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Thesis Title: Sales and Commission System for an Insurance Firm

Researchers: McBilly Wilford Sy

Ralph Arman Sia

Introduction

Business success today is defined by numbers, income, sales, and revenues. Customer relationship,
customer value is very important, but success comes from closing the sale.

In today’s business economy, speed is of utmost importance. Being able to deliver fast and accurate data
in a blink of an eye are the standards of today's businesses. That is where computers come in.

Gone are the days of computers being very expensive and being seldom used for special scientific
purposes. Enormous number of computers ranging from small, inexpensive micro-sized units to super
computers, are now being used in hotels, factories, schools, hospitals, banks, financial institutions,
homes, government agencies and in almost all offices around the world.

In many businesses, especially corporate ones, the use of computers is a must. It increases productivity,
speed and accuracy. It continues to push innovation among all industries. It guarantees a secure storage
of vital information where the data can be used over and over again in many years to come.

Background of the Study

The Philippine American Life and General Insurance Company, has been the premier life insurance
organization in the Philippines for over five decades now.

Leading the nation's life industry with 30% share of total premiums, Philamlife insures over a million
policyholders. It has the most extensive network of more than 200 offices throughout the Philippines, over
8,000 sales agents and 1,000 employees. It offers the most comprehensive range of insurance products
and services.
Philamlife was founded in 1947 by Cornelius V. Starr and Earl Carroll, two visionary men who set out to
help revive the post-war Philippine economy utilizing Filipino resources and self-reliance. Through a
nationwide campaign named "House of Savings", the Company effectively tapped the resources of
individual families and built up a reservoir of capital that was channeled into various industries and
sectors, thus, helping spur the growth of the economy.
Through the years, Philamlife has effectively fulfilled its dual role of providing financial protection to its
policyholders, and helping in capital formation by converting insurance premiums into investments.
Objectives of the Study
The main objective of the proponents' research is to design an online system that will maximize the sales
potential of a life-insurance agency and efficiently track all the sales activities of each agent.
Specific Objectives:
1. To develop an online system to walk agents through the stages of the sales process thus making sure
agents follow a scientific approach in closing a sale.
2. To provide easy accessibility for the managers and staffs when tracking all the sales activities of
agents, but maintaining a level of security for private information.
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3. To develop a simple tool for agents to track all their daily schedules, clients, prospects and future
appointments.
4. To provide a secure storage for all information and sales activities of an agency.
Hypothesis of the Study
The proposed system will greatly improve the productivity and the sales performance of the agency and
its agents. Primarily, this study has the following hypothesis:
The demographic profiles of the respondents are the age, gender, civil status, occupation and length of
service. The respondents encountered numerous problems with the implementation of the existing
manual system, such as difficulties in tracking prospects, clients, appointments and closing a sale. The
proposed online system will definitely be a big improvement over the manual system. Not only will this
system provide a more productive sales force among the agency, but it will also provide better tracking
and management for managers.
Statement of the Problem
The researchers' interest to conduct an investigation has led them to understand the company's present
problems:
1. What are the demographic profiles of the respondents in terms of:
a. Age
b. Gender
c. Civil Status
d. Position
e. Length of Service
2. What are the common problems encountered during the implementation of the existing system?
a. No clear sales process to guide the agents in every sale.
b. Prospect and client lists are done manually by agents.
c. Difficult and time consuming in keeping track of all schedules and appointments.
d. Inability of managers to keep track of the agents’ sales activities.
e. Storage of files is susceptible to be damaged as well as lost of files.
3. What is the difference of the existing system and the proposed system in terms of:
a. Accuracy
b. Reliability
c. Efficiency
d. Speed
e. User-Friendliness

Assumptions
Based on the statements of the problem, the proponents have made a plan to create an online sales
management system that will guide all the agents through the stages of a sales process thus maximizing
the sales potential of the agency. The following assumptions are as follows:
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1. The common problems encountered during the implementations of the existing system will be
eliminated.

2. The stages of the sales process will guide the agents in closing more sales and maximizing the sales
potential of the agency.

3. Prospect and client databases will be computerized and easily updated.

4. Managers will be able to easily track all of the agents’ activities thus increasing overall management
and productivity of the agency.

5. Storage of files is now safe, not susceptible to damage or breakage and can be easily accessed.

Scope and Limitation

After several interviews and observations, the researchers have come to identify how to maximize the
sales potential of the agency. The aim of the research is to provide a specific agency of PhilamLife an
online sales force management system. The proposed system will track all sales activities of the agents
and guide the agents through all the stages of the sales process.
The limitations of this study are as follows:
– This study is limited to the sales process of the agency and will not account for the billing and
accounting of the clients since PhilamLife has its own accounting department.
– A calendar will be provided in the system only to track the agent’s appointments and activities.
– The database of the proposed system will only store information of agents and clients that belong
in the respective agency the system was made for.
– The products that will be attached to clients will only serve as tracking for amount of premium,
mode of payment and future payments and will not calculate the billing information of the client.
– To provide agents the stages of the sales process that includes listing of prospects, fact finding,
setting of appointments, making the sales presentation and closing the sale.
– For management and security purposes, the agency manager will be able to track all the activities
of the whole agency. The unit manager on the other hand will only be able to track the activities of
agents within his group, while agents will be limited to track his own respective activity.
Significance of the Study

The proposed system would be very helpful to the following sectors:

Economical Significance. If implemented and used, the proposed software can be considered to be
economical because it can help the company strengthen their sales revenues while decreasing company
costs in paperwork.

Educational Significance. The outcome of the this study will be helpful to the company beginning with
the improvement of the system and for the future researchers by providing an idea of this study that will
somehow be of help in modifying or improving the outcome of the research.
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Social Significance. The manager or the authorized personnel as well as the agents who would want to
know the information of the data can get the records faster and easier by accessing it online.

Technological Significance. The proponents had this study because it is beneficial to the company’s
managers and agents to have a computerized database of clients and to have a safe storage of sales
activities which can easily be accessed online.

Direct Beneficiaries:

Proponents. Conducting this study is significant to the proponents because it can add knowledge in their
filed as in information technology student. It also develops the communication, writing and grammar skills
of the proponents. And most importantly the proponents’ skill of making the proposed study enable them
to research more about the programming languages that best suits to the proposed system, and adds
significant knowledge and experience to the proponents capabilities of making a system.

Company. This study is significant to the company because it will improve the productivity of its work
place and increase the overall performance of its agencies in terms of sales. It will also reduce the overall
cost of the company since data are stored online.

Managers. This study will make monitoring easier for the managers since all the agents’ sales activities
are easily accessible online.

Employees. This study will make the employees’ work faster and more efficient. The employees will be
able to focus on more productive work since a lot of paper work has been reduced.

Agents. This study will maximize the earning potential of agents and help the agents in organizing
prospect lists, clienteles and future appointments. The agents will also be able to easily track all their
sales history online.