A

PROJECT REPORT
ON

“EFFECTIVENESS OF CUSTOMER
RELATIONSHIP MANAGEMENT AT
AIRTEL”

In partial fulfillment for the

Post Graduate Diploma in Business Administration

(PGDBA)

Submitted To: Submitted By:

ARUN KUMAR MAGAT

SCDL Registration No.200710855
PGDBA
Year: 2007

SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)

 TABLE OF CONTENTS

1. Acknowledgements……………………………………………….4
2. Certification………..………………………………………………..5
3. Abbreviations……………………………………………………….6
4. Abstract Summary…………………………………………………7
5. Objective of study………………………………………………….8
6. Limitations of study………………………………………………..8
7. Hypothesis for study……………………………………………….9
8. Methodology……………………………………………………….10
9. Introduction

a. Overview of CRM……………………………………11
b. Benefits of CRM……………………………………..13
c. Various aspects of CRM……………………………14-16
d. Implementing CRM in organization………………17-19
e. Importance of CRM to financial services………..20

10. Industry Profile…………………………………………………….21

11. Companies Profile…………………..……………………………22-27
a. Reliance Life Insurance………………………………………22-
24
b. ICICI Prudential Life
Insurance…………………………………………….25-26
c. Bajaj Allianz…………………………………..27
d. LIC………………………………………………28

12. Products offered by Reliance Life Insurance………………………….30-

38
13. Progress of study
a.Primary data collection………………………………39-41
b. Hypothesis Testing…………………………………42-43
c.Secondary Data……………………………………….44-48

14. Impact of CRM on market share of companies……………49-51

15. Relation between market share & CRM…………………….52-53
16. Current scenario of CRM in financial services industry……58-59
17. Suggestion…………………………………………………………60-61
18. Conclusion…………………………………………………………62
19. Annexure……………………………………………………………63-65
20. References………………………………………………………….66
21. Glossary……………………………………………………………...67
 ACKNOWLEDGEMENTS

I am very thankful of very helping Company Guide “Mr. Khushnood Choudhary”

(BRANCH MANAGER) who thought me capable of working in such a big organization
and selected me for working there. Under his brilliant guidance I become able to work
successfully in the Corporate Environment and this practical experience helped me a lot
in understanding and completing this study.

I am indebted to all staff members of Reliance Life Insurance for their valuable support
and cooperation during the entire tenure of this project.
I am thankful to all the customers who helped me to provide primary data. Not to forget,
all those who have kept my spirits surging and helped me in delivering my best.

No words are enough to express my heartiest gratitude to my parents whose blessings are
inspiration in the foundation of my work.

Lastly, I am highly thankful to God Almighty, who gave me strength and opportunity to
put my best efforts for completion of this project.
 ABBREVIATIONS

CRM Customer Relationship Management

IRDA Insurance regulatory & development authority of India

PMS Portfolio Management Services

IPO Initial Public Offerings

BOP Business owners policy

BSLI Birla Sun Life Insurance

D&O- Director and officer

HDFC- Housing development finance corporation

ICICI life Pru Industrial credit and investment

corporation of India life Prudential

LIC life Insurance Corporation

 ABSTRACT SUMMARY
The financial services industry has been one of the leaders in the adoption of ‘Customer
Relationship Management’ (CRM) concepts, strategies, and tools. Over recent years
interest in such a customer centric focus has been growing rapidly and there is no
shortage of marketing collateral aiming to sell the latest and greatest CRM technology.
The topic shows relevance of Customer Relationship Management in security market. It
is totally related with the disclosure of those techniques which have been used by the
financial companies for customer relationship management. By this Reliance Money and
other companies can collect data about their customer through which it can know about
their loyal customers and unsatisfied customers. Organization can plan various strategies
for customer relationship management. Reliance Money can know its market position in
comparison to other competitors and where they are lagging behind. This helps company
to make improvement in their services and work quality and by this only company can
survive in cut throat competition. Reliance Money can get sustainable competitive
advantage by being the best at understanding, communicating and delivering values to
the existing customers in addition to creating and keeping new customers.
Through CRM Reliance Money can address the changing needs of the customers by
developing products and services that continuously seek to satisfy the lifestyle and need
patterns of individual customers. Company can acquire a structure around customer
segments and not on the basis of product lines to deliver customer satisfaction. By
embracing customer relationship management strategies organization can reap benefits
such as enhanced revenues and high profits.
For doing this study, primary and secondary data has been collected. Interview of
employees in Reliance money has been taken. Questionnaire has been filled by fifty
customers of every company. According to data customers of ICICI Direct are most
satisfied with the services. We can say that ICICI Direct is best in terms of adopting
CRM. It gives best services to its customers. Reliance Money acquires second place in
terms of services. Religare securities and Indiabulls come at third and fourth place.
In hypothesis testing, null hypothesis has been rejected. So according to this there is
difference in the satisfaction level given by Reliance Money and its three competitors in
terms of CRM.
We can also see the impact of CRM on market share of the companies. Company (ICICI
Direct) that is adopting better CRM has largest market share. Result shows that customer
relationship management has become an important aspect in various companies in
security market. Companies are using it and it is helpful in retaining customers. This help
companies a lot in long run.
 OBJECTIVES OF STUDY

SPECIFIC OBJECTIVE:

• To study the customer relationship management (CRM) techniques and its

growing relevance in security market with special reference to Reliance
Life Insurance.

GENERAL OBJECTIVES:

• To study the importance of CRM in security market.

• To see effect of CRM on customer loyalty.
• To know the effect of CRM on profitability and market share of the
company.

LIMITATIONS OF STUDY

TIME CONSTRAINT: Time constraint is there because we have limited time. In

between we have to manage other things also like our studies, assignments and
examinations etc.

POSSIBILITY OF SAMPLING ERROR: Sample selected for study may give

wrong information or sample selected may not be right for study.

MANAGEMENT BIASNESS: Management can give incorrect information

about the CRM in company to protect image of the company. It may be that
management is not applying CRM in company properly.

DEPENDENCY ON QUESTIONAIRE: The study is dependent on customer

responses through questionnaire. It may be that customers are not interested in
 filling them or they want to tell that is not there in questionnaire so information
collected may not be absolutely correct.

DOWNFALL IN SHAREMARKET: There has been great downfall in share

market from beginning of this year and many customers must have some bad
experiences of this. There may be impact of this on the response given by them.
So it will have impact on study as well.

LIMITED SAMPLE SIZE: Sample size is limited and it further it is limited to

………. only. So conclusion may be different from real scenario.

HYPOTHESIS FOR STUDY

HYPOTHESIS TESTING: Hypothesis testing begins by making an assumption about

the population parameter. We gather sample data and determine the sample statistic. To
test the validity of hypothesis the difference between the hypothesized value and the
actual value of the sample statistic will be determined. If the difference between the
hypothesized population parameter and the actual value is large then we automatically
reject our hypothesis. If it is small, we accept it.

Two types of hypothesis null and alternate hypothesis is used.

The null hypothesis asserts that there is no (significant) difference between the statistic
and the population parameter. Any hypothesis which contradicts the null hypothesis is
called alternate hypothesis.

LEVEL OF SIGNIFICANCE: It shows the probability of rejection of hypothesis when

it should be accepted. When we choose 5% level of significance in a test procedure, there
are about 5 cases in 100 that we would reject hypothesis when it should be accepted and
we are 95% confident that we have made the right decision.

Hypothesis for study is following.

NULL HYPOTHESIS (H0): There is no significant difference in the satisfaction level

given by CRM of Reliance Money and its three competitors.

ALTERNATE HYPOTHESIS (H1): There is significant difference in the satisfaction

level given by CRM of Reliance life insurance and its three competitors.

