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A STUDY ON

“CUSTOMER RETENTION AND RELATIONSHIP


MANAGEMENT”
AT

ICICI PRUDENTIAL LIFE INSURANCE

Submitted by

Muzammil Mohammed Iqbal Shareef


HT. No.: 1402 - 17 - 672 - 012

PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION

Under The Guidance Of

Mrs. HIMA BINDU


(ASSOCIATE PROFESSOR)

AMJAD ALI KHAN COLLEGE OF BUSINESS ADMINISTRATION

AFFILIATED TO OSMANIA UNIVERSITY


HYDERABAD

(2017 - 2019)
CERTIFICATE

This is to certify that the project work titled “Customer Retention &
Relationship Management at ICICI Prudential Life Insurance” is being
submitted in partial fulfillment for the award of degree of Master of
Business Administration to Osmania University, Hyderabad, a record of
bonafide is carried out by Mr. Muzammil Mohammed Iqbal Shareef,
student of MBA (Marketing), bearing HT. No.: 1402-17-672-012.

The result in this report has not been submitted to any other University
or Institution for award of any degree or diploma.

Prof. Dr. SHEHBAZ AHMED, EXTERNAL EXAMINER


DIRECTOR.
CERTIFICATE

This is to certify that the project work titled “Customer Retention &
Relationship Management at ICICI Prudential Life Insurance” is being
submitted in partial fulfillment for the award of degree of Master of
Business Administration to Osmania University, Hyderabad, a record of
bona fide is carried out by Mr. Muzammil Mohammed Iqbal Shareef,
student of MBA (Marketing), bearing HT. No.: 1402-17-672-012.

The result in this report has not been submitted to any other University
or Institution for award of any degree or diploma.

Place: Hyderabad Mrs. HIMA BINDU


Date: (ASSOCIATE PROFESSOR)
DECLARATION

I hereby declare that the project report on “CUSTOMER RETENTION & RELATIONSHIP
MANAGEMENT” has been submitted under the guidance of Mrs. Hima Bindu, Associate
Professor, DEPARTMENT OF BUSINESS ADMINISTRATION, AMJAD ALI KHAN COLLEGE
OF BUSINESS ADMINISTRATION.

I further declare that it is an original work done by me as a part of my academic


course and has not been submitted elsewhere for any degree or diploma. The
observations and conclusions written in this report are based on the data collected
by me.

Muzammil Mohammed Iqbal Shareef SIGNATURE OF THE STUDENT


HT. No: 1402 - 17 - 672 - 012

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ACKNOWLEDGEMENT

I would like to express my gratitude to those who have been a constant source of
encouragement and motivation throughout this project, without whose support this
could not have been possible.

I am very thankful to the Director of AMJAD ALI KHAN COLLEGE OF BUSINESS


ADMINISTRATION, Prof. Dr. SHEHBAZ AHMED and Mrs. Hima Bindu, my project
supervisor, for their valuable guidance and support on completion of this project.

I would also like to thank Mr. ABDUL AZIZ, Line Manager of ICICI PRUDENTIAL LIFE
INSURANCE, who generously granted me permission and helped me out in collecting
data in their organization.

I also acknowledge with the deep sense of reverence, gratitude towards my parents,
sister and members of my family, who have always supported me morally as well as
financially, in every phase of my life.

Above all, all Praise and Thanks is due to the Almighty Creator.

My gratitude goes to all my friends who directly or indirectly helped me to complete


this project report.

Any omission in this brief acknowledgement does not mean lack of gratitude.

Muzammil Mohammed Iqbal Shareef


HT. No: 1402 – 17 – 672 –
012

3
ABSTRACT

In India life insurance sector plays a major role in savings of a person. There are
many players in life insurance sector, and LIC is leading as it has roots in India from
more than 50 years. To purchase anything in this world the customer has his/her
own choice of preferences according to those preferences only, one can purchase
the require product. The project study of ICICI PRUDENTIAL LIFE INSURANCE linked
with CRM (CUSTOMER RELATIONSHIP MANAGEMENT).

The aim of study to examine and make the company enable to the track customer
sell the appropriate product understanding their needs and wants and to insure a
long term retention of customers through the application of CRM in a comprehensive
manner monitoring the performance of CRM to take corrective actions necessary to
assure the results match the plan projections.

Coming to ICICI PRUDENTIAL LIFE INSURANCE in India it’s making effort to attract
customers and tap the life insurance market. So this study is also intended to find
customers and the retention value through the application of CRM in ICICI
PRUDENTIAL LIFE INSURANCE.

The method of this study is based on marketing research with structured


questionnaire consisting of multiple choice questions.

The sample survey is conducted on 100 customers belonging to different categories


.private insurance companies are unable to create enough brand value and trust in
customers.

Most of the companies have only 28% of market share in life insurance sector when
compare LIC. So CRM makes suggestions to ICICI PRUDENTIAL LIFE INSURANCE
sector how to make trust of customers and hoe to make the retention value.

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TABLE OF CONTENTS

S.NO. DESCRIPTION PAGE NOS.

INTRODUCTION 6

OBJECTIVES OF THE STUDY 8

NEED OF THE STUDY 8


CHAPTER - 1
SCOPE OF THE STUDY 9

RESEARCH METHODOLOGY 9

LIMITATIONS OF THE STUDY 10

CHAPTER – 2 REVIEW OF LITERATURE 11

COMPANY PROFILE 26
CHAPTER – 3
INDUSTRY PROFILE 30

DATA ANALYSIS AND


CHAPTER – 4 59
INTERPRETATION

FINDINGS, SUGGESTIONS AND


CHAPTER – 5 75
CONCLUSIONS

 BIBLIOGRAPHY 79

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CHAPTER 1

INTRODUCTION

6
INTRODUCTION OF CUSTOMER RELATIONSHIP MANAGEMENT

Several commercial CRM insurance packages are available which vary in their approach
to CRM. However, as mentioned above, CRM is not just a technology, but rather a
comprehensive customer-centric approach to an organization’s philosophy in dealing
with its customers. This includes policies and process, front-of-house customer service,
employee training, marketing systems and information management. Hence it is
important that any CRM implementation considerations stretch beyond technology,
towards the broader organizational requirements.

The objective of a CRM strategy most consider a company’s specific situation and
its customers’ needs and expectations. Information gained through CRM initiatives
can support the development of marketing strategy by developing the organization’s
knowledge in areas such as identifying customer segments, improving customer
retention, improving product offerings(by better understanding customer needs),and
by identifying the organization’s most profitable customers.

CRM strategies can vary in size, complexity and scope. Some companies
consider a CRM strategy to only focus on the management of a team of sales people.
However, other CRM strategy can cover customer interaction across the entire
organization .many commercial CRM insurance packages that are available provide
features that serve sales, marketing event management, and project management
and finance.

Successful CUSTOMER RELATIONSHIP MANAGEMENT requires marketing,


sales and service agility of a star company to enable today’s business to outpace
their competitors in the race for customers.

Managing the customer experience, maintaining a more reliable data base,


improving service operations. Fostering customer loyalty, embracing the
characteristics of high performance marketing and other related subjects.

Making such a pivot in CRM to create customer interactions that produce


optimal experiences and LONG TERM relationships must be the top mission. Above
all, those experiences must be consistent with a company’s brand promise.
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CRM DEFINITION:

CRM defines the process of the company are fully occupied with acquiring
customers, selling the product to the customers, and maintaining a LONG TERM
RELATIONSHIP to a customer.

CRM is actually a tremendous step forward in creating a system that can


provide a means for retaining individual loyalty in a world of nearly seven billion
souls. CRM helps in order to understand changing nature of the customer because
customer are not what they used to be.

OBJECTIVES OF THE STUDY

- To understand how the process of customer relationship takes place in an


organization

- To realize how crucial & significant it is for a firm to maintain sound relations with
customers

- To study the various strategies & techniques adopted by ICICI Prudential life
insurance to maintain & manage an effective customer relationship

- To obtain a better understanding of the marketing strategies employed by this firm


to have a competitive edge over their rivals by various efficient customer relationship
management strategies

- To get a greater insight into customer behavioral patterns pertaining to the


purchase of ICICI life by conducting a survey via a questionnaire

NEED OF THE STUDY

Companies have to increasingly pursue a customer centric competitive strategy


rather than a product centric one.
Customers demand constant access, immediate response & a personalized
touch. Focus is shifting from supply chain to demand chain effectiveness.
Better understanding & intelligent management of customer relationship is essential
for survival.

8
RESEARCH METHODOLOGY

The methodology followed for the fulfillment of the above-mentioned goals is as


follows:
SOURCE OF DATA
There are basically two sources of data: A) Primary data.
B) Secondary data.
PRIMARY DATA: It is not recorded data. It is collected personally interviewing the
respondents through experience, observation and survey methods. It is collected
specially for a particular purpose with certain objectives in mind.

SECONDARY DATA: It is already collected and recorded data by some other person
for some purpose and is available for present study.
Example: internet, textbooks, organizations annual report etc.

SAMPLE SURVEY
At the period of research work, it is necessary to collect a certain data from the
people but it is not possible to survey each every person who can give information on
the issue.

SAMPLE CHARACTERISTICS:
Sample size: 100 clients.
Nature of sample: Highly representatives of the population.

TOOLS OF DATA COLLECTION


The tools of data collection used in the project are questionnaires. There are
basically
two types of questionnaires.
Open-ended: Here the respondents can answer the questions in their own way.
Close-ended: Here the choices of answers are given and the respondents have to
choose from the choices, the answer closest to this.

TECHNIQUES OF INTERPRETATION AND ANALYSIS


Percentage method has been used to analyze the effect of brands on respondents.
Bar, pie diagrams had been used for better presentation and better understanding
data.
The information collected is calculated in the forms of percentage to make
interpretation easy.
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LIMITATIONS OF STUDY

The information collected and opinions are of customers as to what they feel. Thus
the accuracy and information collected depends upon the perception of each
respondent and circumstances involved.

The study has been conducted by including 100 customers. Though the sample is
highly representative of the population, it does not cover the entire market of
customers having insurance policies.

Analysis could not draw for the entire questionnaire; only specific questions have been
analyzed and interpreted.

Due to time constraint, more information could not be collected.

10
CHAPTER II

REVIEW OF LITERATURE

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LITERATURE REVIEW

TYPES OF CRM
OPERATIONAL CRM

The primary goal of CRM systems is to integrate and automate sales, marketing, and
customer support. Therefore, these systems typically have a dashboard that gives an
overall view of the three functions on a single page for each customer that a company
may have. The dashboard may provide client information, past sales, previous marketing
efforts, and more, summarizing all of the relationships between the customer and the
firm. Operational CRM is made up of 3 main components: sales force automation,
marketing automation, and service automation.

Sales force automation works with all stages in the sales cycle, from initially
entering contact information to converting a prospective client into an actual client.
For example, in August, 2000, Oracle released a CRM software package,
OracleSalesOnline.com, which makes contacts, schedules and performance tracking
available online so that a customer's information is easily accessible for all
employees working at the office or remotely. Sales force automation implements
Sales promotion analysis, automates the tracking of a client's account history for
repeated sales or future sales and coordinates sales, marketing, call centers, and
retail outlets. It prevents duplicate efforts between a salesperson and a customer
and also automatically tracks all contacts and follow-ups between both parties.
Marketing Automation focuses on easing the overall marketing process to make
it more effective and efficient. For example, by scoring customer behavior,
Salesforce'sMarketing Cloud allows a business to adapt marketing campaigns to
how engaged customers are with a business. CRM tools with marketing
automation capabilities can automate repeated tasks, for example, sending out
automated marketing emails at certain times to customers, or posting marketing
information on social media. The goal with marketing automation is to turn a
sales lead into a full customer. CRM systems today also work on customer
engagement through social media.
Service automation is the part of the CRM system that focuses on direct
customer service technology. Through service automation, customers are
supported through multiple channels such as phone, email, knowledge bases,
ticketing portals, FAQs, and more. For example, Microsoft's Dynamics CRM
Software tracks call times, call resolution and more in order to improve the
efficiency of customer service within a business.

