their next brokerage. More than eight investors often say that good advice would be a priority when choosing their next business.
Broker clients are most satisfied with their firms' accuracy; they receive lower marks for fees and advice.
CHAPTER THREE
- SAMPLING DESIGN
- ETHICS
- BIAS
- factors that influenced the choice of the company/companies you selected
8% of the respondents' experiences were below the norm, while Company Two had 14% of the respondents indicating a service level below and well below the norm. Most respondents indicated that their experiences with processing applications were as expected and better than expected. Question 8, 12 & 16 dealt with experiences with underwriting with Company 1,2 and 3. Refer to Chart 8: Underwriting experience in Appendix).
14% of respondents had experiences below their expected levels at Company One, 16% at Company 2 and 8% at Company 3. Acceptance involves customers meeting medical requirements, including blood tests and medical examinations. The customer experiences with the receipt of the policy document at Company 1 are well spread in the expected and above-expected range. The customer experience with receiving documents at Company 2 is generally at an expected and better than expected level.
At company three, 6% of the total respondents indicated a level of satisfaction with the receipt of documents below than expected. 68% of respondents indicated that they would contact an advisor if they had questions. 20% of respondents indicated that they would deal directly with the company, and 12% of respondents did not answer this question. In this graph, 70% of respondents indicate their service experience as expected or better than expected.
The sample of respondents was composed of people who are in the income category above R3000 per month and many are professionals.
CHAPTERS RESEARCH CONCLUSION
- ACHIEVEMENT OF RESEARCH OBJECTIVES
- CLIENT LOYALTY AND INTERMEDIARY RELATIONSHIP
- LIMITATIONS OF THIS STUDY
- MANAGEMENT IMPLICATIONS AND RECOMMENDATIONS
- AREAS FOR FURTHER RESEARCH
This fact is confirmed by the fact that 68% of the sample chose the advisor to deal directly with a company. Over the past seven years, the financial markets have been very volatile and we have seen frequent crashes in the financial markets, leading to poor performance in most sectors. In addition to the misery in the financial markets, there has also been global terrorism, which has had serious consequences for the United States.
Life cover rates are a contentious issue as customers look for the cheaper more flexible products. The recent trend to search for better prices is a major concern for management and regulators in the financial sector. Due to the dynamic changes in the financial sector, this research will need to be repeated periodically to gain more in-depth insights and to detect other trends that may have escaped this study due to the size of the sample.
Access to customer retention strategies used by leading insurers was limited to what was in the public domain. Knowing your customer's demographics and lifetime value is not enough to keep them in the future. Creating customer and employee loyalty starts with the company's mission and core values.
Insurance/Consumer Technographics / June on the Rise of the Wealthy: The Search for the Next Millionaires: Stevenson, McQuivey & DeMoulin) 4S. www.brandfinance.com.1S.brands that teach professional services companies how to. www.discoveryworld.co.za/index login.jhtml?p content=/vitality/2002 rules 47. www.discoveryworld.co.za/index login.jhtml?p content=/vitalityI2002 vitality 48. www.discoveryworld.co. za/index login.jhtml?p content=/vitality/2002 earn.jht 49. www.forrester.com- Insurance/ Consumer Technographics/ 10/2/2001.
APPENDIX
RATING OF SERVICE OF COMPANY
