Today, in the era of cut-throat competition in the insurance
sector, it is hard for the organizations to survive with
their traditional strategy of selling. They need to be customer-centric.
We have seen the decline of the market share of LIC (it
recently went down below 80%) because of its large size
and its inability to change. Today's customer has a wide
range of choices and he would opt for those, which provide
him not the better, but the best service. So, to be customer-centric
and maintain a loyal customer base it is a must that the
organization should focus on CRM strategies and inculcate
the organization culture of being customer friendly not
in words but in practice.
With the increase in the number of insurance players in
the market and consumers becoming more and more aware of
different products, insurers have realized the importance
of CRM (Customer Relationship Management). CRM has been
practiced for decades now; the grocery shopkeeper near our
home, the paanwala, etc., all of them have been practicing
it.
In today's competitive era, where customer is the king,
it is a must for the insurers to not only make new clients
but also maintain the existing customer and encourage repeat
purchase. As per estimate the cost of attracting a new customer
is five times in comparison to making an existing customer
happy (Kotler).
Therefore, every organization should build a foundation
of relationship marketing because relationship marketing
is the new mantra and the faster the company adopts it,
the better it would be in taking care of its customers.
Relationship efforts help the agents to talk about the company
and the product, and convince the customer. The need of
the hour is to go in for training the agents in building
customer relationship.
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