Documente Academic
Documente Profesional
Documente Cultură
ON
AT
Submitted by
ASFIYA SULEMAN
HT. NO: 2254 – 15 – 672 - 088
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STUDENT’S DECLARATION
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ABSTRACT
In India life insurance sector plays a major role in savings of a person. There are many
players in life insurance sector, and LIC is leading as it has roots in India from more than 50
years. To purchase anything in this world the customer has his/her own choice of preferences
according to those preferences only, one can purchase the require product. The project study
of ICICI PRUDENTIAL LIFE INSURANCE linked with CRM (CUSTOMER
RELATIONSHIP MANAGEMENT).
The aim of study to examine and make the company enable to the track customer sell the
appropriate product understanding their needs and wants and to insure a long term retention of
customers through the application of CRM in a comprehensive manner monitoring the
performance of CRM to take corrective actions necessary to assure the results match the plan
projections.
The method of this study is based on marketing research with structured questionnaire
consisting of multiple choice questions.
Most of the companies have only 28% of market share in life insurance sector when compare
LIC. So CRM makes suggestions to ICICI PRUDENTIAL LIFE INSURANCE sector how to
make trust of customers and hoe to make the retention value.
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ACKNOWLEDGEMENTS
I would like to express my gratitude for those who have been constant source of encouragement
and motivation throughout this project, without whose support this could not have been
possible.
I would also like to thank Mr. ABDUL AZIZ, LINE MANAGER of ICICI PRUDENTIAL
LIFE INSURANCE, who generously granted me permission and helped me out in collecting
data in their organization.
I also acknowledge with the deep sense of reverence, gratitude towards my parents and
members of my family, who have always supported me morally as well as economically.
Atlas but not least gratitude goes to all my friends who directly or indirectly helped me to
complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude
ASFIYA SULEMAN
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TABLE OF CONTENTS
INTRODUCTION 6
RESEARCH METHODOLOGY 26
COMPANY PROFILE 39
CHAPTER – 3
INDUSTRY PROFILE 54
BIBLIOGRAPHY 87
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CHAPTER-I
INTRODUCTION
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INTRODUCTION OF CUSTOMER RELATIONSHIP MANAGEMENT
Several commercial CRM insurance packages are available which vary in their approach to
CRM. However, as mentioned above, CRM is not just a technology, but rather a comprehensive
customer-centric approach to an organization’s philosophy in dealing with its customers. This
includes policies and process, front-of-house customer service, employee training, marketing
systems and information management. Hence it is important that any CRM implementation
considerations stretch beyond technology, towards the broader organizational requirements.
The objective of a CRM strategy most consider a company’s specific situation and its
customers’ needs and expectations. Information gained through CRM initiatives can support
the development of marketing strategy by developing the organization’s knowledge in areas
such as identifying customer segments, improving customer retention, improving product
offerings(by better understanding customer needs),and by identifying the organization’s most
profitable customers.
CRM strategies can vary in size, complexity and scope. Some companies consider a CRM
strategy to only focus on the management of a team of sales people. However, other CRM
strategy can cover customer interaction across the entire organization .many commercial CRM
insurance packages that are available provide features that serve sales, marketing event
management, and project management and finance.
Managing the customer experience, maintaining a more reliable data base, improving
service operations. Fostering customer loyalty, embracing the characteristics of high
performance marketing and other related subjects.
Making such a pivot in CRM to create customer interactions that produce optimal
experiences and LONG TERM relationships must be the top mission. Above all, those
experiences must be consistent with a company’s brand promise.
CRM DEFINITION:
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CRM defines the process of the company are fully occupied with acquiring customers,
selling the product to the customers, and maintaining a LONG TERM RELATIONSHIP to
a customer.
CRM is actually a tremendous step forward in creating a system that can provide a
means for retaining individual loyalty in a world of nearly seven billion souls. CRM helps in
order to understand changing nature of the customer because customer are not what they used
to be.
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OBJECTIVES OF THE STUDY
To quickly identify, contact, attract and acquire new customers.
To obtain a better understanding of the customers, and their wants and needs.
To define appropriate product and service offering and match it to the customers unique
needs.
To increase retention of existing customers through improved after sales, service, &
support.
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NEED OF THE STUDY
Companies have to increasingly pursue a customer centric competitive strategy rather
than a product centric one.
Customers demand constant access, immediate response & a personalized touch.
Focus is shifting from supply chain to demand chain effectiveness.
Better understanding & intelligent management of customer relationship is essential for
survival.
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RESEARCH METHODOLOGY
The methodology followed for the fulfillment of the above-mentioned goals is as follows:
SOURCE OF DATA
There are basically two sources of data: A) Primary data.
B) Secondary data.
PRIMARY DATA: It is not recorded data. It is collected personally interviewing the
respondents through experience, observation and survey methods. It is collected specially for
a particular purpose with certain objectives in mind.
SECONDARY DATA: It is already collected and recorded data by some other person for
some purpose and is available for present study.
Example: internet, textbooks, organizations annual report etc.
SAMPLE SURVEY
At the period of research work, it is necessary to collect a certain data from the people
but it is not possible to survey each every person who can give information on the issue.
SAMPLE CHARACTERISTICS:
Sample size: 100 clients.
Nature of sample: Highly representatives of the population.
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The information collected and opinions are of customers as to what they feel. Thus
the accuracy and information collected depends upon the perception of each
respondent and circumstances involved.
The study has been conducted by including 100 customers. Though the sample is
highly representative of the population, it does not cover the entire market of
customers having insurance policies.
Analysis could not draw for the entire questionnaire, only specific questions have
been analyzed and interpreted.
Due to time constraint more information cannot be collected.
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CHAPTER II
LITERATURE REVIEW
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LITERATURE REVIEW
TYPES OF CRM
OPERATIONAL CRM
The primary goal of CRM systems is to integrate and automate sales, marketing, and customer
support. Therefore, these systems typically have a dashboard that gives an overall view of the
three functions on a single page for each customer that a company may have. The dashboard
may provide client information, past sales, previous marketing efforts, and more, summarizing
all of the relationships between the customer and the firm. Operational CRM is made up of 3
main components: sales force automation, marketing automation, and service automation.
Sales force automation works with all stages in the sales cycle, from initially entering
contact information to converting a prospective client into an actual client. For example, in
August, 2000, Oracle released a CRM software package, OracleSalesOnline.com, which
makes contacts, schedules and performance tracking available online so that a customer's
information is easily accessible for all employees working at the office or remotely. Sales
force automation implements Sales promotion analysis, automates the tracking of a client's
account history for repeated sales or future sales and coordinates sales, marketing, call
centers, and retail outlets. It prevents duplicate efforts between a salesperson and a
customer and also automatically tracks all contacts and follow-ups between both parties.
Marketing Automation focuses on easing the overall marketing process to make it more
effective and efficient. For example, by scoring customer behavior, Salesforce'sMarketing
Cloud allows a business to adapt marketing campaigns to how engaged customers are with
a business. CRM tools with marketing automation capabilities can automate repeated tasks,
for example, sending out automated marketing emails at certain times to customers, or
posting marketing information on social media. The goal with marketing automation is to
turn a sales lead into a full customer. CRM systems today also work on customer
engagement through social media.
Service automation is the part of the CRM system that focuses on direct customer service
technology. Through service automation, customers are supported through multiple
channels such as phone, email, knowledge bases, ticketing portals, FAQs, and more. For
example, Microsoft's Dynamics CRM Software tracks call times, call resolution and more
in order to improve the efficiency of customer service within a business.