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ANALYTICAL CRM

The role of analytical CRM systems is to analyze customer data collected through
multiple sources, and present it so that business managers can make more
informed decisions. Analytical CRM systems use techniques such as data mining,
correlation, and pattern recognition to analyze the customer data. These analytics
help improve customer service by finding small problems which can be solved,
[4]
perhaps, by marketing to different parts of a consumer audience differently . For
example, through the analysis of a customer base's buying behavior, a company
might see that this customer base has not been buying a lot of products recently.
After scanning through this data, the company might think to market to this subset
of consumers differently, in order to best communicate how this company's
products might benefit this group specifically.

COLLABORATIVE CRM

The third primary aim of CRM systems is to incorporate external stakeholders such
as suppliers, vendors, and distributors, and share customer information across
organizations. For example, feedback can be collected from technical support call,
which could help provide direction for marketing products and services to that
particular customer in the future.

MAIN COMPONENTS OF CRM


The main components of CRM are building and managing customer relationships
through marketing, observing relationships as they mature through distinct phases,
managing these relationships at each stage and recognizing that the distribution of
value of a relationship to the firm is not homogenous. When building and managing
customer relationships through marketing, firms might benefit from using a variety
of tools to help organizational design, incentive schemes, customer structures, and
more to optimize the reach of its marketing campaigns. Through the
acknowledgement of the distinct phases of CRM, businesses will be able to benefit
from seeing the interaction of multiple relationships as connected transactions. The
final factor of CRM highlights the importance of CRM through accounting for the
profitability of customer relationships. Through studying the particular spending
habits of customers, a firm may be able to dedicate different resources and
amounts of attention to different types of consumers.
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RELATIONAL INTELLIGENCE

Relational intelligence, or awareness of the variety of relationships a customer can


have with a firm, is an important component to the main phases of CRM. Companies
may be good at capturing demographic data, such as gender, age, income, and
education, and connecting them with purchasing information to categorize
customers into profitability tiers, but this is only a firm's mechanical view of
customer relationships. This therefore is a sign that firms believe that customers are
still resources that can be used for up-sell or cross-sell opportunities, rather than
humans looking for interesting and personalized interactions. Below is a diagram of
the steps when serving a client while using a CRM system:

IMPACT ON CUSTOMER SATISFACTION


Customer satisfaction has important implications for the economic performance of
firms because it has the ability to increase customer loyalty and usage behavior and
reduce customer complaints and the likelihood of customer defection. The
implementation of a CRM approach is likely to have an effect on customer
satisfaction and customer knowledge for a variety of different reasons.

Firstly, firms are able to customize their offerings for each customer. By
accumulating information across customer interactions and processing this
information to discover hidden patterns, CRM applications help firms customize
their offerings to suit the individual tastes
of their customers. This customization enhances the perceived quality of products
and services from a customer's viewpoint, and because perceived quality is a
determinant of customer satisfaction, it follows that CRM applications indirectly
affect customer satisfaction. CRM applications also enable firms to provide timely,
accurate processing of customer orders and requests and the ongoing management
of customer accounts. For example, Piccoli and Applegate discuss how Wyndham
uses IT tools to deliver a consistent service experience across its various properties
to a customer. Both an improved ability to customize and a reduced variability of the
consumption experience enhance perceived quality, which in turn positively affects
customer satisfaction. Furthermore, CRM applications also help firms manage
customer relationships more effectively across the stages of relationship initiation,
maintenance, and termination.

EXAMPLES

Research has found a 5% increase in customer retention boosts lifetime customer


profits by 50% on average across multiple industries, as well as a boost of up to 90%
within specific industries such as insurance. Companies that have mastered
customer relationship strategies have the most successful CRM programs. For
example, MBNA Europe has had a 75% annual profit growth since 1995. The firm
heavily invests in screening potential cardholders. Once proper clients are identified,
the firm retains 97% of its profitable customers. They implement CRM by marketing
the right products to the right customers. The firm's customers' card usage is 52%
above industry norm, and the average expenditure is 30% more per transaction. Also
10% of their account holders ask for more information on cross-sale products.

Wells Fargo is another example of a company that has successfully implemented


CRM into their firm. The Wholesale Banking division of Wells Fargo has almost 300
different products and services, with many business customers who use a range of
products. Therefore, customers need a seamless experience from product to
product and service to service. The firm implemented cloud technologies to help
connect people with customers and has seen customer satisfaction drastically
improve.

Amazon has also seen great success through its customer proposition. The firm
implemented personal greetings, collaborative filtering, and more for the customer.
They also used CRM training for the employees to see up to 80% of customers
repeat.
CRM PARADOX
15
Part of the paradox with CRM stems from the challenge of determining exactly what
CRM is and what it can do for a company. The CRM Paradox, also referred to as the
"Dark side of CRM," may entail favoritism and differential treatment of some
customers. This may cause perceptions of unfairness among other customers'
buyers. They may opt out of relationships, spread negative information, or engage in
misbehavior that may damage the firm and its reputation. Such perceived inequality
may cause dissatisfaction, mistrust and result in unfair practices. A customer shows
trust when he or she engages in a relationship with a firm under the idea that the firm
is acting fairly and adding value to his or her life somehow. However, customers may
not trust that firms will be fair in splitting the value of their products or services. For
example, Amazon’s test use of dynamic pricing (different prices for different
customers) ended with very poor public relations for the company. As seen in the
Amazon example, although firms use both human and technological factors to
assess a proper CRM process, experts suggest that focusing on the human factors,
like management, increases the potential of successful CRM, since managers can
make a coordinated effort on organizational changes within a company, which often
has an impact on customer satisfaction.

CRM technologies can easily become ineffective if there is no proper management,


and they are not implemented correctly. The data sets must also be connected,
distributed, and organized properly, so that the users can access the information
that they need quickly and easily. Research studies also show that customers are
increasingly becoming dissatisfied with contact center experiences due to lags and
wait times. They also request and demand multiple channels of communications
with a company, and these channels must transfer information seamlessly.
Therefore, it is increasingly important for companies to deliver a cross-channel
customer experience that can be both consistent as well as reliable.

HOW TO IMPROVE CRM WITHIN A FIRM


Consultants, such as Bain & Company, argue that it is important for companies
establishing strong CRM systems to improve their relational intelligence. According to
this argument, a company must recognize that people have many different types of
relationships with different brands. One research study analyzed relationships between
consumers in China, Germany, Spain, and the United States, with over 200 brands in 11
industries including airlines, cars and media. This information is valuable as it provides
demographic, behavioral, and value-based customer segmentation. These types of
relationships can be both positive and negative. Some customers view themselves as
friends of the brands, while others as enemies, and some are

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mixed with a love-hate relationship with the brand. Some relationships are distant,
intimate or anything in between.

ANALYZING THE INFORMATION

Based on this information, managers must understand the different reasons for
these types of relationships, and provide the customer with what they are looking for.
Companies can collect this information by using surveys, interviews, and more with
current customers. For example, Frito-Lay conducted many ethnographic interviews
with customers to try and understand the relationships they wanted with the
companies and the brands. For example, they found that most customers were
adults who used the product to feel more playful. They may have enjoyed the
company’s bright orange color, messiness and shape, for example.

Companies must also improve their relational intelligence of their CRM systems.
These days, companies store and receive huge amounts of data through emails,
online chat sessions, phone calls, and more. Many companies do not properly make
use of this great amount of data, however. All of these are signs of what types of
relationships the customer wants with the firm, and therefore companies may
consider investing more time and effort in building out their relational intelligence.
Companies can use mining technologies and use of web searches to understand
relational signals. Social media such as Facebook, Twitter, blogs, etc. is also a very
important factor in picking up and analyzing information. Understanding the
customer and capturing this data allows companies to convert customer’s signals
into information and knowledge that the firm can use to understand a potential
customer’s desired relations with a brand.

It is also very important to analyze all of this information to determine which


relationships prove the most valuable. This helps convert data into profits for the
firm. Stronger bonds contribute to building market share. By managing different
portfolios for different segments of the customer base, the firm can achieve
strategic goals.

EMPLOYEE TRAINING
Many firms have also implemented training programs to teach employees how to
recognize and effectively create strong customer-brand relationships. For example,
Harley Davidson sent its employees on the road with customers, who were motorcycle
enthusiasts, to help solidify relationships. Other employees have also been trained in
Social psychology and the social sciences to help bolster strong customer relationships.
Customer service representatives must be educated to value customer relationships,
and trained to understand existing customer
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profiles. Even the finance and legal departments should understand how to manage
and build relationships with customers.

REVIEWING PROCESSES AND DESIGNING NEW PROCESSES

Firms that do not have well-designed and logical processes cannot be successful in
achieving their goals. Companies should define their business goals and evaluate their
CRM processes to improve and expand to fit their needs. Applying new technologies is
also helpful because using CRM systems requires changes in infrastructure of the
organization as well as deployment of new technologies such as business rules,
databases and Information technology.

EXAMPLES
CRM SYSTEMS

Data warehouse technology, used to aggregate transaction information, to merge


the information with CRM products, and to provide key performance indicators.
Opportunity management which helps the company to manage unpredictable
growth and demand, and implement a good forecasting model to integrate sales
history with sales projections.
CRM systems that track and measure marketing campaigns over multiple
networks, tracking customer analysis by customer clicks and sales.
Some CRM software is available as a software as a service (SaaS), delivered via
the internet and accessed via a web browser instead of being installed on a local
computer. Businesses using the software do not purchase it, but typically pay a
recurring subscription fee to the software vendor.
For small businesses a CRM system may consist of a contact manager system
that
[30]
integrates emails, documents, jobs, faxes, and scheduling for individual accounts.
CRM systems available for specific markets (legal, finance) frequently focus on
event management and relationship tracking as opposed to financial return on
investment (ROI).
Customer-centric relationship management (CCRM) is a nascent sub-discipline
that focuses on customer preferences instead of customer leverage. CCRM aims
to add value by engaging customers in individual, interactive relationships.
Systems for non-profit and membership-based organizations help track
constituents, fundraising, sponsors' demographics, membership levels,
membership directories, volunteering and communication with individuals.
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CRM SYSTEMS IN PRACTICE
CALL CENTERS

As well as tracking, recording and storing customer information, CRM systems in call
centers codify the interactions between company and customers by using analytics
and key performance indicators to give the users information on where to focus their
marketing and customer service. The intention is to maximize average revenue per
user, decreasechurn rate and decrease idle and unproductive contact with the
customers. CRM software can also be used to identify and reward loyal customers
over a period of time.

Growing in popularity is the idea of gamifying, or using game design elements and
game principles in a non-game environment such as customer service environments.
The gamification of customer service environments includes providing elements
found in games like rewards and bonus points to customer service representatives
as a method of feedback for a job well done. The repetitive act of answering support
calls all day can be draining, even for the most enthusiastic customer service
representative. When agents are bored with their work, they become less engaged
and less motivated to do their jobs well, making it likely for them to make mistakes.
Gamification tools can motivate agents by tapping into their desire for rewards,
recognition, achievements, and competition.

CONTACT CENTER AUTOMATION

Contact Center Automation, the practice of having an integrated system that


coordinates contacts between an organization and the public, is designed to reduce
the repetitive and tedious parts of a contact center agent’s job. A contact center
automation prevents this by having pre-recorded audio messages that help
customers solve their problems. For example, an automated contact center may be
able to re-route a customer through a series of commands asking him or her to
select a certain number in order to speak with a particular contact center agent who
specializes in the field in which the customer has a question. Software tools can
also integrate with the agent’s desktop tools to handle customer questions and
requests. This also saves time on behalf of the employees.

