Page 1 of 25
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 171
Customer Relation Management
Priya Malik
Assistant Professor, G.M.N. College, Ambala Cantt.
Priyamalik86@yahoo.com
ABSTRACT
To understand the relations
maintained by various Companies with its
customers. Ever increasing competition, low
interest rates, and declining margins have
driven firms to discover the customer as the
basic element in their business equation
Insurance as a sector has shown tremendous
growth in recent years. People now are
becoming more secured in terms of their life
as well as their money. They want a
profitable benefit out of their investment.
There is a need to know the companies’
efforts towards convincing the customer
about their product and to know how to
create loyal customers. Insurance happens
to be a mega opportunity in India. It’s a
business growing at the rate of 15-20 per
cent annually and presently is of the order of
Rs 450 billion.
Key words:- Customers, margins,
tremendous, opportunity.
INTRODUCTION
Customer Relationship Management
focuses on acquiring, developing and
creating satisfied loyal
customer; achieving profitable
growth; and creating economic value in
company’s brand.
Customer Relationship Management
strives to improve the customer’s experience
of how they interact with the company and
produce high customer equity .the more
loyal customer, the higher are the customer
equity.
Recently CRM has taken a center
stage in the business world with businesses
concentrating on saving money and
increasing profits by redefining internal
processes and procedures. It costs a
company dramatically less to retain and
grow an existing client, than it does to court
new ones. It is said that “It is seven times
more expensive to acquire a new customer
than to keep an existing one”, therefore the
Page 2 of 25
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 172
value of customer information and
management should never be
underestimated
Customer equity comprises of three
drives
Value equity
Brand equity
Relationship equity
CRM (Customer Relationship
Management) is something that is not
restricted to any country or culture.
Wherever customers are there, business
cannot afford to keep them unhappy; and
that is where CRM comes in as a strong
requirement.
In India, the trend is positive. When
compared to about twenty years ago , people
have more choice and every company knows
it can’t take customer for granted .May be
the movement is slow ,but we see a steady
progress towards an increased focus on the
customer rather than merely on the products
and price .
Today’s era is of service because
customers are ultimate base line for any
business to sustain in this competitative
world
For example: Banks started providing
‘gold’, ‘silver’ cards to its valued customer,
depending on their needs the customer get
faster services.
The concept of CRM is relatively simple
and familiar to insurers. The two points of
the concept are:
Understand your customers' unique
requirements.
Offer them the services and products over
their lifetime that will maintain or increase
their profitability and retain them as your
customers.
These are the some supporting
strategies that implement these concepts to
yield significantly greater results and a true
competitive advantage.
These supporting strategies generally
fall into three groupings: analytical,
marketing and operational. The analytical
path focuses on mining the data you have on
your existing customers, and marrying that
data with external data when possible to
develop a scoring index. This index can then
be reliably applied to individual customers
to indicate their level of profitability,
tendency to remain a customer, and
propensity to acquire other products and
services.
Page 3 of 25
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 3
March 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 173
The current trends in corm followed by
insurance companies
While the CRM market in India is
still nascent, bigger players such as ICICI
Prudential Life Insurance Company are
adopting it in a big way. The company was
earlier using Gold Mines (a sales and
marketing tool) and HEAT (an operational
CRM solution) from Front Range Solutions.
Last year it took a decision to invest in CM3
from Tera data and SAS’s statistical tool for
BI. Anil Tikoo, head-IT at ICICI Prudential
Life Insurance Company says, “As a
forward looking company, we see CRM
playing a significant role in acquiring new
customers. CRM lets us obtain granular
details about our customers, helping us to
design better products, improve service
levels and reduce operational costs.” CRM
has helped ICICI Prudential Life capture
five lack customers through effective event- based marketing and lead tracking to cross- and up-sell products.
Business drivers for CRM
Margins are under pressure: A
couple of years ago, LIC dominated the
insurance market with the help of its sales
force and channels and margins were
reasonably high. Today, there are close to 20
companies offering both life and general
insurance products. All of them have equally
strong international and local partners; all
are focusing upon similar geographies and
target audiences. The new firms selling life
insurance and non-life insurance [pensions,
insurance as saving, etc] have failed to
emulate the LIC model because margins are
getting squeezed. There are several pain
areas that new insurance firms face—
acquiring new customers, retaining them,
cross-selling products and controlling rising
costs while providing comprehensive
support.
Insurers have added a variety of
products and services to their kitty. These
range from insurance as an investment
option to pension plans. They target the
younger generation in the 20 to 30 years age
group. “The convergence of four factors—
protection, saving (investment option), loans
and pension—have compelled insurance
companies to align with banks in reaching
out to a larger audience,” says Tikoo. This
trend has led to another—insurance
companies are joining hands with banks by
becoming channel partners for insurance.
Tata AIG has a marketing alliance with
HSBC, Birla Sun Life has one with Citibank
and IDBI and LIC ally with Corporation
