CRM-Prem Ranjan

Project Report
Customer Relationship Strategies
Submitted By
Name: Prem Ranjan

Reg. Nr.: 201311589
SUBMITTED TO SCDL
In partial fulfillment of the requirements for the award of degree of
Post Graduate Diploma In

Business Administration
(Customer Relationship Management)
DECLARATION
This is to declare that I “Prem Ranjan” have carried out this project work myself in part
fulfillment of the Post Graduate Diploma in Business Administration (Specialization –
Customer Relationship Management) Program of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted
to any other University/Institute for an award of any degree/diploma.
Date: Name: Prem Ranjan
Signature: Reg No: 201311589
Customer Relationship Strategies Page 2

CERTIFICATE OF SUPERVISOR
Certified that the work incorporated in this Project Report Customer Relationship
Strategies submitted by Prem Ranjan is his/her original work and completed under my
supervision.
Material obtained from other sources has been duly acknowledged in the Project Report
Date: Signature of Guide

Contents
S. No. Description Page No
1 Introduction 5
a. Bajaj & CRM 14
b. ICICI & CRM 15
c. Objectives & Need of CRM 17
2 Company Profile 18
3 Literature Review 30
4 Objectives & Scope of the Study 36
5 Theoretical Perspective 38
a. Overview of CRM 39
b. Components of CRM 39
c. Definitions of CRM 40
d. Goal of CRM 41
e. Key Elements of CRM 42
6 Research Methodology 47
7 Data Analysis and Interpretation 50
8 Findings of Study 71
9 Limitations of Study 75
10 Suggestions 77
11 Conclusion 79
12 Annexure 82
a. Bibliography 83
b. Questionnaire 84

Introduction

INTRODUCTION
Customer relationship management is an imperative measure in any service sector. It is the

main tool in marketing management to acquire more numbers of customers and to create
one to one interaction with transparency and honesty. Today the companies have to move
from managing a market, to managing specific customers. But managing the customers
and retaining them for long time is not easy task in a competitive market. Besides coping
with changing psychology, preferences and needs of the customers is becoming
challenging one. So the business organizations now a day are taking the help of data base
management system for customer retention and e-CRM is the outcome of such system. The
requirement of relationship marketing is prominent in the service sectors especially in
Indian market to create trust and valuable strategic customer care. This will definitely raise
the concept of customer relationship management for long term relationship and value
added service. This study will focus on CRM application for insurance sector related to
their communicating channels for customers, customer satisfaction and customer retention.
Insurance is an upcoming sector, in India the year 2000 was a landmark year for life
insurance industry. In this year the life insurance industry was liberalized after more than
50 years. Insurance sector was once a monopoly, with LIC as the only company, a public
sector enterprise. But now-a-days the market is opened up and there are many private
players competing in the market. There are above 30 private life insurance companies have
entered the industry. After the entry of these private players, the market share of LIC has
been considerably reduced. In the last five years the private players are able to expand the
market (growing at 30% per annum) and also have improved their market share to above
18%.For the past five years private players have launched many innovations in the industry
in terms of products, market channels and advertisement of product, agent training and
customer services etc.
In today’s dynamic environment, the insurance industry has witnessed many spectacular
changes in terms of advancement in technology, strengthening of the existing customer
base and acquiring new customers. In this age of information and uncertainty, more and
more people have started recognising the importance of insurance. However, the present
situation in the insurance industry is characterised by complexity and competitive
situations. At present, insurance industry is one of the leading industry in India. There are

about 30 players operating in both life and non-life segments and one is reinsurer. Today,
the main challenge before insurance companies is the attraction and retention of customers
to its various policies.
On a global scale a number of insurers are competing and offering the customers a plethora
of products. The knowledge-savvy customer is demanding greater flexibility and better
service from the service providers. For the insurance companies to survive competition,
succeed and profit, there is only one option – to learn from and actively respond to
customer expectations. Insurers are focusing on retaining customers by analyzing,
understanding and predicting customer behavior and improving sales efforts.
In the Indian context, since the ’90s, successive governments have embarked on ushering
in liberalization to keep pace with a rapidly changing global scenario. The doors for private
participation were opened in a number of sensitive sectors, insurance being one of them.
For the past few decades, insurance was looked upon as a plain vanilla tax-saving
investment product.
Currently, the Insurance Industry is in a state of change where today's industry field is
becoming extremely complex and more competitive. As the industry continues to search
for growth, obtaining clients has become difficult due to large market share ownership by
the big insurance providers. Economic downturn is making it a problem to realize top-line
growth, placing a higher emphasis on improving profits by way of cost management. It
seems like today, anyone who is able to form some sort of insurance products, is. They are
marketing, selling it, and in turn creating even more competition. Banks have begun to
become the main cause of this new insurance surge, and there are a larger percentage of
people out there buying this insurance that really is not as beneficial as buying coverage
from a true insurance carrier. Today's customer is capable of doing their own research on
the Internet, comparing who is the best buy for the right amount of money, adding to the
increases pressure of reaching target margins, return of equity and capture the wanted
market share. Compounding the problem over all of this is the recent blast of mergers and
acquisitions, which have taken place. Regulations have also impacted how business is run,
causing the insurance world to be additionally complicated. The sluggish economy,
regulatory changes and the ever changing state of transitions technologies are in, is

reshaping the insurance industries dynamics. Insurance organizations have now found
themselves caught in the race to continually enhance products, adjust to new challenges,
while trying to use this change as an opportunity. These once 'product-centric' business's
are finding the need to turn into a 'customer-centric' operation in the attempt to achieve
business goals, retain customer retention, reduce operation costs, to hopefully in the end
see some revenue growth. This transition can seem straightforward, but is a substantial
implementation requiring good preparation and careful planning. It seems that to become
and remain customer centric, success can only be found when supported by the right, on
demand, enterprise-wide, small business CRM (customer relationship management)
deployment. Customers have made service an issue for Insurance organizations, and to
support your customers with everything they need to be and stay satisfied is a huge
challenge on top of all the ones mentioned above. The difficulty of providing quality
service in order to set themselves apart from competitors is a challenging task because of
the low frequency of client interactions due to the nature of insurance products. The need
now is to make every interaction with the client count become important because of the
direct correlation with the bottom line impact it creates. Today, in order to gain the needed
knowledge and comprehensive view of small business to better manage customers, brokers
and agents, the insurance leaders are swiftly and aggressively deploying small business
CRM solutions that have been specifically tailored to meet the needs of the insurance
company. These insurers are looking for small business CRM implementations that are
designed to help them reach small business goals, improve client retention and lower costs
across the board, while remaining efficient. The undisputed need to find a flexible tool that
is easy to utilize to support small business operations, create opportunities to leverage and
integrate the future's technology is a top concern.
Insurance is a complex product where personalized service-achieved through an intimate

knowledge of customers and their histories with an insurance company-is critical to
making sales. As insurance options broaden and products grow more complex, customers
seek superior, personalized service more than ever. Most insurance companies understand
the virtues of a single, complete, real-time enterprise view of individual customers, and
they have made great progress towards providing this view at customer touch-points
throughout the enterprise. But it's critical to note that this view should not be regarded as
an end in and of itself-rather, it is a rich foundation to be used as a basis for a deeper, more

advanced level of customer understanding. 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. In an organization
relationships exist between employees, clients, customers, citizens and enterprise itself. An
organization could succeed only if it implements the strategy of CRM in right manner.
CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers. There are many aspects of CRM
which were mistakenly thought to be capable of being implemented in isolation from each
other. From the outside of the organization, a customer experiences the business as one
entity operating over extended periods of time. Thus piecemeal CRM implementation can
come across to the customer as unsynchronized where employees and web sites and
services are acting independently of one another, yet together represent a common entity.
With the repeal of the Glass-Steagal Act in 1999, insurance companies face increased
competition from banks and brokerages. With the enactment of the Patriot Act, insurance
companies need to ensure that they "know their customs." To maintain competitive edge
and viability, insurance companies are focusing intently on delivering superior customer
service. A comprehensive customer relationship management (CRM) strategy addresses
three imperatives: Sum providing a unified enterprise customer view; Sum retaining
customers with great services; and Sum controlling costs as the insurance company in
question expands.
HOW CAN CRM HELP INSURANCE COMPANIES?

CAMPAIGN MANAGEMENT- Companies need to identify customers, tailor products
and services to meet their needs and sell these products to them. CRM achieves this
through Campaign Management by analyzing data from company's internal applications or
by improving data from external applications to evaluate customer profitability and
designing comprehensive customer profiles, they can identify the most lucrative customers
and customer segment, and execute targeted, personalized multi-channel marketing
campaigns to reach these customers and maximize the lifetime value of those relationships.
CUSTOMER INFORMATION CONSOLIDATION- Instead of customer information

being stored in product centric silos, with CRM the information is stored in a customer

centric manner covering all the services/products of the company. CRM integrates various
channels to deliver a host of services to customers, while aiding the functioning of the
company.
MARKETING ENCYCLOPEDIA- Central repository for products, pricing and

competitive information as well as internal training material, sales presentations, proposal
templates and marketing collateral.
360-DEGREE VIEW OF COMPANY- This means whoever the employees speak to,
irrespective of whether the communication is from sales, finance or support, the company
is aware of the interaction. Removal of inconsistencies of data makes the client interaction
processes smooth and efficient, thus leading to enhanced customer satisfaction.
PERSONALIZED SALES HOME PAGE- CRM can provide a single view where sales
managers and agents can get all the most up-to-date information in one place, including
opportunity, account, and news and expense report information. This would make sales
decision fast and consistent.
LEAD AND OPPORTUNITY MANAGEMENT- This enable organizations to

effectively manage leads and opportunities and track the leads through deal closure, the
required follow-up and interaction with the prospects.
ACTIVITY MANAGEMENT- It helps managers to assign and track the activities of

various members. Thus improved transparency leads to improved efficiency.
CONTACT CENTER- It enables customer service agent uniform service across multiple
channels such as phone, Internet, Email & Fax.
OPERATIONAL INEFFICIENCY REMOVAL- CRM can help in strategy formulation

to eliminate current operational inefficiencies. An effective CRM solution supports all
channels of customer interaction including telephone, fax, e-mail, the online portals,
wireless devices, and face-to-face contacts with company personnel. It also links these

customer touch points to an operations center and connects the operations center with
relevant internal and external business partners. 10.
ENHANCED PRODUCTIVITY- CRM can help in enhanced productivity of customers,

partners and employees.
CRM WITH BUSINESS INTELLIGENCE- Companies need to analyze the

performance of customer relationships, uncover trends in customer behavior, and
understand the true business value of their customers. CRM with business intelligence
allows companies to assess customer segments, which help them calculate the net present
value (NPV) of a customer segment over a given period to derive customer lifetime value.
Customer can be evaluated within a scoring framework. Combining the behavior
How CRM Meets the Insurance Industries Needs

