Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A Project Report
submitted in partial fulfillment of the requirements for
the award of the degree of Masters of Business Administration
by
U.SINDHU
11MBA0108
JULY 2012
1
CERTIFICATE
This is to certify that Institutional Training Report submitted by Ms.U.sindhu, Reg. No.
11MBA0108 to VIT Business School, VIT University, Vellore in partial fulfillment of the
requirements for the degree of Master of Business Administration is a bonafide record of work
carried out by her under my supervision. The contents of this report, in full or in parts have not
been submitted in any form to any other institute or university for the award of any degree or
diploma
2
Declaration
I, Sindhu.U (11MBA0108), a Bonafide student of the VIT Business School, VIT University,
Vellore, hereby declare that the Institutional Training Report submitted in partial fulfillment of
the requirements of the Degree of Master of Business Administration of the VIT University, is my
original work.
Date:
Place: Vellore
Sindhu.U
3
ACKNOWLEDGEMENT
I express my sincere thanks to the Chancellor, Dr. G. Vishwanathan for providing me with
adequate infrastructure and a congenial academic environment.
I wish to express my thanks to the Vice Chancellor, Dr. V. Raju, for his patronage.
I am grateful to the Programme Manager of VIT Business School, Dr. Bhanu Sree Reddy, for
encouraging and providing me with the necessary assistance in accomplishing the project.
I am also thankful to my guides, Dr. Sudipto Bhattacharya PhD, VIT Business School and
Mrs.Shanthi Yagyanath , IDBI Federal Life Insurance Corporation Limited, whose timely
guidance and persistent encouragement helped me in completing the project successfully and
making it a wonderful learning experience.
I convey my sincere thanks to all the teaching and non-teaching staff of the business school for
their support and co-operation during the project.
Finally I thank my parents and colleagues who have helped me in the successful completion of
the project.
(SINDHU.U)
4
CONTENTS
1 Introduction 4
2 Review of Literature 8
3 Company Profile 17
4 Research Methodology 27
6 Findings 51
7 Recommendation 53
8 Conclusion 55
9 Appendix 57
10 Bibliography 62
5
LIST OF TABLES AND CHARTS
2 Age Distribution 31
3 Gender 32
4 Marital Status 33
5 Education Qualification 34
6 Occupation 35
7 Income 36
8 Service Satisfaction 37
9 Concern Solvation 38
10 Benefit Satisfaction 39
11 Courteous Service 40
12 Quick Call 41
6
13 Knowledge Representative 42
14 Highest Benefits 43
17 Long Relationship 46
18 Recommend IDBI 47
19 Friends Insisted 48
7
1. INTRODUCTION
8
IMPORTANCE OF THE STUDY
Customer satisfaction and customer retention are two of the most important factors
regarding the long term success of a company. These factors are known to be a huge influencing
factor in relation to the economic success of a company.
Customer retention is one of the most important factors of profit growth. It's so important
because it costs so much to influence customers to buy and so little to induce a repurchase. These
are the benefits of customer retention:
i. New customers cost more than keeping existing ones. Help executives make the most
of existing relationships by helping their customers make repeat purchases. Existing
customers have made an emotional commitment that required a large investment of time
to earn.
ii. Company already knows how to do business with existing customer. An executive
doesn't have to invest additional resources training to do business with the existing
customer. This saves time and allows them to serve existing customers faster.
iii. Satisfied customers are already convinced of value. They have already proven they can
serve the customer, and have provided proof. Executives don't have to invest the
resources necessary to start from scratch again.
iv. Strengthening of the unique selling proposition
STATEMENT OF PROBLEM
IDBI Federal life insurance co ltd is a joint venture company between three financial
companies IDBI Bank, federal Bank and European Insurer Ageas. With effective utilization of
digital marketing tools IDBI federal life insurance are able to reach potential customers. IDBI in-
house technology for customer inquiries and query resolution are deeply entrenched in terms of
processes and call to action with respective customer.
Though such technologies for the customer retention are prevailed there are some
drawbacks in it. Premium collection of the insurance company fell down by 34% during April –
December 2011.I wanted to know the relinquishment level of IDBI federal life insurance
corporation limited and the ways that could make the customer retain.
9
OBJECTIVES OF THE PROJECT
Successful companies are constantly working in the field of customer retention, because
without customer retention it isn’t and wasn’t possible to be successful in the long term.
Currently many companies are facing an aggressive battle regarding customer retention. This
study will help IDBI to know the relinquishment level and how to retain the customers.