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ANALYTICAL CRM
The role of analytical CRM systems is to analyze customer data collected through multiple
sources, and present it so that business managers can make more informed decisions. Analytical
CRM systems use techniques such as data mining, correlation, and pattern recognition to
analyze the customer data. These analytics help improve customer service by finding small
problems which can be solved, perhaps, by marketing to different parts of a consumer audience
differently.[4] For example, through the analysis of a customer base's buying behavior, a
company might see that this customer base has not been buying a lot of products recently. After
scanning through this data, the company might think to market to this subset of consumers
differently, in order to best communicate how this company's products might benefit this group
specifically.
COLLABORATIVE CRM
The third primary aim of CRM systems is to incorporate external stakeholders such as
suppliers, vendors, and distributors, and share customer information across organizations. For
example, feedback can be collected from technical support call, which could help provide
direction for marketing products and services to that particular customer in the future.
The main components of CRM are building and managing customer relationships through
marketing, observing relationships as they mature through distinct phases, managing these
relationships at each stage and recognizing that the distribution of value of a relationship to the
firm is not homogenous. When building and managing customer relationships through
marketing, firms might benefit from using a variety of tools to help organizational design,
incentive schemes, customer structures, and more to optimize the reach of its marketing
campaigns. Through the acknowledgement of the distinct phases of CRM, businesses will be
able to benefit from seeing the interaction of multiple relationships as connected transactions.
The final factor of CRM highlights the importance of CRM through accounting for the
profitability of customer relationships. Through studying the particular spending habits of
customers, a firm may be able to dedicate different resources and amounts of attention to
different types of consumers.
RELATIONAL INTELLIGENCE
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Relational intelligence, or awareness of the variety of relationships a customer can have with a
firm, is an important component to the main phases of CRM. Companies may be good at
capturing demographic data, such as gender, age, income, and education, and connecting them
with purchasing information to categorize customers into profitability tiers, but this is only a
firm's mechanical view of customer relationships. This therefore is a sign that firms believe
that customers are still resources that can be used for up-sell or cross-sell opportunities, rather
than humans looking for interesting and personalized interactions. Below is a diagram of the
steps when serving a client while using a CRM system:
Customer satisfaction has important implications for the economic performance of firms
because it has the ability to increase customer loyalty and usage behavior and reduce customer
complaints and the likelihood of customer defection. The implementation of a CRM approach
is likely to have an effect on customer satisfaction and customer knowledge for a variety of
different reasons.
Firstly, firms are able to customize their offerings for each customer. By accumulating
information across customer interactions and processing this information to discover hidden
patterns, CRM applications help firms customize their offerings to suit the individual tastes of
their customers. This customization enhances the perceived quality of products and services
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from a customer's viewpoint, and because perceived quality is a determinant of customer
satisfaction, it follows that CRM applications indirectly affect customer satisfaction. CRM
applications also enable firms to provide timely, accurate processing of customer orders and
requests and the ongoing management of customer accounts. For example, Piccoli and
Applegate discuss how Wyndham uses IT tools to deliver a consistent service experience across
its various properties to a customer. Both an improved ability to customize and a reduced
variability of the consumption experience enhance perceived quality, which in turn positively
affects customer satisfaction. Furthermore, CRM applications also help firms manage customer
relationships more effectively across the stages of relationship initiation, maintenance, and
termination.
EXAMPLES
Research has found a 5% increase in customer retention boosts lifetime customer profits by
50% on average across multiple industries, as well as a boost of up to 90% within specific
industries such as insurance. Companies that have mastered customer relationship strategies
have the most successful CRM programs. For example, MBNA Europe has had a 75% annual
profit growth since 1995. The firm heavily invests in screening potential cardholders. Once
proper clients are identified, the firm retains 97% of its profitable customers. They implement
CRM by marketing the right products to the right customers. The firm's customers' card usage
is 52% above industry norm, and the average expenditure is 30% more per transaction. Also
10% of their account holders ask for more information on cross-sale products.
Wells Fargo is another example of a company that has successfully implemented CRM into
their firm. The Wholesale Banking division of Wells Fargo has almost 300 different products
and services, with many business customers who use a range of products. Therefore, customers
need a seamless experience from product to product and service to service. The firm
implemented cloud technologies to help connect people with customers and has seen customer
satisfaction drastically improve.
Amazon has also seen great success through its customer proposition. The firm implemented
personal greetings, collaborative filtering, and more for the customer. They also used CRM
training for the employees to see up to 80% of customers repeat.
CRM PARADOX
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Part of the paradox with CRM stems from the challenge of determining exactly what CRM is
and what it can do for a company. The CRM Paradox, also referred to as the "Dark side of
CRM," may entail favoritism and differential treatment of some customers. This may cause
perceptions of unfairness among other customers' buyers. They may opt out of relationships,
spread negative information, or engage in misbehavior that may damage the firm and its
reputation. Such perceived inequality may cause dissatisfaction, mistrust and result in unfair
practices. A customer shows trust when he or she engages in a relationship with a firm under
the idea that the firm is acting fairly and adding value to his or her life somehow. However,
customers may not trust that firms will be fair in splitting the value of their products or services.
For example, Amazon’s test use of dynamic pricing (different prices for different customers)
ended with very poor public relations for the company. As seen in the Amazon example,
although firms use both human and technological factors to assess a proper CRM process,
experts suggest that focusing on the human factors, like management, increases the potential
of successful CRM, since managers can make a coordinated effort on organizational changes
within a company, which often has an impact on customer satisfaction.
CRM technologies can easily become ineffective if there is no proper management, and they
are not implemented correctly. The data sets must also be connected, distributed, and organized
properly, so that the users can access the information that they need quickly and easily.
Research studies also show that customers are increasingly becoming dissatisfied with contact
center experiences due to lags and wait times. They also request and demand multiple channels
of communications with a company, and these channels must transfer information seamlessly.
Therefore, it is increasingly important for companies to deliver a cross-channel customer
experience that can be both consistent as well as reliable.
Consultants, such as Bain & Company, argue that it is important for companies establishing
strong CRM systems to improve their relational intelligence. According to this argument, a
company must recognize that people have many different types of relationships with different
brands. One research study analyzed relationships between consumers in China, Germany,
Spain, and the United States, with over 200 brands in 11 industries including airlines, cars and
media. This information is valuable as it provides demographic, behavioral, and value-based
customer segmentation. These types of relationships can be both positive and negative. Some
customers view themselves as friends of the brands, while others as enemies, and some are
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mixed with a love-hate relationship with the brand. Some relationships are distant, intimate or
anything in between.
Companies must also improve their relational intelligence of their CRM systems. These days,
companies store and receive huge amounts of data through emails, online chat sessions, phone
calls, and more. Many companies do not properly make use of this great amount of data,
however. All of these are signs of what types of relationships the customer wants with the firm,
and therefore companies may consider investing more time and effort in building out their
relational intelligence. Companies can use mining technologies and use of web searches to
understand relational signals. Social media such as Facebook, Twitter, blogs, etc. is also a very
important factor in picking up and analyzing information. Understanding the customer and
capturing this data allows companies to convert customer’s signals into information and
knowledge that the firm can use to understand a potential customer’s desired relations with a
brand.
It is also very important to analyze all of this information to determine which relationships
prove the most valuable. This helps convert data into profits for the firm. Stronger bonds
contribute to building market share. By managing different portfolios for different segments of
the customer base, the firm can achieve strategic goals.
EMPLOYEE TRAINING
Many firms have also implemented training programs to teach employees how to recognize
and effectively create strong customer-brand relationships. For example, Harley Davidson sent
its employees on the road with customers, who were motorcycle enthusiasts, to help solidify
relationships. Other employees have also been trained in Social psychology and the social
sciences to help bolster strong customer relationships. Customer service representatives must
be educated to value customer relationships, and trained to understand existing customer
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profiles. Even the finance and legal departments should understand how to manage and build
relationships with customers.