So most insurers now are automated or in the process of becoming so, but these systems
are still geared towards being product-centric. They can meet the call for claims
management, billing, policy admin, actuary systems and so on, but are falling short in the
capability to be customer-centric. Not being fully integrated in all of the small business
processes, companies cannot improve efficiencies, resolution times or accuracy of
responses. Many years have gone by where insurance businesses believed that customer
management was directly connected with service delivery and paying broker commissions
on time. No longer is this infrastructure sufficient enough to support a pure customer
centric operation. The forward thinking insurance companies have started to realize small
business CRM ventures are the catalyst to delivering the high quality service clients are
looking for and reduce operation costs all at once. Small business CRM has become a very
powerful tool in the goals to satisfy current customers and win over new ones. Nothing
else directly affects loyalty or the ability to consolidate accounts like relationship building
activities. If you implement an operational small business CRM solution, well-defined,
quantifiable effects will happen to the institution that is choosing this as a strategy.

There are four crucial customer centric areas that will be affected by a small business CRM
solution, creating long-term relationships.
 Amalgamated customer view
 Targeted marketing for growth and retention
 Incorporated, multi-channel services and sales
 Efficient management of distribution channels
Importance of CRM:
The focus in CRM is not to try to mold the customers to the company’s goals but to listen
to the customers and trying to create opportunities beneficial to each. It is important to
offer customers what they are currently demanding and anticipating and what they are
likely to demand in the future. This can be achieved by providing a variety of existing
access channels for customers, such as e-mail, telephone and fax, and by preparing future
access channels such as wireless communication.
Provides Greater efficiency and cost reduction: Data mining, which is the analysis of
data for exploring possible relationships between sets of data, can save valuable human
resources. Integrating customer data into a single database allows marketing teams, sales
forces, and other departments within a company to share information and work towards
common corporate objectives using the same underlying statistics (epiphany.com, 2001).
Improved customer service and support: An E-CRM system provides a single

repository of customer information. This enables a company to serve according to
customer needs quickly and efficiently at all potential contact points, eliminating the
customer’s frustrating and time-consuming “hunt” for help (epiphany.com, 2001a).
More effective marketing: Having detailed customer information from an E-CRM system
allows a company to predict the kind of products that a customer is likely to buy as well as
the timing of purchases. In the short to medium term, this information helps an
organization to create more effective and focused marketing/sales campaigns designed to
attract the desired customer audience (epiphany.com, 2001). ECRM allows for more
targeted campaigns and tracking of campaign effectiveness. Customer data can be analyzed
from multiple Perspectives to discover which elements of a marketing campaign had the

greatest impact on sales and profitability (Greenberg, 2001). In addition, customer
segmentation can improve marketing efforts. Grouping customers according their need
similarities allows a company to effectively market specific products to members of the
group.
Increasing Market Share: Customer relationship management techniques are also used to
increase the overall market share of the business. Essentially, treating customers well adds
to the value of the business products and services. If the business impresses customers, it
tends to attract more people, increasing its pool of customers. Loyal customers will then
attract others through word of mouth.
Online Business: Online business is a popular and often necessary component for many
companies; the CRM tool can be responsible to respond the customers who are trying to
purchase the products through online.
FIVE KEY STRATEGIES WITH CRM

But what exactly does CRM enable and what are the potential benefits? While there are
surely many approaches being espoused in the market today, we believe there are five
main strategies that companies can employ to survive and thrive during uncertain
economic conditions:
1. Focus on existing customers
2. Maximize revenue opportunities
3. Do more with less
4. Reduce operational costs
5. Optimize existing IT assets

BAJAJ AND CRM
Customer portal
 Pay online renewal premium
 Fund switch and apportionment
 Download account statement
 Make partial withdrawal
 Download it certificates
 View all previous transaction details
 Download previous online payment receipt
 Change premium frequency
 Change address request
Online customer service desk

1. They can download various policy servicing and claim forms
2. Life insurance customer can check NAV history and performance of all funds
3. The customer can raise their grievance online
4. Bajaj Alianz health insurance customer can view details network hospital
5. A GPRS enabled app also helps them to locate the closet Bajaj Allianz branches
Customer focus unit

 The CRM system has been customized to guide the CSE to most appropriate
answer for queries raise by customers/business partners
 Every inbound call is passed through a verification process before providing any
information to the customer
 Language based auto routing of call –based on the customers preferred language
Mobile application
Insurance on the move is a mobile app developed by Bajaj Allianz for its customers with
the insurance app one can manage the life insurance policy any time any where .

ICICI AND CRM
ICICI prudential; ICICI prudential has ambitious plans for its retail business and has
implemented the CRM software by the help of SAS and Teradata solutions. It is
implementing various modules of CRM to establish world class CRM practices for the
sake of better customer relationship management. ICICI prudential life insurance company
is using the CRM project properly by integrating front office, back office and the analytical
system.
The bank currently has the ability to process 0.27 million cheques per day and Manage
7000 concurrent users.
The bank has successfully leveraged the power of Finacle and has deployed the solution in
the areas of core banking, consumer e-banking, corporate e-banking and CRM. With
Finacle, ICICI Bank has also gained the flexibility to easily develop new products targeted
at specific segments such as ICICI Bank Young Stars- a product targeting children,
Women's Account addressing working women and Bank@campus targeting students
Call centers
ICICI Bank is certainly juggling some interesting numbers. Its Bombay call centre handles
25 different products, for 10 million customers, with 620 positions. Now ICICI Bank’s
branch network handles less than half of all transactions – a shift which has taken an axe to

the company’s costto- serve. ICICI appreciated early on that by centralizing their service
infrastructure, and centralizing their service expertise, they created a new level of service
for customers. The call centre has played a leading role in transforming the bank’s value
proposition for its customers: The call centre also provides an opportunity to shift the
qualitative nature of the relationship between bank and customer to a new level. Much of
the extra leverage with customers that the call centre brings is tactical. A customer is a lot
more receptive to up selling and cross selling when they’re phoning ICICI. The humble
call centre is ICICI Bank’s means of shifting away from a market share based product-as-
commodity mindset, to those stresses the importance of deepening exiting customer
relationship.
E-marketing
The e-initiatives of the ICICI group have not been limited to customer servicing. The
marketing activities for its various products are also taking the online route. In April 2000,
through tie-ups with Orange and Airtel, ICICI started offering limited WAP based services
for customers on the move. A month later, on its way towards a full-fledged online mobile
commerce service, the company commenced offering services like balance updation,
request for cheque book, details of last 5 transactions, request for statement etc.
Corresponding services are also available for the bank’s credit card customers. On the
anvil are personal banking services, payment services for utilities, travel and ticketing
information etc.
The processes for delivering CRM-The tools and the processes are as follow –
 Customer application form
 Centralized software where the whole data is collected.
 Wide range of offering
 Cross – selling and
 Feedback forms

OBJECTIVE OF CRM
 CRM is an organizational strategy to develop mutually profitable life long
relationship with the customer
 The primary objective of CRM are to build and maintain a base of committed
customer who are profitable for the organization
 Use technology and human resources to understand the need and behavior of
present and potential customers
 Acquire, retain and establish mutually rewarding one to one relationship with
customer
 Provide better customer service to customer
 Identify high value customer so that the organization can serve them better with
differential service
 Increase customer revenues by cross selling and up selling
 Simplify marketing and sales processes
 Collect customer information at all possible points and making this information
available to the entire organization
NEED OF CRM IN INSURANCE INDUSTRY

 Insurance products are becoming more commoditized
 Presence of numerous players
 Advertising efforts are being countered by comparison portals, insurance advisors
and corporate alignments
 A large share of business is driven through intermediaries where information
challenges exist for effective management
 Companies continue to face stiff revenue targets spread across too many
stakeholders
 Stakeholders struggle to deal with too many processes, system and geographies
 Speedy documentation and processes at the time of issue of policies
 Prompt redressal of customer grievance

Company Profile

COMPANY PROFILE
Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv
Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a
reputation of expertise, stability and strength.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development
Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General
Insurance business (including Health Insurance business) in India. The Company has an
authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the
remaining 26% is held by Allianz, SE.
As on 31st March 2013 Bajaj Allianz General Insurance maintained its premier position in
the industry by achieving growth as well as profitability. Bajaj Allianz has made a profit
before tax of Rs.421 Crores and has become the only private insurer to cross the Rs.100
crore mark in profit before tax in the last two years. The profit after tax was Rs.295 Crores,
138.5% higher than the previous year.
Bajaj Allianz today has a countrywide network connected through the latest technology for
quick communication and response in over 200 towns spread across the length and breadth
of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices
are interconnected with the Head Office at Pune
Vision
 To be the first choice insurer for customers
 To be the preferred employer for staff in the insurance industry
 To be the number one insurer for creating shareholder value
Mission
As a responsible, customer focused market leader, we will strive to understand the
insurance needs of the consumers and translate it into affordable products that deliver
value for money.