COLLECTION OF DATA
Primary data
The data are collected by the questionnaire method. The questionnaire consists of a
number of questions interviewed to the customers for their response.
Secondary data
Secondary data is the data that have been already collected by and readily available from
other source. The secondary data for this study are already available in the firm's enrolled
feedback, journals, books, newspapers and other related report - policy book, Magazine
SAMPLE DESIGN
The research will be carried out among the customers of IDBI federal life insurance. And
sample will be around 100.
10
LIMITATIONS OF THE STUDY
Although there were very few limitations to enlist but every research work carried out has
to face some limitations.
i. It is planned to collect 200 responses from the company .Due to some restrictions only
100 responses are collected.
ii. The survey conducted was more objective and completely based on the views of the
respondent.
iii. Survey was conducted among customers of Coimbatore branch only so the result may not
be accurate.
11
2. REVIEW OF LITERATURE
12
INTRODUCTION
A literature review discusses published information in a particular subject area, and
sometimes information in a particular subject area within a certain time period. A literature
review can be just a simple summary of the sources, but it usually has an organizational pattern
and combines both summary and synthesis. A summary is a recap of the important information of
the source, but a synthesis is a re-organization, or a reshuffling, of that information. It might give
a new interpretation of old material or combine new with old interpretations. Or it might trace
the intellectual progression of the field, including major debates. And depending on the situation;
the literature view may evaluate the sources and advice the reader on the pertinent or relevant.
This chapter began with retention, measuring retention, importance of customer retention,
advantage of customer retention, benefits of customer retention.
CUSTOMER RETENTION
In today’s challenging economy and competitive business world, retaining their customer
base is critical to organization success. If the company doesn’t give their customer some good
reason to stay, organization’s competitors will give the customer a reason to leave. Customer
retention and customer satisfaction drive profits. It’s far less expensive to cultivate organization
existing customer base and sell more service to the customer than it to seek new, single-
transaction customers. Most surveys across industries shows that keeping one existing customer
is five to seven times more profitable than attracting one new customer. A customer-focused
approach among its employees is still not present. In this era of intense competition .it is very
important for any service company to understand that merely acquiring customer is not sufficient
because there is a direct link between customer retention over time and profitability & growth.
Customer retention to a great extent depends on service quality and customer satisfaction.
Complaints are natural part of any service activity as mistakes are an unavoidable feature of all
human endeavor and thus also of service recovery. Service recovery is the process of putting
things right after something goes wrong in the service delivery. Customer retention is the
maintenance of continuous trading relationships with customers over the long term. Customer
retention is the mirror image of customer defection or chum.
13
High retention is equivalent to low defection. In an industry where there are a multiple
purchases over the years, organization’s entire team should be very focused on retaining those
customers:
i. Delivering service that’s consistent with your value proposition and brand
ii. Cross-selling, up-selling and asking for referrals from existing customers
iii. Developing programs to increase customer loyalty and decrease turnover
iv. Prioritizing retention as a major focus in your annual marketing plan.
v. Knowing the lifetime value for different segments and using that data to improve the
marketing.
Studies say it costs ten times more to generate a new customer than to maintain an
existing one. If organization has a small number of customers, losing a few could cripple
company. Even if there are a large number of customers, a small increase in the rate should
dramatically increase profits.
The maintenance of the patronage of people who have purchased a company’s goods or
services once and the gaining of repeat purchases. Customer retention occurs when a customer is
loyal to a company, brand, or to a specific product or service, expressing long-term commitment
and refusing to purchase from competitors. Of critical importance to such strategies are the wider
concepts of customer service, customer relations, and relationship marketing. Companies can
build loyalty and retention through the use of a number of techniques, including database
marketing, the issue of loyalty cards, redeemable against a variety of goods or service,
preferential discounts, free gifts, special promotions, newsletters or magazines, members’ clubs
or customized products in limited editions. It has been argued that customer retention is linked to
employee loyalty, since loyal employees build up long-term relationships with customers.
Customer retention has always been an important topic for the marketing. For sure, the
advantages of loyal clients are obvious. Often CRM is only implementing new systems for data
mining and client segmentation or operational system like a complaint management. But the
thing is: data mining system or client clubs are not the basis. They are the cherry of the cake
called client retention. A key principle of relationship marketing is the retention of customers
through varying means and practices to ensure repeated trade from preexisting customers by
satisfying requirements above those of competing companies through a mutually beneficial
relationship.
