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Application of CRM in the life insurance Company in China and in a company of Ping An Life Insurance of China - Dissertation Example
The essence of information technology revolution is providing a great opportunity for marketers to build better relationships with their customers due to quick response they can make. This strategy provides an opportunity to combine the abilities to respond directly to their customer requests…
Ping An Life Company understands customer behaviour, focus, and focus on the customers who can deliver long terms profits since they are of great benefit to the company. This company stresses much on customer retention as opposed new customer acquisition since the latter is very expensive. Studies show that retained customers generate over twice as much gross income than new customers in any business hence businesses should focus more on customer retention (Gouthier and Stefan, 2003). The considerable improvement in technology and innovation is making it possible to improve on the customer retention methods through improved customer relationship management.
The first step in customer relationship management is to construct a customer database where transaction and customer contact information is accumulated to enable easier follow up on the customer behaviour with time. This task involves seeking historical customer data from operative internal sources such as accounting and customer relations, which since they already have the customer information (Ramashesham, Bejou, Subhash, Mason and Pancras, 2006). Since this company uses a web-based business, this transaction is relatively cheap when compared to other methods, which do not use web-based operations. The database collected from the customer includes the transactions, descriptive information among others.
Winer 2001 argues that every satisfied customer brings at least three more while dissatisfied customers discourage at least ten more potential customers. They also assert that regular customers exhibit less price sensitivity than new customers thus customer orient companies can charge higher prices than their competitors without negatively feeling the heat of the competition.