A Partnership Based on Synergy
Bajaj Allianz General Insurance offers technical excellence in all areas of General and
Health Insurance as well as Risk Management. This partnership successfully combines
Bajaj Finserv's in-depth understanding of the local market and extensive distribution
network with the global experience and technical expertise of the Allianz Group. As a
registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is
fully licensed to underwrite all lines of general insurance business including health
insurance.
Our Achievements
Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's
Investors Service, for Claims Paying ability. This rating indicates highest claims paying
ability and a fundamentally strong position.
Bajaj Allianz General Insurance has received the prestigious "Business Leader in General
Insurance", award by NDTV Profit Business Leadership Awards 2008. The company was
one of the top three finalists for the year 2007 and 2008 in the General Insurance Company
of the Year award by Asia Insurance Review.
OUR CORE VALUE

Bajaj Finserv Limited
Bajaj Finserv Limited has been recently demerged from Bajaj Auto Limited which is the
largest manufacturer of two and three-wheelers in India. As a promoter of Bajaj Allianz
General Insurance Company Ltd., Bajaj Finserv Ltd; has the following to offer:-
 Vast distribution network through its group companies.
 Knowledge of Indian consumers.
 Financial strength and stability to support the insurance business.
Allianz SE, Germany

Allianz SE is in the business of General (Property & Casualty) Insurance; Life & Health
Insurance and Asset Management and has been in operation for over 110 years. Allianz is
one of the largest global composite insurers with operations in over 70 countries. Further,
the Group provides Risk Management and Loss Prevention Services. Allianz has insured
most of the world's largest infrastructure projects (including Hong Kong Airport and
Channel Tunnel between UK and France), further Allianz insures majority of the fortune
500 companies. Besides being a large industrial insurer, Allianz has a substantial portfolio
in the commercial and personal lines sector, using a wide variety of innovative distribution
channels.
Allianz SE has the following to offer Bajaj Allianz General Insurance Company Ltd:-
 Set up and running of General insurance operations
 New and improved international products
One of the world's leading insurance companies
 More than 700 subsidiaries and 2 lac employees in over 70 countries worldwide
 Provides insurance to almost half the Fortune 500 companies
 Technology
Other similar businesses

The promoters have also incorporated a Life insurance Company in India, called Bajaj
Allianz Life Insurance Company Limited to provide life insurance solutions.
Visit Bajaj Allianz Life Insurance

FINANCIAL HIGHLIGHT
2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05
Particulars Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Millions Millions Millions Millions Millions Millions Millions Millions Millions
Gross Written 41094 36759 31294 27249 28662 25780 18033 12846 8561
Premium
Net Written 32031 26957 23105 19717 20066 17526 10398 6987 4793
Premium
Net Earned 29243 24747 21497 18842 18913 14154 8385 5864 3709
Premium
Net Incurred -21181 -19079 -17013 -13866 -13599 -9457 -5556 -4100 -2263
Claims
Net -991 -747 -404 -318 -238 188 786 622 419
Commissions
Management -7687 -6722 -6461 -5485 -5988 -5195 -3454 -2156 -1456
Expenses
Underwriting -617 -1777 -2193 -502 -727 -210 254 230 409
Results
Income from 4877 3726 2793 2207 2061 1896 895 520 389
Investments
Non
Recurring
-45 -9 20 93 164 -7 21 68 29
Investment
Income
Profit Before 4215 1940 619 1798 1498 1679 1170 818 770
Tax
Provision for 1265 -703 -186 -590 -546 -623 -417 -303 -299
Tax
Profit After 2951 1237 433 1208 952 1056 754 516 471
Tax

Claim's Ratio 72% 77% 79% 74% 72% 67% 66% 70% 61%
Commission 3% 3% 2% 2% 1% -1% -9% -11% -11%

Ratio
Management 26% 27% 30% 29% 32% 36% 41% 37% 40%
Expenses
Ratio
Combined 102% 107% 111% 104% 105% 102% 98% 96% 90%
Ratio
Return on 27% 14% 5% 16% 15% 23% 22% 23% 34%

Equity
Shareholder's 12553 9587 8356 7928 6725 5748 4116 2,767 1824
Equity
Assets Under 56818 46088 38523 27456 23683 20103 14305 7973 6127
Management
Number of 3582 3473 3654 3506 3973 3603 2540 1371 924
Employees
Best Insurance Company in the Private Sector – 2014

Bajaj Allianz General Insurance has won the award for "Best Insurance Company in the
Private Sector - General" by ABP News - Banking, Financial Services & Insurance
Awards.
The BFSI Awards 2014 recognizes the best performances of various Banking, Finance &
Insurance Services. The award focuses on the best practices in the BFSI Industry based on
their strategy, security, customer service, and the future technology challenges and
innovations. This award recognizes our organizational values and contribution.
Claims Awards Asia 2013

Bajaj Allianz General Insurance has won the Claims Awards Asia 2013 in the category
Claims Innovation of the Year in the Asia Pacific Region for its Tablet based claims
module application.

This award is instituted by Insurance Insight, a prominent Insurance magazine in Asia and
a part of Post, UK. Insurance Insight's Claims Club Asia, is an award that recognizes the
Asian general insurance claims and risk management sectors by rewarding the dedicated
teams and individuals for their achievements over the last 12 months.
General Insurance Company of the Year 2013

The Indian Insurance Awards 2013 was conducted by Fintelekt, part of SP Media Pvt Ltd,
a specialist in research, consulting and conferences in the financial services industry.
Claims Service Company of the Year 2013

Personal Lines Growth Leadership Award Year 2013

General Insurance Provider of the Year

General Insurance Provider of the Year at the Money Today FPCIL Awards 2012
Best General Insurance Provider- Private Sector

Best General Insurance Provider- Private Sector at the CNBC TV18 India Best Bank and
Financial Institution Award FY 11 and 12.

Putting Motor Insurance on the right track
One important parameter that has always differentiated insurers is service. Be it during the
period when the tariff based regime was going out of phase or now when a new de-tariff
scenario is emerging, this is one parameter which has always remained the same. At Bajaj
Allianz, we have always believed in delivering quality service to our clients. This
philosophy has spawned several initiatives. Some of them are as below:
1. Bajaj Allianz pioneered the cashless model in motor repair claims by tying up with
over 1800 garages/ workshops across India. This enabled our customers to simply drive-
in and drive-out of a garage after paying the nominal difference of admissible claims
2. Bajaj Allianz is still the only company to automate SMS alerts on the progress of the
claims status to its customers. Four to five SMS alerts are sent from the time the claim
is registered to the issuance of final claim cheque. This unique service is being offered
only by Bajaj Allianz General Insurance to all its motor insurance clients (provided
they have registered their cell numbers). It delivers total transparency to claims process
3. Bajaj Allianz Mobile Settlement (BAMS) was recently launched whereby the claim
assessment and payment is made at the customer's doorstep. The process followed is
simple - the customer intimates a claim, the in-house service engineer armed with all
necessary accessories reaches the customer's doorstep to assess and pay the claim
cheque onthe-spot. In addition to this, suitable advice is given to choose good
workshop/ garage and to help resolve the problem then and there itself. This approach
shortens the claim settlement process and helps in addressing the proble m at an
emotional level also. In most of the cases, the claim cheque is issued on the same day.
The service has been rolled out in all the prominent cities where the company has its
offices.
4. Bajaj Allianz Drive-In Centre (BADIC), is yet another initiative launched by the
company. Here, the customer is required to drive the vehicle to the designated office
where the in-house service engineer assesses the claim and the claim cheque is paid
instantly.In both of these services, the customers are at an advantageous position. They
get the claim instantly and besides that they have the liberty to bargain the best price
with a workshop or garage of their choice
5. Bajaj Allianz offers adequate assistance services to its customers during the claim
process. They can call the 24x7 call centre for on-the-spot assistance. Depending on the
nature of the claim, assistance is accordingly provided to help with and coordinate any

claim procedure that the customer may require on the spot.
6. The company ensures total transparency throughout the claim settlement procedure. In
case of a cashless settlement, a Claim Amount Confirmation (CAC) sheet is sent to the
customer to inform the rates charged under various heads. This is to ensure that the
customer is not conned by the workshop/ garage. In case the workshop/ garage refuses
cashless mode, the company makes an up-front payment of at least 75% of the
admissible claim. The balance is paid after the survey is completed

ICICI PRUDENTIAL LIFE INSURANCE
OVERVIEW
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial services
group headquartered in the United Kingdom. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of March 31, 2013) with
ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the financial
year 2013, the company has garnered total premium of Rs 13,538 crores. The company has
assets held over Rs. 77,393.09 crores as on December 31, 2013.
For the past decade, ICICI Prudential Life Insurance has maintained its dominant position
(on new business retail weighted basis) amongst private life insurers in the country, with a
wide range of flexible products that meet the needs of the Indian customer at every step in
life.
Vision & Values

Our vision:
To be the dominant Life, Health and Pensions player built on trust by world-class people
and service. This we hope to achieve by:
 Understanding the needs of customers and offering them superior products and
service
 Leveraging technology to service customers quickly, efficiently and conveniently
 Developing and implementing superior risk management and investment strategies
to offer sustainable and stable returns to our policyholders
 Providing an enabling environment to foster growth and learning for our employees
 And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundaryless, Humility and Passion. Each of the values
describe what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
Our values :
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundaryless, Humility, and Passion. These values shine forth in all we
do, and have become the keystones of our success.
AWARDS
ICICI Prudential Life Insurance has been pronounced winner in the 2nd Excellence
Awards and Recongnition for Shared Services, 2012. We won the award in the category -
Shared Services in India - Insurance Domain.
These awards have been instituted by All India Management Association (AIMA) & Delhi
Management Association (DMA), in collaboration with Rvalue Consulting as knowledge
partners, to honour,recognize & promote trasformative strategies for shared services.
Bronze Effie in the Financial services category for the campaign "Life Insurance in just 10
Minutes"
ICICI Pru iCare has been voted the Product of the Year 2012*
*A survey by Nielsen for Insurance Category that included 30,000 people
ICICI Prudential Life Insurance has been pronounced winner in the 2nd Excellence
Awards and Recongnition for Shared Services, 2012. We won the award in the category -
Shared Services in India - Insurance Domain.
These awards have been instituted by All India Management Association (AIMA) & Delhi
Management Association (DMA), in collaboration with Rvalue Consulting as knowledge
partners, to honour,recognize & promote trasformative strategies for shared services.