SOCIAL MEDIA

Social CRM involves the use of social media and technology to engage and learn
[35]
from consumers. Because the public, especially among young people, has
increasingly using social networking sites, companies use these sites to draw
attention to their products, services and brands, with the aim of building up
customer relationships to increase demand.

19
Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook
to track and communicate with customers. These customers also share their own
opinions and experiences with a company's products and services, giving these
firms more insight. Therefore, these firms can both share their own opinions and
also track the opinions of their customers.

Enterprise Feedback Management software platforms, such as Confirmit, Medallia,


and Satmetrix, combine internal survey data with trends identified through social
media to allow businesses to make more accurate decisions on which products to
supply.

LOCATION-BASED SERVICES

CRM systems can also include technologies that create geographic marketing
campaigns. The systems take in information based on a customer’s physical
location and sometimes integrates it with popular location-based GPS applications.
It can be used for networking or contact management as well to help increase sales
based on location.

CRM SYSTEMS FOR BUSINESS-TO-BUSINESS TRANSACTIONS

According to a Sweeney Group definition, CRM is "all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions
with customers, prospects, and business partners throughout the enterprise". The
quote assumes that CRM is involved in every Business-to-Business (B2B) transaction.

Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve
customer management conditions. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.

The main differences between Business-to-Consumer (B2C) and Business-to-Business


CRM systems concern aspects like sizing of contact databases and length of
relationships. Business-to-Business companies tend to have smaller contact databases
than Business-to-Consumer, the volume of sales in Business-to-Business is relatively
small, in Business-to-Business there are less figure propositions, but in some cases they
cost a lot more than Business-to-Consumer items and relationships in Business-to-
Business environment are built over a longer period of time. Furthermore, Business-to-
Business CRM must be easily integrated with products from other companies. Such
integration enables the creation of forecasts about customer behavior based on their
buying history, bills, business success, etc. An application for a Business-to-

20
Business company must have a function to connect all the contacts, processes and
deals among the customers segment and then prepare a paper. Automation of sales
process is an important requirement for Business-to-Business products. It should
effectively manage the deal and progress it through all the phases towards signing.
Finally, a crucial point is personalization. It helps the Business-to-Business company
to create and maintain strong and long-lasting relationship with the customer.

An example is with Costco Wholesale Corporation using FreeCRM to track its


Business-to-Business partnerships and programs. The firm is able to track all data
and negotiate with affiliate partners to track the relationship from beginning to end.
It also helps the firm track special programs with participating organizations and
give special discounts and deals.

CRM ADOPTION CHALLENGES


Companies face large challenges when trying to implement CRM systems.
Consumer companies frequently manage their customer relationships haphazardly
and unprofitably. Many times, they may not effectively or adequately use their
connections with their customers, due to misunderstandings or misinterpretations of
a CRM system's analysis. Clients who want to be treated more like a friend may be
treated like just a party for exchange, rather than a unique individual, due to,
occasionally, a lack of a bridge between the inputted data in a CRM system's
analysis and the analysis output. Many studies show that customers are frequently
frustrated by a company’s inability to meet their relationship expectations, and on
the other side, companies do not always know how to translate the data they have
gained from CRM software into a feasible plan of action. In 2003, a Gartner report
estimated that more than $2 billion had been spent on software that was not being
used. According to CSO Insights, less than 40 percent of 1,275 participating
companies had end-user adoption rates above 90 percent. Many corporations only
use CRM systems on a partial or fragmented basis. In a 2007 survey from the UK,
four-fifths of senior executives reported that their biggest challenge is getting their
staff to use the systems they had installed. 43 percent of respondents said they use
less than half the functionality of their existing systems However, market research
regarding consumers' preferences may increase the adoption of CRM among the
developing countries' consumers.

MARKET LEADERS
The CRM market grew by 12.5 percent in 2012. The following table lists the top
vendors in 2006–2008 and 2012-2014 (figures in millions of US dollars) published in
Gartnerstudies.

21
The four main CRM system vendors include Salesforce, Microsoft, SAP, and Oracle,
with Salesforce representing an 18.4% market share, Microsoft representing a 6.2%
market share, SAP representing a 12.1% market share and Oracle representing a
9.1% market share in 2015. Other providers also are popular for small and mid
market businesses. For nine different categories of CRM, Enterprise CRM Suite,
Midmarket CRM Suite, Small-Business CRM Suite, Sales Force Automation, Incentive
Management, Marketing Solutions, Business Intelligence, Data Quality and
Consultancies, there are different market leaders. Between the different market
leaders, each one’s services cater to a different professional field, from healthcare to
Manufacturing.

ENTERPRISE CRM SUITE

For Enterprise CRM Suite, Microsoft ranks the highest in depth of functionality,
company direction, Customer satisfaction and 5-year cost for Software and
maintenance because of its integrated customer engagement products, especially
through Office 365 and PowerBI, two
Business Analytics Whereas Microsoft’s CRM mostly
platforms. platforms are used in
the Financial Services, Sector and Services it competitor
Public Professional fields, s s in
Enterprise CRM Suite, NetSuite, Oracle, Salesforce and SAP, cover additional
the fields
of Retail, Software, Wholesale/Distribution, Communications, High-
Tech, Healthcare and Government.

MIDMARKET CRM SUITE, SMALL-BUSINESS CRM SUITE, SALES FORCE


AUTOMATION

In terms of Small-Business CRM Suite, Midmarket CRM Suite and Sales Force
Automation, Microsoft also is viewed as the best in terms of depth of functionality,
company direction, Customer satisfaction and 5-year cost for software and
maintenance for its Dynamics CRM platform. This platform integrates various
components, engaging customers at multiple
points. Microsoft’s competitors in Small-Business and Midmarket CRM Suite,
Hubspot, Infusionsoft, Zoho, bpm'online
CRM, NetSuite, Oracle, Salesforce andSugarCRM, cover additional CRM needs for
fields
like Real Estate, Communications, Retail, Software, Wholesale/Distribution, High-
Tech, Healthcare, Government, Agency Partners, Marketing Agencies, Consultancies
and Education.

22
INCENTIVE MANAGEMENT

Xactly is rated the highest in terms of depth of functionality, company direction,


Customer satisfaction and 5-year cost for software and maintenance for Incentive
Management in its Sales Performance Management products. Xactly is known for
offering strong incentive management products for companies of any size, and
recently, with its Xactly Insights product released in August, 2014, their software
helps companies compare themselves to their competitors in order to reform
business plans. Covering fields from Software/High-
Tech to Business Services to Life Sciences, Xactly’s products provide tools for a
range of
Management,
professionalfields.Xactly’scompetitorsin Incentive Callidus
Software,IBM (Varicent), NICESystems and Synergy, cover additionalIncentive
as
Management product needs for fields such Insurance/Financial
Services, Telecommunications, Bankingand Travel.

MARKETING SOLUTIONS

Salesforce’s Marketing Cloud is known for its complex architecture which allows its
users to connect to multiple applications and data sources within and outside of
Salesforce through a single browser interface. in terms of depth of functionality,
company direction, customer satisfaction and 5-year cost for software and
maintenance, Salesforce is ranked higher than its competitors in the category of
Marketing Solutions. Although Marketing Cloud is mostly used in the Financial
Services, Manufacturing/Retail and High-Tech fields, other fields such as Media,
Environment, Communications and Pharmaceutical are serviced by companies like
Adobe, IBM, Oracle Marketing Cloud and Teradata.

BUSINESS INTELLIGENCE

In terms of the Business Intelligence category, Teradata ranks the highest, mostly due to
the strength of its depth-of-functionality. Through their Unified Data architecture of their
products, they have many options for customer segmentations, targeted campaign
delivery and content
customization
. Though their products are typically used in the Financial
Services, Pharmaceutical and Retail fields, other fields like Healthcare,
Communications, Products, Insurance, Wholesale, Government and
Consumer Professional
catere
Services are d by Teradata’s competitors in Business
Intelligence, IBM, Oracle, QlikTech and SAS Institute.

23
DATA QUALITY

When considering the Data Quality category for CRM products, Informatica ranks
above the other companies for its depth of functionality, customer satisfaction and
overall company
direction. Though Informatica caters to the Healthcare,
Financial
Services and Manufacturing fields, its competitors, Experian, IBM, Pitney Bowes and
SAS Institute, also provide CRM products specializing in high data quality for fields
like Government, Retail, Telecommunications, Utilities and Insurance.

CONSULTANCIES

In terms of CRM for consultancies, Appirio was ahead of its competitors due to its
expansion in the area of mobile application development in 2015. Although Appirio
caters to the fields of Retail, Technology and Education, its competitors in the field,
Capgemini, Ernst & Young, Hitachi Consulting and IBM Global Business Services,
mainly cater to the Communications, Financial Services, Government, Manufacturing
and Healthcare fields.

TRENDS
In the Gartner CRM Summit 2010 challenges like "system tries to capture data from
social networking traffic like Twitter, handles Facebook page addresses or other
online social networking sites" were discussed and solutions were provided that
would help in bringing more clientele. Many CRM vendors offer subscription-based
web tools (cloud computing) and SaaS. Some CRM systems are equipped with
mobile capabilities, making information accessible to remote sales staff.
Salesforce.com was the first company to provide enterprise applications through a
web browser, and has maintained its leadership position. Salesforce continues to be
a market leader as the CRM with the most customers and is rated-highly among their
customers.

Traditional providers have recently moved into the cloud-based market via
acquisitions of
smaller providers: Oracle purchased RightNow in October 2011 and SAP acquired
SuccessFactors in December 2011.

The era of the "social customer"refers to the use of social media (Twitter, Facebook,
LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews
in Amazon, etc.) by customers. CRM philosophy and strategy has shifted to
encompass social networks and user communities.

24
Sales forces also play an important role in CRM, as maximizing sales effectiveness
and increasing sales productivity is a driving force behind the adoption of CRM.
Empowering sales managers was listed as one of the top 5 CRM trends in 2013.

Another related development is vendor relationship management (VRM), which provide


tools and services that allow customers to manage their individual relationship with
vendors. VRM development has grown out of efforts by ProjectVRM at Harvard's
Berkman Center for Internet
& Society and Identity Commons' Internet Identity Workshops, as well as by a
growing number of startups and established companies. VRM was the subject of a
cover story in the May 2010 issue of CRM Magazine.

In 2001, Doug Laney from Gartner developed the concept and coined the term
'Extended Relationship Management' (XRM). Laney defines XRM as extending CRM
disciplines to secondary allies such as the government, press and industry consortia.

Dennison DeGregor (2011) describes a shift from 'push CRM' toward a 'customer
transparency' (CT) model, due to the increased proliferation of channels, devices, and
social media.

In 2019, to provide better customer experience, companies will hire better talent who
don’t just know how to operate CRM tools but also use them to their benefit. That will
boost the average CRM adoption beyond the current 47 percent.

Customer service has become commonplace today. It is expected if a company


wants to survive. Companies that will thrive in 2019 will go a step further. They will
offer an amazing customer experience.

By 2020, customer experience will supersede price and quality as the key brand
differentiator. 86 percent customers are already willing to pay up to 25 percent more
for better customer experience.

That is why companies that take customer experience to the next level will get
rewarded with increased customer lifetime value and transaction size.
25
CHAPTER III

THE INDUSTRY
AND
COMPANY PROFILE

26
FINANCIAL SECTOR OVERVIEW –INDIA
The financial institutions are playing a vital role for providing financial
assistance, these should be fulfilling by the financial institutions. Generally the
financial services, contains banking services, mutual funds, chits, financial
institutions and insurance etc.

The people are attracted towards insurance because of their attractive


benefits and which provide maximum security to the people and their families or
their assets that helps face the uncertainties because “where there is a uncertainties
there is risk”. Due to these reasons maximum number of persons are diverting or
preferring or attracting towards insurance sector. By observing this reason most of
the organizations are entering into the insurance sector. It is not possible for every
organization to rule the market or to become market leader .To compete with the
competitors or to be stable in the market or to become a market leader we have to
concentrate on consumer ,because consumer /customer is the ultimate person who
gets the benefits provided by the organization. For that, those organizations who
prepare the plans according to the minds or attitudes of the consumer by providing
attractive benefits will get more success.