14
This techniques is now used as a means of counter balancing new customer and
opportunities with current and existing customers as a means of maximizing profit and
counteracting the “leaky bucket theory of business” in which new customer gained in order
direct marketing oriented businesses were at the expense of or coincided with the loss of older
customers. This process of "churning" is less economically viable than retaining all or the
majority of customers using both direct and relationship management as lead generation via new
customers requires more investment.
Many companies in competing markets will redirect or allocate large amounts of resources
or attention towards customer retention as in markets with increasing competition it may cost 5
times more to attract new customers than it would to retain current customers, as direct or
"offensive" marketing requires much more extensive resources to cause defection from
competitors. However, it is suggested that because of the extensive classic marketing theories
center on means of attracting customer and creating transactions rather than maintaining them,
the majority usage of direct marketing used in the past is now gradually being used more
alongside relationship marketing as its importance becomes more recognizable. According to
Buchanan and Gilles the increased profitability associated with customer retention efforts occurs
because of several factors that occur once a relationship has been established with a
customer.
i. The cost of acquisition occurs only at the beginning of the relationship, so the longer the
relationship, the lower the amortized cost.
ii. Account maintenance costs decline as a percentage of total costs or as a percentage of
revenue.
iii. Long-term customers tend to be less inclined to switch, and also tend to be fewer prices
sensitive. This can result in stable unit sales volume and increase in dollar-sales volume.
iv. Long-term customer may initiate free word of mouth promotions and referrals.
v. Long-term customers are more likely to purchase ancillary products and high margin
supplemental products.
vi. Customer that stay with company tend to be satisfied with the relationship and are less
likely to switch to competitors, making it difficult for competitors to enter the market or
gain market share.
15
IMPORTANCE OF CUSTOMER RETENTION
There are a number of reasons for this. To begin with, to acquire a customer a company
incurs promotional costs like advertising, sales promotion etc. It is said that it costs five times
more to attract a new customer than retaining one. The operating cost decrease when a customer
stays. Service being rich in experience and credence qualities, it takes some time for customers
to get accustomed to it and once they are used to the service and are satisfied with the service
provider, they tend to purchase more over a period of time. As they remain satisfied with a
service provider, they spread a positive word of mouth, which is very effective in case of service
for attracting new customers. Longer the customer stays with an organization, more the
organization knows about him, which enables it to offer a customized service which makes it
difficult for the customer to defect. This may even provide opportunities to the organization to
charge price premium by offering individualized service which may be difficult for the
competitors to offer. Considering the importance of retaining customers in service business,
Reichheld & Sasser coined a term ‘Zero Defection’. They highlighted that companies can boost
profits by almost 100% by retaining just 5% more of their customers. Further, it is also very
important to understand the life time value of a customer. Further, if by a positive word of
mouth, he brings just one more customer to the organization, his value to the organization
doubles. Therefore, it is important for all the employees in the organization to understand the life
time value of their customers.
16
REDUCED COSTS FOR CUSTOMER ACQUISITION
Acquiring a customer has certain associated costs. These include the costs associated with
advertising, following up, sales demos, travel and meeting cost etc. having a repeat customer
means that the customer means that the customer is already aware of your processes and can
predict certain quality of output, thus minimizing the cost involved in new customer acquisition.
Having a repeat customer also has the potential to open up another channel to advertise your
business – word of mouth. Word of mouth advertising / recommendations are perhaps the most
important outcome of having a satisfied customer.
17
CUSTOMER RETENTION: STATISTICS
i. Acquiring new customer can cost five times more than satisfying and retaining current
customers. (Source: http://www.parature.com/tag/customer-service-statistics-2012)
ii. 2% increase in customer retention has same effect on profits as cutting costs by 10%.
(Source: http://www.bautomation.com/resources/articles/startling-statistics-on-customer-
retention-acquisition/489/)
iii. The average company losses 10% of its customer each year.(Source:
http:/www.dbmarketing.com/index.html)
iv. 5% reduction in the customer defection rate can increase profits by 25-125%, depending
on the industries. (Source: http://www.parature.com/tag/customer-service-statistics-2012)
v. The customer profitability rate tends to increase over the life of a retained customer.