Bronze Effie in the Financial services category for the campaign "Life Insurance in just 10
Minutes"
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, in association with Celent, a research and consulting firm.
ICICI Prudential Life Insurance has been awarded the prestigious award for the Best
Leading Private Player Life Insurance 2011 at the CNBC TV18 Best Bank and Financial
Institution Awards for FY11.
PROMOTERS
ICICI Bank (taken from the press release of ICICI Bank)
ICICI Bank Limited (NYSE:IBN) is India's one of the leading private sector bank and the
second largest bank in the country, with consolidated total assets of US$ 111 billion at
June 30, 2012. ICICI Bank's subsidiaries include India's one of the leading private sector
insurance companies and among its largest securities brokerage firms, mutual funds and
private equity firms. ICICI Bank's presence currently spans 19 countries, including India.
About Prudential Plc (taken from the press release of Prudential Plc)
Prudential plc is incorporated in England and Wales, and its affiliated companies constitute
one of the world's leading financial services groups. It provides insurance and financial
services through its subsidiaries and affiliates throughout the world. It has been in
existence for over 160 years and has £363 billion in assets under management (as at 30
June 2012).

Literature Review

LITERATURE REVIEW
The insurance industry has the highest new customer acquisition costs of any industry,
According to "Rough Notes" magazine. This makes customer retention one of the top
priorities of any insurance company that wants to remain competitive. Insurance
companies accomplish this by creating a personal connection to customers, pricing
competitively and trying to sell each customer multiple policies to make it a more complex
decision to switch insurance providers.
Swift 2002; stated that companies can gain many benefits from CRM implementation.
Such as lower cost of acquiring customers, to acquire so many customers to preserve a
steady volume of business. CRM can help to retain the customers for long range. Apart
from this he stated, the cost regarding selling are reduced owing to existing customers are
usually more responsive. In addition with better knowledge of channels and distributions,
the relationship becomes more effective as well as that cost for marketing campaign is
reduced. According to Maoz 2003, Research director of CRM for the Gartner group, CRM
is a strategy by which companies optimize profitability through enhanced customer
satisfaction and retention. “CRM is a business strategy, not a technology, says Maoz.”It
involves process, technology and people issues. All three together really captures what
CRM is. The Indian insurance industry is in a booming phase. In the post-liberalization
phase, due to the opening up of industry for private players, there is greater exposure to
various products and customers have started demanding for world-class facilities and
services. This has forced the companies to rethink on their customer service strategy by
adopting a customer-centric approach. According to a report by independent market
analyst data monitor, the insurance sector is all set to become a front-runner in the adoption
of Service Oriented Architecture (SOA).
Wilson 2001; claimed that organizations are becoming increasingly aware of the
importance of moving closer to their customers and extending their enterprise units. CRM
objectives are to; improve the process to communication with the right customers,
providing the right offer for each customer, providing the right offer through the right
channel for each customer, providing the right offer at the right time for each customer. By
doing this, organizations can receive the following benefits; like increasing customer

retention and loyalty, higher customer profitability, creating value for customer. Greenberg
2001 stated that the following objectives seem reasonable for an organization
implementing CRM such as; it focuses the sales force on increasing organizational
revenues through better information and better incentives to drive top line growth, it
improves global forecast and pipeline management to improve organization.
As CRM evolves richer definitions are emerging with an emphasis on the goals, logistics
and complex character of CRM . According to light (2001) CRM evolved from business
processes such as relationship marketing and the increased emphasis on improved
customer retention through the effective management of customer relationship.
Relationship marketing emphasizes that customer retention affects company profitability in
that it is more efficient to maintain an existing relationship with a customer than create a
new one.
Furthermore peppard (2000) suggests that technological in global networks, convergence

and improved interactivity are key to explain the growth of E-Business and CRM .the
increasing use of digital technologies by customers particularly the internet is changing
what is possible and what is expected in terms of customer management. The appropriate
use of automation technologies such as interactive voice response system and web based
frequently asked pages could be popular with customers and highly cost effective. peppard
said that in reality CRM is a complex combination of business and technological factors
and thus strategies should be formulated accordingly.
Although decision made during this phase are critical to the eventual success or failure of a
CRM initiative , there is a paucity of research exploring these adoption issues (markus and
tanis 2000) classified CRM research directions into:
 concept level
 model level
 process level.
The review of literature ranges from 1972 to 2013 includes around 1000 reference. It was
the pioneering working of the researchers that provided the much needed impetus in the
process of understanding and formulating the sector wise CRM comparison parameter for
analysis.

Another measure is Bartlett’s test of sphericity which measure the presence of correlations
among the variables. It provide the statistical probability that the correlation matrix has
significant correlations among at least some of variables. Thus a significant Bartlett’s test
of sphericity is required because we could proceed with the factors such as CRM goals
,CRM principles technology consideration, technology implementation effects, customer
satisfaction , CRM benefits before and after CRM implementation Several scholars
studying buyer-seller relationships have enriched the literature with relevant CRM
concepts and constructs.
(Gundlatch and Cadotte 1974; Doney and Cannon 1997; Kumar and Jha 2002; Smith
2004). A compelling business case and success stories continue to attract business interest
and investment in CRM. These works focused on the adoption phase (Rapp and Collins
1991) of a technology based innovation in CRM where decision- making and planning
activities are conducted to address “whether, why, and how” to implement the innovation
in CRM initiatives (Merlin 2001).
Although decisions made during this phase are critical to the eventual success or failure of
a CRM initiative, there is a paucity of research exploring these adoption issues (Markus
and Tanis 2000). Wilson (1995) classified CRM research directions into concept level,
model level and process research.
Several scholars have enriched this literature through model level research (Liljander and
Strandvik 1996; Smith 1997; Donney 2000), concept level research (Anderson and
Hakanson 1994; Berson 1996; Light 1998; Han 2000) and process level research
(Anderson and Narus 2002; Schurr and Oh 2003). Several studies have been conducted on
the impact of CRM programmes on the performance of banks, hospitals and insurance
sector (Aulakh and Kotabe 1997; Nevin 1998; Souder 2001; Zahay 2004).
Previous researchers have addressed the intellectual alignment (strategy, structure, goal
and principles), social alignment (culture, customer interaction and domain knowledge)
and technology alignment (IT capability and Knowledge Management) of CRM
implementation (Mulligan 1990; Payne 1994; Reich and Benbasat 2000; Battista 2000).

This body of research generally finds that these CRM alignments “enable a firm to
maximize its IT investments and achieve harmony with its business strategies and plans,
leading to greater profitability”. Several authors have established that by looking at the
relationship development process, one could identify which CRM constructs would
actively impact the outcome considerations and which of them would have latent influence
and this will help in establishing a comparison of CRM parameters (McKie 1992;
Simonian and Ruth 1996; Sodano1996; Wilson 2006) and insurance sector is no exception.
The review of literature ranges from 1972 to 2006 and includes around 245 references. It
was the pioneering work of Rudi (2003), Hewson (2003), Crook (2002), Schmitt (2006)
and Schellong (2005) that provided the much needed impetus in the process of
understanding and formulating the sector wise CRM comparison parameters
Most of the academics discussing “CRM Systems Implementation” were inspired with
several researches that prove low percentage of successful CRM implementation cases.
Bygstad, for example, draws on Tafti, (2002) research that revealed 70% failure rate of
CRM projects, as did Bull 2003 citing Giga,(2001) research. On the other hand statistics
show growing expenditures on corporate CRM and big growth rate of CRM software sales
(Bull 2003, Rigby, 2004).
Citing Marble (2000) paper that suggests an implied dynamic between user function and IS
function as two main parties engaged in IS implementation, Corner and Hinton (2002)
argue that, at least, in CRM system implementation dynamic is much more complex and
engage other parties, such as extra-company contributors and project managers. These
extra parties, in tandem with higher sensitivity of organizational politics surrounding sales
and marketing or customer service systems, require consideration of new risks, resulting
from this complexity.(Corner and Hinton, 2002)
Gefen (2002) add to this complexity by comparing CRM to ERP systems and arguing that
customer relationship activities are not as standardized as other business activities, such as
accounting or procurement. Hence CRM implementation calls for much more complex and
flexible approach. (Gefen, 2002).