Firms that do not have well-designed and logical processes cannot be successful in achieving
their goals. Companies should define their business goals and evaluate their CRM processes to
improve and expand to fit their needs. Applying new technologies is also helpful because using
CRM systems requires changes in infrastructure of the organization as well as deployment of
new technologies such as business rules, databases and Information technology.
EXAMPLES
CRM SYSTEMS
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CRM SYSTEMS IN PRACTICE
CALL CENTERS
As well as tracking, recording and storing customer information, CRM systems in call
centers codify the interactions between company and customers by using analytics and key
performance indicators to give the users information on where to focus their marketing and
customer service. The intention is to maximize average revenue per user, decreasechurn
rate and decrease idle and unproductive contact with the customers. CRM software can also be
used to identify and reward loyal customers over a period of time.
Growing in popularity is the idea of gamifying, or using game design elements and game
principles in a non-game environment such as customer service environments. The
gamification of customer service environments includes providing elements found in games
like rewards and bonus points to customer service representatives as a method of feedback for
a job well done. The repetitive act of answering support calls all day can be draining, even for
the most enthusiastic customer service representative. When agents are bored with their work,
they become less engaged and less motivated to do their jobs well, making it likely for them to
make mistakes. Gamification tools can motivate agents by tapping into their desire for rewards,
recognition, achievements, and competition.
SOCIAL MEDIA
Social CRM involves the use of social media and technology to engage and learn from
consumers.[35] Because the public, especially among young people, has increasingly using
social networking sites, companies use these sites to draw attention to their products, services
and brands, with the aim of building up customer relationships to increase demand.
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Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track
and communicate with customers. These customers also share their own opinions and
experiences with a company's products and services, giving these firms more insight.
Therefore, these firms can both share their own opinions and also track the opinions of their
customers.
LOCATION-BASED SERVICES
CRM systems can also include technologies that create geographic marketing campaigns. The
systems take in information based on a customer’s physical location and sometimes integrates
it with popular location-based GPS applications. It can be used for networking or contact
management as well to help increase sales based on location.
According to a Sweeney Group definition, CRM is "all the tools, technologies and procedures
to manage, improve, or facilitate sales, support and related interactions with customers,
prospects, and business partners throughout the enterprise". The quote assumes that CRM is
involved in every Business-to-Business (B2B) transaction.
Despite the general notion that CRM systems were created for the customer-centric businesses,
they can also be applied to B2B environments to streamline and improve customer management
conditions. For the best level of CRM operation in a B2B environment, the software must be
personalized and delivered at individual levels.
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Businesscompany must have a function to connect all the contacts, processes and deals among
the customers segment and then prepare a paper. Automation of sales process is an important
requirement for Business-to-Business products. It should effectively manage the deal and
progress it through all the phases towards signing. Finally, a crucial point is personalization. It
helps the Business-to-Business company to create and maintain strong and long-lasting
relationship with the customer.
An example is with Costco Wholesale Corporation using FreeCRM to track its Business-to-
Business partnerships and programs. The firm is able to track all data and negotiate with
affiliate partners to track the relationship from beginning to end. It also helps the firm track
special programs with participating organizations and give special discounts and deals.
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CRM ADOPTION CHALLENGES
Companies face large challenges when trying to implement CRM systems. Consumer
companies frequently manage their customer relationships haphazardly and
unprofitably.[42] Many times, they may not effectively or adequately use their connections with
their customers, due to misunderstandings or misinterpretations of a CRM system's analysis.
Clients who want to be treated more like a friend may be treated like just a party for exchange,
rather than a unique individual, due to, occasionally, a lack of a bridge between the inputted
data in a CRM system's analysis and the analysis output. Many studies show that customers are
frequently frustrated by a company’s inability to meet their relationship expectations, and on
the other side, companies do not always know how to translate the data they have gained from
CRM software into a feasible plan of action. In 2003, a Gartner report estimated that more than
$2 billion had been spent on software that was not being used. According to CSO Insights, less
than 40 percent of 1,275 participating companies had end-user adoption rates above 90 percent.
Many corporations only use CRM systems on a partial or fragmented basis. In a 2007 survey
from the UK, four-fifths of senior executives reported that their biggest challenge is getting
their staff to use the systems they had installed. 43 percent of respondents said they use less
than half the functionality of their existing systems However, market research regarding
consumers' preferences may increase the adoption of CRM among the developing countries'
consumers.
MARKET LEADERS[EDIT]
The CRM market grew by 12.5 percent in 2012. The following table lists the top vendors in
2006–2008 and 2012-2014 (figures in millions of US dollars) published in Gartnerstudies.
The four main CRM system vendors include Salesforce, Microsoft, SAP, and Oracle,
with Salesforce representing an 18.4% market share, Microsoft representing a 6.2% market
share, SAP representing a 12.1% market share and Oracle representing a 9.1% market share in
2015. Other providers also are popular for small and mid market businesses. For nine different
categories of CRM, Enterprise CRM Suite, Midmarket CRM Suite, Small-Business CRM
Suite, Sales Force Automation, Incentive Management, Marketing Solutions, Business
Intelligence, Data Quality and Consultancies, there are different market leaders. Between the
different market leaders, each one’s services cater to a different professional field,
from healthcare to Manufacturing.
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ENTERPRISE CRM SUITE
For Enterprise CRM Suite, Microsoft ranks the highest in depth of functionality, company
direction, Customer satisfaction and 5-year cost for Software and maintenance because of its
integrated customer engagement products, especially through Office 365 and PowerBI, two
Business Analytics platforms. Whereas Microsoft’s CRM platforms are mostly used in
the Financial Services, Public Sector and Professional Services fields, its competitors in
Enterprise CRM Suite, NetSuite, Oracle, Salesforce and SAP, cover the additional fields
of Retail, Software, Wholesale/Distribution, Communications, High-
Tech, Healthcare and Government.
INCENTIVE MANAGEMENT
Xactly is rated the highest in terms of depth of functionality, company direction, Customer
satisfaction and 5-year cost for software and maintenance for Incentive Management in its
Sales Performance Management products. Xactly is known for offering strong incentive
management products for companies of any size, and recently, with its Xactly Insights product
released in August, 2014, their software helps companies compare themselves to their
competitors in order to reform business plans. Covering fields from Software/High-
Tech to Business Services to Life Sciences, Xactly’s products provide tools for a range of
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professional fields. Xactly’s competitors in Incentive Management, Callidus
Software,IBM (Varicent), NICE Systems and Synergy, cover additional Incentive
Management product needs for fields such as Insurance/Financial
Services, Telecommunications, Bankingand Travel.
MARKETING SOLUTIONS
Salesforce’s Marketing Cloud is known for its complex architecture which allows its users to
connect to multiple applications and data sources within and outside of Salesforce through a
single browser interface. in terms of depth of functionality, company direction, customer
satisfaction and 5-year cost for software and maintenance, Salesforce is ranked higher than its
competitors in the category of Marketing Solutions. Although Marketing Cloud is mostly used
in the Financial Services, Manufacturing/Retail and High-Techfields, other fields such as
Media, Environment, Communications and Pharmaceutical are serviced by companies
like Adobe, IBM, Oracle Marketing Cloud and Teradata.