(Source: http:/www.dbmarketing.com/index.html)
vi. Companies can boost profits anywhere from 25 to 125% by retaining merely5% more
existing customers. (Source: http://www.parature.com/tag/customer-service-statistics-
2012)
vii. Only one out of 25 dissatisfied customers will express dissatisfaction. (Source:
http://www.bautomation.com/resources/articles/startling-statistics-on-customer-retention-
acquisition/489/)
viii. Happy customer tells 4 to 5 others of their positive experience. Dissatisfied customers tell
9 to 12 how bad it was. ( Source: http://www.parature.com/tag/customer-service-
statistics-2012)
ix. Two-thirds of customers do not feel valued by those serving them. (Source:
http://www.dbmarketing.com/article/Art232.htm)
18
MEASURING CUSTOMER RETENTION
Retention rate is normally calculated as the number of customers who have been lost over
a period of time, usually calculated over a quarterly or annual period. The key is to calculate the
percentage versus existing customers, and not underestimate the loss rate by tallying new
customer acquisitions into the mix. The customer retention rate refers to the number of customer
lost over a period of time. It is normally calculated by the percentage of lost customer versus
existing customers over a quarterly or annual period, without tallying new customer acquisitions.
While there are obvious benefits to keeping customers loyal and maintaining retention rates, it
can be extremely challenging for management to keep retention rates up.
Some companies can measure retention rate using their CRM system, since any of the
vendors with solid sales modules should offer this capability. Customer service expert Lori
Bocklund recommends that companies look for this functionality when evaluating CRM
solutions, even though it is unlikely to be the differentiating factor. Companies like witness,
Performix, AIM, and Merced offer these types of tools. To measure this, some companies
combines data from the CRM system and data from other systems, such as your systems, such as
your quality monitoring system, ACD or CTI solution handling contact routing and reporting.
There are no hard and fast rules on calculating customer defection and customer retention,
according to Lowenstein. It can depend on the industries or the type of business, since companies
have long-term arrangements with customers.
However, several consulting and database management companies have succeeded in
creating them. However, the appropriate interval over which retention rate should be measured is
not always one year. Rather, it depends on the customer repurchase cycle. Car insurance and
magazine subscriptions are bought on an annual basis. Carpet tiles and hi-fis are not. If the
normal hi-fi replacement cycle is four years, then retention rate is more meaningful if it is
measured over four years instead of twelve months. Additional complexity is added when
companies a sell a range of products and services, each with different repurchase cycles.
Automobile dealers might sell cars, parts, fuel and service to a single customer. These products
have different repurchase cycles which make it very difficult for the dealer to have a whole of
customer perspective on retention. Sometimes companies are not clear about whether an
individual customer has defected. This is because of the location of customer related data, which
might be retained in product silos, channel silos or functional silos.
19
TYPE OF CUSTOMER RETENTION RATE
This is the number of customer doing business with a firm at the end of a trading period,
expressed as percentage of those who were active customer at the beginning of the period.
This is the value of sales achieved from the retained customers, expressed as a percentage
of the sales achieved from all customers who were active at the beginning of the period.
This is the profit earned from the retained customers, expressed as a percentage of the
profit earned from all customers who were active at the beginning of the period.
20
3. COMPANY PROFILE
21
THE INSURANCE INDUSTRY:
The insurance sector has gone through a number of phases and changes. Insurance in
India used to be tightly regulated and monopolized by state-run insurers. Following the move
towards economic reform in the early 1990s, various plans to revamp the sector finally resulted
in the passage of the Insurance Regulatory and Development Authority (IRDA) Act of 1999.
Significantly, the insurance business was opened on two fronts. Firstly, domestic private-sector
companies were permitted to enter both life and non-life insurance business. Secondly, foreign
companies were allowed to participate, albeit with a cap on shareholding at 26%. With the
introduction of the 1999 IRDA Act, the insurance sector joined a set of other economic sectors
on the growth march.
During the 2003 financial year, life insurance premiums increased by an estimated 12.3%
in real terms to INR 650 billion (USD 14 billion) while non-life insurance premiums rose 12.2%
to INR 178 billion (USD 3.8 billion). Growth in insurance premiums has been averaging at
11.3% in real terms over the last decade. There are strong arguments in favor of sustained rapid
insurance business growth in the coming years, including India’s robust economic growth
prospects and the nation’s high savings rates.
COMPANY PROFILE
IDBI Fortis Life Insurance Co. Ltd., is a joint venture between three financial
companies–Development and Commercial Bank, IDBI Bank, India’s private sector Bank,
Federal Bank and European insurer Ageas (formerly Fortis).
IDBI Fortis Life Insurance Co. Ltd. was formed on March 2008. In this venture, IDBI
Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. The Headquarters
is located in Mumbai, India.
IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial
development bank. Created in 1956 to support India’s industrial backbone, IDBI Bank has since
evolved into a powerhouse of industrial and retail finance.
22
Today, it is amongst India’s foremost commercial banks, with a wide range of innovative
products and services, serving retail and corporate customers in all corners of the country from
720 branches and 1228 ATMs.