Another specifics of CRM that is brought forward by Rygielski, Wang and Yen (2002),
calls for increased responsibility by CRM implementers in terms of privacy rights. The
authors urge 3 implementers to balance between respect towards the privacy of consumers
and economic gains from using CRM and establish privacy policy to make sure the CRM
doesn’t gain opposite results. (Rygielski, Wang and Yen, 2002)
The diversity of users in CRM systems implementation is also emphasized by Fjermestad

and Romano (2003), who claim that compared to homogeneous users of other traditional
information systems, users of CRM may include all levels of management, permanent and
temporary field customer service representatives and customers themselves. Hence the
CRM should be designed to cross much more organizational boundaries and contain
broader functionalities that would be used by both known and unknown users. (Fjermestad
and Romano, 2003). In a hope to help practitioners to adopt better implementation
procedures, Corner and Hinton build their idea by examining eight sets of CRM specific
implementation risks asserted by Hewson and McAlpine (1999), differing them from other
IS implementations. Hewson and McAlpine (1999) present 25 risks grouped in eight sets
that cover quite wide range of aspects of IS implementation including users, processes,
speed of change, politics, need for mobility and need for change, funding and reliance on
methodology.
The case study that Corner and Hinton (2002) used to examine the theoretical risks is
based on a software developer company that adopted and used CRM. The paper however
concludes that most of the risks mentioned by Hewson and McAlpine were not viable and
that other areas need to be examined that can undermine the CRM implementation process
as well as, need to discover how various risk categories may impact each other. (Corner,
Hinton 2002)The paper also provides with quite valuable insight into technological,
economic and organizational risks to be considered while implementing a CRM system,
however its controversial conclusion leaves little hope for usage by practitioners as most of
the risk

Objectives & Scope of Study

OBJECTIVE OF THE STUDY
 To analyze the customer relationship strategies adopted by insurance companies

 To identify the factor that result in retention of customer
 To study how customer relationship management helps in building better service
management
SCOPE OF THE STUDY
This study is conducted in DEHRADUN city where major insurance companies like
BAJAJ ALLIANZ AND ICICI PRUDENTIAL have been taken. They have managed
their customer relationship through E-CRM

Theoretical Perspective

THEORETICAL PERSPECTIVE
Customer Relationship Management – An Overview

CRM is an acronym for ‘Customer Relationship Management’. It’s a set of strategies,
processes, metrics, organizational culture and technology solutions that enhance an
organization's ability to see the differences in its present & prospective customers, track
new opportunities to better serve customers and act, instantly and profitably, on those
differences and opportunities. Recently CRM has taken a center stage in the business
world with businesses concentrating on saving money and increasing profits by redefining
internal processes and procedures. It costs a company dramatically less to retain and grow
an existing client, than it does to court new ones. The aim of CRM is to optimize the use of
technology and human resources.
CRM services consist of the following major segments:

 Consulting services
 Implementation services
 CRM Outsourcing services
 Training services1
CRM tries to achieve a ‘single integrated view of customers’ and a ‘customer centric
approach’ [Roberts-Witt, 2000].
Components of CRM
Customer: The customer is the only source of the company’s present profit and future
growth. However, a good customer, who provides more profit with less resource, is always

scarce because customers are knowledgeable and the competition is fierce. Sometimes it is
difficult to distinguish who is the real customer because the buying decision is frequently a
collaborative activity among participants of the decision-making process. Information
technologies can provide the abilities to distinguish and manage customers. CRM can be
thought of as a marketing approach that is based on customer information.
Relationship: The relationship between a company and its customers involves continuous
bidirectional communication and interaction. The relationship can be short-term or long-
term, continuous or discrete, and repeating or one-time. Relationship can be attitudinal or
behavioural. Even though customers have a positive attitude towards the company and its
products, their buying behaviour is highly situational. For example, the buying pattern for
airline tickets depends on whether a person buys the ticket for their family vacation or a
business trip. CRM involves managing this relationship so it is profitable and mutually
beneficial. Customer lifetime value (CLV), discussed in Appendix C, is a tool for
measuring this relationship
Management: CRM is not an activity only within a marketing department. Rather it

involves continuous corporate change in culture and processes. The customer information
collected is transformed into corporate knowledge that leads to activities that take
advantage of the information and of market opportunities. CRM required a comprehensive
change in the organization and its people2.
Definitions of CRM:
1. According to Cap Gemini Ernst & Young, a leading management consulting firm,
CRM is defined as “a company's ability to continuously maximize the value of its
customer franchise by effectively allocating scarce resources to specific customers
segments in those areas viewed as having a significant impact on the profit –
impacting behaviours of customers”.
2. The business strategy, process, culture, and Technology to enable Organizations to
optimize revenue and increase shareholder value by better understanding the needs
of customers.
3. It is a strategy used to learn more about customers' needs and behaviour in order to
develop stronger relationships are at the heart of business success. There are many

technological components to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more useful way to think about CRM is as a
process that will help bring together lots of pieces of information about customers,
sales marketing effectiveness, and responsiveness and market trends.
4. Customer Relationship Management is the establishment, development,
maintenance and optimization of long-term mutually valuable relationships
between consumers and organizations. Successful CRM focuses on understanding
the needs and desires of the consumer and is achieved by placing these needs at the
heart of the business by integrating them with the organization's strategy, people,
technology and business processes.
5. CRM is about managing data to better understand and serve customers. CRM
Application utilizes information from a wide variety of sources: point-of-sale data,
marketing demographics, product information, marketing campaign data, Web Site
analytics, and so on. A properly integrated CRM platform will blur the line
between online and offline businesses functions or between your company’s supply
chain and your customers.
What is the Goal of CRM?

The idea of CRM is that it helps business use technology and human resources to gain
insight into the behaviour of customers and the value of those customers. If it works as
hoped, a business can:
 Provide better customer service
 Cross sell products more effectively
 Help sales staff close deals faster
 Simplify Marketing and sales processes
 Discover new customers
 Increase customer Revenues
CRM is a process or methodology used to learn more about customers' needs and
behaviors in order to develop stronger relationships with them. CRM is as a process that
will help bring together lots of pieces of information about customers, sales, marketing
effectiveness, responsiveness and market trends. CRM involves all aspects of interaction
between a company and its customers. An organization can use different CRM methods to
promote their products and services to acquire new customers.

Propositions formed in this study are that the dependency on human processes in CRM is
affected by
(1) Customer emotional needs;
(2) The need for tacit customer information;
(3) Employees’ experience;
(4) The organizational culture9.
Key Elements of CRM

CRM or Customer Relationship Management is a corporate strategy composed of
applications, technology and products that fulfill three essential requirements:
 To give your enterprise a 360° view of each customer for consistent and unified
contact with that customer whenever anyone anywhere in the enterprise deals with
that customer. This knowledge increases the opportunities for sales and the
effectiveness of customer service.
 To enable your customers to have a consistent view of your enterprise, regardless
of the way the customer contacts you. This improves customer satisfaction and
customer retention.
 To enable front office staff to perform sales, service and marketing tasks more
efficiently as a team, increasing expertise and reducing costs.
Customer Focus in Banking Industry: The emerging scenario

Banking in India has witnessed remarkable changes and development since the onset
process of liberalization, globalization, and privatization. The entry of new private sector
banks with the state-of-the art technology and lean structures has forced the old public
sector banks to respond to the new challenges with aggressive restructuring measures. As
the intense competition becomes a way of doing a business, it is the customer who calls the
shot in deciding nature of product and services offered in market. The customers are
demanding, dominant and selective. In fact perception and expectation of customers have
undergone a sea change with the availability of banking services to them at their doorstep
through the help of technology.

Public Sector and Private Sector banks:
The Indian banking sector continues to witness domination by the public sector banks.
Over the last decade the banking sector has witnessed the entry of many new private sector
banks resulting in momentous changes. A noteworthy aspect of the private sector banks is
their ability to command a proportionately higher share of net profit even though they have
low share in terms of customer deposits. Private sector banks are oriented toward niche
banking, unlike public sector banks which meet the mass banking requirements.
Introduction to Banks under study:

The aim of CRM initiatives is to retain the right customers and a key determinant of
customer retention is customer satisfaction. The objective is to ensure that customers are
satisfied to ensure their continued patronage. Before going in for a purchase, customers
form an idea with regard to the value that they expect from the product or service.
Thereafter, customers check whether the product or service has delivered value as per their
expectations or not and decide on the satisfaction level. So, keeping this thing in mind this
research has been carried out. The brief introduction of selected banks including special
services provided for maintaining customer relations is as described below:
A. ICICI Bank:
ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 77
billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for
the nine months ended December 31, 2009. The Bank has a network of 1,690 branches and
about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range
of banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset
management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. UK subsidiary has
established branches in Belgium and Germany. In addition to the bank, the retail initiatives

include Prudential ICICI AMC, ICICI Personal Financial Services, ICICI Capital Services,
and ICICI web trade, Prudential ICICI Life Insurance, ICICI Lombard General insurance.
This apart the retail initiatives also include a plethora of web based businesses including
city portals and various other utility sites such as billjunction.com,
icicimoneymanager.com, and magiccart.com, among others.
B. HDFC Bank:
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI's liberalization of the Indian Banking Industry in
1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995. Currently has an nationwide network of
1,725 Branches and 4,000 ATM's in 771 Indian towns and cities.
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth
in profitability, consistent with the bank's risk appetite.
The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.
C. State Bank of India:

State Bank of India (SBI) was nationalized in July 1955 under the SBI Act of 1955. Seven
banks of SBI formed subsidiary and was nationalized on 19th July, 1960. The State Bank
of India is India's largest commercial bank and is ranked one of the top five banks
worldwide. It serves 90 million customers through a network of 9,000 branches and it
offers either directly or through subsidiaries a wide range of banking services. The State
Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size,

number of branches, market capitalization and profits is today going through a momentous
phase of Change and Transformation – the two hundred year old Public sector behemoth is
today stirring out of its Public Sector legacy and moving with an agility to give the Private
and Foreign Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc. – each one of these
initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge
technology and innovative new banking models, to expand its Rural Banking base, looking
at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in
the next two years.
It is also focusing at the top end of the market, on whole sale banking capabilities to
provide India’s growing mid / large Corporate with a complete array of products and
services. It is consolidating its global treasury operations and entering into structured
products and derivative instruments. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external commercial borrowings in the
country. It is the only Indian bank to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern customer friendly
processes to help improve the total customer experience. With about 8500 of its own
10000 branches and another 5100 branches of its Associate Banks already networked,
today it offers the largest banking network to the Indian customer. The Bank is also in the
process of providing complete payment solution to its clientele with its over 8500 ATMs,
and other electronic channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centres spread all over
the country the Bank is continuously engaged in skill enhancement of its employees. Some
of the training programs are attended by bankers from banks in other countries.
The bank is also looking at opportunities to grow in size in India as well as internationally.
It presently has 82 foreign offices in 32 countries across the globe. It has also 7
Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors,

SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is
in the process of raising capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets, attitudes
and take all employees together on this exciting road to Transformation. In a recently
concluded mass internal communication program termed ‘Parivartan’ the Bank rolled out
over 3300 two day workshops across the country and covered over 130,000 employees in a
period of 100 days using about 400 Trainers, to drive home the message of Change and
inclusiveness. The workshops fired the imagination of the employees with some other
banks in India as well as other Public Sector Organizations seeking to emulate the
programme.
D. Bank of Baroda:
It all started with a visionary Maharaja's uncanny foresight into the future of trade and
enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with
a paid up capital of Rs 10 Lacs started the legend that has now translated into a strong,
trustworthy financial body, THE BANK OF BARODA. It has been a wisely orchestrated
growth, involving corporate wisdom, social pride and the vision of helping others grow,
and growing itself in turn.
The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a
bank of this nature will prove a beneficial agency for lending, transmission, and deposit of
money and will be a powerful factor in the development of art, industries and commerce of
the State and adjoining territories."
It has been a long and eventful journey of almost a century across 25 countries. Starting in
1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate
Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate
governance. It is a story that needs to be shared with all those millions of people -
customers, stakeholders, employees & the public at large - who in ample measure, have
contributed to the making of an institution.