BUSINESS INTELLIGENCE
In terms of the Business Intelligence category, Teradata ranks the highest, mostly due to the
strength of its depth-of-functionality. Through their Unified Data architecture of their products,
they have many options for customer segmentations, targeted campaign delivery and content
customization. Though their products are typically used in the Financial
Services, Pharmaceutical and Retail fields, other fields like Healthcare,
Communications, Consumer Products, Insurance, Wholesale, Government and Professional
Services are catered by Teradata’s competitors in Business
Intelligence, IBM, Oracle, QlikTech and SAS Institute.
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DATA QUALITY
When considering the Data Quality category for CRM products, Informatica ranks above the
other companies for its depth of functionality, customer satisfaction and overall company
direction. Though Informatica caters to the Healthcare, Financial
Services and Manufacturing fields, its competitors, Experian, IBM, Pitney Bowes and SAS
Institute, also provide CRM products specializing in high data quality for fields
like Government, Retail, Telecommunications, Utilities and Insurance.
CONSULTANCIES
In terms of CRM for consultancies, Appirio was ahead of its competitors due to its expansion
in the area of mobile application development in 2015. Although Appirio caters to the fields
of Retail, Technology and Education, its competitors in the field, Capgemini, Ernst &
Young, Hitachi Consulting and IBM Global Business Services, mainly cater to the
Communications, Financial Services, Government, Manufacturing and Healthcare fields.
TRENDS
In the Gartner CRM Summit 2010 challenges like "system tries to capture data from social
networking traffic like Twitter, handles Facebook page addresses or other online social
networking sites" were discussed and solutions were provided that would help in bringing more
clientele. Many CRM vendors offer subscription-based web tools (cloud computing) and SaaS.
Some CRM systems are equipped with mobile capabilities, making information accessible to
remote sales staff. Salesforce.com was the first company to provide enterprise applications
through a web browser, and has maintained its leadership position. Salesforce continues to be
a market leader as the CRM with the most customers and is rated-highly among their
customers.
Traditional providers have recently moved into the cloud-based market via acquisitions of
smaller providers: Oracle purchased RightNow in October
2011 and SAP acquiredSuccessFactors in December 2011.
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Sales forces also play an important role in CRM, as maximizing sales effectiveness and
increasing sales productivity is a driving force behind the adoption of CRM. Empoweringsales
managers was listed as one of the top 5 CRM trends in 2013.
Another related development is vendor relationship management (VRM), which provide tools
and services that allow customers to manage their individual relationship with vendors. VRM
development has grown out of efforts by ProjectVRM at Harvard's Berkman Center for Internet
& Society and Identity Commons' Internet Identity Workshops, as well as by a growing
number of startups and established companies. VRM was the subject of a cover story in the
May 2010 issue of CRM Magazine.
In 2001, Doug Laney from Gartner developed the concept and coined the term 'Extended
Relationship Management' (XRM). Laney defines XRM as extending CRM disciplines to
secondary allies such as the government, press and industry consortia.
Dennison DeGregor (2011) describes a shift from 'push CRM' toward a 'customer transparency'
(CT) model, due to the increased proliferation of channels, devices, and social media.
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CHAPTER III
THE INDUSTRY AND COMPANY
PROFILE
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FINANCIAL SECTOR OVERVIEW –INDIA
The financial institutions are playing a vital role for providing financial assistance, these
should be fulfilling by the financial institutions. Generally the financial services, contains
banking services, mutual funds, chits, financial institutions and insurance etc.
The people are attracted towards insurance because of their attractive benefits and
which provide maximum security to the people and their families or their assets that helps face
the uncertainties because “where there is a uncertainties there is risk”. Due to these reasons
maximum number of persons are diverting or preferring or attracting towards insurance sector.
By observing this reason most of the organizations are entering into the insurance sector. It is
not possible for every organization to rule the market or to become market leader .To compete
with the competitors or to be stable in the market or to become a market leader we have to
concentrate on consumer ,because consumer /customer is the ultimate person who gets the
benefits provided by the organization. For that, those organizations who prepare the plans
according to the minds or attitudes of the consumer by providing attractive benefits will get
more success.
WHAT IS INSURANCE?
Insurance is a CONTRACT BETWEEN TWO PARTIES where by one party called
insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called
insured a fixed amount of money in the happening of a certain event.
For example in a life policy by paying a premium to the insurer, the family of the
insured person receives a fixed compensation on the death of the insured. Similarly, in a car
insurance, in the event of the car meeting with an accident, the insured receives the
compensation to the extent of damage.
It is a system by which the losses suffered by a few are spread over many exposed to
similar risks.
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WHY TO BUY LIFE INSURANCE:
To replace your income and minimize the debt load for your heirs.
Life insurance helps protect the financial security of your family in the event of your
on timely death. This is especially important when you are the primary wage earner. The owner
of the policy pays the insurer premiums in exchange for a promise to pay the beneficiaries a
death benefit upon the death of the insured.
The other decisions taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies were the launch of the IRDA’S online
service for issue and renewal of licenses to agents.
Since being set up an independent statutory body the IRDA has put in a frame work of
globally compatible regulations. In the private sector 12 life insurance and 6 general insurance
companies have been registered.
By passing of the IRDA bill, the insurance sector has been opened up for private
companies to carry on insurance business. Insurance contracts are based on good faith i.e. the
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details furnished by the proposer are accepted in good faith and this will form the basis of the
contract.
PERMANENT POLICY:
Permanent insurance coverage such as whole life, universal life and variable life have
the potential to provide coverage to a specified maturity date.
TERM INSURANCE:
Coverage that lasts for a specific time period and has two components.
1. Premium and
2. Death benefit
Life insurance needs should be revaluated when major events occur in life such as marriage,
the birth of children or a business startup.
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HISTORY OF INSURANCE SECTOR:
The business of life insurance in India in its existing from started in India in the year 1818
with the establishment of the oriental life insurance company in Calcutta.
Some of the important mile stones in the life insurance business in India are:
1912: The Indian insurance companies Act enacted as the first statute to regulate
the life insurance.
1928: The Indian insurance companies Act enacted to enable the govt. to collect
statistical information about both life and non-life insurance business.
1938: Earlier legislation consolidated and amended to by the insurance act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the
central govt. and nationalized.
The insurance industry is totally dependent on the ability to convert raw data in to
intelligence –intelligence about customers, marketers, competitors, and business environment.
Over the years data processing technology has progressed phenomenally and tools like data
ware hosing, OLAP and data mining, which constitute the corner stone of effective business
intelligence environment, have been widely accepted across industries. However, insurance
companies have been relatively slow in adapting these tools, primarily because of lack of
competition due to protective regulations. But now, they can no longer afford to be complacent
as the internet, deregulation, consolidation, and convergence of insurance with other financial
services are fast changing the basic structure of the industry.
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The insurance industry is quite diverse in terms of portfolio of products provided by
diff. companies. The products can be broadly classified in to two product lines. Property and
casually (P&C) and life insurance .life insurance product line can be further sub-divided into
LIFE INSURANCE
HEALTH INSURANCE
LIC OF INDIA
MAXLIFE INSURANCE
The parliament of India passed the Life insurance Corporation Act on the 19th
September, 1956, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the country, providing
them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956.since life insurance contracts are long term contracts and
during the currency of the policy it requires a variety of services need was felt in the later years
to expand the operations and place a branch office at each district headquarter. Re-organization
of LIC took place and large numbers of new branches were opened. As a result of re-
organization servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may see that
from about 200.00 crores of New business in 1957 the corporation crossed 1000.00 crores mark
34
of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s wide Area Network covers 100 divisional offices
and connects all the branches through a metro network .LIC has tied up with some banks and
service providers to offer on-line premium collection facility in selected cities. LIC’s ECSand
ATM premium payment facility is an addition to customer convenience. Apart from on-line
kiosks and IVRS, info centers have been commisoned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, kolkata, New delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conventions
in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of India
insurance and is moving fast a new growth trajectory surpassing its own past records. LIC has
issued over one crore policies during the current year. It has crossed the mile stone of issuing
1,01,32,955 new policies by 15th oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year.