WHAT IS INSURANCE?
Insurance is a CONTRACT BETWEEN TWO PARTIES where by one party
called insurer undertakes in exchange for a fixed sum called premiums, to pay the
other party called insured a fixed amount of money in the happening of a certain
event.

Insurance is a protection against financial loss arising on the happening of


an unexpected event. Insurance companies collect premiums to provide for this
protection. A loss is paid out of the premiums collected from the insuring public and
the insurance act as trustees to the amount collected.

For example in a life policy by paying a premium to the insurer, the family of
the insured person receives a fixed compensation on the death of the insured.
Similarly, in a car insurance, in the event of the car meeting with an accident, the
insured receives the compensation to the extent of damage.

It is a system by which the losses suffered by a few are spread over many
exposed to similar risks.
27
WHY TO BUY LIFE INSURANCE:

To protect and support your beneficiaries home and livelihood.

To replace your income and minimize the debt load for your heirs.

To provide beneficiaries with income tax free proceeds.

To provide heirs with benefits to pay the tax on your estate.

To help protect the value of your estate.

Life insurance helps protect the financial security of your family in the
event of your on timely death. This is especially important when you are the primary
wage earner. The owner of the policy pays the insurer premiums in exchange for a
promise to pay the beneficiaries a death benefit upon the death of the insured.

WHO PROVIDES IT?


INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
Reforms in the insurance sector were initiated with the passage of the IRDA
bill in parliament in DEC 1999. The IRDA since incorporation as a statutory body in
APRIL 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of
the IRDA’S online service for issue and renewal of licenses to agents.

Since being set up an independent statutory body the IRDA has put in a frame
work of globally compatible regulations. In the private sector 12 life insurance and 6
general insurance companies have been registered.

By passing of the IRDA bill, the insurance sector has been opened up for
private companies to carry on insurance business. Insurance contracts are based on
good faith i.e. the

28
details furnished by the proposer are accepted in good faith and this will form the
basis of the contract.

WHAT ARE YOUR OPTIONS?


Essentially, insurance companies offer two different types of life insurance policies:
Permane
nt Term

PERMANENT POLICY:
Permanent insurance coverage such as whole life, universal life and variable
life have the potential to provide coverage to a specified maturity date.

TERM INSURANCE:
Coverage that lasts for a specific time period and has two components.
1. Premium and
2. Death benefit

OTHER FACTS ABOUT LIFE INSURANCE THAT YOU NEED TO KNOW

Life insurance is an essential part of financial planning.

Income tax-free death benefit proceeds payable to your beneficiaries.

Needs and goals determine the amount to own.

Helps ensure that your dependents are not burdened by debt.


The younger and healthier you are when you purchase life insurance, the less it
will be cost you to own a life insurance, the less will be cost you to own a life
insurance policy.

Life insurance needs should be revaluated when major events occur in life such
as marriage, the birth of children or a business startup.

29
HISTORY OF INSURANCE SECTOR:
The business of life insurance in India in its existing from started in India in the
year 1818 with the establishment of the oriental life insurance company in Calcutta.

Some of the important mile stones in the life insurance business in India are:


1912: The Indian insurance companies Act enacted as the first statute to
regulate the life insurance.


1928: The Indian insurance companies Act enacted to enable the govt. to
collect statistical information about both life and non-life insurance
business.


1938: Earlier legislation consolidated and amended to by the insurance act
with the objective of protecting the interests of the insuring public.


1956: 245 Indian and foreign insurers and provident societies taken over
by the central govt. and nationalized.

INSURANCE IN INDIA – A BRIEF REVIEW


The insurance sector in India has come to a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracking the developments in the Indian insurance sector reveals the 360-degree
turn witnessed over a period of almost two centuries.

The insurance industry is totally dependent on the ability to convert raw data
in to intelligence –intelligence about customers, marketers, competitors, and
business environment. Over the years data processing technology has progressed
phenomenally and tools like data ware hosing, OLAP and data mining, which
constitute the corner stone of effective business intelligence environment, have
been widely accepted across industries. However, insurance companies have been
relatively slow in adapting these tools, primarily because of lack of competition due
to protective regulations. But now, they can no longer afford to be complacent as the
internet, deregulation, consolidation, and convergence of insurance with other
financial services are fast changing the basic structure of the industry.
30
The insurance industry is quite diverse in terms of portfolio of products
provided by diff. companies. The products can be broadly classified in to two
product lines. Property and casually (P&C) and life insurance .life insurance product
line can be further sub-divided into

LIFE INSURANCE

HEALTH INSURANCE

THE LEADING INSURANCE COMPANIES IN INDIA ARE

LIC OF INDIA

ICICI LIFE INSURANCE

ICICI PRUDENTIAL LIFE INSURANCE LIFE INSURANCE

HDFC LIFE INSURANCE

MAXLIFE INSURANCE

LIFE INSURANCE CORPORATION OF INDIA

The parliament of India passed the Life insurance Corporation Act on the
th
19 September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in
the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956.since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new branches were
opened. As a result of re-organization servicing functions were transferred to the
branches, and branches were made accounting units. It worked wonders with the
performance of the corporation. It may see that from about 200.00 crores of New
business in 1957 the corporation crossed 1000.00 crores mark
31
of new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LIC’s wide Area Network covers 100
divisional offices and connects all the branches through a metro network .LIC has
tied up with some banks and service providers to offer on-line premium collection
facility in selected cities. LIC’s ECSand ATM premium payment facility is an addition
to customer convenience. Apart from on-line kiosks and IVRS, info centers have
been commisoned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, kolkata,
New delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized records of the
satellite offices will facilitate anywhere servicing and many other conventions in the
future.

LIC continues to be the dominant life insurer even in the liberalized scenario of
India insurance and is moving fast a new growth trajectory surpassing its own past
records. LIC has issued over one crore policies during the current year. It has
th
crossed the mile stone of issuing 1,01,32,955 new policies by 1 5 Oct, 2005, posting
a healthy growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestone and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps of
security in as many homes as possible and to help the people in providing security to
their families.

MAX NEW YORK LIFE INSURANCE COMPANY

Max New York life insurance company Ltd. Is a joint venture between New York Life,
a fortune 100 company and Max India limited, one of india’s leading multi-business
corporations. The company has positioned itself on the quality plat form. In line with
its vision to be the most admired life insurance company in India, it has developed a
strong corporate governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and team work. The strategy is to establish itself as a
trusted life insurance specialist through a quality approach to business.
32
In line with its values of financial responsibility, Max New York Life insurance has
adopted prudent financial practices to ensure safety of policy holders funds. The
company’s paid up capital is Rs.657 crore, which is more than the norm laid down by
IRDA.

Max New York life has identified individual agents as its primary channel of
distribution. The company places a lot of emphasis on its selection process, which
comprises four stages-screening, psychometric test, career seminar and final
interview. The agent advisors are trained in-house to ensure optimal control on
quality of training.

Max New York Life invests significantly in its training program and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA
before beginning to sell in the market place. Training is a continuous process for
agents at Max new York life insurance development of skills and knowledge through
a structured program spread over 500 hours in two years.

This focus on continuous quality training has resulted in the company having
amongst the highest agent pass rate in IRDA examinations and the agents have the
highest productivity among private life insurers.

Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its
business. The company is using a five-pronged strategy to pursue alternative
channels of distribution. These include the franchisee model, rural business, direct
sales force involving group insurance and telemarketing opportunities bank
assurance and corporate alliances.

Max New York Life insurance offers a suite of flexible products. It now has 26
life insurance products and 8 riders that can be customized to over 400
combinations enabling customers to choose the policy that fits their need.

HDFC STANDARD LIFE INSURANCE

HDFC Standard Life insurance Company Ltd. Is one of india’s leading private
life insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.) india’s leading providers of financial services in the united
kingdom. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a
33
long-term player in the life insurance industry – all important factors to consider
when choosing your insurer.

HDFC is india’s leading housing finance institution and has helped build more
than 23,00,000 houses since its incorporation in 1977. In the financial year 2003-04
its assets under management crossed Rs.36,000 cr. As on March 31, 2004
outstanding deposits stood at Rs. 7,480 crores. The depositor base now stands at
th
around 1 million depositors. Rated ‘AAA’ by CRSIL and ICRA for the 1 0 consecutive
year.

The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around 7 million
people who rely on the company for their insurance, pension, investment, banking
and health-care needs. Its investment manager currently administers 125 billion
assets. It is a leading pension provider in UK, and is rated by standard & poor’s as
‘strong’ with a rating of A+ and as ‘good’ with a rating of A1 by moody’s Standard Life
was awarded the Best pension provider’ in 2004, 2005 and 2006 at the money
marketing Awards, and it was voted a 5 star life and pensions providers at the
Financial Advisor service Awards for the last 10 years running. The ‘5’star accolade
has also been awarded to standard Life investments for the last 10 years, and to
standard Life bank since its inception in 1998 standard Life bank was awarded the
‘best flexible mortgage lender ‘at the mortgage magazine Awards In 2006.
34
COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited provides life insurance, pensions,
and health insurance to individuals and groups in India. The company offers
participating, non-participating, and unit linked products. It provides insurance
products for individuals, such as savings and wealth creation, protection, child,
retirement, and health insurance plans. The company also offers group insurance
solutions for companies, including group gratuity plan, group leave encashment plan,
and group term plan. In addition, it provides accidental death riders. Further, the
company acts as a pension fund manager. ICICI Prudential Life Insurance Company
distributes its products through individual agents, corporate agents, banks, brokers,
Website, and sales force. The company was founded in 2000 and is based in
Mumbai, India. ICICI Prudential Life Insurance Company Limited is a subsidiary of
ICICI Bank Limited.

ICICI Prudential Life Insurance Company is a joint venture between the ICICI Bank,
one of India's largest and most successful private financial services company and
Prudential Plc., a leading international financial services group headquartered in the
United Kingdom. ICICI Bank holds 74% and Prudential Plc. having 26% of the stake of
the joint venture as per the government rules.

Mr. N. S. Kannan is the Managing Director & Chief Executive Officer of ICICI
Prudential Life Insurance Company Ltd.

The company is the first private life insurer in India to have received a National
Insurer Financial Strength rating of AAA from Fitch ratings. Another feather was
added in the cap when it has been voted as India's Most Trusted Private Life Insurer
for three consecutive years in a row.

ICICI Prudential Life Insurance has won the first prize for its project on digitalization
at the Qimpro Awards 2014. 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’.

On March 31, 2011, the company’s assets reached over Rs. 805.97 billion. ICICI
Prudential earned a total premium of Rs. 124.29 billion for the financial year 2014. In
FY2015, it became the first private life insurer to attain assets under management of
Rs. 1 trillion. ICICI Prudential Life is also the first insurance company in India to be
listed on NSE and BSE.

The Assets Under Management (AUM) as on 31st March 2018 were ₹1,395.3 billion.
35
DETAILED OVERVIEW
PRODUCT PORTFOLIO
ICICI LIFE INSURANCE: TERM PLANS
The term plans help in protecting your family’s future and ensure that they lead their
lives comfortably without any financial worries, even in your absence.

ICICI Pru iProtect


ICICI Pru iCare II

ICICI Life Insurance: ULIP Plans


These are unit linked insurance plans which help you in managing your savings
based on your risk appetite. They provide you with a choice of portfolio strategies for
your savings and at the same time secure you against uncertainties of life.

ICICI Pru Smart Life


ICICI Pru Guaranteed Wealth
Protector ICICI Pru Wealth Builder II
ICICI Pru Elite Life II
ICICI Pru Elite Wealth II

ICICI Life Insurance: Pension Plans


ICICI Pru Easy Retirement
ICICI Pru Immediate
Annuity ICICI Pru Easy
Retirement SP

ICICI Life Insurance: Child Plans


ICICI Prudential Child Plans help your child receive guaranteed educational benefits
and protect his dreams and aspirations.