The Bank offers its customers an extensive range of diversified services including project
financing, term lending, working capital facilities, lease finance, venture capital, loan
syndication, corporate advisory services and legal and technical advisory services to its corporate
clients as well as mortgages and personal loans to its retail clients.
As part of its development activities, IDBI Bank has been instrumental in sponsoring the
development of key institutions involved in India’s financial sector – such as the Securities and
Exchange Board of India (SEBI), National Stock Exchange of India Limited (NSE) and National
Securities Depository Ltd.
Federal Bank is one of India’s leading private sector banks, with a dominant presence in
the state of Kerala. It has a strong network of 708 branches and 749 ATMs spread across India.
The bank provides over four million retail customers with a wide variety of financial products.
Federal Bank is one of the first large Indian banks to have an entirely automated and
interconnected branch network.
In addition to interconnected branches and ATMs, the Bank has a wide range of services
like Internet Banking, Mobile Banking, Tele Banking, and Any Where Banking, debit cards,
online bill payment and call center facilities to offer round the clock banking convenience to its
customers. The Bank has been a pioneer in providing innovative technological solutions to its
customers and the Bank has won several awards and recommendations.
23
VISION AND VALUES
VISION
MISSION
VALUES
Value to Customers: A product and service offering in which customers perceive value.
Rock Solid and Delivery on Promise: This translates into being financially strong,
operationally robust and having clarity in claims.
EXCELLENCE
"In every aspect of work ranging from the in-house training institute to the detailed
Personal Insurance Plan. IDBI Fortis is focused on achieving the highest standards of quality in
every aspect of their business".
24
HONESTY
"Is the heart of the Life Insurance business? IDBI Fortis believes that above all, Life
Insurance is based on trust. Transparency, Dependability and Integrity will form the cornerstones
of the IDBI Fortis experience."
KNOWLEDGE
"Is what makes experts. IDBI Fortis is focused on the Life Insurance business. Perfectly
combining global expertise with local knowledge, IDBI Fortis is the Indian Life Insurance
specialist."
CARING
"For the customer IDBI Fortis is redefining the Life Insurance paradigm to focus on the
needs of the customers. The IDBI Fortis service process is responsive, personalized, humane and
empathetic."
CULTURE
Our "in house culture recipe" has some of the finest ingredients going into its making.
Some of the more prominent aspects of our culture are stated below:
25
TECHNOLOGY
To monitor and manage its network equipment across 34 sites, IDBI Fortis uses Tulip
Proactive Managed CE solution. The solution includes device management, proactive
troubleshooting and notification support. With the implementation of the solution, IDBI has
reported improvement of network performance and availability, with a faster, more effective
change and configuration management.
PRODUCTS
IDBI Fortis launched its first set of products across India in March 2008, after receiving
the requisite approvals from the Insurance Regulatory and Development Authority (IRDA). IDBI
Fortis offers services through a nationwide network across the branches of IDBI Bank and
Federal Bank in addition to a network of advisors and partners. IDBI Fortis has 35 branches
across the country.
SPONSORSHIPS, AWARDS
IDBI Fortis Life Insurance Company was selected as the title sponsor for the India-Sri
Lanka Cricket Series. This was followed by the IDBI Fortis Wealthsurance Twenty20.
‘Wealthsurance Made Easy’ (WME), a knowledge aid by IDBI Fortis for its sales force, won The
Bronze Dragon in the category for ‘Best Dealer/Sales Force activity’ at the Promotion Marketing
Awards of Asia (PMAA).
26
ORGANIZATIONAL STRUCTURE
G.V NAGESHVAR
RAO (MD & CEO)
MURLIIYER (country
Head sales)
Corporate Corporate
head Corporate Corporate
head
head head
27
HUMAN RESOURCE ORGANIZATIONAL STRUCTURE
MURLIYER (Country
Head Sales)
MALLIKA
SARASWATH (Human
Resource Head)
Senior Manager
Chief Manager
Assistant
Manager
There are no Zonal Heads in the Human Resource Department the area Human Resource
executive only acts as the Human Resource Manager and reports all the activities to the Head
Office that is in MUMBAI.
28
OPERATIONS ORGANIZATIONAL STRUCTURE
G.V NAGESHVAR
RAO (MD &CEO)
MURLIYER
(Country Head
Sales)
The Zonal Managers are supported by Branch Support Executives and the Operations
department is present only in the Head Office which is in MUMBAI.