From then to now, LIC has crossed many milestone and has set unprecedented
performance records in various aspects of life insurance business. The same motives which
inspired our forefathers to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as many homes as possible and
to help the people in providing security to their families.
Max New York life has identified individual agents as its primary channel of distribution.
The company places a lot of emphasis on its selection process, which comprises four stages-
screening, psychometric test, career seminar and final interview. The agent advisors are trained
in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training program and each agent is trained
for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning
to sell in the market place. Training is a continuous process for agents at Max new York life
insurance development of skills and knowledge through a structured program spread over 500
hours in two years.
This focus on continuous quality training has resulted in the company having amongst
the highest agent pass rate in IRDA examinations and the agents have the highest productivity
among private life insurers.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its business.
The company is using a five-pronged strategy to pursue alternative channels of distribution.
These include the franchisee model, rural business, direct sales force involving group insurance
and telemarketing opportunities bank assurance and corporate alliances.
Max New York Life insurance offers a suite of flexible products. It now has 26 life
insurance products and 8 riders that can be customized to over 400 combinations enabling
customers to choose the policy that fits their need.
HDFC is india’s leading housing finance institution and has helped build more than 23,
00,000 houses since its incorporation in 1977.In the financial year 2003-04 its assets under
management crossed Rs.36,000cr.As march 31, 2004 outstanding deposits stood at Rs. 7,480
crores. The depositor base now stands at around 1 million depositors. Rated ‘AAA’ by CRSIL
and ICRA for the 10th consecutive year.
The Standard Life group has been looking after the financial needs of customers for over
180 years. It currently has a customer base of around 7 million people who rely on the company
for their insurance, pension, investment, banking and health-care needs. Its investment manager
currently administers 125 billion assets. It is a leading pension provider in UK, and is rated by
standard & poor’s as ‘strong’ with a rating of A+ and as ‘good’ with a rating of A1 by moody’s
Standard Life was awarded the Best pension provider’ in 2004, 2005 and 2006 at the money
marketing Awards, and it was voted a 5 star life and pensions providers at the Financial Advisor
service Awards for the last 10 years running. The ‘5’star accolade has also been awarded to
standard Life investments for the last 10 years, and to standard Life bank since its inception in
1998.standard Life bank was awarded the ‘best flexible mortgage lender ‘at the mortgage
magazine Awards In 2006.
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THE COMPANY PROFILE
ICICI Prudential Life Insurance Company Limited provides life insurance, pensions, and health
insurance to individuals and groups in India. The company offers participating, non-
participating, and unit linked products. It provides insurance products for individuals, such as
savings and wealth creation, protection, child, retirement, and health insurance plans. The
company also offers group insurance solutions for companies, including group gratuity plan,
group leave encashment plan, and group term plan. In addition, it provides accidental death
riders. Further, the company acts as a pension fund manager. ICICI Prudential Life Insurance
Company distributes its products through individual agents, corporate agents, banks, brokers,
Website, and sales force. The company was founded in 2000 and is based in Mumbai, India.
ICICI Prudential Life Insurance Company Limited is a subsidiary of ICICI Bank Limited.
ICICI Prudential Life Insurance Company is a joint venture between the ICICI Bank, one of
India's largest and most successful private financial services company and Prudential Plc., a
leading international financial services group headquartered in the United Kingdom. ICICI
Bank holds 74% and Prudential Plc. having 26% of the stake of the joint venture as per the
government rules.
Mr. Sandeep Bakhshi is the Managing Director & Chief Executive Officer of ICICI Prudential
Life Insurance Company Ltd.
The company is the first private life insurer in India to have received a National Insurer
Financial Strength rating of AAA from Fitch ratings. Another feather was added in the cap
when it has been voted as India's Most Trusted Private Life Insurer for three consecutive years
in a row.
ICICI Prudential Life Insurance has won the first prize for its project on digitalization at the
Qimpro Awards 2014. ICICI Prudential Life Insurance has been conferred the ‘Insurance
Company of the Year Award 2011’ and ‘Company of the Year Award 2011 – Life Insurance’
at The Indian Insurance Awards 2011 instituted by the reputed insurance journal of India
‘Insurance Review’.
ICICI Prudential has earned a total premium of Rs. 124.29 billion for the financial year 2014.
As on March 31, 2011, the company’s assets have reached over Rs. 805.97 billion.
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A DETAILED OVERVIEW
PRODUCT PORTFOLIO
ICICI LIFE INSURANCE: TERM PLANS
The term plans help in protecting your family’s future and ensure that they lead their lives
comfortably without any financial worries, even in your absence.
39
It is advisable to compare all ICICI life insurance plans from other life insurance companies in
India to choose the best insurance plan that suits you the most.
In twenty years of operation, the fund has launched 38 schemes and successfully
redeemed fifteen of them. In the process it has rewarded it’s investors handsomely with
consistently high returns.A total of over 5.4 million investors have reposed their faith in the
wealth generation expertise of the Mutual Fund.Schemes of the Mutual fund have consistently
outperformed benchmark indices and have emerged as the preferred investment for millions of
investors and HNI’s.Today, the fund manages over Rs. 31,794 crores of assets and has a diverse
profile of investors actively parking their investments across 36 active schemes.The fund serves
this vast family of investors by reaching out to them through network of over 130 points of
acceptance, 28 investor service centers, 46 investor service desks and 56 district organisers.
ICICI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India
Opportunities Fund.
KEY PERSONNEL:
BOARD MEMBERS
Mr. K. V. Kamath, Chairma
Mr. Sridar Iyengar
Mr. Homi R. Khusrokhan
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari.
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
40
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar,
Managing Director & CEO
Mr. Sandeep Bakhshi,
Deputy Managing Director
Mr. N. S. Kannan,
Executive Director & CFO
Mr. K. Ramkumar,
Executive Director
Mr. Sonjoy Chatterjee,
Executive Director
ICICI Mutual Fund (ICICIMF) has been the proud recipient of the:
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CNBC AWAAZ CONSUMER AWARDS 2007
PRODUCTS
EQUITY FUNDS:
The investments of these schemes will predominantly be in the stock markets and
endeavor will be to provide investors the opportunity to benefit from the higher returns
which stock markets can provide. However they are also exposed to the volatility and
attendant risks of stock markets and hence should be chosen only by such investors who
have high risk taking capacities and are willing to think long term. Equity Funds include
diversified Equity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds
invest in various stocks across different sectors while sectoral funds which are specialized
Equity Funds restrict their investments only to shares of a particular sector and hence, are
riskier than Diversified Equity Funds. Index Funds invest passively only in the stocks of
a particular index and the performance of such funds move with the movements of the
index
MSFU - IT Fund
DEBT SCHEMES
Debt Funds invest only in debt instruments such as Corporate Bonds, Government
Securities and Money Market instruments either completely avoiding any investments in the
stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in
Monthly Income Plans or Children's Plan. Hence they are safer than equity funds. At the same
time the expected returns from debt funds would be lower. Such investments are advisable for
the risk-averse investor and as a part of the investment portfolio for other investors.