LEVEL OF SIGNIFICANCE: 5% Level of significance has been taken for the study.
 METHODOLOGY

DATA COLLECTION:

This study is done to get exact picture of CRM in organization. Collected data plays very
important role in successful completion of the study. Such a methodology is implemented
that can minimize the scope of biasness.

Two types of data primary data and secondary data is being used for the completion of
the study. This can be describe as following:

PRIMARY DATA: Primary data is collected through the interview of customers of

Reliance Money. Questionnaire filled by them is used. Interview of customer relationship
managers and sales managers is also taken.

SECONDARY DATA: Secondary data is collected through internet and articles related
to the study are also referred for the study.

After collecting the data through various sources, analysis is done.

DATA INTERPRETATION: Data interpretation has been done by using chi square.

Chi square allows us to test whether the difference between the proportions representing
more then two samples is significant or not. It is used to determine whether the two
attributes according to which a population is categorized are independent of each other or
not.

DEGREE OF FREEDOM: For applying chi square degree of freedom is an important

element.

Degree of freedom= (number of rows-1) (number of columns-1)

SAMPLING

In sampling customers of Reliance life insurance and other financial companies will be
targeted. This sampling will be done from the customers in …………… only.

SAMPLING TECHNIQUE: Random sampling

SAMPLE SIZE: Sample size is thirty

 INTRODUCTION

CUSTOMER RELATIONSHIP MANAGEMENT

The financial services industry has been one of the leaders in the adoption of ‘Customer
Relationship Management’ (CRM) concepts, strategies, and tools. Over recent years
interest in such a customer centric focus has been growing rapidly and there is no
shortage of marketing collateral aiming to sell the latest and greatest CRM technology.
Adoption of a customer centric approach within the financial services market and
considers the broad benefits that organizations can realise through its adoption.
Customer Relationship Management includes a broad spectrum of organizational,
operational and technology elements and, as a result, there are a variety of definitions,
explanations and terms for its meaning.
Acknowledging its breadth Customer Relationship Management can be defined as:
“A business strategy which provides seamless integration of all areas of business that
touch the customer (marketing, sales, service) through the integration of people, process
and technology, to optimize profitability, revenue and customer satisfaction.”
• CRM is a business strategy, not just a collection of tools and technologies. The tools
and techniques used are important, but are only a facilitator to the pursuance of the
strategy.
• CRM includes long term objectives to sustain enterprise profitability — it isn’t just a
quick fix solution. Some observers see CRM as just a buzzword, here today and gone
tomorrow. However, by its nature, the concepts of CRM are fundamental to successful
enterprise. The term may be replaced over time but the concept is fundamental, and is
sure to continue.
• The aim is to benefit the customer and benefit the business; the strategy has profit
improvement as its focus and seeks to achieve this by improving customer value. To be
successful any business strategy must address clearly defined and understood business
drivers. This provides a basis for activity to be focused
and for results to be assessed based upon quantifiable values. Customer Relationship
Management, as a strategy, is no different, success relies upon
Identifying and targeting the points of pain or key business drivers. Customer
Relationship Management recognizes the Customer as being central to the business rather
than the products or services offered.
 ATTRACT DEVELOP

RETAIN

CRM is a business approach that integrates people, processes, and technology to

maximize the relations of an organization with all types of customers. CRM helps in
understanding the customer better, which enable organizations to effectively customize
their products and service offerings according to the customer needs in order to retain
customers and increase customer's loyalty and satisfaction. Many organizations are
embracing customer relationship management strategies to reap benefits such as
enhanced revenues and high profits.

The basic proposition of a CRM strategy is based on the age-old idea that knowledge,
understanding, and serving the customer is the best method developing a sustainable
competitive advantage. But building a sustainable and successful relationship with a large
customer base is not the easiest thing to do and carries a direct impact on many core
operational processes. At the heart of a perfect CRM strategy is the creation of mutual
value for all the parties involved in the business process. It is about creating a sustainable
competitive advantage by being the best at understanding, communicating, and delivering
values to the existing customers in addition to creating and keeping new customers. It
addresses to the changing needs of the customers by developing products and services
that continuously seek to satisfy the lifestyle and need patterns of individual customers.
Organizations tend to acquire a structure around customer segments and not on the basis
of product lines to deliver customer satisfaction.
Benefits of CRM

The benefits of customer relationship management are abounding. It allows organizations

not only to retain customers, but enables more effective marketing, creates intelligent
opportunities for cross selling and opens up the possibility of rapid introduction of new
brands and products. To be able to deliver these benefits, organizations must be able to
customize their product offering, optimize price, integrate products and services and
deliver the service as promised and demanded by the customer base. Keeping the
customer happy is obviously one way of ensuring that they stay with organization.
However, by maintaining an overall relationship with customer, companies are able to
unlock potential of their customer base and maximize contribution to their business.
Based on successful CRM implementations, the following benefits seem reasonable:

• Increased sales volume: Increased sales result from spending more time with
customers and gathering more and more information about their preferences about
the products and services.
• Increased margin: Increased margin resulting from knowing customers better,
and providing a value product on discounting prices.
• Improved customer satisfaction ratings: Customer will be more satisfied if he
finds the company to be more responsive and better in touch with their specific
needs.
• Decreased marketing administrative costs: Since the company has specified its
target segment customers, it knows their needs better so it is not wasting
unnecessary time and money which result into decreased marketing costs.
VARIOUS ASPECTS OF CUSTOMER RELATIONSHIP
MANAGEMENT

There are many aspects of CRM which were mistakenly thought to be capable of being
implemented in isolation from each other.
From the outside of the organization, a customer experiences the business as one entity
operating over extended periods of time. Thus piecemeal CRM implementation can come
across to the customer as unsynchronized where employees and web sites and services
are acting independently of one another, yet together represent a common entity.
CRM is the philosophy, policy and coordinating strategy connecting different players
within an organization so as to coordinate their efforts in creating an overall valuable
series of experiences, products and services for the customer.
The different players within the organization are in identifiable groups:
Customer Facing Operations - The people and the technology support of processes that
affect a customer's experience at the frontline interface between the customer and the
organization. This can include face to face, phone, IM, chat, email, web and
combinations of all medium. Self-service kiosk and web self-service are doing the job of
vocals and they belong here.

 Internal Collaborative Functional Operations - The people and technology support

of processes at the policy and back office which ultimately affect the activities of
the Customer Facing Operations concerning the building and maintaining of
customer relationships. This can include IT, billing, invoicing, maintenance,
planning, marketing, advertising, finance, services planning and manufacturing.
 External Collaboration functions - The people and technology support of
processes supporting an organization and its cultivation of customer relationships
that are affected by the organization's own relationship with suppliers/vendors and
retail outlets/distributors. Some would also include industry cooperative networks,
e.g. lobbying groups, trade associations. This is the external network foundation
which supports the internal Operations and Customer facing Operations.
 Customer Advocates and Experience Designers - Creative designers of customer
experience that meet customer relationship goals of delivering value to the
customer and profit to the organization (or desired outcomes and achievement of
goals for non-profit and government organizations)
 Performance Managers and Marketing Analysts - Designers of Key Performance
Indicators and collectors of metrics and data so as to execute/implement
marketing campaigns, call campaigns, Web strategy and keep the customer
relationship activities on track. This would be the milestones and data that allow
activities to be coordinated, that determine if the CRM strategy is working in
delivering ultimate outcomes of CRM activities: market share, numbers and types
of customers, revenue, profitability,
 TECHNOLOGY CONSIDERATION