29
PRODUCT PROFILE:
WEALTHSURANCE: The Wealthsurance Milestone Plan enables the policyholder to save and
build wealth to meet their financial goals. This Plan comes with a wide range of 13 investment
options and 7 insurance benefits - all packaged with a low charge structure and unmatched
flexibility.
HOMESURANCE: IDBI Federal Homesurance Protection Plan provides full insurance cover
for properties even under construction, thus ensuring that the beneficiary gets the full sanctioned
amount in case of any unfortunate event. It also has an innovative fixed period cover for those
who would aim to prepay their loans early.
MICROSURANCE: IDBI Federal Microsurance Plan is a one of its kind insurance plan which
can be very useful for various Micro Financial Institutions and NGOs, wherein not only the
members but even the member’s family gets an insurance cover.
TERMSURANCE: IDBI Federal Termsurance Protection Plan offers the unique Increasing
Cover option that automatically increases the cover every year without increasing the premium.
INCOMESURANCE: Knowing the customer helped us to combine the Endowment & Money
Back plans into a single plan. It linked the returns to the G-Sec rates, transparently declared by
the government. Also, the Guaranteed Annual Payout and other benefits upon death are tax-free
under Sec 10(10D).
30
4. RESEARCH METHODOLOGY
31
INTRODUCTION
The system of collecting data for research projects is known as research methodology.
The data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning methods and
change management. Research methodology is to describe how to gather information (method)
this can be survey interview, litterateur review etc. And then explain each method what are they,
what are the method. Some important factors in research methodology of measure most of your
work is finished by the time you finish the analysis of data. Formulation of research questions
along with sampling weather probable or non-probable is followed by measurement that includes
surveys and scaling. This is followed by research design, which may be either experimental or
quasi-experimental. Methodology includes a philosophically coherent collection of theories,
concepts or ideas as they relate to a particular discipline or field of inquiry.
Any research finally leads to a result, which would be analyzed, from the data that have
been received by the researcher. Data analysis is meant to be the most sensitive part of any
research work. On achieving this various methods can be adopted there are three different
methods using for data analysis such as univariate statistic.
The univariate analysis consist of mean, standard deviation, percentage etc. although the
mean most commonly seen representation of central tendency and the stranded deviation takes
into account each observation’s distance from the mean. The obtained data were presented
through table based on the percentage of the respondents and were analysis through spread sheet
under the univariate measures such as mean, standard deviation.
32
5. ANALYSIS & INTERPRETATION
33
METHOD OF DATA EVALUATION
After the data analysis, it must be evaluate to get the decision. Here the decision rule will
be applied that is univariate measure calculated to the decision. The liker’s scale is given 1-3 to
each statement in the questionnaires.
Based on the value indicated in the questionnaire, the average value for each factor is considered.
The mean value lies between 1-3 which follows.
1) Agree
2) Neutral
3) Disagree
1 2 3
Further three types of degree of consideration that can be derived regarding differentiation
variables are show in the following table
PERSONAL INFORMATION
The research is to identify the customer retention in IDBI federal insurance Co limited in
Coimbatore branch. Retaining the customer is based on the customer satisfaction. Age, sex, civil
status, education level, occupation, income also decide the satisfaction.
34
AGE DISTRIBUTION
Age distribution pattern of the customer in Coimbatore branch it’s represented by the
sample 100. Age distribution class was categories in to three classes.63% of customer
represented the age categories of 18-35 years. 5% of customer represented the age categories of
36-50 years. 32% of customer represented the age categories of over 50 years.
36-50years 5 5%
Age Distribution
70
60
50
40
30
20
10
0
18 - 35 36 - 50 above 50
35
GENDER
In this research the factor of gender represent 76% of sample male & 24% of samples
female.
Male 76 76%
Female 24 24%
Gender
80
70
60
50
40
30
20
10
0
Male Female
36
MARITAL STATUS
Out of 100 samples, 77% samples were unmarried and 23% of samples were married.
Unmarried 77 77%
Married 23 23%
Marital status
90
80
70
60
50
40
30
20
10
0
Unmarried Married
37
EDUCATION QUALIFICATION
33% of samples were found in the category of UG degree holder. 58% of samples were
found in the category of PG degree holder. 19% of samples were found in the category of other
or none.
Education Qualification
70
60
50
40
30
20
10
0
UG Degree Holder PG Degree Holder Other or None
38
OCCUPATION
64% of samples were found in the category of professional. 10% of samples were found
in the category of clerical. 26% of samples were found in the category of unskilled workers.