ICICI Pru SmartKid Regular Premium

ICICI Life Insurance: Investment Plans


These are low risk investment plans that help you save for specific goals in the
future and provide protection for your family from financial distress in case of your
untimely demise.

ICICI Pru Cash


Advantage ICICI Pru
Savings Suraksha
36
It is advisable to compare all ICICI life insurance plans from other life insurance
companies in India to choose the best insurance plan that suits you the most.

ICICI Prudential Distribution Network:


ICICI bank has about 2000 branches in its network including its 1,100 micro-offices.
It has over and 24 bancassurance partners. As on June 30, 2011 ICICI Prudential Life
Insurance has a network of approximately 1,400 offices and over 1,75,0000 advisors.
Their online products are available through their websites directly.

EXPLOITING EXPERTISE, COMPOUNDING GROWTH

In twenty years of operation, the fund has launched 38 schemes and


successfully redeemed fifteen of them. In the process it has rewarded it’s investors
handsomely with consistently high returns.A total of over 5.4 million investors have
reposed their faith in the wealth generation expertise of the Mutual Fund.Schemes of
the Mutual fund have consistently outperformed benchmark indices and have
emerged as the preferred investment for millions of investors and HNI’s.Today, the
fund manages over Rs. 31,794 crores of assets and has a diverse profile of investors
actively parking their investments across 36 active schemes.The fund serves this
vast family of investors by reaching out to them through network of over 130 points
of acceptance, 28 investor service centers, 46 investor service desks and 56 district
organisers. ICICI Mutual is the first bank-sponsored fund to launch an offshore fund
– Resurgent India Opportunities Fund.

KEY PERSONNEL:
BOARD MEMBERS
Mr. K. V. Kamath, Chairma
Mr. Sridar Iyengar
Mr. Homi R. Khusrokhan
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari.
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. V. Sridar
Prof. Marti G. Subrahmanyam

37
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar,
Managing Director & CEO
Mr. Sandeep Bakhshi,
Deputy Managing Director
Mr. N. S. Kannan,
Executive Director & CFO
Mr. K. Ramkumar,
Executive Director
Mr. Sonjoy Chatterjee,
Executive Director

AWARDS AND ACHIEVEMENTS:



ICICI Mutual Fund (ICICIMF) has been the proud recipient of the:

ICRA Online Award - 8 times

The Lipper Award (Year 2005-2006)

CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007


38
CNBC AWAAZ CONSUMER AWARDS 2007

PRODUCTS

EQUITY FUNDS:

The investments of these schemes will predominantly be in the stock markets


and endeavor will be to provide investors the opportunity to benefit from the
higher returns which stock markets can provide. However they are also
exposed to the volatility and attendant risks of stock markets and hence should
be chosen only by such investors who have high risk taking capacities and are
willing to think long term. Equity Funds include diversified Equity Funds,
Sectoral Funds and Index Funds. Diversified Equity Funds invest in various
stocks across different sectors while sectoral funds which are specialized
Equity Funds restrict their investments only to shares of a particular sector and
hence, are riskier than Diversified Equity Funds. Index Funds invest passively
only in the stocks of a particular index and the performance of such funds
move with the movements of the index

ICICI PRUDENTIAL DISCOVERY Fund


ICICI PRUDENTIAL POWER Fund

ICICI PRUDENTIAL DYNAMIC P/E Fund

ICICI PRUDENTIAL emerging S.T.A.R.Fund

ICICI PRUDENTIAL TAX PLAN

ICICI PRUDENTIAL GROWTH Fund

ICICI PRUDENTIAL Multiplier FUND


ICICI PRUDENTIAL Sector Funds Umbrella
39

MSFU - Emerging Businesses Fund

MSFU - IT Fund

MSFU - Pharma Fund

MSFU - Contra Fund

MSFU - FMCG Fund

ICICI Arbitrage Opportunities Fund

DEBT SCHEMES

Debt Funds invest only in debt instruments such as Corporate Bonds,


Government Securities and Money Market instruments either completely avoiding any
investments in the stock markets as in Income Funds or Gilt Funds or having a small
exposure to equities as in Monthly Income Plans or Children's Plan. Hence they are safer
than equity funds. At the same time the expected returns from debt funds would be
lower. Such investments are advisable for the risk-averse investor and as a part of the
investment portfolio for other investors.

ICICI PRUDENTIAL Children’s Benefit Plan

ICICI PRUDENTIAL Gilt Fund

ICICI PRUDENTIAL Gilt Fund (Long Term)

ICICI PRUDENTIAL Gilt Fund (Short Term)

ICICI PRUDENTIAL Income Fund

ICICI PRUDENTIAL Income Plus Fund

ICICI PRUDENTIAL Income Plus Fund (Saving Plan)

ICICI PRUDENTIAL Income Plus Fund (Investment Plan)

ICICI PRUDENTIAL Insta Cash Fund

ICICI PRUDENTIAL InstaCash Fund -Liquid Floater Plan

ICICI PRUDENTIAL Institutional Income Fund

ICICI PRUDENTIAL Monthly Income Plan

ICICI PRUDENTIAL Monthly Income Plan Floater

ICICI PRUDENTIAL NRI Investment Fund

ICICI Capital Protection Oriented Fund - Series I

ICICI Premier Liquid Fund

ICICI Short Horizon Fund

ICICI Short Horizon Fund - Liquid Plus Fund
40

ICICI Short Horizon Fund - Short Term Fund

BALANCED SCHEMES

ICICI PRUDENTIAL Balanced Fund invest in a mix of equity and debt


investments. Hence they are less risky than equity funds, but at the same time
provide commensurately lower returns. They provide a good investment opportunity
to investors who do not wish to be completely exposed to equity markets, but is
looking for higher returns than those provided by debt funds.

ICICI PRUDENTIAL Balanced Fund

ICICI PRUDENTIAL NRI Investment Fund - Flexi Asset Plan

INVESTMENT OBJECTIVE

Asset allocation is the key to investing success. It helps you reduce the
volatility of returns. A Balanced Fund takes care of this asset allocation by investing
in equity for capital appreciation and debt for stable returns. It focuses on reducing
volatility of returns by increasing / decreasing equity exposure based on the market
outlook and using a core debt portfolio to do the rebalancing

ASSET ALLOCATION

ICICI Prudential Balanced Fund, an open-ended fund that allocates to both


equity and debt markets, reflects this wisdom. In a bullish market equity allocation
can go upto 80%. In a bearish market equity allocation can go down to 65%. This
dynamic allocation along with core debt portfolio reduces the volatility of return.

Debt Equity

41
PERFORMANCE OF FUND
See performance for the fund in the graph below:

INVESTOR PROFILE;
This fund is ideal for:
Investors seeking exposure to equity and debt markets in a single product,
and are willing to accept the average returns from both markets as a trade-off for the
benefit of lower risk from diversification

KEY FEATURES
Key Features ICICI Prudential Balanced Fund

Type Open ended Balanced Fund


Equity and Equity related instruments - 65% to 80% &
Investment Pattern
Debt, Money Market and Cash - 20% to 35%.
To seek to generate long-term capital appreciation
and
current income from a portfolio that is invested in
equity
Investment Objective
and equity related securities as well as in fixed
income
securities.
Options Growth & Dividend
Default Option Dividend Reinvestment
Application Amount Rs.5,000/- (plus in multiples of Re. 1)
Min. Additional
Rs.500/- and in multiples thereof
Investmen
t
Nil. Upfront commission shall be paid directly by the
investor to the AMFI registered Distributors based
on the
Entry Load
investors' assessment of various factors
including the
service rendered by the distributor.

42
(a) 1% of applicable NAV if the amount sought to be
redeemed or switched out is invested upto 1 year
from the
date of allotment.(b) Nil if the amount sought to
be
redeemed or switched out is invested for more than
1 year
from the date of allotment. SIP/STP Option :(a) 1%
of
Exit Load
applicable NAV if the amount sought to be
redeemed or
switched out,is invested a period of upto 2 year from
the
date of allotment.(b) Nil if the amount sought to
be
redeemed or switched out is invested for a period of
more
than 2 years from the date of allotment.
Generally Within 3 business day for Specified
Redemptio
RBI
n Cheques
locations and additional 3 Business Days for Non-
RBI
Issued
locations
Minimum
Redemption
Rs. 500/-
Amt.
Monthly: Minimum Rs. 1000 + 5 post-dated cheques
Systematic
for
Investment
a miminum of Rs. 1000 each. Quarterly:
Minimum
Plan
Rs.5000 + 4 post-dated cheques of Rs. 5000 each.
Systematic
Minimum of Rs.500/- and Multiples thereof
Withdrawal Plan
Recurring Expenses
Investment Mangmt.
1.25%
Exp.
Other Recurring
1.25%
Expenses
Total 2.50%

(DEBT FUND)

INVESTMENT OBJECTIVE

Your need to keep some money in fixed return instruments stems from a
need to earn regular income, or from an aversion to risk. ICICI Prudential Income
Plan is for those investors who seek to deploy part of their funds in fixed income
products as a conscious investment option. The fund enables you to earn a total
return–made up of both interest income and changes in the value of capital, a facility
that comes only with debt funds that do not restrict themselves to generating merely
interest income. As market interest rates change, the value of your portfolio also
changes, creating a total return portfolio in debt securities.

43
Asset Allocation

% of Portfolio of
Instrument Risk Profile
Plan A & B
Corporate debentures &
Bonds/PSU/FI/Govt. Guaranteed
Bonds / Upto 90% High
Other including Securitised Debt
Securitized Not more than
Debt Low
10% of in debt
Government Securities Upto 90% High
Cash & Call Money Upto 25% Medium
Money Market Instruments Upto 25% Mediom
Units of other mutual funds Upto 5% Low

SCHEME HIGHLIGHTS

1. Open ended Debt Scheme 2. Following Plans are available to the investors :(A) Growth
Plan
(B) Dividend Plan (C) Bonus Plan (D) Floating Rate Plan Options available under
Floating Rate Plan Short Term (Growth, Dividend & Weekly Dividend)Long Term
(Regular (Dividend & Growth) Long Term (Institutional (Dividend & Growth)

2. The Plans will invest their entire corpus in high quality debt (Corporate debentures,
PSU/FI/Govt guaranteed bonds), Govt securities and money market instruments
(commercial paper, certificates of deposit, T-bills, bills rediscounting, repos, short-
term bank deposits, etc). There shall be no investment in equity.

3. The Growth Plan / Option will give returns through capital gains only. No dividends
shall be declared under this Plan. The Dividend Plan will endeavour to declare regular
dividends every half year, depending on the NAV at that point of time. The Dividend
Option in Floating Rate Short Term Plan will endeavour to declare dividends on a
monthly basis while the dividend option under the Floating Rate Plan Long Term
(Regular and Institutional) Plan will declare dividends on a quarterly basis.

44
4 Switchover between the Plans at NAV. :Also, switchover facility at the NAV related
prices to other openend schemes of ICICI Mutual Fund is available. This facility of
switchover to other schemes is not available to NRIs and FIIs

ICICI PRUDENTIAL BALANCED FUND

INVESTMENT OBJECTIVE

To provide investors long term capital appreciation along with the liquidity of
an open-ended scheme by investing in a mix of debt and equity. The scheme will
invest in a diversified portfolio of equities of high growth companies and balance the
risk through investing the rest in a relatively safe portfolio of debt.

ASSET ALLOCATION
% of Portfolio of
Instrument Risk Profile
Plan A & B
t
At least Medium o
Equities 50%
High
Debt Instruments like debentures,
Up to 40%
bonds,khokhas, etc.