Research Methodology

RESEARCH METHODOLOGY
Research design stands for advance planning of methods to be adopted for collecting the
relevant data and the techniques to be used in their analysis keeping in the view the
objective of research and the availability of time and money research design in fact has a
great bearing on reliability of result arrived.
The research study carried out is descriptive and diagnostic in nature. Descriptive rearch
includes surveys and fact finding and enquiries of different kinds. The major purpose of
these types of rearch is description of states of affairs as it exits at present .the main
characteristic of this method is that the researcher has no control over the variables he can
only report what has happened or what is happening
Data Source: the study will be based on primary data as well as on secondary data
Primary Data: data collected from respondents of insurance organization
Research Instrument: Questionnaires
DATA COLLECTION METHOD:

PRIMARY DATA : for collecting primary data these are main two important methods
*NON-probability sampling and convenience sampling
*Questionnaires method
SECONDARY DATA: will be collected from websites and magazines
SAMPLING METHOD: Non probability method
CONVENIENCE SAMPLING METHOD: convenience sampling attempts to obtain a

sample of convenient elements .often respondent are selected because they happen to be in
the right place at the right time
Contact: personally
Sample size: 100
50: ICICI
50: Bajaj Allianz
Universe: DEHRADUN CITY
STATISTICAL TOOL: factor analysis and SPSS

HYPOTHESIS
H0: customer relationship management in insurance sector doesn’t helps in developing
better service management
H1: customer relationship management in insurance sectors helps in developing better
service management

Data Analysis & Interpretation

DATA ANALYSIS AND INTERPRETATION
Q.1.Do you agree that your insurance company offer variety of products?
ICICI PRU BAJAJ ALLIANCE
Yes 90 80
No 10 20
90
90 80
80
70
60
Yes
50
40 No
30 20
20 10
10
0
INTERPRETATION
45% of the respondents from icici and 35 respondents from Bajaj Allianz are agree that
company offer variety of the products where as only 5% respondents from icici and 15%
respondents from Bajaj Allianz are not agree. Both organizations offer the variety of the
products such as:
 Health insurance
 General insurance
 Life insurance
 Motor insurance etc.

Q.2.Did you get sufficient information about the customer while selling?
Yes 80 70
No 20 30
80
80 70
70
60
50
40 30
30 20
20
10
0
Yes No
INTERPRETATION
32 %of the respondents from icici and 28% from bajaj are agree that they get sufficient
information where as only 18% respondents from icici and 22% of respondents from bajaj
Allianz are not agree. This information is collected from the past purchase of the customer
crm helps in the lead generation it helps to advisors to know about the buying behavior of
customer, income of the customer etc. In case of new customer the sufficient information is
not available

Q.3.How many times you have contacted existing customers?
ICICI Bajaj
Once a week 20 15
Once a month 30 25
once in 6 month 20 20
Once in a year &above 15 30
As and when required 15 10
30 30
30 25
25 20 20 20
20 15 15 15
15 10
10
5
0
Once a week Once a once in 6 Once in a As and when
month month year required
&above
ICICI Bajaj
INTERPRETATION
20 respondents from ICICI are agreed that they contact their customer once in a week 30
respondents from Bajaj are agreed for once in a month, 10% respondents from ICICI are
agreed for Once in a Six Month and 20% Respondents from ICICI are agreed as and when
required. Whereas 20% respondent from Bajaj are agreed that they contact their customers
once in a year and Above.

Q.4. Which CRM Strategy is adopted by your organization?
ICICI BAJAJ
Marketing and customer service 10 5
CRM in customer contact centers 5 10
Sales force transformation 5 10
CRM in B2B market 10 10
Mobile sales automation 17 55
Contact center optimization 53 10
55 53
60
50
40 17
30 10 5
20 5 10 5 10 10 10 10
10
0
ICICI BAJAJ
INTERPRETATION
48% of the respondents from ICICI are agreed that company has adopted contact center
optimization. Its Bombay call centre handles 25 different products for 10 million
customers. The call centre provides an opportunity to shift the qualitative nature of the
relationship between company and their customer to a new level 35% of respondents from
BAJAJ Allianz said that they have adopted the Mobile sales automation strategy. Pay
online renewal premium, fund switch and apportionment Download account statement,
make partial withdrawal, download IT certificates, view all pervious transaction details,
download pervious online payment receipt, change address request .Where as 5
respondents from bajaj are agreed Marketing and customer service CRM in customer
contact centers 7 Bajaj Sales force transformation 3 Bajaj CRM in B2B market 2 ICIC

Q5.which CRM strategies is more effective in customer retention?
ICICI BAJAJ
Marketing and customer service 10 10
CRM in customer contact centers 10 20
Sales force transformation 20 15
CRM in B2B market 10 5
Mobile sales automation 14 45
Contact center optimization 36 5
45
50 36
40
30 20 20
15 14
20 10 10 10 10
5 5
10
0
ICICI BAJAJ
INTERPRETATION
Marketing and customer service Bajaj 5
CRM in customer contact centers Bajaj 5
Sales force transformation Bajaj 10
CRM in B2B market ICICI 15
Mobile sales automation Bajaj 30
Contact center optimization ICICI 35
5 respondents from Bajaj are agreed that Marketing and customer services CRM strategies
is more effective in customer retention 5% Respondents from Bajaj are agreed that CRM
in customer contact centers and 10% from Bajaj agreed sales force transformation and 30%
respondents from Bajaj are agreed that Mobile sales automation CRM strategies is more
effective in customer retention. 15% respondents from ICICI are agreed that CRM in B2B
Market and 35% respondents from ICICI are agreed that Contact centre optimization.

Q6.How does the company keeps in touch with the customers ?
ICICI BAJAJ
SMS 70 65
Email 20 30
greetings 10 5
Chart Title
70
65
70
60
50
40 30 ICICI
30 BAJAJ
20
20 10
5
10
0
SMS Email greetings
INTERPRETATION
SMS 38 30
Email 10 10
Greetings 2 10
38% respondents from ICICI and 30% respondent from Bajaj are agreed that the company
keeps in touch with the customers through SMS facility. whereas 10% respondent from
ICICI and 10% of respondent from Bajaj are agreed that the company keeps in touch with
the customers. 2% respondents from ICICI and 10 % respondent from Bajaj are agreed that
the company keeps in touch with the customers

Q7. Do you take feedback from your customers?
ICICI BAJAJ
YES 90 80
No 10 20
90
90 80
80
70
60
YES
50
40 No
30 20
20 10
10
0
ICICI BAJAJ
INTERPRETATION
47% of the respondents from ICICI and 43% of respondents from BAJAJ are agreed that
they take feedback from customer and 3 of respondents from ICICI and 7% of respondents
from BAJAJ agreed that the they don’t take the feedback from customer

Q8. Do you customize your product or services according to the customer?
ICICI BAJAJ
YES 75 85
NO 25 15
85
90
75
80
70
60
YES
50
40 NO
25
30
15
20
10
0
ICICI BAJAJ
INTERPRETATION
47% of the respondents from ICICI and 38% of respondents from Bajaj Allianz are agree
that they customize product or services according to the customer and 3% respondents
from ICICI and 12% respondents from BAJAJ ALLIANZE were not agreed that they
customize their product.

Q9. How much is the role of computers in serving the customers?
a) Plays a big role 75
b) Not much role to play 20
c) No role to play 5
ICICI Bajaj
46
26
14
10
2 2
Plays a big role Not much role to No role to play

play
INTERPRETATION
Plays a big role 46 26
Not much role to play 2 14
No role to play 2 10
46% of respondent from ICICI and 26% from Bajaj are agreed that the computers plays a
big role in serving the customers where as 2% of respondents from ICICI and 14% from
Bajaj are Agreed that computers has not much role to play in serving the customers. 2%
respondent from ICICI and 10% from Bajaj are agreed computer has no role to play in
serving the customers.

Q10. Do you have centralized database for customer information?
.. ICICI BAJAJ
Yes 80 70
No 20 30
80
80 70
70
60
50 Yes
40 30 No
30 20
20
10
0
ICICI BAJAJ
INTERPRETATION
46% of the respondents from ICICI and 44% respondents from the BAJAJ Allianz are
agreed and only 6% respondents from BAJAJ Allianz and 4% from ICICI are not agreed
that they have centralized database for customer information.