Professional 64 64%
Teacher 0 0%
Clerical 10 10%
Occupation
70
60
50
40
30
20
10
0
Professional Teacher Clerical Unskilled workers
39
INCOME
Income was categories in to four classes. 5% customer represents the income Rs 10000-
20000.12% customer represents the income Rs 20000-30000. 83% customer represents the
income above Rs 300000.
Rs 10000-20000 5 5%
Rs 20001-30000 12 12%
Income
14
12
10
0
10000 - 20000 20001 - 30000 Above 30000
40
RESEARCH INFORMATION
The data collected from 100 customers who were statement in order to evaluate. The
mean and standard deviation are calculated to evaluate the research details.
Mean = Σfx / Σf
Standard deviation = (Σfx^2 / Σf)-(Σfx / Σf) ^2
EVALUATED RESEARCH DATA
7. In thinking about the recent experience with IDBI Federal life insurance, rate the satisfaction
with the customer service received by you?
Frequency Percentage
Agree 78 78%
Neutral 0 0%
Disagree 22 22%
Total 100 100%
Service Satisfaction
100
80
60
40
20
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 78 78 1 78
Neutral 2 0 0 4 0
Disagree 3 22 66 9 198
100 144 276
Mean = 1.44
Standard deviation = 0.69
41
8. The process for getting your concerns resolved is fast?
Frequency Percentage
Agree 83 83%
Neutral 0 0%
Disagree 17 17%
Concern Solvation
90
80
70
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 83 83 1 83
Neutral 2 0 0 4 0
Disagree 3 17 51 9 153
Mean = 1.34
Standard deviation = 0.56
42
9. Please think about the features and the benefits of the insurance you took. Are you satisfied
with the insurance?
Frequency Percentage
Agree 32 32%
Neutral 45 45%
Disagree 23 23%
Benefit Satisfaction
50
45
40
35
30
25
20
15
10
5
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 32 32 1 32
Neutral 2 45 90 4 180
Disagree 3 23 69 9 207
Mean = 1.91
Standard deviation = 0.54
43
10. a. The customer service representative was very courteous
Frequency Percentage
Agree 53 53%
Neutral 17 17%
Disagree 30 30%
Courteous Service
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 53 53 1 53
Neutral 2 17 34 4 68
Disagree 3 30 90 9 270
Mean = 1.77
Standard deviation = 0.78
44
b. The customer service representative handled your call quickly
Frequency Percentage
Agree 56 56%
Neutral 5 5%
Disagree 39 39%
Quick Call
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 56 56 1 56
Neutral 2 5 10 4 20
Mean = 1.83
Standard deviation = 0.56
45
c. The customer service representative was knowledgeable
Frequency Percentage
Agree 68 68%
Neutral 12 12%
Disagree 20 20%
Knowledge Representative
80
70
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 68 68 1 68
Neutral 2 12 24 4 48
Disagree 3 20 60 9 180
Mean = 1.52
Standard deviation = 0.65
46
11. The policy plans of IDBI Federal Company provide highest benefits for you?
Frequency Percentage
Agree 80 80%
Neutral 15 15%
Disagree 5 5%
Highest Benifits
90
80
70
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 80 80 1 80
Neutral 2 15 30 4 60
Disagree 3 5 15 9 45
Mean = 1.25
Standard deviation = 0.25
47
12. The insurance plans policy and procedure of IDBI insurance company are understandable
easily?
Frequency Percentage
Neutral 0 0%
Disagree 0 0%
100
80
60
40
20
0
Agree Neutral Disagree
X f fx x^2 fx^2
Neutral 2 0 0 4 0
Disagree 3 0 0 9 0
Mean = 1
Standard deviation = 0
48
13. Is the premium payment mode of IDBI federal insurance is easy?
Frequency Percentage
Neutral 0 0%
Disagree 0 0%
100
80
60
40
20
0
Agree Neutral Disagree
X f fx x^2 fx^2
Neutral 2 0 0 4 0
Disagree 3 0 0 9 0
Mean = 1
Standard deviation = 0
49
14. Do you like to have a long term relation with IDBI insurance company?
Frequency Percentage
Agree 34 34%
Neutral 24 24%
Disagree 42 42%
Long Relationship
45
40
35
30
25
20
15
10
5
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 34 34 1 34
Neutral 2 24 48 4 96
Mean = 2.08
Standard deviation = 0.73
50
15. Do you recommend IDBI Insurance Company to your friends?
Frequency Percentage
Agree 43 43%
Neutral 52 52%
Disagree 31 31%
Recommend IDBI
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 43 43 1 43
Neutral 2 26 52 4 104
Disagree 3 31 93 9 279
Mean = 1.88
Standard deviation = 0.73
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16. You insure in IDBI because friends insisted?