Not more than


t
10% of Medium o
Securitized Debt investment
s in High
debt
Money Market
Instruments Balance Low

45
APPLICATIONS OF OBJECTIVES

1. To quickly identify, contact, attract and acquire new customers.


Customer relationship is an information industry term methodologies that help an
enterprise manage customer relationship in a managed way for example, An ICICI
PRUDENTIAL LIFE INSURANCE might build a database about its customers, that
describes relationships in sufficient detail. So that management, sales people
service, people and the customer can directly access their information, match
customer needs with product plans and offerings remind customers of service
requirements and know what other products a customer had purchased. CRM
enables the creation of long term, profitable relationship with customers through
increased customer intimacy and improved business process effectiveness.

CRM links back-office and front-office functions with all of a company’s touch
points (for example call centers, the corporate website) with the customer. CRM can
refer either business strategy or tools. It defines the front-end tool designed to facilitate
the capture, consolidation, analysis, and enterprise wide dissemination of data from
existing and potential customers. this process occurs through out the marketing, sales
and services stages of the business.

In ICICI PRUDENTIAL LIFE INSURANCE, CRM covers all customer touch points, like
face-to-face. Internet(the corporate website), or phone(call centers). It supports
employee, and customer facing roles and allws all individuals wheather employee,
business partners or customers, to collaborate .

ICICI PRUDENTIAL LIFE INSURANCE FOLLOWS THE BELOW


TECHNIQUES :
DIRECT MARKETING: direct marketing uses mail, telephone, fax, e-mail, and internet
to communicate directly with or solicit a direct response from specific customers
and prospects. It has its roots in direct marketing and mail and catalog marketing.
The direct marketing as an interactive marketing system that uses one or more time
from anywhere.
46
CALL CENTER TECHNOLOGY :
A call center is a group of agents and voice responsive (VRUS) that assist
customers with support, inquiry and transaction functions. Some type of call center
technology with VOIP (voice over internet protocol). Integrated with intelligent call
routing is an absolute must for an interface with the live customers.

CRM IN ICICI PRUDENTIAL LIFE INSURANCE provides an integrated view of a


company’s customer to everyone in the organization and thus, ensures that every
one in the ICICI PRUDENTIAL LIFE INSURANCE focused on the customer.

CRM provides seamless integration between all applications and flexible


deployment of solutions, merging front-office and back-office into one office that
focuses on increased customer satisfaction.

2. To obtain a better understanding of the customers, their needs


and wants.

The company focuses their attention on how to achieve and then sustain
superior organizational performance. The ICICI PRUDENTIAL LIFE INSURANCE LIFE
INSURANCE wants to know the excellent companion for what the customers wants
you to know. Because it helps those in sales and who supervise them, it can be done
through the heart of new approach to selling is an intense focus on the prosperity of
your customer is through value creation selling (VCS).
The ICICI PRUDENTIAL LIFE INSURANCE LIFE INSURANCE notes that VCS is
sweepingly different from how most companies sell today in these five ways.

FIRST:
ICICI PRUDENTIAL LIFE INSURANCE as a seller and your organization devote large
amount of time and energy - much more than you do today - to learning about your
customers' businesses in great detail.

47
SECOND:
ICICI PRUDENTIAL LIFE INSURANCE use capabilities and tools that you've never
used before to understand how your customers do business and how you can help
them improve that business...

THIRD:
ICICI PRUDENTIAL LIFE INSURANCE going to make it your business to know not
only your customers but also your customers' customers..

FOURTH
ICICI PRUDENTIAL LIFE INSURANCE have to recognize that the execution of this
new approach will require much longer cycle times to produce an order and generate
revenue.

FINALLY:
Top management in your company will have to reengineer its recognition and reward
system to make sure that the organization as a
whole is fostering the behaviors that will make the new sales approach effective."

Earlier ICICI PRUDENTIAL LIFE INSURANCE focus why traditional sales


approaches are unable to satisfy what customers want salespeople to know. That's
true but it should be noted that ICICI PRUDENTIAL LIFE INSURANCE views the VCS
process - if properly formulated and then effectively implemented - should directly or
at least directly involve everyone within the given enterprise. In fact, because the
VCS process is information-driven, ICICI PRUDENTIAL LIFE INSURANCE strongly
recommends that external sources also be utilized to obtain the information needed
about each customer and its business. Those sources include online and electronic
business media as well as vendors and research analysts within the given
marketplace. Thorough as always, ICICI PRUDENTIAL LIFE INSURANCE even
suggests what kinds of questions should be asked to determine specific information
needs and objectives.

Near the conclusion of the ICICI PRUDENTIAL LIFE INSURANCE observes:


"Transforming a sales force from transactional selling to one that creates value for the
customer is a long journey...Every part of the company has to put the customer
first...Virtually every company will have among its customers some who are progressive
and fully understand the
48
value of collaborating with their suppliers to the mutual benefit of both. Start there,
and don't turn

back...Above all, value creation selling will spur your ICICI PRUDENTIAL LIFE
INSURANCE to come up with new ideas and innovations that will continually
differentiate it in the

highly competitive business environment of the twenty-first century. It is the pathway


to a prosperous future."

3. DEFINE APPROPRIATE PRODUCT AND SERVICE OFFERING AND


MATCH IT TO THE CUSTOMERS UNIQUE NEEDS.
More than half of all consumers say a negative online experience leads to online and
offline abandonment.

With the click of a mouse, a customer who has invested time and effort researching
your products and services online, and who may have purchased policy plans store
in the past, will disappear forever because of a single, bad online experience.

Often the issue that caused the customer to abandon his or her transaction could
have been resolved easily with help from a live agent. As such, ICICI PRUDENTIAL
LIFE INSURANCE realize can no longer think of their individual channels as self-
sustained entities, but as integral parts of an entire brand operation.

Interactive help options like "click to call" and "click to chat" deliver cross-channel
personalization capabilities that allow companies to target and engage customers
proactively based on their perceived needs. These technologies can have a profound
effect on online sales, provided that the companies implementing them follow
certain guidelines. These guidelines include:

Proactively targeting "engaged" Web site visitors

Offering the most appropriate contact based on context

Moving shoppers seamlessly across channels

Sharing information from one channel to the next

49
Can you imagine retail stores where nine out of 10 customers left without buying
and no one ever asked them what they were looking for? Well that's the state of
affairs in the online customer service world. Engaging customers proactively is the
equivalent of a sales representative walking up to a customer in a retail store and
kindly saying, "May I help you with something?"

Companies that deliver personalized cross-channel experiences for their customers


using click to call and click to chat have increased sales conversions, reduced Web site
abandonment and improved service efficiency dramatically. This kind of contextualized
approach to online customer interaction has increased conversion rates by as much as
20 percent and decreased handling times by up to 20 percent, according to a recent
Jupiter Research report.

THE RIGHT CONTACT AT THE RIGHT TIME


The reality is that most companies would prefer not to have every customer inquiry
result in a phone call or chat, and they invest heavily in providing self-service tools to
address basic customer service issues. While many online marketers view this as an
effective way to reduce costs, it sometimes exacerbates customer frustration by
denying them the personalized service they need to complete a sale. The result is an
unhappy customer and a missed opportunity for the company to generate revenue.

"In the future, retailers will need to develop a more balanced view of interactions
across channels, optimizing for a combination of cost and satisfaction. Valuable
customers, for instance, may require different service options than other customers,"
according to a December 2006 study by Forrester Research.

In those instances where customer contact is desired or required, click to call and
click to chat not only offer quality service and increase contact center efficiency, but
also help metamorphose the contact center into a sales center by targeting
individual customers based on their perceived needs and potential value. This can be
done by evaluating individual customers according to profile or segment information.

For example, companies that segment their customer base into gold, silver and
bronze categories can set a rule that presents click to call to gold (high-value)
customers throughout their session, but only to silver and bronze customers once
their shopping carts reach a certain threshold.

50
Gold customers get the piece of mind of always having the phone option should they
have a questions, while lower-value customers are channeled to less costly service
options like FAQs, e-mail or chat (unless they meet the shopping cart

4. IDENTIFY CROSS SELLING AND UP SELLING.


Cross-sell and up-sell software typically include the capability to quality
prospects, track contracts, and refer them to sales persons when appropriate event
driven marketing is one aspect of cross-selling .for example IN ICICI PRUDENTIAL
LIFE INSURANCE an event would be a large policy, which would then trigger a sales
person to call the customer and ask if he or she would be interested in other plans of
policies. Cross -selling and up-selling can also be based on identifying the life-path
needs of the prospects. For example ICICI PRUDENTIAL LIFE INSURANCE should
recommend money back policy to those of their customers who are approaching
retirement. If customers with young children could be identified then ICICI
PRUDENTIAL LIFE INSURANCE could cross-sell child life plans , cross sell and up-
sell software may be used to schedule sales calls, keep detailed records about sales
activities, and check on the status of customer orders. This software may also be
integrated with inventory software(to see what products are in stock) or field
services /external customer support(to learn how the product is working for the
customer.

5. INCREASE RETENTIION OF EXISTING CUSTOMERS THROUGH


IMPROVED AFTER SALES, SERVICE, AND SUPPORT.

Successful Customer Acquisition and Customer Retention Marketing Strategies.

Targeted marketing is a critical component of your marketing success. Attracting and


retaining profitable customers and turning potential customers into actual customers is
a huge challenge
– especially when you consider the multitude of consumer data available. Whether
it's business-to-business marketing or business-to-consumer marketing, ICICI
PRUDENTIAL LIFE INSURANCE need to know your customers. By understanding the
demographic characteristics, lifestyle behaviors and purchase preferences that drive
your audience's decisions, ICICI PRUDENTIAL LIFE INSURANCE can successfully
tailor their marketing strategies to reach those most likely to purchase your product
or service, increase your customer loyalty and improve customer profitability.
51
Powerful Marketing Solutions

Market targeting starts by combining your proprietary customer data with our
segmentation systems and the most comprehensive databases available. The result
is sound, actionable, intelligent information targeted for your specific industry.

ICICI PRUDENTIAL LIFE INSURANCE' targeted marketing solutions provide the tools
you need to effectively reach and retain your best customers, while improving
customer loyalty and customer profitability. When conducting business-to-consumer
marketing, you'll discover your customers' lifestyles, habits, preferences and needs,
including:

Specific product
usage Channel
preferences
Technology adoption
Media usage
Lifestyle and other consumer
behaviors Life cycle data

Proven Steps to Success

ICICI PRUDENTIAL LIFE INSURANCE' established best practices for customer


acquisition and customer retention marketing integrates information, analysis and
marketing applications for targeting their best customers and prospects and
retaining company’s best customers. ICICI PRUDENTIAL LIFE INSURANCE Using ' 4-
step market targeting process of Discovery, Strategy, Implementation and
Measurement, ICICI PRUDENTIAL LIFE INSURANCE trained representatives will help
company apply Precision Marketing techniques to develop the best customer
acquisition and customer retention solutions to tackle your specific marketing
challenges:

1. Discovery - ICICI PRUDENTIAL LIFE INSURANCE Begin with a complete


examination of both your customer base and your market to identify your
highest value customer segments and best new sales opportunities. This link
between your internal information and the marketplace provides valuable
insight into your customers' purchasing behavior and preferences – revealing
who is likely to buy more and which products or services they want. With this
information in hand, you immediately improve your opportunities to increase
customer profitability and improve customer loyalty.

52
Lifestyle segmentation is a key component of the customer analysis phase
and helps to identify life stages, income ranges, education levels and media
preferences. Learn which products fit your customers' lifestyles for more
precise planning of cross-sell and up-sell promotions.

2. Strategy
Once your key customer segments have been identified, develop targeting
strategies that address customer needs and take full advantage of your new
opportunities today and into the future. This strategic phase focuses on the three
core areas essential for true customer acquisition and retention success:
customers, markets and delivery channels.

3. Implementation – Implement Your Plan


The knowledge gained from the analysis and strategic planning phases allow
you to implement a solid targeted marketing plan. Target prospects precisely,
choosing segments that match your customer base and media channels that
match their preferences. Reaching potential customers with targeted offers
has never been easier.