The technology requirements of a CRM strategy must be guided by an overall view of

who is the customer and what value they are to get from engaging with the organization.
The basic building blocks:
A database for customer lifecycle (time series) information about each customer and
prospect and their interactions with the organization, including order information, support
information, requests, complaints, interviews and survey responses.
Customer Intelligence - Translating customer needs and profitability projection into game
plans for different segments or groups of customers, captured by customer interactions
(Human, automated or combinations of both) into software that tracks whether that game
plan is followed or not, and whether the desired outcomes are obtained.
Business Modeling - Customer Relationship Strategy, Goals and outcomes: Numbers and
description of whether goals were met and models of customer segments and game plans
worked as hypothesized.
Learning and Competency Management Systems - Customer Capacity and Competency
Development - Training and improving processes and technology that enable the
organization to get closer to achieving the desired results. Complex systems require
practice in order to achieve desired outcomes, especially when humans and technology
are interacting. Iteration is the key to refining, improving and innovating to stay ahead of
the competition in Customer Relationship Management. (Successful tools, technology
and practices will be copied by the competition as soon as they are proven successful.)
Analytics and quality monitoring - Voice recognition, video pattern matching, statistical
analysis, activity-based costing to ultimately determine profitability of customer
relationship policies and activities over the lifecycle of each group of customers sharing a
defined set of characteristics.
Collaboration and Social networks - Profiling and interactive technology that allows the
customers to interact with the business and their fellow customers and others: prospective
customers, strategic partners.
The building blocks can be implemented over time separately, but eventually need to be
dynamically coordinated. The ongoing alignment of the basic building blocks
distinguishes an elegant seamless CRM implementation which successfully builds
mutually valuable relationships.

OPERATIONAL CRM

Operational CRM provides support to "front office" business processes, including sales,
marketing and service. Each interaction with a customer is generally added to a
customer's contact history, and staff can retrieve information on customers from the
database when necessary.
One of the main benefits of this contact history is that customers can interact with
different people or different contact channels in a company over time without having to
describe the history of their interaction each time.
Consequently, many call centers use some kind of CRM software to support their call
center agents.

Operational CRM processes customer data for a variety of purposes:

 Managing Campaigns
 Enterprise Marketing Automation
 Sales Force Automation

ANALYTICAL CRM

 Analytical CRM analyzes customer data for a variety of purposes:

 Design and execution of targeted marketing campaigns to optimize marketing
effectiveness
 Design and execution of specific customer campaigns, including customer
acquisition, cross-selling, up-selling, retention
 Analysis of customer behavior to aid product and service decision making (e.g.
pricing, new product development etc.)
 Management decisions, e.g. financial forecasting and customer profitability
analysis
 Prediction of the probability of customer defection (churn analysis)
 Analytical CRM generally makes heavy use of data mining.

COLLABORATIVE CRM

The function of the Customer Interaction System or Collaborative Customer Relationship

Management is to coordinate the multi-channel service and support given to the customer
by providing the infrastructure for responsive and effective support to customer issues,
questions, complaints, etc.
Collaborative CRM aims to get various departments within a business, such as sales,
technical support and marketing, to share the useful information that they collect from
interactions with customers. Feedback from a technical support center, for example,
could be used to inform marketing staffers about specific services and features requested
by customers. Collaborative CRM's ultimate goal is to use information collected from all
departments to improve the quality of customer service.
 IMPLEMENTING CRM IN ORGANIZATIONS

One of the ongoing challenges successful business face is in optimizing customer

satisfaction and developing Customer Relationship Management. So many companies
jump on the bandwagon of improving Customer Relationship Management. So many
companies jump on the bandwagon of improving customer service in order to impact
customer retention level.

Raising customer satisfaction levels requires a comprehensive systems approach as

following.

1. The importance of a clear customer experience strategy

2. Selecting the correct people
3. Developing, motivating and managing your people
4. Establishing effective service delivery processes
5. Building in continuous improvement

Setting a Clear Customer Experience Strategy

Often organizations confuse defining a customer experience strategy with creating a

slogan. How many companies create a slogan without any supporting initiatives, thereby
disillusioning employees and creating a flavour of the month?
To establish a good strategy certain key practices are required:
 Understand the overall organizational vision and mission
 Define the organizations customer service direction, slogan and values
 Ensure customer service is defined as a key responsibility for the
business/department
 Share the customer experience strategy via a comprehensive communications
program
 Ensure that this strategy does not conflict with other business strategies. As
consultants, it is amazing how often we hear organizations say, Improving
Customer Service is a priority, and we are also introducing stringent cost-
cutting measures. This can present a tough dichotomy.

Selecting the Correct People

When recruiting employees to provide customer service, the process often tends to
concentrate more on functional expertise, technical competence and knowledge rather
than interpersonal skills. However, lack of the right attitude can drastically impact client
satisfaction levels. Research has in fact shown that attitude is the most important
requirement: skills and functional expertise can be taught.
Therefore in selecting the right people:
 Define the critical job requirements
  Develop scenario-based interviews/assessment centres to screen and select
candidates
 Involve multiple team members in the hiring process
 Ensure evaluation is based on objective, not the subjective
.

Developing, Motivating and Managing your People

Even though you have hired the right people, there is still a need to orient them into the
organizations customer relationship culture and define key communication skills. In Call
center and Technical Support departments, there is a tendency to rely on
technical/functional skills and neglect interpersonal skills development. This can result in
providing acceptable material service, the more tangible aspect, yet unacceptable
personal service, the competitive differentiator.
Therefore to build a customer relationship culture, it is important to:
 Provide training in key areas required to deliver exceptional personal service
 Reinforce these skills using ongoing coaching and feedback
 Measure current performance levels
 Reward performance using a combination of monetary awards and non-
monetary recognition

Establishing Effective Service Delivery Processes

Effective processes and procedures provide the foundation for smoothing or inhibiting
the material service element of the customer interaction. Efficient service delivery
systems appear transparent to the customer. Poor systems create those speed bumps that
necessitate personal intervention in order to satisfy the customer requirements.
The critical elements in ensuring a positive material customer experience are:
 Mapping the service delivery processes
 Evaluating critical success points in the process
 Defining service standards and objectives for these essential points
 Establishing service delivery procedures to optimize material service
 Creating service level agreements to smooth internal service delivery

Building in Continuous Improvement

No matter how effective the service delivery processes, or well-trained the service
deliverers, things go wrong. Products have faults. Customers get frustrated. Things slip
through the cracks. The organizations that are built around managing the customer
experience are able to resolve these issues effectively. This process known as recovery is
an important differentiator in building customer loyalty.
In order to recover effectively, it is necessary to:
 Actively seek customer feedback and complaints: you cannot improve if you
don’t know what went wrong in the first place.
 Train staff how to handle customer complaints effectively using the correct
mix of empathizing, apologizing and resolution.
 Make sure that the real problem is solved, not just the symptoms.
 Focus on proactive (prevention) as well as reactive (cure) problem solving.
Ensuring Managers are the Key Change-Agents
As consultants, we observe that senior management often has the vision, intention and
commitment to introduce a comprehensive customer relationship management system.
The make or break element is in involving middle management in the change process,
and empowering them to be the key change-agents.
To do this, it is important to:
 Engage the management team early and often in the process
 Involve management members in articulating the customer experience
strategy
 Teach managers coaching skills so that they are able to articulate and
reinforce the key personal service skills
 Use managers as facilitators when rolling out interpersonal skills training
 Reward managers on establishing, monitoring and updating service delivery
processes
 Ensure managers are able to act as an example to their teams

Thus Customer relationship management does not enable a quick win. It is a long-term
approach that has to be adopted at a strategic level. Whilst the value of customer
relationship management has been identified by organizations, they are yet to look at the
bigger picture and understand all of associated benefits that would enable their business
strategies to be successful. Those responsible for delivery are perhaps the most informed
about these strategic benefits yet the transformation is long-drawn-out process. The
competencies required to deliver these customer benefits are: to deliver on its service
promise, integrate products and service channels effectively, customize products &
service and their respective prices, create opportunities for cross selling and delivery
mechanisms for the onward promotion of these products and services and reduce the
gestation period to market by allowing quick and effective introduction of new products
and services.
IMPORTANCE OF CRM TO FINANCIAL SERVICES

