• Home
  • Subjects
  • Marketing
  • Application of CRM in the life insurance Company in China and in a company of Ping An Life Insurance of China

Application of CRM in the life insurance Company in China and in a company of Ping An Life Insurance of China - Dissertation Example

Only on StudentShare

Extract of sample
Application of CRM in the life insurance Company in China and in a company of Ping An Life Insurance of China

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. ...
Download paper


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…
Author : sschmidt

Related Essays

A Study of Relationship Marketing on Customer Satisfaction
9 pages (2259 words) Research Paper
Customer Relationship Management Strategies: the Case of Apple and IBM.
Thus, successful businesses have effective CRM. The CRM strategies define the relationship or the interface between a company and its customers. The levels of customers’ satisfaction in most companies have declined due to emphasis on products and brands. This paper will therefore analyze CRM strategies in relation to IBM and Apple Company. Introduction A sufficient customer base is the most significant asset of any organization. Sustaining a sufficient customer base requires business organizations to device strategies that enhance customer’s relationship with the business organization....
9 pages (2259 words) Research Paper
Insurance Case Study
A further analysis in the case study reveals that Mr. Farid does not deny the answers he gave. He had stated he is the Manager and added that his work entailed inspection of construction sites and training of workers. With this information, the insurer still went ahead to insure him under non-manual work. A look at his medical health reveals a heart disorder which puts Mr. Farid at more risky state of leaving his employment. This analysis reflects on asymmetric information where full disclosure of the duties undertaken by Mr. Farid is not given. This led to adverse selection of Mr. Farid...
4 pages (1004 words) Coursework
Marketing case study of Ferrero Company
To successfully penetrate the market Ferrero maintains a limited unique number of products manufactured and marketed at the highest quality possible. The company also seeks to understand the market properly by carrying out extensive test marketing of its products to avoid embarrassing marketing failures (Australian Trade Commission, 2012). Question One Ferrero Australian opened an online boutique that sells premium chocolate gifts packed in unique keep sake gift boxes. The online boutique was actualized due to consistent demands for Ferrero chocolate gift packs by customers for their chocolate...
6 pages (1506 words) Case Study
Case study of a company
The aim of this project is to examine Nike's branding strategy in order to identify the structure, challenges and recommendations for potential improvement. In order to attain this end, the following objectives will be explored: 1. A critical analysis of the strategy for success used by Nike over the past two decades. 2. An examination of the current challenges of the company. 3. Recommendations for the improvement of Nike's existing branding strategy 4. An identification of the branding model used by Nike which can be applicable to other companies. The report will involve a critique of the...
16 pages (4016 words) Essay
A Study of How Customer Relationship Management be Applied in the Life Insurance Company in China: a Case Study of Ping an Life
In the competitive markets, development and maintenance of good customer relationship is indispensable for the success and survival of an organization in the long term. In this context, the concept of Customer Relationship Management (CRM) has evolved and it has gained significant importance in the global business scenario. In the emerging markets, customer management theories are being practically considered in the decision making processes of business firms. At present, Chinese firms are increasingly applying the CRM system with the aim of facilitating good customer relationship. In the...
8 pages (2008 words) Dissertation
A Study of How Customer Relationship Management be Applied in the Life Insurance Company in China: a Case Study of Ping an Life
Ping an Life insurance company certainly recognizes the importance of CRM in the modern business environment and has moved swiftly to put in place measure to attract more customers and retain them. There exist however a lot of challenges and limitations in the implementation of the company’s CRM strategies which make it rather difficult for the company to achieve its full potential (Al-Ghamdi, Sohail & Al-Khaldi, 2007). This is especially so because CRM requires business to change their operation strategies from product centered approaches and put more focus on the customer as the focal...
10 pages (2510 words) Dissertation
Got a tricky question? Receive an answer from students like you! Try us!