4. Measurement – Measure Your


Performance
During the measurement phase of your program, arm yourself with the
performance benchmarks and "potential" analysis to assess the effectiveness of
your strategies and implementation tactics. The ability to measure against these
actions is critical – it is the only way you can gain the insight to make
improvements, implement cost savings and accurately assess gains or losses.
Measuring your results can increase your response rates for the next campaign
and help to allocate your marketing budget more effectively.

POWERFUL CUSTOMER ACQUISITION AND CUSTOMER RETENTION


SOLUTIONS

By combining your proprietary customer data with our segmentation systems and
the most comprehensive databases available, you get customer acquisition and
customer retention solutions targeted for your specific industry. The following
customer acquisition and customer retention solutions and platforms are available:

53
Data – reveal product usage through primary research and
survey data Segmentation – uncover specific lifestyle
information
Software – map customers and perform in-depth
analyses Internet – download additional data for
analysis
Consulting – gain customized solutions through our analytical services
division, Integras

By combining the business-to-consumer marketing solutions most relevant to you


and your business, you will improve your customer profitability and customer
loyalty.

MARKET SEGMENTATION
ICICI PRUDENTIAL LIFE INSURANCE' market targeting segmentation research tools
excel at uncovering hidden patterns of consumer behavior for you to capitalize on.
ICICI PRUDENTIAL LIFE INSURANCE help you improve the targeting of your specific
market segment and audience by understanding the demographic characteristics,
lifestyle behaviors and purchase preferences that drive their buying decisions. ICICI
PRUDENTIAL LIFE INSURANCE has led the industry in analytical marketing
segmentation research solutions that generate proven business-to-consumer
marketing results for our clients.

ICICI PRUDENTIAL LIFE INSURANCE segmentation systems provide a flexible framework


for decision-making that is consistent from the individual, to local markets, to the
national level
– and every level in between. This ability to "upshift" or "downshift" across market
segments with total consistency is a unique benefit of working with ICICI
PRUDENTIAL LIFE INSURANCE

Browse through the comprehensive listing of ICICI PRUDENTIAL LIFE INSURANCE


targeted marketing segmentation solutions, designed to bring all consumer profiles,
market segmentation and facets of your segmentation challenges into focus. Our
marketing segmentation research system options allow you to easily locate the best
market segmentation solution for your business needs.

UNPARALLELED PRIMARY CONSUMER RESEARCH


ICICI PRUDENTIAL LIFE INSURANCE offers the most extensive links to the nation's
leading syndicated surveys and databases of consumer behavior. These consumer
profiles

54
provide a powerful targeting tool to accurately segment consumers by lifestyle,
media and product preferences. National and local market profiles are available.


Convergence Audit Survey – The Convergence Audit provides market
intelligence regarding communication, energy and technology use through
actual consumer attitudinal and behavioral information.

Insurance Audit Survey – The Insurance Audit provides detailed information
about consumer behavior of insurance and investment products.
®
Market Audit Survey – Market Audit is the largest syndicated database of
consumer financial behavior – compiled annually from interviews with over
100,000 households, Market Audit covers household use of dozens of
financial products, accounts and account balances, where accounts are held
and more.

EXTENSIVE SEGMENTATION PARTNERSHIPS

ICICI PRUDENTIAL LIFE INSURANCE targeted marketing segmentation systems link to


more syndicated product-use surveys, direct mail lists, audience measurement and other
key databases in the U.S. and Canada than any other segmentation systems. These links
make it possible to use our market segmentation data for a wide variety of business-to-
consumer marketing applications, from media planning to database marketing. Our
partnerships give you the power and confidence of proven market segmentation
research and technology expertise.

SEGMENT YOUR CUSTOMERS – TARGET YOUR PROSPECTS

Increasing ICICI PRUDENTIAL LIFE INSURANCE market targeting effectiveness is


one of your toughest challenges – how do you make the most of your marketing
dollars while successfully reaching and retaining your most profitable customers
and prospects? Market segmentation helps to easily classify your best customers
and find more like them – resulting in improved customer profitability and customer
loyalty. With the overwhelming range of data and segmentation offerings available,
you need an easy-to-use resource that connects market demographics, consumer
segmentation and behavioral survey data in one system.

ICICI PRUDENTIAL LIFE INSURANCE Consumer Point provides a comprehensive


solution that allows you to link your internal data with the external market
perspective, uncovering valuable information about your greatest opportunities.
Consumer Point includes the following collection of ICICI PRUDENTIAL LIFE
INSURANCE well-known and powerful market segmentation and market data
systems:
55
®
PRIZM NE - The New Evolution
PRIZM NE 5Y
Workplace PRIZM NE
®
P$YCLE NE
P$YCLE NE 5Y

THE MARKETER'S COMPLETE ONLINE TOOLKIT


ICICI PRUDENTIAL LIFE INSURANCE is a new online targeted marketing experience.
Rather than focusing on a single marketing discipline, we have created a toolkit that
allows marketers to complete all of their marketing and planning projects from a
single resource.
Market Analysis – Produce reports, maps and data variables for your market
areas. Analyze demographic trends, consumer spending and business
profiles to choose the best markets and site locations.
Customer Analysis – Segment your customers to target your best growth
opportunities. Understand customer lifestyles, product preferences, and
media habits so you can target customers and prospects more effectively.
Business to Business Analysis – Discover your best business to business
customers and competitors, plan your strategy and then execute it

Until now, multiple resources were required to complete robust marketing analysis.
This versatile tool provides answers to all your needs:

Dozens of detailed reports/maps – Demographics, Consumer Buying Power,


Retail Market Power, Business Facts and much more!
Thousands of data variables offering insight into any US market.
Thousands of behavioral profiles that unlock the behaviors of your target
customers and prospects.
Market leading consumer segmentation – PRIZM NE, P$YCLE
NE, Complete business to business matching and discovery
tools
Consumer and business to business prospect lists


BUSINESS POINT
B2B MARKETING, ONLINE IN REAL TIME
ICICI PRUDENTIAL LIFE INSURANCE Business point a robust, web-based portal,
gives you the ability to discover, plan, evaluate and execute your business-to-
business efforts. Use Business Point to gain a better understanding of your B2B
customers and get the complete 56
picture of the "B2B" landscape in your market. In short, after using ICICI
PRUDENTIAL LIFE INSURANCE Business Point, you will achieve more successful
business-to-business market targeting campaigns!
ICICI PRUDENTIAL LIFE INSURANCE is a cost-effective targeting tool that will
answer your toughest marketing questions. The comprehensive information about
each business helps you define and target your direct mail, telemarketing, and direct
sales efforts. The site offers the flexibility to refine your analysis by using filters to
receive exactly the information you're looking for.

®
PRIZM NE
THE NEW EVOLUTION IN SEGMENTATION
For the fourth time in as many decades, ICICI PRUDENTIAL LIFE INSURANCE has
recrafted its targeted marketing segmentation technology to correspond with the largest
data collection effort ever undertaken by any entity – the 2000 U.S. Census. The PRIZM
NE system captures the essence of the previous PRIZM system, as well as the best-in-
class methodology of MicroVision. What's different – and most powerful – about the
current development process for PRIZM NE is that it links household and neighborhood-
level segment assignments.
Updating segmentation systems to evolve with the times is nothing new for ICICI
PRUDENTIAL LIFE INSURANCE The Census transition from 1980 to 1990 found us
updating both PRIZM and Vision, one of ICICI PRUDENTIAL LIFE INSURANCE former
segmentation systems. These updates resulted in the creation of the 62-cluster version
of PRIZM and the 95-atom MicroVision system at the ZIP+4 level. This updating process
has kept ICICI PRUDENTIAL LIFE INSURANCE at the forefront of segmentation
development.

THE POWER OF SEGMENTATION WHERE CONSUMERS WORK


Effectively identifying and targeting the customers who drift in and out of your
market area during their workdays can be challenging, yet this is a critical
component of your marketing success. Whether they are eating out for lunch,
dropping off dry cleaning, getting cash at the ATM, or picking up a birthday card,
consumers like the convenience of buying products and services near where they
work. For as many as three shifts a day, 365 days a year, a neighborhood's
workplace population constitutes a significant—but often untapped—market of
potential customers.
57
Now you can target your customers where they work with the same standard
segmentation system you use to target them at home. Workplace ICICI PRUDENTIAL
LIFE INSURANCE provides marketers with the distribution of INGVYSYA segments
carried into a neighborhood by its working population. Once its workers arrive, a
geography's ICICI PRUDENTIAL LIFE INSURANCE profile can be as different from its
resident population profile as, quite literally, night and day.
Market targeting segmentation data and products will help you increase your
customer profitability and improve your customer loyalty. Contact
ICICI PRUDENTIAL LIFE INSURANCE to find out how we can help you with market
segmentation, targeted marketing segmentation research, consumer profiles,
market data and demographic segments data needs.

58
CHAPTER IV

DATA ANALYSIS AND


INTERPRETATION

59
1. Please tick the factor that drives you for the purchase of the insurance.

CATEGORY RESPONDENTS
Safety 35
Benefits 23
Comfort 22
Brand 20

RESPONDENTS

40
35
35

30

25 23 22

20
20 RESPONDENTS

15

10

0
Safety Benefits Comfort Brand

INTERPRETATION:
Out of 100 people who participated in survey it is found 35 are giving more
importance to safety, and 23 are giving for benefits, and 22 are giving for comfort,
and 20 are giving for the brand. The majority of the customers are giving more
importance to safety.

60
2. Do you plan to have a life insurance policy in near future?

CATEGORY RESPONDENTS
Within 6 months 38
Within 1 year 21
After 1 year 28
Above 1 year 13

RESPONDENTS

40 38

35

30 28

25
21
20 RESPONDENTS

15 13

10

0
With in 6 months With in 1 year After 1 year Above 1 year

INTERPRETATION:
Out of 100 people who participated in survey it is found 38 customers are willing to
take the policy within 6 months, 21 are willing within 1 year, and 28 are willing to take
after 1 one year and 13 are willing to take above 1 year. So the majority of the
customers are within 6 months.

61
3. Which of life insurance policy do you prefer for your family?

CATEGORY RESPONDENTS
Traditional Plans 19
Money back Plans 34
Unit linked Plans 27
Market investment Plans 20

RESPONDENTS

40

35 34

30
27
25

20
19 20 RESPONDENT S

15

10

0
Traditional Plans Money back Unit linked Plans Market
Plans investment Plans

INTERPRETATION:
Out of 100 people who participated in survey it is found 19 are showing interest for
traditional plans, and 34 are interest for money back policy and 27 are interest for
unit linked plans, 20 are interest for market investment plans. So majority of
customers will go for the money back policy.

62
4. Which mode of payment do you find more suited to your convenience.

CATEGORY RESPONDENTS
Quarterly 29
Half yearly 28
Yearly 24
Any other 19

RESPONDENTS

35

29
30 28

24
25

20 19

RESPONDENTS
15

10

0
Quarterly Half yearly Yearly Any other

INTERPRETATION:
Out of 100 people who participated in survey it is found 29 are willing to pay the
amount in quarterly and 28 are willing to their amount in half yearly and 24 are willing
to pay their amount in yearly, and 19 are willing to pay their amount in other modes.
So majority of the customer are willing to pay amount in quarterly.

63
5. Are you satisfied with the services and benefits of the insurance company in
which you have policy?

CATEGORY RESPONDENTS
Yes 74
No 26

INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are satisfied with the company
service.
Out of 100 respondents who having the policy in ING 26 are not satisfied with their
services.

64
6. Do you suggest the insurance company in which you have policy to your friends?

CATEGORY RESPONDENTS
Yes 71
No 29

INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are willing to suggest their
friends.
Out of 100 respondents who have the policy in ING 29 are not willing to suggest their
friends.

65
6. Media in your view is the best seated for the insurance industry.