The financial services industry has a widespread recognition of the importance and
effectiveness of pursuing a CRM strategy. The industry has a unique combination of
characteristics that make CRM particularly appropriate -
 The financial services market is highly competitive and dynamic
 Typically the cost for customers to switch institutions is low, resulting in
increased competitive pressure
 Significant costs are involved in marketing and advertising products - and hence
attracting customers
 A significant proportion of the population have need for financial services and
typically require a basket of products
 The customers' perception of Customer Service is often the key Purchase
influence, due to the similarity of product offerings and their commodity nature
 The typical customer base is spread between high and low value customers, with a
small proportion of customers contributing most of the
profits
 The customer base has differing needs, and differing values, associated with the
financial products they buy: these values can include, price ease of use,
availability, service level - or any combination of these
 Financial institutions already have a considerable amount of useful data about
their customers and their behaviour — but generally this data is not organised in
operational systems in a customer-centric way
 INDUSTRY PROFILE

The financial sector is in a process of rapid transformation. Reforms are continuing as

part of the overall structural reforms aimed at improving the productivity and efficiency
of the economy. The role of an integrated financial infrastructure is to stimulate and
sustain economic growth.

The US$ 28 billion Indian financial sector has grown at around 15 per cent and has
displayed stability for the last several years, even when other markets in the Asian region
were facing a crisis. This stability was ensured through the resilience that has been built
into the system over time. The financial sector has kept pace with the growing needs of
corporate and other borrowers. Banks, capital market participants and insurers have
developed a wide range of products and services to suit varied customer requirements.
The Reserve Bank of India (RBI) has successfully introduced a regime where interest
rates are more in line with market forces.

Financial institutions have combated the reduction in interest rates and pressure on their
margins by constantly innovating and targeting attractive consumer segments. Banks and
trade financiers have also played an important role in promoting foreign trade of the
country.
 COMPANY PROFILE

RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s
leading private sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of net worth.
Reliance Capital has interests in asset management and mutual funds, stock
broking, life and general insurance, proprietary investments, private equity and
other activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial services sector
in India and aims to become a dominant player in this industry and offer fully
integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital Limited to offer
need based Life Insurance solutions to individuals and Corporates.

INVESTMENT OPTIONS:
• Equity (stock) trading

• Derivatives trading
 • Forex trading

• Commodity trading

• IPO’s

• Mutual Fund

• Insurance

PLANS OFFERED BY RELIANCE LIFE INSURANCE

Savings (Endowment)
Reliance Endowment Plan
Reliance Special Endowment Plan
Reliance Cash Flow Plan
Reliance Child Plan
Reliance Whole Life Plan
Reliance Connect 2 Life Plan
Retirement
Reliance Total Investment Plan Series II - Pension
Reliance Golden Years Plan
Reliance Golden Years Plan Value
Reliance Golden Years Plan Plus
Unit Linked
Reliance Total Investment Plan Series I - Insurance
Reliance Wealth + Health Plan
Reliance Secure Child Plan
Reliance Automatic Investment Plan
Reliance Money Guarantee Plan
Reliance Market Return Plan
Risk / Protection
Reliance Term Plan
Reliance Simple Term Plan
Reliance Special Term Plan
Reliance Credit Guardian Plan
Reliance Special Credit Guardian Plan
INVESTMENT OPTIONS:
• Equity (stock) trading

• Derivatives trading

• Forex trading

• Commodity trading

• IPO’s

• Mutual Fund

• Insurance

SWOT Analysis of Reliance Life Insurance

STRENGHS WEAKNESSES
 LEAST BROKERAGE  LOW CUSTOMER SERVICE
 HIGHLY SECURE SECURITY  MORE STRESS ON QUANTITY
TOKEN THAN ON QUALITY
 MORE THAN 8,00,000  POOR FACALITY
CUSTOMERS MANAGEMENT
 DAILY AVERAGE VOLUME OF
Rs. 6 BILLION
 HIGH BRAND VALUE
 ONE SHOP SINGLE STOP
 HUGE CAPITAL BASE
 OPPORTUNITIES THREATS
 POWER OF WEALTH  INCREASING COMPETITORS
 INCREASING BRAND VALUE  DECREASING CUSTOMER
 WIDE CUSTOMER BASE FOR SATISFACTION
CROSS SELLING AND  FLUCTUATING SHARE
UPSELLING MARKET

With main emphasis on Reliance Life, three more companies have been taken for study
they are:

 ICICI Prudential

 Bajaj Allianz

 LIC

ICICI PRUDENTIAL
 Mr. N. S. Kannan
Executive Director
ICICI Prudential
LifeInsurance

It is main competitor of Reliance Life Insurance. It is the market leader in financial

market. This group provides online share and mutual funds trading facilities.

Bank - one of India's foremost financial services companies-and prudential plc - a leading
international financial services group headquartered in the United Kingdom. Total capital
infusion stands at Rs. 33.62 billion, with ICICI Bank holding a stake of 74% and
Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of
over 1,000 offices, over 246,000 advisors; and 22 banc assurance partners.

ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI
Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic
Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our
distribution, product range and customer base, we continue to tirelessly uphold our
commitment to deliver world-class financial solutions to customers all over India.

BAJAJ ALLIANZ
 Mr Sam Ghosh,CEO, Bajaj Allianz Life.

In August 2001, Bajaj Allianz received approval fromthe Indian Insurance Regulatory
and Development
Authority (IRDA) to conduct life insurance business inIndia. Since gaining approval,
Bajaj Allianz has become
one of the fastest-growing private life insurers inthe country. Within five years of starting
its operations,
Bajaj Allianz enrolled over 1.3 million customers. Witha trained sales force of more than
100,000 agents,

Bajaj Allianz Life Insurance Co. Ltd. was incorporated in 2001 as a joint venture between
Allianz AG and Bajaj Auto Ltd. Characterized by global presence with a local focus, the
company is driven by customer orientation aiming for high earning's potential and
financial strength.
Business & Customer Focus

• Bajaj Allianz covers both Individual and Group Insurance

• The company is placed 3rd among private Life Insurers in India as of IRDA
figures for FY premiums
• Focused on providing customized insurance solutions serving as both Investment
and Protection against risk. Realizing the great growth potential in the coming
years of the rural segment
• Present in over 200 cities across India, with an agency network of 30,000
Insurance Consultants and a satisfied customer base of approximately 300,000
• Customer segments can be categorized as:
* HNI
* Individual
* Group
* Rural

Sales Channels
 • Agency Channel through Insurance Consultants – 30,000 at present
• Corporate Agents & Brokers
• Bancassurance
• Group
• Worksite Marketing
• Financial Service Consultants

Links & Contacts

For any queries please call on 1600 225858 (Toll Free)

Why Bajaj Allianz ?

The Bajaj Allianz Difference

• Business strategy aligned to clients' needs and trends in Indian and global economy /
industry
• Internationally experienced core team, majority with local background
• Fast, decentralised decision making
• Long-term commitment to market and clients

Trust

At Bajaj Allianz, we realise that you seek an insurer whom you can trust. Bajaj Auto Limited is
trusted name for over 55 years in the Indian market and Allianz SE has over 110 years of global
experience in financial services. Together we are committed to provide you with time tested and
trusted financial solutions that provide you all the security you need for your investments. And
more…..

