IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 6. Ver. II (June 2017), PP 31-35 www.iosrjournals.org
Customer Relationship Management in Insurance Sector
Dr. A. Shanmugasundaram, M. Com., M. Phil., Ph.D.' Mrs. K.S. Srilekha, M. Com., M.Phil..?
'Assistant Professor, Thiru. Vi.Ka. Government Arts and Science College, Thiruvarur, Tamilnadu, India Part-time scholar, Thiru.Vi.Ka. Government Arts and Science College, Thiruvarur, Tamilnadu, India.
Abstract: Customer Relationship Management (CRM) now playing an inevitable role in the business world. Every institution wants to attract more and more customers and always struggling to retain their existing customers. CRM leads to modern trend in the field of business. Nowadays CRM is attracting the expanded attention of scholars and practitioners. In order to maintain customer relationship, life insurance companies should provide proper service whenever and wherever it is required. Key words: Customer Relationship Management, Need for CRM, Introduction of CRM in a company CRM cycle Advantages and Factors responsible for failure of CRM
Introduction
Customer relationship management (CRM) is a system for managing a company's interactions with current and future customers. It often involves using technology to organise, automatic and synchronise sales, marketing, customer service and technical support. [1l CRM, uses the benefit of data management that allows data resources to work as a single integrated database. Origin of the term CRM can be traced back in the earlier 1990's, when the concept of marketing changed from transactional to rational. CRM is intended for building long-term relationship. CRM is often considered as database marketing primarily linking marketing of the organisation with the database of the customers. Some theorists have been considering it, as an exercise for customer retention as many theories and studies have been emphasising on the rationale for keeping the customers. This requires a variety of techniques, especially post-sale initiatives, to keep the customers for life. This was believed to be a mechanism to keep the existing customers happy so that they remain with the organisation and may, if possible, generate positive referral for the company's products and services. It was believed that application of IT can be an effective tool to develop one-to-one relationship that integrates database with company's marketing strategy that may focus on leveraging the existing customer base. Selling policies to new customers is expensive one compared to existing customer. Successful CRM should give insurers the ability to measure customer value, and improve the customer's service perceptions while reducing servicing costs.
1.2 Definition of CRM Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. It involves the integration of marketing, sales, customer service, and the supply-chain functions of the organisation to achieve greater efficiency and effectiveness in delivering customer value. [2lSimilarly, CRM is marketing- oriented towards strong, lasting relationships with individual accounts.[3]l Based on the understanding available of Customer Relationship Management, it can be defined as "Customer Relationship Management is a continuously updated process of identifying relative value of customers