Q11. Do you get proper training for CRM?
ICICI BAJAJ
Yes 80 20
b. No 20 80
80 80
80
70
60
50 Yes
40 No
30 20
20
10
0
icici bajaj
INTERPRETATION
48% of the respondents from ICICI and 32% of respondents from Bajaj Allianz have
agreed that they get proper training for CRM. Whereas 2% of respondents from ICICI
and 18% of respondents from Bajaj Allianz were not agreed that they get proper training
for CRM

Q12. Do you think the company is maintaining good customer relationship management
through its services?
ICICI BAJAJ
Yes 89 78
No 11 22
89
90 78
80
70
60
Yes
50
40 b. No
30 22
20 11
10
0
icici bajaj
INTERPRETATION
47% of the respondents from ICICI and 43%from Bajaj Allianz are agree that the
company is maintaining good customer relationship management through its services
where as only 3% respondents from icici and 7 % of respondents from Bajaj Allianz are
not agree. Both the companies have adopted different CRM strategies to maintain good
customer relationship management

Q13. How do you get customer comments and complaints?
ICICI BAJAJ
Face to face interview. 35 15
Toll free numbers, formal surveys. 45 50
Others means 20 35
50
50 45
45
40 35 35
35
30
25 20 icici
20 15
bajaj
15
10
5
0
Face to face Toll free Others means
interview. numbers, formal
surveys.
INTERPRETATION
25% of the respondents from ICICI and 35%from Bajaj Allianz are agreed for toll free
numbers and formal surveys to solve the customer comments and complaints and 10% of
respondents from ICICI and 10% from Bajaj Allianz are agree with other means where as
only 15% respondents from ICICI and 5% respondents from Bajaj Allianz agreed with
face to face interview for their complaints and comments. Both the companies have their
toll free numbers and their service advisors go through survey time to time. The other
means are websites customer can register their complaints on the website

Q14. Do you communicate results of your customer satisfaction surveys regularly
throughout the company?
ICICI BAJAJ
Yes 85 79
No 15 21
85
90 79
80
70
60
Yes
50
40 No
30 21
15
20
10
0
icic bajaj
INTERPRETATION
47% of the respondents from ICICI and 43% respondents from Bajaj Allianz are agreed
that they communicate results of your customer satisfaction surveys regularly throughout
the company. Whereas 3% of respondents from ICICI and 2% of respondents from Bajaj
Allianz are not agreed. Both the companies conduct meetings in monthly basis and the
monthly reports are been send to the corporate office to the senior level manager. Past
month report and other changes are discussed in these meetings.

Q15.Is there any improvement in customer response rate to the marketing activities?
ICICI BAJAJ
YES 79 86
NO 21 14
86
90 79
80
70
60
yes
50
40 no
30 21
14
20
10
0
icici bajaj
INTERPRETATION
25% of the respondents from ICICI and 15% of respondents from Bajaj Allianz are
agreed that that there is improvement in customer response rate where as 25% respondent
from icici and 35% respondents from Bajaj Allianz are not agreed that there is
improvement in customer response rate to the marketing activities. Both the companies
conduct several marketing activities programs in malls petrol pumps and other places but
customers hardly response for those activities.

Q16.CRM HELPS IN?
ICICI BAJAJ
reduce cost of service 20 16
effective use of customer`s data 20 14
up selling 50 50
cross selling 10 20
50 50
50
45
40
35
30
25 20 20 20
20 16 icici
14
15 10 bajaj
10
5
0
A. reduce B. effective C. up selling D. cross
cost of use of selling
service customer`s
data
INTERPRETATION
35% of the respondents from icici and 25 respondents from Bajaj Allianz are agree that
CRM helps in Up selling and 2% respondents from ICICI and 10% from Bajaj Allianz
agreed in cross selling where as 6% respondent from ICICI and 5% from Bajaj are agreed
that CRM help in effective use of customer’s data and 7% respondents from ICICI and
10% from Bajaj are agreed that CRM help in reduce cost of service.

Q17. Do you agree that mobile application helps in maintaining better customer
relationship management?
ICICI BAJAJ
YES 85 79
NO 15 21
85
90 79
80
70
60
yes
50
40 no
30 21
15
20
10
0
icici bajaj
INTERPRETATION
30% of the respondents from icici and 45% respondents from bajaj Allianz are agree that
mobile application helps in maintain better customer relationship management where as
only 20% respondent from ICICI and 5% respondent from Bajaj are not agreed that mobile
application helps in maintain Better customer relationship management.

Q18. Does the company policy provide better tax benefit as compared to its competitors?
ICICI BAJAJ
YES 78 87
NO 22 13
87
90 78
80
70
60
Yes
50
40 no
30 22
13
20
10
0
icici bajaj
INTERPRETATION
40% of the respondents from ICICI and 35% of respondents from Bajaj Allianz are
agreed that the company policy provide better tax benefit as compared to its competitors
where as only 10% respondent from ICICI and 15% respondents from Bajaj Allianz are
not agreed that the company policy provide better tax benefit as compared to its
competitors

Q19. On a scale of 1 to 5 kindly rate the following CRM strategies which are as follow?
S Strategies Least Less Not More Most
no consider considered considered considered considered
Marketing and
1
customer service
CRM in
2
customer
Sales force
contact
3
transformation
centers
CRM in B2B
4
market
Mobile sales
5
automation
Contact center
6
optimization

0
1
2
3
4
5
6
1
Marketing and customer service
2
CRM in customer contact centers
Customer Relationship Strategies

3
Sales force transformation
4
CRM in B2B market
5
Mobile sales automation
6
Contact center Optimization
Page 70
Least consider
Not considered
Most considere
Less considered
More considere
Findings of Study

FINDINGS
1. 45% of the respondents from icici and 35 respondents from Bajaj Allianz are agree
that company offer variety of the products where as only 5% respondents from
icici and 15% respondents from Bajaj Allianz are not agree.
2. 32 %of the respondents from icici and 28% from bajaj are agree that they get
sufficient information where as only 18% respondents from icici and 22% of
respondents from bajaj Allianz are not agree.
3. 20 respondents from ICICI are agreed that they contact their customer once in a
week 30 respondents from Bajaj are agreed for once in a month, 10% respondents
from ICICI are agreed for Once in a Six Month and 20% Respondents from ICICI
are agreed as and when required. Whereas 20% respondent from Bajaj are agreed
that they contact their customers once in a year and Above.
4. 48% of the respondents from ICICI are agreed that company has adopted contact
center optimization 35% of respondents from BAJAJ Allianz said that they have
adopted the Mobile sales automation strategy. Whereas 5 respondents from bajaj
are agreed Marketing and customer service CRM in customer contact centers 7
Bajaj Sales force transformation 3 Bajaj CRM in B2B market 2 ICIC
5. 5 respondents from Bajaj are agreed that Marketing and customer services CRM
strategies is more effective in customer retention 5% Respondents from Bajaj are
agreed that CRM in customer contact centers and 10% from Bajaj agreed sales
force transformation and 30% respondents from Bajaj are agreed that Mobile sales
automation CRM strategies is more effective in customer retention. 15%
respondents from ICICI are agreed that CRM in B2B Market and 35% respondents
from ICICI are agreed that Contact centre optimization.
6. 38% respondents from ICICI and 30% respondent from Bajaj are agreed that the
company keeps in touch with the customers through SMS facility. whereas 10%
respondent from ICICI and 10% of respondent from Bajaj are agreed that the
company keeps in touch with the customers. 2% respondents from ICICI and 10 %
respondent from Bajaj are agreed that the company keeps in touch with the
customers

7. 47% of the respondents from ICICI and 43% of respondents from BAJAJ are
agreed that they take feedback from customer and 3 of respondents from ICICI and
7% of respondents from BAJAJ agreed that the they don’t take the feedback from
customer
8. 47% of the respondents from ICICI and 38% of respondents from Bajaj Allianz are
agree that they customize product or services according to the customer and 3%
respondents from ICICI and 12% respondents from BAJAJ ALLIANZE were not
agreed that they customize their product.
9. 46% of respondent from ICICI and 26% from Bajaj are agreed that the computers
plays a big role in serving the customers where as 2% of respondents from ICICI
and 14% from Bajaj are Agreed that computers has not much role to play in serving
the customers. 2% respondent from ICICI and 10% from Bajaj are agreed computer
has no role to play in serving the customers.
10. 46% of the respondents from ICICI and 44% respondents from the BAJAJ Allianz
are agreed and only 6% respondents from BAJAJ Allianz and 4% from ICICI are
not agreed that they have centralized database for customer information
11. 48% of the respondents from ICICI and 32% of respondents from Bajaj Allianz
have agreed that they get proper training for CRM. Whereas 2% of respondents
from ICICI and 18% of respondents from Bajaj Allianz were not agreed that they
get proper training for CRM
12. 47% of the respondents from ICICI and 43%from Bajaj Allianz are agree that the
company is maintaining good customer relationship management through its
services where as only 3% respondents from icici and 7 % of respondents from
Bajaj Allianz are not agree. Both the companies have adopted different CRM
strategies to maintain good customer relationship management
13. 25% of the respondents from ICICI and 35%from Bajaj Allianz are agreed for toll
free numbers and formal surveys to solve the customer comments and complaints
and 10% of respondents from ICICI and 10% from Bajaj Allianz are agree with
other means where as only 15% respondents from ICICI and 5% respondents from
Bajaj Allianz agreed with face to face interview for their complaints and comments
14. 47% of the respondents from ICICI and 43% respondents from Bajaj Allianz are
agreed that they communicate results of your customer satisfaction surveys

regularly throughout the company. Whereas 3% of respondents from ICICI and 2%
of respondents from Bajaj Allianz are not agreed.
are agreed that that there is improvement in customer response rate where as 25%
respondent from icici and 35% respondents from Bajaj Allianz are not agreed that
there is improvement in customer response rate to the marketing activities.
16. 35% of the respondents from icici and 25 respondents from Bajaj Allianz are agree
that CRM helps in Up selling and 2% respondents from ICICI and 10% from Bajaj
Allianz agreed in cross selling where as 6% respondent from ICICI and 5% from
Bajaj are agreed that CRM help in effective use of customer’s data and 7%
respondents from ICICI and 10% from Bajaj are agreed that CRM help in reduce
cost of service.
17. 30% of the respondents from icici and 45% respondents from bajaj Allianz are
agree that mobile application helps in maintain better customer relationship
management where as only 20% respondent from ICICI and 5% respondent from
Bajaj are not agreed that mobile application helps in maintain Better customer
relationship management.
are agreed that the company policy provide better tax benefit as compared to its
competitors where as only 10% respondent from ICICI and 15% respondents from
Bajaj Allianz are not agreed that the company policy provide better tax benefit as
compared to its competitors
19. The customers of COMPANY are throughout India.
20. The needs of the customers are clearly defined and the products are customized
according to the needs of the customers.
21. Customer’s comments and complaints are welcomed and resolved quickly and
positively. Comments and complaints are taken through formal survey, and toll
free number .
22. The company conducts customer satisfaction surveys through its CRM Department.