Underwriting Philosophy

Our underwriting philosophy focuses on :

• Understanding the customer's needs

• Underwriting what we understand
• Meeting the customer's requirements
• Ensuring optimal coverage at lowest cost

Claims Philosophy

The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims processing.
We pride ourselves on a friendly and open approach. We are focused towards providing you a
hassle free and speedy claims processing. Our claims philosophy is to :

•Be flexible and settle fast

•Ensure no claim file to be seen by more than 3 people
•Check processes regularly against the global Allianz OPEX (Operational Excellence)
methodology Sold over 1 million since inception.

Customer Orientation

At Bajaj Allianz, our guiding principles are customer service and client satisfaction. All our
efforts are directed towards understanding the culture, social environment and individual
insurance requirements - so that we can cater to all your varied needs.

Experienced and Expert Servicing Team

We are driven by a team of experienced people who understand Indian risks and are supported by
the necessary international expertise required to analyse and assess them.

Service engineers located in every major city

Superior Technology

• In order to ensure speedy and accurate processing of your needs, we have established
world class technology, with renowned insurance software, which networks all our offices
and intermediaries
• Using the Web, policies can be issued from any office across the country for retail
products
• Unique, user friendly software developed to make the process of issue of policies and
claims settlement simpler (e.g. online insurance of marine policy certificate)

Unique Forms of Risk Cover

• Special PA cover for Amarnath Yatris

• Film insurance
• Event management cover
• Sports & Entertainment Insurance Package

Risk Management- Our Expertise

Our service methodology is tried, tested and Proven the world over and involves:
 • Risk identification: Inspections
• Risk analysis: Portfolio review and gap analysis
• Risk retention
• Risk Transfer: To an insurer as well as reinsurer (as required)
• Creation of need based products

• Ongoing dialogue and proactivity

LIFE INSURANCE CORPORATION OF INDIA

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of
insurance is not as widely understood, as it ought to be. What follows is an attempt to
acquaint readers with some of the concepts of life insurance, with special reference to
LIC.

The Asian insurance giant LIC averages around 1,200 policies per day.

"We have earned around Rs.520 million till date. We are confident of closing this year
with a premium of Rs.4 billion from our unit-linked long-term health insurance policy
Health Plus," D.D. Singh, executive director (Health), LIC, told IANS.

According to him, LIC has sold 50,000 policies till date at an average premium of around
Rs.10,000 per policy.

Given the poor penetration of health insurance products achieved by the 13 non-life
insurers in India, LIC's achievement is quite commendable.

Pleased with the positive response received from LIC's strong agency force for the
product, Singh said, "Our agents have understood this product well and that is reflected in
the sales numbers."

However the process of selling this product is different from selling other life insurance
policies.

Talking about his experience in selling Health Plus, A. Suresh Kumar Oza, an LIC agent,
said, "It takes more time to educate a prospect on the policy features and how it works.
They are more conversant with the traditional mediclaim insurance sold by non-life
insurers."

"Long-term unit-linked health insurance cannot be sold as easily as any other unit-linked
life insurance policy or traditional endowment or money back policies as a tax saving
product," he added.

That apart, the necessity of submitting photographs for the issuance of identity cards and
medical reports delay enrolment in the scheme.

A combination of all these factors plus the absence of clarity on the income tax rebate
available under Health Plus perhaps made LIC to revise its target to a Rs.4 billion
premium from an ambitious Rs.50 billion for this fiscal.

Confident of achieving the revised target, Singh said, "Normally LIC experiences
accelerated sales after the second week of March. We will book Rs.3.5 billion premium
with Health Plus."

Speaking about Reliance Life's experience in selling its Reliance Wealth + Health Plan,
its CEO P. Nandagopal said, "The retail response is very, encouraging, especially from
the southern markets. The average premium per policy is Rs.15,000."

Reliance Life launched the policy soon after LIC came out with its health product.

Declining to give any sales numbers and the target for the year, he said, "We do not
believe in having product-wise business targets as we encourage our agents to adopt a
solution oriented approach."

PROJECT DETAILS
1. PURPOSE OF THE PROJECT: This project is made for getting knowledge about
application of various customer relationship management techniques. Reliance Money
can know importance of these customer services and its impact on profibility of the
company. It will provide us information about how various financial services providers
are adopting this into their organization and what more is required in this area.

2. ACHIEVEMENT PLANNED FOR: It is to achieve the goal of the study.It would

give us the information about implementation of CRM by Reliance Money and growing
relevance of CRM in security market. Company can know where more improvement is
required and can use it more effectively.

3. RESEARCH PLANNED FOR: This study is being done by collecting data through
primary and secondary sources. Interview of employees has been taken for knowing
about services in Reliance Money and few other financial service providers in Dehradun.
Data from customers has been collected by using questionnaires. Data has been collected
from internet also. Further analysis would be done and that would tell us about the CRM
application in security market.
1
PRODUCTS OFFERED BY THE COMPANY

If we talk about Relianc and other financial services provider various financial products
are offered by them. Main products are as following.

DEMAT
DEMAT
ACCOUNT
ACCOUNT

MUTUAL
MUTUAL
FUND COMMODITY
COMMODITY
FUND

PRODUCTS
PRODUCTS
OFFERED
OFFERED

INSURANCE
INSURANCE FOREX
FOREX

PORTFOLIO
PORTFOLIO
MANAGEMEN
MANAGEMEN
TT
SERVICES
SERVICES
 DEMAT ACCOUNT

Demat account is used for dematerialization of shares. It is an account where shares are
kept. Earlier we used to have shares in physical form that was the cause of improper
handling of shares because papers could loss or damage. This is why demat accounts
came to existence.
For opening a demat account in Reliance Money we need following documents:
• PANCARD: It is first and foremost thing required for opening a demat account. It
is used for identity proof of the person.

• ADDRESS PROOF: Company accepts Ration Card, Driving license, Voter ID

card or bank statement for address proof. Client has to give one of these
documents for address proof.

• CORPORATE PROOF: identity card, bonafide from the organization or salary

slip can be given for corporate proof it is not compulsory to give a corporate
proof. If you are a salaried employee of any organization, you can give it get a
discount of rs. 250 in charge of opening the demat account.

• CHEQUE: You have to give a cheque of rs. 750 for opening the account and if
you have given any corporate proof you have to give a cheque of rs. 500. Demand
draft is also accepted of required amount.

• PHOTOGRAPHS: Two passport size coloured photograph is required.

MUTUAL FUNDS
A mutual fund is an entity, which offers a number of investment schemes with different
investment objectives. An investor interested in investing in these schemes needs to
assess which scheme has an investment objective that matches his, to make his selection
from among the available schemes.
Mutual funds are well-structured and closely-regulated entities, which hire investment
professionals to invest and manage investors’ funds.
Mutual funds are well-structured and closely-regulated entities, which hire investment
professionals to invest and manage investors’ funds.
Mutual funds issue units to each investor based on the amount invested. Units of mutual
funds are similar to shares issued by companies. For instance, if an investor invests Rs
5,000 in a new scheme of a mutual fund, which is offering units at Rs 10 per unit, he will
receive 500 units in the scheme (Rs 5,000 / Rs 10).
The mutual fund invests the money collected from unit-holders on their behalf. Income
earned on these investments is distributed by the mutual fund among its

Investors in proportion to their holding in the scheme. For instance, taking the above
example forward, if the scheme issues a total of 1 lakh units and earns a total income of
Rs 1 lakh in a particular period, it would have earned Re 1 per unit issued (Rs 1 lakh / 1
lakh units). The investor, who had applied for 500 units, will be entitled to receive Rs
500 (income earned per unit – Re 1 x 500 units).
Thus mutual fund is a professionally-managed firm of collective investments that
collects money from many investors and puts it in stocks, bonds, short-term money
market instruments, and/or other securities. The fund manager, also known as portfolio
manager trades the fund's underlying securities, realizing capital gains or losses, the
investment proceeds are then passed along to the individual investors.
One can invest in mutual funds by two ways either through lump sum investment or
through systematic investment plans.

