CUSTOMER RETENTION STRATEGY IN INSURANCE SECTOR

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Journal of Business Management & Social Sciences Research (JBM&SSR) Volume 3, No.11, November 2014

ISSN No: 2319-5614

Customer Retention Strategy
An Empirical Study In Insurance Sector
Dr. Biswamohan Dash, Assistant Professor, DRIEMS, Cuttack, Odisha, India Mr. Bibekananda Mohanty, Assistant Professor, DRIEMS, Cuttack, Odisha, India Dr.Sabyasachi Das, lecturer, Utkal University, Odisha, India

Abstract
This research study is based on impact of customer relationship management practices on insurance sector in Odisha market. The research study mainly focuses on the the pattern of service and the facilitation process for the sake of customers adopted by the CRM driven insurance companies in Odisha.Customer Relationship Management(CRM) practice is now becoming imperative and need of the hour in the cut throat competition held in the insurance sector. Initially LIC of India was the sole insurance player having larger market share but after liberalization, privatization and globalization so many private insurers came in to the picture. Then they adopted many customer centric strategies to satisfy and retain the customers to gain market share and to survive.CRM is a customer focused strategy adopted by many insurers in India and Odisha.To recognize the perception of insurance customers in terms of service standard, innovation and quality of products, the efforts have been undertaken through this research study. In this study customer’s opinions have been collected through a structured questionnaire to understand the effectiveness of CRM implementation in relation to the companies like AVIVA, LIC of India, ICICIprudential, Birla sun life and Reliance. Here to measure the customer retention gained by above insurers; factor analysis and group statistics have been used. Keywords: service standards, customer focused strategy, customer retention, innovation

Introduction
Customer relationship management is an imperative
measure in any service sector.it is the main tool in marketing management to acquire more numbers of customers and to create one to one interaction with transparency and honesty. Today the companies have to move from

managing a market, to managing specific customers. But
managing the customers and retaining them for long time
is not easy task in a competitive market. Besides coping
with changing psychology, preferences and needs of the
customers is becoming challenging one. So the business
organizations now a day are taking the help of data base
management system for customer retention and e-CRM
is the outcome of such system.
The requirement of relationship marketing is prominent
in the service sectors especially in Indian market to create trust and valuable strategic customer care. This will definitely raise the concept of customer relationship
management for long term relationship and value added
service. This study will focus on CRM application for
insurance sector related to their communicating channels
for customers, customer satisfaction and customer retention. Insurance is an upcoming sector, in India the year 2000 was a landmark year for life insurance industry. In
this year the life insurance industry was liberalized after
more than 50 years. Insurance sector was once a monopoly, with LIC as the only company, a public sector enterprise. But now-a-days the market is opened up and there are many private players competing in the market.

There are above 30 private life insurance companies
have entered the industry. After the entry of these private

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players, the market share of LIC has been considerably
reduced. In the last five years the private players are able to expand the market (growing at 30% per annum) and
also have improved their market share to above 18%.For
the past five years private players have launched many
innovations in the industry in terms of products, market
channels and advertisement of product, agent training
and customer services...
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