Percentag
Opinion No. of. Respondents e
TV 20 20
Print 40 40
Internet 10 10
Cellular 30 30
None 0 0
Total 100 100

Media in your view is the best seated for the insurance


industry.
45
40
35
30
25
20
15
10
5
0
TV Print Internet Cellular None

No. of. Respondents

INTERPRETATION:
Out of 100 people who participated in survey it is found 33 are known about the ICICI
PRUDENTIAL LIFE INSURANCE POLICIES by newspapers.26 are known by T.V. and
20 are known by hoardings and 10 are known by events.

66
7. Receive timely updates on your registered mobile numbers.

Percentag
Opinion No. of. Respondents e
Strongly Agree 40 40
Agree 32 32
Averag
e 15 15
Disagree 8 8
Strongly disagree 5 5
Total 100 100

Receive timely updates on your registered mobile


numbers.
45
40
35
30
25
20
15
10
5
0
TV Print Internet Cellular None

No. of. Respondents

INTERPRETATION:
The majority i.e. the 40 and 32 of the respondents strongly agree and agree that they
receive timely updates on their registered mobile number and 15 respondents are
neutral towards it and the rest disagree with it. The awareness campaign is working
well to a great extent.
67
8. Customer care provides you with sufficient and required information
regarding your insurance.

Opinion No. of. Respondents Percentage


Strongly yes 22 22
yes 12 12
sometimes 46 46
no 3 3
never 14 14
Total 100 100

Customer care provides you with sufficient and required


information regarding your insurance.
50
45
40
35
30
25
20
15
10
5
0
Strongly yes yes sometimes no never

No. of. Respondents

INTERPRETATION:
46 of the respondents are neutral towards this question whereas 22 strongly agree
towards it and 12 admits yes they do and the remaining 3 and 14 are of the opinion
no and never respectively. Therefore the customer care should be trained properly to
enhance its quality and performance.

68
9. Change your insurance provider in near future.

Rating Scale No. of. Respondents Percentage

yes 2 2
Strongly yes 48 48

sometimes 50 50
no 0 0
never 0 0
Total 100 100

Change your insurance provider in near future.


60

50

40

30

20

10

0
yes Strongly yes sometimes no never

No. of. Respondents

INTERPRETATION:
Half of the respondents i.e. 50 are neutral towards changing their insurance provider
whereas 2 and 48 agree and strongly agree to continue with it. The company should
try to gain the confidence of the customers.

69
10. Provider approaches you and intimidate about the offers and plans which are of
great benefit.

Percentag
Opinion No. of. Respondents e
Strongly yes 60 60
yes 30 3
sometimes 10 10
No 0 0
never 0 0
Total 100 100

Provider approaches you and intimidate about the offers


and plans which are of great benefit.
70

60

50

40

30

20

10

0
Strongly yes yes sometimes No never

No. of. Respondents

INTERPRETATION:

A very large number i.e. 60 out of 100 are of the opinion strongly yes to the above
question and 30 responded as yes and remaining 10 are neutral towards it. It can be
assumed that the providers have a good marketing strategy that a very large number
of respondents are satisfied with it.

70
11. Like to try different types of insurance provided by the provider.

Percentag
Opinion No. of. Respondents e
Strongly yes 29 29
yes 34 34
sometimes 10 10
no 27 27
never 0 0
Total 100 100

Like to try different types of insurance provided by the


provider.
40

35

30

25

20

15

10

0
Strongly yes yes sometimes no never

No. of. Respondents

INTERPRETATION:

29 and 34 responded as strongly yes and yes respectively towards trying different
types of insurance provided by the provider and 10 are neutral towards it. Remaining
27 responded as a no. thus the respondents are mixed towards this question.

71
12. On the scale of 5 below how will you rate your insurance policy?

Percentag
Opinion No. of. Respondents e
Highly satisfied 55 55
satisfie
d 25 25
neutral 10 10
dissatisfied 8 8
Highly dissatisfied 2 2
Total 100 100

how will you rate your insurance policy


60

50

40

30

20

10

0
Highly satisfied satisfied neutral dissatisfied Highly dissatisfied

No. of. Respondents

INTERPRETATION:
55 are highly satisfied with the service provided to them, 25 are satisfied, 10 are neutral
towards it and the remaining 8 and 2 falls in dissatisfied and highly dissatisfied
categories. Therefore it can be assumed that the insurance policy is one of a kind which
is worth purchasing.
72
13. On the scale of 5 below how will you rate your insurance provider?

Rating scale No. of Respondents Percentage


Highly satisfied 7 7
satisfied 34 34
neutral 51 51
dissatisfied 8 8
Highly dissatisfied 0 0
Total 100 100

how will you rate your insurance provider?


60

50

40

30

20

10

0
Highly satisfied satisfied neutral dissatisfied Highly dissatisfied

No. of Respondents

INTERPRETATION:
Majority that is 51 are neutral towards the provider, 34 are satisfied and 7 are highly
satisfied and there are 8 respondents who are dissatisfied. The insurance company
should take appropriate steps to increase the number of its satisfied customers.

73
14. Interested in purchasing another policy besides this.

Percentag
Opinion No. of. Respondents e
yes 40 40
Strongly yes 30 30
sometimes 20 20
no 5 5
never 5 5
Total 100 100

Interested in purchasing another policy besides this.


45

40

35

30

25

20

15

10

0
yes Strongly yes sometimes no never

No. of. Respondents

INTERPRETATION:

To this question a large number of respondents i.e. 40 replied that they are
interested and 30 of them are strongly interested whereas 20 are neutral towards
this and the remaining 10 are the nature of no and never.

74
CHAPTER V

FINDINGS AND
RECOMMENDATIONS

75
FINDINGS

From the project study and interpretations of the findings are as follows:

Our country India has a population 120 crore and that are only 8 crore people
have life insurance policy. Out of 100 samples 65% people have insurance policy
in LIC and remaining 35% people have insurance policy In other insurance
companies.

Most people have trust in LIC than any other insurance company and still LIC
holds huge market share in life insurance sector in India.

The reason behind this is LIC is a public sector company and has its roots from
50 years in India.

82% people are taking insurance policy only if it is within their budget and have
flexible payment options and remaining are taking policy if it is not within budget,
but due to benefits, they are taking policy and due to the reputation of the
company.

Among various factors, 55% of people are looking for benefits policy and
remaining 20% people are looking for brand name of insurance company.
76
RECOMMENDATIONS

There is a huge potential market for life insurance companies in India as output
of 120 crore population. Only 8 crore are insured. The insurance companies
should educate people about insurance its importance, different policies and
benefits of policies.

The people opt for policy by taking into consideration price of premium of policy
and benefits of policy and least importance is given to brand name. the life
insurance companies should look over flexible payment options from the point of
untapped potential market in India.

The price of premium of a policy must be within the budget of common man and
life insurance companies should provide flexible payment options. By doing so,
the private insurance companies can surely capture the untapped market along
with creating brand name.
77
CONCLUSIONS

From this study it can be concluded that the customer relationship management
in Company is satisfactory. The company is using various CRM practices like
customization of the product, maintaining interaction with the customers
regularly and providing good quality product etc.

In order to attract customers, a company must be able to identify the needs which a
customer is seeking to have satisfied and must be able to communicate to these
customers the ways in which the company can help them satisfy these needs.
Advertising and product development are quite expensive and so it is beneficial,
financially, for a company to know before-hand which products will likely to be
successful and which advertising strategies will be most effective. Some companies
may rely on intuition and some may rely on trial-and-error. CRM systems allow for the
objective study of the interaction between company and customer. These systems
allow for the collection of important data, the storage of this data, and the means of
analyzing the data in a way which will be useful to the company. Companies should
realize, however, that IT systems are not magical and that they may introduce
problems of their own. A company should be prepared for problems during the
testing and implementation phase using any new software. Specifically, the company
should not rely too much on the new software until it has been properly tested. Data
loss can pose a serious threat to the functioning of any company and thus old
systems should not be taken off-line until the new ones are functioning properly. It is
also very important for a company to correctly analyze its situation before hand so
that it can choose the best software package for its needs. The implementation of
software is expensive and time-consuming. Switching systems is not like switching
clothes. The costs involved include time and money and both of these are things
which a company does not want to waste.

Customer relationship management has a certain impact on the profitability of the


company. Average sale per customer has increased 15% over the last two years.
Customer response rate towards marketing activities is also improving. There are
various factors affecting the customer relationship management like working
environment of the company, support from top management and coordination
among the departments of the company. Information technology is not used as
much as it should be. The company is using traditional tools of CRM like quantitative
research, personal interviews. The company should modern tools like data mining,
contact center, e-CRM and web based survey tools.
78
BIBLIOGRAPHY

79
BIBLIOGRAPHY

1. Philip T. Kotler and Gary Armstrong, “Principles of Marketing,” 17th Edition,


Pearson Education
2. Dr. P. N. Reddy, “Principles of Management,” 5th Edition, McGraw Hill
Education (India) Private Limited
3. S. A. Sherley, “Marketing Management,” 3rd Edition, Indian Publishing House
4. G. C. Beri, “Marketing Research,” 5th Edition, Tata McGraw Hill
5. Donald S. Tull, “Marketing Research: Measurement & Method,” 2nd Edition,
McGraw Hill
6. Books and Journals: Business world, 4P’s Marketing, Economic Times (Brand
Equity), Business line

References

1. https://www.iciciprulife.com/
2. https://www.ingvysyalife.com
3. https://www.mouthshut.com
4. https://www.research.com
5. https://www.solidit.com
6. https://www.crm.com
7. https://www.claritas.com
8. https://en.wikipedia.org/wiki/ICICI_Prudential_Life_Insurance
9. https://www.iciciprulife.com/about-us/company-overview.html

80
QUESTIONNAIRE

81
QUESTIONNAIRE

1. Name :
2. Age :
3. Department :
4. Designation :
5. Experience :
6. Qualification :

(1) Please tick the factor that drives you for the purchase of the
insurance. Safety
Comfort
Benefit
Brand
Uncertaint
y

(2) DO you plan to have a life insurance policy in near


future. Within 6 months
Within 1
year After 1
year Above
1 year
I don’t know

(3) Which of the life insurance policy do you prefer for your family?
Traditional Plans
Money Back Plans
Unit linked plans
Market Invest
Plans None of the
above

(4) Which mode of payment do you find more suited in your


convenience? Quarterly
Half Yearly
Yearly
Depends on
benefits Any other
82
(5) Are you satisfied with the services and benefits of the ICICI PRUDENTIAL
LIFE INSURANCE LIFE insurance Company you have policy?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

(6) Do you suggest the insurance the ICICI PRUDENTIAL LIFE INSURANCE to
your friends?
Strongly Agree
Agree Neutral
Disagree
Strongly
Disagree

(7) Which of the following media in your view is the best seated for the
insurance industry?
Television
Print
Media
Internet
Cellular
None

(8) Do you receive timely updates on your registered mobile


numbers? Strongly yes
Yes
Sometime
s No
Never
83
(9) Does the customer care provide you with sufficient and required
information regarding your insurance?
Strongly
yes Yes
Sometime
s No
Never

(10) Would you like to change your insurance provider in near future?
Strongly yes
Yes
Sometimes
No
Never

(11) Does the provider approach you and intimidate about the offers and plans
which are of great benefit?
Strongly yes
Yes
Sometimes
No
Never

(12) Will you like to try different types of insurance provided by the provider?
Strongly yes
Yes
Sometimes
No
Never

(13) On the scale of 5 below how will you rate your insurance policy?
Highly satisfied
Satisfied
Neutral
Dissatisfied

84
Highly dissatisfied

(14) On the scale of 5 below how will you rate your insurance provider?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

(15) On the scale of 5 below how will you rate grievance handling?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

(16) Will you be interested in purchasing another policy besides this?


Strongly yes
Yes
Sometimes
No
Never

(17)Any expectations that are not fulfilled by the ICICI PRUDENTIAL LIFE
INSURANCE company and suggestions:

85

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