 LUMP SUM INVESTMENT: Minimum amount of rupees 5000 is required

for lump sum investment.

 SYSTEMATIC INVESTMENT PLAN: This is an investment technique

where you deposit a fixed, small amount regularly into the mutual fund
scheme(as one thousand every month) at the then prevailing NAV(Net Asset
Value), subject to applicable load.

BENEFITS OF MUTUAL MUNDS

• It increases potential return

• Low risk

• Advantageous for small investors

• Beneficial for investors who don’t have time to see their investments

• One can invest without much knowledge of share market

LIFE INSURANCE

Insurance as a risk management tool permits the society to reduce financial risks and
share losses. The insurance policy is a contract between the insured and insure. Under the
insurance contract, the insure promises to pay for losses according to specified terms of
policy.
Life insurance helps Provide financial assurance & security for your dependents & loved
ones. It is an important part of the financial planning bouquet for all individuals &
families. Life insurance products offer comprehensive financial solutions which besides
offering financial security also provide opportunity for saving, investment & tax
planning. From the point of view of insured, risk of loss of life is transferred to the
insurance company. Similarly, the insurance company is willing to accept the risk as it
hopes to make a profit by collecting premium and investment earning. The company is
able to do this, by combining a large number of insured in pool having predictable losses,
than any of the insured individually.

BENIFITS OF LIFE INSURANCE :

1. Risk Coverage

2. Mode of saving with good return

3. Tax benefit

4. Insurance through installment

GENERAL INSURANCE

It is risk coverage for things related is life but not life. It is a system by which the losses
suffered by a few are spread over many, exposed to similar risks. Insurance is a
protection against financial loss arising on the happening of an unexpected event.
It is a hedge against the occurrence of unforeseen incidents. Insurance products help you
in not only mitigating risks but also helps you by providing a financial cushion against
adverse financial burdens suffered. Accidents, illness, fire; financial securities are the
things you would like to worry about any time. General insurance provides you the much
needed protection against such unforeseen events. Unlike life insurance, General
Insurance is not meant to offer returns but is a protection against contingencies. Under
certain Acts of Parliament, some types of like Motor Insurance and Public Liability
Insurance have been made compulsory.
 PORTFOLIO MANAGEMENT SERVICES
Portfolio management service (PMS) is a type of professional service offered by portfolio
managers to their client to help them in managing their money in less time.
Portfolio managers manage the stocks, bonds, and mutual funds of clients
considering their personal investment goals and risk preferences. In addition to
money, the portfolio managers manage the portfolio of stocks, bonds, and
mutual funds.

Services and Strategies provided through Portfolio Management are:

• portfolio managers works as a personal relationship manager through whom the

client can interact with the fund manager at any time depending on his own
preference.
• To discuss any concerns regarding money or saving, the client can interact with
his appointed portfolio manager on monthly basis.
• The client can discuss on any major changes he want in his asset allocation and
investment strategies.
• Portfolio management service (PMS) handles all type of administrative work
like opening a new bank account or dealing with any financial settlement or
depository transaction.
• While choosing online Portfolio management service (PMS), the client receives
a User-ID and Password, which helps him in getting online access to his portfolio
details and checking his portfolio as frequent as he want.
• Portfolio management service (PMS) also help in managing tax of his client
based on the detailed statement of the transactions found on his portfolio.

Payment Criteria:
There are types of payment criteria offered by portfolio managers to their client, such
as:

• Fixed-linked management fee.

• Performance-linked management fee.

In fixed-link management fee the client usually pays between 2-2.5% of the portfolio
value calculated on a weighted average method.
In performance-linked management fee the client pays a flat fee ranging between 0.5-
1.5% based on the performance of portfolio managers. The profits are calculated on the
basis of 'high watermarking' concept. This means, that the fee is paid only on the basis of
positive returns on the investment.
In addition to these criteria, the manager also gets around 15-20% of the total profit
earned by the client. The portfolio managers can also claim some separate charges
gained from brokerage, custodial services, and tax payments.
Value your money before selecting Portfolio Management Services (PMS):

• Equity bias: Equity portfolio offered by Portfolio management services helps in

adding high value than what a debt portfolio offers. Because of this, many
portfolio managers emphasis on equity investments and some offer hybrid
products.

Large surplus to invest: The client should always choose the portfolio managers after
considering his portfolio size and the fee he would charge for managing his portfolio.
PMS are recommended to those clients who have large surplus amount of money to
invest. Otherwise, the company can also think for cheap options like a financial planner
or advisor to construct an asset allocation plan and to manage investment.

COMMODITIES

The items produced by different producer are considered equivalent if they conform to a
predetermined standard. It is this underlying standard or ‘specifications’ that defines the
commodity and not any quality inherent in the particular product. For example, gold of
99.95% purity is the same from a trading point-of-view, regardless of which part of the
world it was produced in. However, gold of 99.99% purity is different since it has higher
purity. Commodities can be agricultural or non-agricultural in nature. In the case of
agricultural commodities, the specifications are often more elaborate and include
stipulations on origin of the commodity, maximum permissible foreign particles,
moisture content, etc Other examples of commodities include Brent Crude Oil,
Electolytic Copper Cathode, Soyabeans, Sugar M-grade, Expeller Mustard Oil, and many
more. It should be noted that the value arises from the owner's right to sell rather than the
right to use. For example, television sets, automobiles and stereo systems are not
commodities since their value is in their use and not in sale.
In the Indian context, commodities can be broadly classified under the following
categories:

• Precious Metals: Such as Gold and Silver

• Base Metals: Such as Steel, Nickel, Tin, Iron, Copper, Zinc and Lead
• Energy Products: Such as Crude Oil, Furnace Oil, Natural Gas
• Plastics & Petrochemicals: Such as Polypropylene (PP), High Density
Polyethylene (HDPE)
• Agricultural Commodities: These are varied and are classified in sub-groups such
as:

1. Cereals - like Wheat, Maize, Rice

2. Pulses - like Chana (Gram), Urad (Black Matpe), Lemon Tur, Masoor, Field Peas,
etc.
 3. Oil Complex - like Soyabeans, Soy Oil and Soy Meal, Mustard Seed and Oil,
Crude Palm Oil, etc
4. Spices - like Turmeric, Chilli, Black Pepper, Cumin, Cardamom
5. Plantation Crops - like Coffee, Cashew, Rubber
Fibres - like Cotton, Jute, Mulberry Cocoons, etc.

Others - like Guar Seed, Guar Gum, Sugar, Gur (Jaggery), Mentha Oil, Potato, etc.

FOREX

Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for
that of another. Traders in the FOREX market wish to purchase or sell one currency for
another with the hope of making a profit when the value of the currencies changes in
favor of the investor, whether from market news or events that take place in the world.
The foreign exchange (FX or FOREX) market is the market where exchange rates are
determined. Exchange rates are the mechanisms by which world currencies are tied
together in the global marketplace, providing the price of one currency in terms of
another.
For example, the U.S. dollar/Euro exchange rate is the price of a Euro expressed in U.S.
dollars. On March 11, 2006 this exchange rate was 1.19 U.S. dollars per Euro, or, in
market notation, 1.19 USD/Euro.
An exchange rate is just a price. The price of a liter of milk, for example, is Indian Rs 20,
or 20 INR/milk, using the above exchange rate market notation. When we price exchange
rates, the denominator refers specifically to one unit of a currency.
Like in any other market, demand and supply determine the price of a currency. At any
point in time, in a given country, the exchange rate is determined by the interaction of the
demand for foreign currency and the corresponding supply of foreign currency. Thus, the
exchange rate is an equilibrium price determined by supply and demand considerations.
IPO

When private companies i.e. companies that are wholly owned by their promoters, invite
the public to subscribe to their shares, this issue of shares is called an Initial Public
Offering (IPO). The shares issued could be in the form of fresh equity and/or the
promoters sell a portion of their equity to the public. These shares are then listed on a
stock exchange where they can be bought and sold by investors. IPOs are a very popular
way of investing in the stock market as they allow investors a simple entry route to
buying stocks.PROGRESS OF STUDY

DATABASE AND DATA COLLECTION:

Data has been collected by both of the ways primary and secondary. Under primary data
has been collected through questionnaires and under secondary data has been collected
through different sites.