Limitations of Study

LIMITATIONS OF THE STUDY
1. The employee’s attitude and opinion may change in future, so future relevance to
the study cannot be assured.
2. Reliability of the study depends greatly on the reliability of information provided
by the respondents. The personal bias of the respondents is another limiting factor.
3. The results obtained from the analysis would not be applicable to similar
organizations in the industry.
4. Lack of experience of Research.
5. Another difficulty was very limited time-span of the project.

Suggestions

SUGGESTIONS
 Better CRM Policy to be launched.

 New technology to be adopted for maintaining better Customer Relationship.
 With regard to insurance companies, consumers respond at different rates,
depending on the consumers characteristics. Hence Insurance companies should try
to bring their new product to the attention of potential early adopters.
 Due to the intense competition in the insurance market, the insurance companies
have to adopt better CRM strategies to attract more customers.
 Keeping the cost, quality and return on investment in tact is necessary in order to
tackle the competition.
 Life insurance products are taken mainly by middle and higher income group.
Hence they should be regarded as main targeted income groups. Life insurance
products which are suitable for lower income group should also be released so that
the market share increases.
 Return on investment, company reputation and premium outflow are most
preferred attributes that are expected by the respondents. Hence greater focus
should be given to these attributes.
 Insurance companies should ask for their consumer feedback to know whether the
consumers are really satisfied or dissatisfied with the service.
 Proper training for CRM should be implemented in the organization.
 The Company should give more Advisement about the product.
 The company should be flexible to bend its rules and procedures in the clients
favour
 The company can communicate and develop stronger customer bonding by
providing social and financial benefits.

Conclusion

CONCLUSION
Customer relationship management (CRM) is the key for success of organizations. CRM
will be able to manage the huge database of customers. Also will facilitates the online
customer interaction for the sake of quick access, better service and delivering right offers
at right time to the right customers.
CRM implementation is also a cost effective and time saving activity, which will provide
the long range solutions to the insurance players. Thus, the need to integrate customer data
from multiple channels, to increase sales force productivity (including agents), raising
service standard, customer satisfaction, loyalty of customers, CRM soft wares will be
always in demand.
When the organizations grow larger and larger, complexity increases in controlling
potential customers. Establishing a Systematic and well organized CRM systems calls for
understanding and analyzing the key success factors.CRM is a new business philosophy
based on trust and value; The core function of CRM is the value creation process;
Customer relationships develop over time; The role of global salespeople in the process is
that of both relationship builders and relationship promoters; and The basic premise of
CRM is to offer superior value to customers in an effort to turn prospects into customers,
customers into loyal customers, and loyal customers into partners.
Life Insurance companies want intermediaries who can deliver solutions to customers, not
simply products. They need intermediaries with technical knowledge and skills. They need
people with relationship, communication, and negotiation skills & Customer Relationship
Building skills. Improving CRM is an important part of the financial Sector especially in
life insurance sector. This can be measuring of customer satisfaction, Making customer
satisfaction targets part of the individual performance report, Extra focus on complaint
management and solving client problems, installing product approval processes (including
compliance and risk management) that guarantee careful information to the client.
To become more customer-centric and optimize customer lifetime value, financial services
providers need to consider the following five variables that create mutual value to the

customer and the services provider: 5C's Coverage, Cost, Convenience, and Care &
Compliance. To serve as a practical tool for managing customer relationships, the lifetime
value optimization we have to adopt these 5C's. The results of customer value optimization
can be highly rewarding. Life Insurance companies that have adopted this approach have
been able to achieve business growth and profitability in competitive environment.

Annexure

BIBLIOGRAPHY
Books:
 Kothari C.R., Research Methodology, New Delhi; New Age International
Publication, second edition.
Web pages:
www.google.com
1. Gefen D. and Ridings C.M., Implementation team responsiveness and user
evaluation of customer relationship management, journal of management
information system, 19, 47-69 (2002)
2. Burnett K., hand book of key customer relationship management, New Jersey:
prentice hall (2001)
3. Greenberg, P. CRM at the speed of light: capturing and keeping customers in
internet real time, mc- graw hill (2001)
4. Bayon T., Customer equity marketing, European management journal, 20, 213-224
(2002)
5. Bradshaw and brash C., Managing customer relationships in the e-business world;
international journal of retail and distribution management, 29, 520-530 (2001)
6. www.expresscomputeronline.com/indiatrends 02.shtml (2012)
7. http://business.maps of India.com/Indiainsurancemarket. html (2012)
8. http//en.wikipedia.org/wiki/insurance_in_india (2012)
9. www.researchhandmarkets.com (2012)
10. www.economywatch.com/India economy/India insurance (2012)
11. http://dilbert.iiml.ac.in/crm, (2012)
12. ww.crminfoline.com/crm-articles, (2012)

QUESTIONNAIRE
Q1. Personal Details
a. Name:____________________ e. Designation:_______________________
Q.2. Do you agree that your insurance company offer variety of products?
a. Yes b) No
Q.3.Did you get sufficient information about the customer while selling?
a. Yes b) No
Q.4. How many times you have contacted existing customers?

a. Once in a week b. Once in a month c. Once in 6 month
d. Once in a year & above e. As and when required
Q.5. Which CRM Strategy is adopted by your organization?

a. Resolving Customer Complaints b. Providing Customizing Information
c. Feedback Record d. Sharing of Information
Q6.which CRM strategies is more effective in customer retention?

a. Marketing and customer service b. CRM in customer contact centers
c. Appointments d. CRM in B2B market
e. Mobile sales automation f. Contact center optimization
Q7.How does the company keeps in touch with the customers ?

a. SMS b. Email c. Greetings
Q8. Do you take feedback from your customers?

a. Yes b. No
Q9. Do you customize your product or services according to the customer?

a. Yes b. No

Q10. How much is the role of computers in serving the customers?
a. Plays a big role b. Not much role to play c. No role to play
Q11. Do you have centralized database for customer information?

a. Yes b. No such database.
Q12. Do you get proper training for implementation of CRM?
a. Yes b. No
Q13. Do you think the company is maintaining good customer relationship

management through its services?
a. Yes b. No
Q14. How do you get customer comments and complaints?

a. Face to face interview b. Toll free numbers, formal surveys.
c. Others means
Q15. Do you communicate results of your customer satisfaction surveys regularly

throughout the company?
a. Yes b. No
Q16.Is there any improvement in customer response rate to the marketing activities?
a. Yes b. No
Q17. On a scale of 1 to 5 kindly rate the following CRM strategies which are as
follow?
S. No Strategies Least Less Not More Most
1 Marketing and customer service 10 10 59 19 12
2 CRM in customer contact centers 30 46 15 10 9
3 Sales force transformation 22 40 18 10 10
4 CRM in B2B market 10 49 1 21 19
5 Mobile sales automation 3 11 19 21 46
6 Contact center optimization 15 16 1 25 43

Q18.CRM HELPS IN?
a. Reduce cost of service b. Effective use of customer`s data
c. up selling d. cross selling
Q19. Do you agree that mobile application helps in maintaining better customer
relationship management?
a. Yes b. No
Q20. Does the company policy provide better tax benefit as compared to its
competitors?
a. Yes b. No

CRM-Prem Ranjan

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Project Report

Customer Relationship Strategies

Name: Prem Ranjan

In partial fulfillment of the requirements for the award of degree of

Post Graduate Diploma In

Date: Name: Prem Ranjan

Signature: Reg No: 201311589

Customer Relationship Strategies Page 2

Date: Signature of Guide

Customer Relationship Strategies Page 3

S. No. Description Page No

a. Bajaj & CRM 14

b. ICICI & CRM 15

c. Objectives & Need of CRM 17

4 Objectives & Scope of the Study 36

e. Key Elements of CRM 42

7 Data Analysis and Interpretation 50

Customer Relationship Strategies Page 4

Customer Relationship Strategies Page 5

Customer relationship management is an imperative measure in any service sector. It is the

Customer Relationship Strategies Page 6

Customer Relationship Strategies Page 7

Insurance is a complex product where personalized service-achieved through an intimate

Customer Relationship Strategies Page 8

HOW CAN CRM HELP INSURANCE COMPANIES?

CUSTOMER INFORMATION CONSOLIDATION- Instead of customer information

Customer Relationship Strategies Page 9

MARKETING ENCYCLOPEDIA- Central repository for products, pricing and

LEAD AND OPPORTUNITY MANAGEMENT- This enable organizations to

ACTIVITY MANAGEMENT- It helps managers to assign and track the activities of

OPERATIONAL INEFFICIENCY REMOVAL- CRM can help in strategy formulation

Customer Relationship Strategies Page 10

ENHANCED PRODUCTIVITY- CRM can help in enhanced productivity of customers,

CRM WITH BUSINESS INTELLIGENCE- Companies need to analyze the

How CRM Meets the Insurance Industries Needs

Customer Relationship Strategies Page 11

Improved customer service and support: An E-CRM system provides a single

Customer Relationship Strategies Page 12

FIVE KEY STRATEGIES WITH CRM

Customer Relationship Strategies Page 13

Online customer service desk

Customer focus unit

Customer Relationship Strategies Page 14

Customer Relationship Strategies Page 15

Customer Relationship Strategies Page 16

NEED OF CRM IN INSURANCE INDUSTRY

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Bajaj Allianz General Insurance Company Limited

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OUR CORE VALUE

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Allianz SE, Germany

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Commission 3% 3% 2% 2% 1% -1% -9% -11% -11%

Return on 27% 14% 5% 16% 15% 23% 22% 23% 34%

Best Insurance Company in the Private Sector – 2014

Claims Awards Asia 2013

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General Insurance Company of the Year 2013

Claims Service Company of the Year 2013

Personal Lines Growth Leadership Award Year 2013