This study about Customer Relationship Management in South Africa gives an important overview about the relationship between customers and companies nowadays in this region. The focus was a long term insurance company.
Insurance are a significant part of the service sector and is revolutionizing the financial sector. The insurance companies generate total gross written premiums of 25.1 billion in 2010, a very lucrative business. In the last quarter of 2009 the South Africa economy decreased, due to this change insurance companies had to improve it customer relations and use technology tools for enhance the interaction and build a long lasting commitment with the customers. Insurance corporations are convinced that they need to generate loyal customers and CRM is an exceptional tool that helps to attain that goal.
Before reviewing the results of the study, let’s address the CRM concept. CRM is a set of capabilities that helps ...view middle of the document...
There are four underpinning of CRM theorized in marketing literature: trust (Morgan and Hunt, 1994; Moorman et al., 1983), commitment (Ndubisi, 2004; Morgan and Hunt, 1994), communication (Morgan and Hunt, 1994; Crosby et al., 1990), and conflict handling (Chan, 2004; Dwyer etal., 1987). This underpinning is the primary objective of this study that wants to evaluate the influence of these elements via CRM at a long term insurance company in South Africa. The study was developed with a sample of 330 customers based on walk-in center visited. The results of the study shows that in terms of trust, customers want to build a relationship based on trustworthiness with insurance companies, the matter about their and their dependents future is secure is a key element. The results related to Commitment shows that customers wants a commitment with the insurance company if this company knows their needs and provide a fast and efficient service. Two-way communication is an element that customers demand to a long-term insurance company, clients want accurate information, easy to understand and timely. The last but not least important is conflict handling, customer state that they will be loyal if the organization can handle the complaints satisfactorily. Therefore a quick management of complaints and conflict will assure a client and will prevent of “word of mouth” unfavorable communication. Customers are not only looking for apologize words; they want compensations for losses as a result of organization mistakes.
This research accomplished the task of reveal the customers though regards the relationship with the insurance company and show to this kind of organizations multiple ways of enhance the relationship. Implementing the right strategies and following up the decisions will lead to maintain happy customers.
“Customer relationship management (CRM) in a South African service environment: An exploratory study”
Mornay Roberts-Lombard1* and Leon du Plessis2. Department of Marketing Management, University of Johannesburg, South Africa. April, 2012