ICICI PRUDENTIAL Children’s Benefit Plan
ICICI PRUDENTIAL Gilt Fund
ICICI PRUDENTIAL Gilt Fund (Long Term)
ICICI PRUDENTIAL Gilt Fund (Short Term)
ICICI PRUDENTIAL Income Fund
ICICI PRUDENTIAL Income Plus Fund
ICICI PRUDENTIAL Income Plus Fund (Saving Plan)
ICICI PRUDENTIAL Income Plus Fund (Investment Plan)
ICICI PRUDENTIAL Insta Cash Fund
ICICI PRUDENTIAL InstaCash Fund -Liquid Floater Plan
ICICI PRUDENTIAL Institutional Income Fund
ICICI PRUDENTIAL Monthly Income Plan
ICICI PRUDENTIAL Monthly Income Plan Floater
ICICI PRUDENTIAL NRI Investment Fund
ICICI Capital Protection Oriented Fund - Series I
ICICI Premier Liquid Fund
ICICI Short Horizon Fund
ICICI Short Horizon Fund - Liquid Plus Fund
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ICICI Short Horizon Fund - Short Term Fund
BALANCED SCHEMES
ICICI PRUDENTIAL Balanced Fund invest in a mix of equity and debt investments.
Hence they are less risky than equity funds, but at the same time provide commensurately lower
returns. They provide a good investment opportunity to investors who do not wish to be
completely exposed to equity markets, but is looking for higher returns than those provided by
debt funds.
ICICI PRUDENTIAL Balanced Fund
ICICI PRUDENTIAL NRI Investment Fund - Flexi Asset Plan
INVESTMENT OBJECTIVE
Asset allocation is the key to investing success. It helps you reduce the volatility of
returns. A Balanced Fund takes care of this asset allocation by investing in equity for capital
appreciation and debt for stable returns. It focuses on reducing volatility of returns by
increasing / decreasing equity exposure based on the market outlook and using a core debt
portfolio to do the rebalancing
ASSET ALLOCATION
ICICI Prudential Balanced Fund, an open-ended fund that allocates to both equity and
debt markets, reflects this wisdom. In a bullish market equity allocation can go upto 80%. In a
bearish market equity allocation can go down to 65%. This dynamic allocation along with core
debt portfolio reduces the volatility of return.
Debt Equity
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PERFORMANCE OF FUND
See performance for the fund in the graph below:
INVESTOR PROFILE;
This fund is ideal for:
Investors seeking exposure to equity and debt markets in a single product, and are
willing to accept the average returns from both markets as a trade-off for the benefit of lower
risk from diversification
KEY FEATURES
Key Features ICICI Prudential Balanced Fund
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(a) 1% of applicable NAV if the amount sought to be
redeemed or switched out is invested upto 1 year from the
date of allotment.(b) Nil if the amount sought to be
redeemed or switched out is invested for more than 1 year
from the date of allotment. SIP/STP Option :(a) 1% of
Exit Load
applicable NAV if the amount sought to be redeemed or
switched out,is invested a period of upto 2 year from the
date of allotment.(b) Nil if the amount sought to be
redeemed or switched out is invested for a period of more
than 2 years from the date of allotment.
Generally Within 3 business day for Specified RBI
Redemption Cheques
locations and additional 3 Business Days for Non-RBI
Issued
locations
Minimum Redemption
Rs. 500/-
Amt.
Monthly: Minimum Rs. 1000 + 5 post-dated cheques for
Systematic Investment
a miminum of Rs. 1000 each. Quarterly: Minimum
Plan
Rs.5000 + 4 post-dated cheques of Rs. 5000 each.
Systematic
Minimum of Rs.500/- and Multiples thereof
Withdrawal Plan
Recurring Expenses
Investment Mangmt.
1.25%
Exp.
Other Recurring
1.25%
Expenses
Total 2.50%
(DEBT FUND)
INVESTMENT OBJECTIVE
Your need to keep some money in fixed return instruments stems from a need to earn
regular income, or from an aversion to risk. ICICI Prudential Income Plan is for those investors
who seek to deploy part of their funds in fixed income products as a conscious investment
option. The fund enables you to earn a total return–made up of both interest income and
changes in the value of capital, a facility that comes only with debt funds that do not restrict
themselves to generating merely interest income. As market interest rates change, the value of
your portfolio also changes, creating a total return portfolio in debt securities.
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Asset Allocation
% of Portfolio of
Instrument Risk Profile
Plan A & B
SCHEME HIGHLIGHTS
1.Open ended Debt Scheme 2. Following Plans are available to the investors :(A) Growth Plan
(B) Dividend Plan (C) Bonus Plan (D) Floating Rate Plan Options available under Floating
Rate Plan Short Term (Growth, Dividend & Weekly Dividend)Long Term (Regular (Dividend
& Growth) Long Term (Institutional (Dividend & Growth)
2. The Plans will invest their entire corpus in high quality debt (Corporate debentures,
PSU/FI/Govt guaranteed bonds), Govt securities and money market instruments (commercial
paper, certificates of deposit, T-bills, bills rediscounting, repos, short-term bank deposits, etc).
There shall be no investment in equity.
3. The Growth Plan / Option will give returns through capital gains only. No dividends shall
be declared under this Plan. The Dividend Plan will endeavour to declare regular dividends
every half year, depending on the NAV at that point of time. The Dividend Option in Floating
Rate Short Term Plan will endeavour to declare dividends on a monthly basis while the
dividend option under the Floating Rate Plan Long Term (Regular and Institutional) Plan will
declare dividends on a quarterly basis.
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4 Switchover between the Plans at NAV. :Also, switchover facility at the NAV related prices
to other openend schemes of ICICI Mutual Fund is available. This facility of switchover to
other schemes is not available to NRIs and FIIs
INVESTMENT OBJECTIVE
To provide investors long term capital appreciation along with the liquidity of an open-
ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified
portfolio of equities of high growth companies and balance the risk through investing the rest
in a relatively safe portfolio of debt.
ASSET ALLOCATION
% of Portfolio of
Instrument Risk Profile
Plan A & B
Medium to
Equities At least 50%
High
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APPLICATIONS OF OBJECTIVES
CRM links back-office and front-office functions with all of a company’s touch points (for
example call centers, the corporate website) with the customer. CRM can refer either business
strategy or tools. It defines the front-end tool designed to facilitate the capture, consolidation,
analysis, and enterprise wide dissemination of data from existing and potential customers. this
process occurs through out the marketing, sales and services stages of the business.
In ICICI PRUDENTIAL LIFE INSURANCE, CRM covers all customer touch points, like
face-to-face. Internet(the corporate website), or phone(call centers). It supports employee, and
customer facing roles and allws all individuals wheather employee, business partners or
customers, to collaborate .
49
CALL CENTER TECHNOLOGY :
A call center is a group of agents and voice responsive (VRUS) that assist customers
with support, inquiry and transaction functions. Some type of call center technology with VOIP
(voice over internet protocol). Integrated with intelligent call routing is an absolute must for an
interface with the live customers.
CRM provides seamless integration between all applications and flexible deployment of
solutions, merging front-office and back-office into one office that focuses on increased
customer satisfaction.
The company focuses their attention on how to achieve and then sustain superior
organizational performance. The ICICI PRUDENTIAL LIFE INSURANCE LIFE
INSURANCE wants to know the excellent companion for what the customers wants you to
know. Because it helps those in sales and who supervise them, it can be done through the heart
of new approach to selling is an intense focus on the prosperity of your customer is through
value creation selling (VCS).
The ICICI PRUDENTIAL LIFE INSURANCE LIFE INSURANCE notes that VCS is
sweepingly different from how most companies sell today in these five ways.
FIRST:
ICICI PRUDENTIAL LIFE INSURANCE as a seller and your organization devote large
amount of time and energy - much more than you do today - to learning about your customers'
businesses in great detail.