Frequency Percentage
Agree 68 68%
Neutral 10 10%
Disagree 22 22%
Friends Insisted
80
70
60
50
40
30
20
10
0
Agree Neutral Disagree
X f fx x^2 fx^2
Agree 1 68 68 1 68
Neutral 2 10 20 4 40
Disagree 3 22 66 9 198
Mean = 1.54
Standard deviation = 0.69
52
17. Would you like to have another insurance policy in IDBI in future?
Frequency Percentage
Agree 32 32%
Neutral 23 23%
Disagree 45 45%
X f fx x^2 fx^2
Agree 1 32 32 1 32
Neutral 2 23 46 4 92
Mean = 2.13
Standard deviation = 0.75
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OVERALL MEANS & STANDARD DEVIATION VALUE
The above table shows that IDBI federal insurance is having a high level of
customer relinquishment.
54
6. FINDINGS
55
CUSTOMER RELINQUISHMENT
IDBI federal insurance is having a high level of customer relinquishment.
56
7. RECOMMENDATION
57
RECOMMENDATIONS
The unmarried people are actually not interested to take insurance. They wanted to invest
their money in other fields like buying a house, bike, buildings, and real-estate etc. They are even
ready to take risk for more earnings.
The married peoples are interested in insurance for the benefit of their partner as well as their
children and medical expenses. Generally educated people understand easily so most of graduate
clearly understand the benefits of insurance policies.
So IDBI Federal Life Insurance Corporation Limited can develop a new policy by targeting
the unmarried people.
IDBI have to increase their promotional activities in such a way that even unskilled persons
understand the importance of their Insurance add value to their customer.
58
8. CONCLUSION
59
CONCLUSIONS
The data were collected from the customer’s response of the IDBI Federal Life Insurance
Corporation Limited Coimbatore branch. Based on the percentage of the customers 100 sample
size was collected. The age, gender, marital statuses, educational qualification, occupation,
monthly income, were analyzed as personal information in the questionnaire. According to the
collected personal information, most of the sample customers were young age, single, educated,
higher income customers who got insurance. According to the research the IDBI Federal Life
Insurance Corporation Limited Coimbatore have high customer relinquishment because most of
the customers did not insure out of their own interest. Parents, Friends who are working or doing
their project or internship in IDBI Federal Life Insurance wanted them to have a policy. This is
the reason why customers move out of IDBI Federal.
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9. APPENDIX
61
QUESTIONNAIRE
Good morning is this Mr./Ms.…………
I am Sindhu from IDBI federal one of the leading wealthsurance solution provider in
India. Do you have a moment to talk?
I work extensively in the area of proving future financial planning solution to people. My
expertise includes planning for your family’s financial security, your children’s education,
marriage or your personal retirement.
The reason why I called you today is to get your idea and feedback about IDBI federal can I
continue?
1. Is your age a)
18-36 years b)
36-45 years c)
Over 50 years
2. Gender
a) Male
b) Female
3. Marital status
a) Single
b) Married
4. Education qualification
a) UG degree holder
b) PG degree holder
c) Other or none
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5. Occupation
a) Professional
b) Teacher
c) Clerical
d) Unskilled workers
6. Monthly income
a) Rs 10000-20000
b) Rs 20000-30000
c) Above Rs 300000
7. In thinking about the recent experience with IDBI Federal life insurance, rate the satisfaction
with the customer service received by you?
1 2 3
1 2 3
9. Please think about the features and the benefits of the insurance you took. Are you satisfied
with the insurance?
1 2 3
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10. Customer service Representative
Pertain to the customer service representative you spoke with most recently please indicate
whether you agree or disagree or none to the following statements
1 2 3
The customer service
Representative was O O O
Very courteous
11. The policy plans of IDBI Federal Company provide highest benefits for you?
1 2 3
12. The insurance plans policy and procedure of IDBI insurance company are understandable
easily?
1 2 3
1 2 3
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14. Do you like work or held the relationship between you and IDBI insurance company at long
time?
1 2 3
1 2 3
1 2 3
17. Would you like to have another insure policy in IDBI in future?
1 2 3
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10. BIBLIOGRAPHY
66
Books
Websites
1. http://www.economywatch.com/indianeconomy/indian-insurance-sector.html
2. http://www.indianmba.com/Occasional_Papers/OP85/op85.html
3. http://www.banknetindia.com/finance/insure2011.htm
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