RESEARCH DESIGN (PRIMARY DATA COLLECTION)

Following is the questionnaire with the answers prepared for primary data collection.
From every company 30 customers have filled the questionairres.

DATA
COLLECTION

PRIMARY SECONDARY
DATA DATA

QUESTIONNAIRES WEB SITES

ANALYSES OF PRIMARY DATA

Insurance sector is a service market in which growth and survival of a company
completely depends on customer services. Because of this all the companies in this
segment are adopting various techniques of customer relationship management. If we talk
about growth of insurancel companies in…….., it has been very rapid. Data of thirty
customers from every company in …………has been collected. Data has been collected
through questionnaires. This data shows, there is certain trend in investment pattern of
customers and that is very much affected by CRM adoption by the companies. According
to questionnaire in annexure, customers have told whether they are satisfied with the
company or not we can show this data as following.

SATISFACTION ANALYSIS

RELIANCE ICICI BAJAJ LIC

LIFE PRUDENTIAL ALLIANZ
INSURANCE LIFE
INSURANCE
SATISFIED 33 35 26 28

NOT SATISFIED 17 15 24 12

TOTAL 50 50 50 50
By seeing this result of questionnaires, we can show the adoption of customer
relationship management by companies through following graph.

So graph clearly shows that customers are more inclined toward the services of LIC after
this ICICI PRUDENTIAL LIFE INSURANCE comes second in term of customer
relationship management in other side we can say that ICICI is the major player of pvt
sector after this, RELIANCE LIFE INSURANCE comes third in terms of customer
relationship management, after this there is BAJAJ ALLIANZ .

There are many reasons for these variations in terms of CRM. ICICI LIFE
INSURANCE comes first in this area it is because company gives quick attention to
customers need. Easy mail service is available for customer. Direct tools and updates
solves customers’ problem in very efficient way. Online service is available for the
customer. Besides different products are offered according to need of different customers.
Because of this most of customers have given preference to it.
If we talk about Reliance LIFE INSURANCE, company provides different services to
customers. Company gives cost effective services which no other company gives. Efforts
of company are commendable for CRM application. In spite of different kind of services
customers have given it second ranking because certain loopholes are available in it’s
services. Customers are unsatisfied because, quick attention is not given to customers’
problems. It takes lot of time in every service. After selling the product less attention is
given to customers’ need.
 Bajaj Allianz have got third rank because the company have less brand value in
comparison to other three companies. Comparatively fewer services are given by these
companies. There is less flexibility in terms of products. Some people do complaint of
poor services. Besides this companies use less promotional scheme so people are
comparatively less aware about these companies.

HYPOTHESIS TESTING

Hypothesis is being used in this study to know if there is significant difference in the
satisfaction level given by CRM of Reliance Money and its three competitors or not. Null
and alternate hypothesis are as following.

NULL HYPOTHESIS (H0): There is no significant difference in the satisfaction level

given by CRM of Reliance Money and its three competitors.

ALTERNATE HYPOTHESIS (H1): There is significant difference in the satisfaction

level given by CRM of Reliance Money and its three competitors.

RELIANCE ICICI BAJAJ LIC

LIFE PRUDENTIAL ALLIANZ
INSURANCE LIFE
INSURANCE
SATISFIED 23 25 16 28

NOT SATISFIED 07 05 14 02

TOTAL 30 30 30 30
 TABLE

According to the data of satisfied and unsatisfied customers in table 1 hypothesis can be
tested.

Observe Expected Fo- Fe (Fo- Fe)(Fo-Fe) (Fo- Fe)(Fo-Fe)/Fe

frequency (Fo) frequency (Fe)
40 30 10 100 3.33

33 30 3 9 .3

26 30 -4 16 .533

20 30 -10 100 3.333

10 20 -10 100 5

17 20 -3 9 .45

24 20 4 16 .8

30 20 10 100 5

Total 18.746

Value of chi square = 18.746

Degree of freedom = (number of rows-1) (number of columns -1)

according to table 1:

DOF = (2-1) (4-1)

=3

According to level of significance (5%) and degree of freedom (3) chi square statistic is
7.815

Since the sample chi square statistic (18.746) does not fall in the acceptance region
(7.815) we reject the null hypothesis.
As null hypothesis is rejected, alternate hypothesis is automatically accepted. So we can
say ‘there is significant difference in the satisfaction level given by CRM of Reliance
Money and its three competitors.’ Thus these companies in security market are providing
different level of satisfaction through different customer services and CRM.

SECONDARY DATA COLLECTION

Secondary data has been collected through the web sites of those companies which have
been selected for the analysis. All the companies adopt different techniques for customer
relationship management. For this they provide different services to customers.
Description of these services is as further.

1.They assist you with any query/service related request you may have.
2. Company provide full information on its portal and trading platform at branches.
3. You can also email at customer.support@reliancelifeinsurance.co.in
4. In case of any grievances customer can write to
customer.grievance@reliancelifeinsurance.co.in

CUSTOMER SERVICES PROVIDED BY THE COMPANY

1. It offers single window access to almost all financial products.

2. CONVENIENCE: Reliance Life Insurance services are through the internet,

Transaction Kiosks and over the phone.

4.SAFETY: Reliance has a good brand image so to invest in the reliance is serve as
safety.
5.THREE IN ONE FACILITY: Facility of banking, trading and demat account through
a single window is provided.

ADDITIONAL SERVICES:

Almost all investment options are available under one account including Equity Trading,
Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance.

Branches are available in all major cities and the number is growing.
The company is moving ahead with its rural plans in the country, it has tied up with few
AnaRDe foundation to offer it’s services in several villages and towns of Gujrat.

SMS and telephonic services are also provided by the company.

Reliance Life Insurance has divided its customers in three parts on the basis of their
experience in the share market. It has differentiated itself according to their customers.
Following are the different characteristics:
BEGINNERS
Here you will find up-to-date information and expert guidance that will help you invest
online. Start small and grow steadily. You will be amazed to know how easy it can be.
MIDDLERS
If you have some experience investing online, you’ll find us a pleasant surprise. For
simpler, safer and smarter investing, start here.
EXPERTS
If you are an expert in investing online, you will find this a completely new experience.
Use the advantages we offer to get more out of your money.
So by giving different services company is adopting CRM for satisfying it’s customers.
STEPS TAKEN BY COMPANIES FOR CUSTOMER SATISFACTION AND
RETENTION

BAJAJ ALLIANZ

Standard Chartered Bajaj-Allianz credit card-

Features of the Card

Customer friendly credit facilities will be offered by Standard Chartered Bank on

charging the Bajaj Allianz Life policy premiums on this card. The schemes offered would
be:

- 0% interest for 3 month EMI for payment of Bajaj Allianz premium

- 0.99% interest per month for 12 months EMI for payment of Bajaj Allianz premium
- 0% interest for 3 month EMI for payment of medical/hospital expenses above Rs
10,000
- 0.99% interest per month for 12 months EMI for payment of medical/hospital expenses
above Rs10,000
- Free for life and global validity

To avail these facilities the cardholder will have to intimate Standard Chartered and
request conversion of the swiped amount into 3 monthly OR 12 monthly Equated
Monthly Installments - EMIs. Their request would be honoured irrespective of the city
they are from, without any further request for documentation or any processing fee.