50
SECOND:
ICICI PRUDENTIAL LIFE INSURANCE use capabilities and tools that you've never used
before to understand how your customers do business and how you can help them improve that
business...
THIRD:
ICICI PRUDENTIAL LIFE INSURANCE going to make it your business to know not only
your customers but also your customers' customers..
FOURTH
ICICI PRUDENTIAL LIFE INSURANCE have to recognize that the execution of this new
approach will require much longer cycle times to produce an order and generate revenue.
FINALLY:
Top management in your company will have to reengineer its recognition and reward system
to make sure that the organization as a
whole is fostering the behaviors that will make the new sales approach effective."
51
value of collaborating with their suppliers to the mutual benefit of both. Start there, and don't
turn
back...Above all, value creation selling will spur your ICICI PRUDENTIAL LIFE
INSURANCE to come up with new ideas and innovations that will continually differentiate it
in the
With the click of a mouse, a customer who has invested time and effort researching your
products and services online, and who may have purchased policy plans store in the past, will
disappear forever because of a single, bad online experience.
Often the issue that caused the customer to abandon his or her transaction could have been
resolved easily with help from a live agent. As such, ICICI PRUDENTIAL LIFE
INSURANCE realize can no longer think of their individual channels as self-sustained entities,
but as integral parts of an entire brand operation.
Interactive help options like "click to call" and "click to chat" deliver cross-channel
personalization capabilities that allow companies to target and engage customers proactively
based on their perceived needs. These technologies can have a profound effect on online sales,
provided that the companies implementing them follow certain guidelines. These guidelines
include:
52
Can you imagine retail stores where nine out of 10 customers left without buying and no one
ever asked them what they were looking for? Well that's the state of affairs in the online
customer service world. Engaging customers proactively is the equivalent of a sales
representative walking up to a customer in a retail store and kindly saying, "May I help you
with something?"
Companies that deliver personalized cross-channel experiences for their customers using click
to call and click to chat have increased sales conversions, reduced Web site abandonment and
improved service efficiency dramatically. This kind of contextualized approach to online
customer interaction has increased conversion rates by as much as 20 percent and decreased
handling times by up to 20 percent, according to a recent Jupiter Research report.
"In the future, retailers will need to develop a more balanced view of interactions across
channels, optimizing for a combination of cost and satisfaction. Valuable customers, for
instance, may require different service options than other customers," according to a December
2006 study by Forrester Research.
In those instances where customer contact is desired or required, click to call and click to chat
not only offer quality service and increase contact center efficiency, but also help
metamorphose the contact center into a sales center by targeting individual customers based on
their perceived needs and potential value. This can be done by evaluating individual customers
according to profile or segment information.
For example, companies that segment their customer base into gold, silver and bronze
categories can set a rule that presents click to call to gold (high-value) customers throughout
their session, but only to silver and bronze customers once their shopping carts reach a certain
threshold.
53
Gold customers get the piece of mind of always having the phone option should they have a
questions, while lower-value customers are channeled to less costly service options like FAQs,
e-mail or chat (unless they meet the shopping cart
Targeted marketing is a critical component of your marketing success. Attracting and retaining
profitable customers and turning potential customers into actual customers is a huge challenge
– especially when you consider the multitude of consumer data available. Whether it's business-
to-business marketing or business-to-consumer marketing, ICICI PRUDENTIAL LIFE
INSURANCE need to know your customers. By understanding the demographic
characteristics, lifestyle behaviors and purchase preferences that drive your audience's
decisions, ICICI PRUDENTIAL LIFE INSURANCE can successfully tailor their marketing
strategies to reach those most likely to purchase your product or service, increase your customer
loyalty and improve customer profitability.
54
Powerful Marketing Solutions
Market targeting starts by combining your proprietary customer data with our segmentation
systems and the most comprehensive databases available. The result is sound, actionable,
intelligent information targeted for your specific industry.
ICICI PRUDENTIAL LIFE INSURANCE' targeted marketing solutions provide the tools you
need to effectively reach and retain your best customers, while improving customer loyalty and
customer profitability. When conducting business-to-consumer marketing, you'll discover your
customers' lifestyles, habits, preferences and needs, including:
ICICI PRUDENTIAL LIFE INSURANCE' established best practices for customer acquisition
and customer retention marketing integrates information, analysis and marketing applications
for targeting their best customers and prospects and retaining company’s best customers. ICICI
PRUDENTIAL LIFE INSURANCE Using ' 4-step market targeting process of Discovery,
Strategy, Implementation and Measurement, ICICI PRUDENTIAL LIFE INSURANCE
trained representatives will help company apply Precision Marketing techniques to develop the
best customer acquisition and customer retention solutions to tackle your specific marketing
challenges:
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Lifestyle segmentation is a key component of the customer analysis phase and helps to
identify life stages, income ranges, education levels and media preferences. Learn
which products fit your customers' lifestyles for more precise planning of cross-sell and
up-sell promotions.
2. Strategy
Once your key customer segments have been identified, develop targeting strategies
that address customer needs and take full advantage of your new opportunities today
and into the future. This strategic phase focuses on the three core areas essential for true
customer acquisition and retention success: customers, markets and delivery channels.
By combining your proprietary customer data with our segmentation systems and the most
comprehensive databases available, you get customer acquisition and customer retention
solutions targeted for your specific industry. The following customer acquisition and customer
retention solutions and platforms are available:
56
Data – reveal product usage through primary research and survey data
Segmentation – uncover specific lifestyle information
Software – map customers and perform in-depth analyses
Internet – download additional data for analysis
Consulting – gain customized solutions through our analytical services division,
Integras
By combining the business-to-consumer marketing solutions most relevant to you and your
business, you will improve your customer profitability and customer loyalty.
MARKET SEGMENTATION
ICICI PRUDENTIAL LIFE INSURANCE' market targeting segmentation research tools excel
at uncovering hidden patterns of consumer behavior for you to capitalize on. ICICI
PRUDENTIAL LIFE INSURANCE help you improve the targeting of your specific market
segment and audience by understanding the demographic characteristics, lifestyle behaviors
and purchase preferences that drive their buying decisions. ICICI PRUDENTIAL LIFE
INSURANCE has led the industry in analytical marketing segmentation research solutions that
generate proven business-to-consumer marketing results for our clients.
ICICI PRUDENTIAL LIFE INSURANCE offers the most extensive links to the nation's
leading syndicated surveys and databases of consumer behavior. These consumer profiles
57
provide a powerful targeting tool to accurately segment consumers by lifestyle, media and
product preferences. National and local market profiles are available.
Until now, multiple resources were required to complete robust marketing analysis. This
versatile tool provides answers to all your needs:
BUSINESSPOINT™
B2B MARKETING, ONLINE IN REAL TIME
ICICI PRUDENTIAL LIFE INSURANCE Business point a robust, web-based portal, gives
you the ability to discover, plan, evaluate and execute your business-to-business efforts. Use
59
Business Point to gain a better understanding of your B2B customers and get the complete
picture of the "B2B" landscape in your market. In short, after using ICICI PRUDENTIAL
LIFE INSURANCE Business Point, you will achieve more successful business-to-business
market targeting campaigns!
ICICI PRUDENTIAL LIFE INSURANCE is a cost-effective targeting tool that will answer
your toughest marketing questions. The comprehensive information about each business helps
you define and target your direct mail, telemarketing, and direct sales efforts. The site offers
the flexibility to refine your analysis by using filters to receive exactly the information you're
looking for.
PRIZM® NE
THE NEW EVOLUTION IN SEGMENTATION
For the fourth time in as many decades, ICICI PRUDENTIAL LIFE INSURANCE has
recrafted its targeted marketing segmentation technology to correspond with the largest data
collection effort ever undertaken by any entity – the 2000 U.S. Census. The PRIZM NE system
captures the essence of the previous PRIZM system, as well as the best-in-class methodology
of MicroVision. What's different – and most powerful – about the current development process
for PRIZM NE is that it links household and neighborhood-level segment assignments.
Updating segmentation systems to evolve with the times is nothing new for ICICI
PRUDENTIAL LIFE INSURANCE The Census transition from 1980 to 1990 found us
updating both PRIZM and Vision, one of ICICI PRUDENTIAL LIFE INSURANCE former
segmentation systems. These updates resulted in the creation of the 62-cluster version of
PRIZM and the 95-atom MicroVision system at the ZIP+4 level. This updating process has
kept ICICI PRUDENTIAL LIFE INSURANCE at the forefront of segmentation development.
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Now you can target your customers where they work with the same standard segmentation
system you use to target them at home. Workplace ICICI PRUDENTIAL LIFE INSURANCE
provides marketers with the distribution of INGVYSYA segments carried into a neighborhood
by its working population. Once its workers arrive, a geography's ICICI PRUDENTIAL LIFE
INSURANCE profile can be as different from its resident population profile as, quite literally,
night and day.
Market targeting segmentation data and products will help you increase your customer
profitability and improve your customer loyalty. Contact
ICICI PRUDENTIAL LIFE INSURANCE to find out how we can help you with market
segmentation, targeted marketing segmentation research, consumer profiles, market data and
demographic segments data needs.
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CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
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1. Please tick the factor that drives you for the purchase of the insurance.
CATEGORY RESPONDENTS
Safety 35
Benefits 23
Comfort 22
Brand 20
RESPONDENTS
40
35
35
30
25 23 22
20
20 RESPONDENTS
15
10
0
Safety Benefits Comfort Brand
INTERPRETATION:
Out of 100 people who participated in survey it is found 35 are giving more importance to
safety, and 23 are giving for benefits, and 22 are giving for comfort, and 20 are giving for the
brand. The majority of the customers are giving more importance to safety.
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2. Do you plan to have a life insurance policy in near future?
CATEGORY RESPONDENTS
Within 6 months 38
Within 1 year 21
After 1 year 28
Above 1 year 13
RESPONDENTS
40 38
35
30 28
25
21
20 RESPONDENTS
15 13
10
0
With in 6 months With in 1 year After 1 year Above 1 year
INTERPRETATION:
Out of 100 people who participated in survey it is found 38 customers are willing to take the
policy within 6 months, 21 are willing within 1 year, and 28 are willing to take after 1 one
year and 13 are willing to take above 1 year. So the majority of the customers are within 6
months.
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3. Which of life insurance policy do you prefer for your family?
CATEGORY RESPONDENTS
Traditional Plans 19
Money back Plans 34
Unit linked Plans 27
Market investment Plans 20
RESPONDENTS
40
34
35
30 27
25
19 20
20 RESPONDENTS
15
10
0
Traditional Plans Money back Unit linked Plans Market
Plans investment Plans
INTERPRETATION:
Out of 100 people who participated in survey it is found 19 are showing interest for traditional
plans, and 34 are interest for money back policy and 27 are interest for unit linked plans, 20
are interest for market investment plans. So majority of customers will go for the money back
policy.
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4. Which mode of payment do you find more suited to your convenience.
CATEGORY RESPONDENTS
Quarterly 29
Half yearly 28
Yearly 24
Any other 19
RESPONDENTS
35
29
30 28
25 24
20 19
RESPONDENTS
15
10
0
Quarterly Half yearly Yearly Any other
INTERPRETATION:
Out of 100 people who participated in survey it is found 29 are willing to pay the amount in
quarterly and 28 are willing to their amount in half yearly and 24 are willing to pay their amount
in yearly, and 19 are willing to pay their amount in other modes. So majority of the customer
are willing to pay amount in quarterly.
5. Are you satisfied with the services and benefits of the insurance company in which you
have policy?
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CATEGORY RESPONDENTS
Yes 74
No 26
RESPONDENTS
80 74
70
60
50
40 RESPONDENTS
30 26
20
10
0
Yes No
INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are satisfied with the company service.
Out of 100 respondents who having the policy in ING 26 are not satisfied with their services.
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6. Do you suggest the insurance company in which you have policy to your friends?
CATEGORY RESPONDENTS
Yes 71
No 29
RESPONDENTS
80
71
70
60
50
40 RESPONDENTS
29
30
20
10
0
Yes No
INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are willing to suggest their friends.
Out of 100 respondents who have the policy in ING 29 are not willing to suggest their friends.
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7. which of the following media in your view is the best seated for the insurance industry.
CATEGORY RESPONDENTS
News papers 33
T.V 26
Hoardings 23
Events 18
RESPONDENTS
35 33
30
26
25 23
20 18
RESPONDENTS
15
10
0
News papers T.V Hoardings Events
INTERPRETATION:
Out of 100 people who participated in survey it is found 33 are known about the ICICI
PRUDENTIAL LIFE INSURANCE POLICIES by newspapers.26 are known by T.V. and 20
are known by hoardings and 10 are known by events.
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CHAPTER V
FINDINGS AND
RECOMMENDATIONS
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FINDINGS:
From the project study and interpretation the findings are s follows :
Our country india has a population 120 crore and that are only 8 crore people have
life insurance policy. Out of 100 samples 65% people have insurance policy in LIC and
remaining 35% people have insurance policy In other insurance companies.
Most people have trust in LIC than any other insurance company and still LIC holds
huge market share in life insurance sector in India.
The reason behind this is LIC is a public sector company and has its roots from 50
years in India.
82% people are taking insurance policy only if it is within their budget and have flexible
payment options and remaining is taking policy if it is not with in budget. But due to
benefits is taking policy and reputation of the company.
Among various factors 55% of people are looking for benefits policy and remaining
20% people are looking for brand name of insurance company.
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RECOMMENDATIONS:
There is a huge potential market for life insurance companies in India as out put
of 120 crore population. Only 8 crore are insured. The insurance companies should educate
people about insurance its importance, different policies and benefits of policies.
The people opt for policy by taking into consideration price of premium of policy
and benefits of policy and least importance is given to brand name. the life insurance
companies should look over flexible payment options from the point of untapped potential
market in India.
The price of premium of a policy must be within the budget of common man and
life insurance companies should provide flexible payment options. By doing so, the private
insurance companies can surely capture the untapped market along with creating brand
name.
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BIBLIOGRAPHY
73
BIBLIOGRAPHY
- S.A. sherley
- P.N.Reddy
-Donald Tull
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QUESTIONNAIRE
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ANALYSIS OF CUSTOMER RELATIONSHIP MANAGEMENT IN
HYDERABAD
Respondents Profile
Name: Sex:
Age: phone :
(1) Please tick the factor that drives you for the purchase of the insurance.
A) safety B) benefits
C) comfort D) Brand
(3Which of the life insurance policy do you prefer for your family.
A)Traditional plans B) money back plans
5) Are you satisfied with the services and benefits of the ICICI PRUDENTIAL LIFE
INSURANCE LIFE insurance company you have policy.
A) Yes B) No
(1) Do you suggest the insurance the ICICI PRUDENTIAL LIFE INSURANCE to
your friends.
A) yes B)No
(2) which of the following media in your view is the best seated for the insurance
industry.
(A) News papers B) T.V.
(3) Any expectations that are not fulfilled by the ICICI PRUDENTIAL LIFE
INSURANCE company and suggestions.---------------------------------------------
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