The Standard Chartered Bajaj Allianz co-branded credit card, available on the Visa
platform, can be used for retail purchases as well. The other standard features of the card
are: Instabuys, Revolver facility, Cash advance, Travel cash back, 0% surcharge on
BPCL petrol pumps, teledraft, Premium Lifestyle Related Features, Discounts at
premium hotels and restaurants, travel packages, Accessories &Home Décor etc

This card would be available in two variants Gold & Classic and would be accepted
globally.

ICICI PRUDENTIAL

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's capital stands at Rs. 18.15 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the 10 months ended January
31, 2007, the company garnered Rs 3,240 crore of weighted retail + group new business
premiums and wrote over 1.3 million policies. The company has assets held to the tune of
over Rs. 14,000 crore.

ICICI Pru. is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating
is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its
obligations to customers at the time of maturity or claims.

For the past six years, ICICI Prudential has retained its position as the No. 1 private
life insurer in the country, with a wide range of flexible products that meet the needs of
the Indian customer at every step in life. To know more about the company, please visit
www.iciciprulife.com.

Distribution

ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. As of January 31, 2007 the company has over 540 offices across the
country and over 200,000 advisors.

The company has over 20 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-
operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank,
Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It has
also tied up with NGOs MFIs and corporates for the distribution of rural policies.

LIFE INSURANCE COPREATION(LIC)

To retain its customers LIC provide following services.

 Insurance for womens-

 prior to nationalisation (1956), many private insurance companies would offer
insurance to female lives with some extra premium or on restrictive conditions.
However, after nationalisation of life insurance, the terms under which life
insurance is granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In
 other cases, a restrictive clause is imposed, only if the age of the female is up to 30
years and if she does not have an income attracting Income Tax.
 Medical and non medical schemes- Life insurance is normally offered after a
medical examination of the life to be assured. However, to facilitate greater spread
of insurance and also to avoid inconvenience, LIC has been extending insurance
cover without any medical examination, subject to certain conditions.
 With and without profit plan- An insurance policy can be 'with' or 'without'
profit. In the former, bonuses disclosed, if any, after periodical valuations are
allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The
premium rate charged for a 'with' profit policy is therefore higher than for a
'without' profit policy.
 Keyman insurance- keyman insurance is taken by a business firm on the life of
key employee(s) to protect the firm against financial losses, which may occur due
to the premature demise of the Keyman.

Thus by analyzing the secondary data, we can say that almost all the companies of
insurance sector are coming forward in aspect of Customer Relationship
Management. More and more services are offered by the company for satisfying
the customers. Online service and other after sales services have increased a lot.
Thus by study till date we can conclude that relevance of CRM has increased a lot
in security market.

Various products offered by RELIANCE LIFE INSURANCE to satisfy

customer

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products
that meet the needs of customers at every life stage. Its products can be enhanced with up
to 4 riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

CashPlus is a transparent, feature-packed savings plan that offers 3 levels of protection
as well as liquidity options.
Save'n'Protect is a traditional endowment savings plan that offers life protection along
with adequate returns.

CashBak is an anticipated endowment policy ideal for meeting milestone expenses like
a child's marriage, expenses for a child's higher education or purchase of an asset. It is
available for terms of 15 and 20 years.

LifeTime Super & LifeTime Plus are unit-linked plans that offer customers the
flexibility and control to customize the policy to meet the changing needs at different life
stages. Each offer 4 fund options - Preserver, Protector, Balancer and Maximiser.

LifeLink Super is a single premium unit linked insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially structured for long-term
wealth creation.

InvestShield Life New is a unit linked plan that provides premium guarantee on the
invested premiums and ensures that the customer receives only the benefits of fund
appreciation without any of the risks of depreciation.

InvestShield Cashbak is a unit linked plan that provides premium guarantee on the
invested premiums along with flexible liquidity options.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3
options - level term assurance, level term assurance with return of premium & single
premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically to help

customers cover their home loans in a simple and cost-effective manner.
Child Plans
Education insurance under the SmartKid brand provides guaranteed educational benefits
to a child along withlife insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child's life. SmartKid
plans are also available in unit-linked form - both single premium and regular premium.

Retirement Solutions
ForeverLife is a traditional retirement product that offers guaranteed returns for the first
4 years and then declares bonuses annually.

LifeTime Super Pension is a regular premium unit linked pension plan that helps one
accumulate over the long term and offers an annuity option (guaranteed income for life)
at the time of retirement.

LifeLink Super Pension is a single premium unit linked pension plan.

Immediate Annuity is a single premium annuity product that guarantees income for life
at the time of retirement. It offers the benefit of 5 payout options.

Health Solutions
Health Assure and Health Assure Plus: Health Assure is a regular premium plan
which provides long term cover against 6 critical illnesses by providing policyholder with
financial assistance, irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover.

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well
as at different stages in the treatment of various cancer conditions.

Diabetes Care: Diabetes Care is the first ever critical illness product specially for
individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6 diabetes
related critical illnesses, and also offers a coordinated care approach to managing the
condition. Diabetes Care Plus also offers life cover

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to
enhance benefits to their employees.
 Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their
statutory gratuity obligation in a scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and
defined benefit (DB) superannuation schemes to optimise returns for the members of the
trust and rationalise the cost. Members have the option of choosing from various annuity
options or opting for a partial commutation of the annuity at the time of retirement.

Annuities: Group Immediate In addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation funds not
managed by us.

Group Term Plan: ICICI Pru's flexible group term solution helps provide affordable
cover to members of a group. The cover could be uniform or based on designation/rank
or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated
by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal
cost, depending on the specific needs of the customer.

1. Accident & disability benefit: If death occurs as the result of an accident during the
term of the policy, the beneficiary receives an additional amount equal to the rider sum
assured under the policy. If the death occurs while traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum assured as additional
benefit.
2. Critical Illness Benefit: protects the insured against financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses prior
to death.

3. Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available on SmarKid
and CashPlus.

4. Waiver of Premium: In case of total and permanent disability due to an accident, the
future premiums continue to be paid by the company till the time of maturity. This rider
is available with LifeTime Super, LifeTime Super Pension and CashPlus.

IMPACT OF CRM ON MARKET SHARE OF COMPANIES

Market share of a company can be found by comparing its sales with the total sales in the
industry. By this a company can know its position in whole industry. Market share acts as
a standard for developing action plans and forecasting demand, with a higher market
share indicating that the organization is doing well in the market. Market share is not a
static figure and keeps changing from time to time, so marketer has to conduct the
analysis on regular basis to know the position of the company in whole industry.

Through result of questionnaires and hypothesis testing we have seen that these
companies are providing different CRM and level of satisfaction to its customers. This
difference also affects the market share of the company. This impact on market share can
be seen as following.

MARKET SHARE OF ICICI PRUDENTIAL LIFE INSURANCE

ICICI PRUDENTIAL LIFE INSURANCE covers largest share in insurance market. It

has about 49% market share in all. Other achievements of ICICI Life Insurance are as
following-.

ICICI Life Insurance, the online trading arm of ICICI Bank, claims it has crossed 1
million online trading subscribers, and this makes, according to company officials, the
largest online trading portal (Via The Economic Times). The report says that the total
number of online trading customers (across all companies) is 1.9 million. So this gives
more than 50 per cent market share to ICICI Life Insurance.

MARKET SHARE OF RELIANCE LIFE INSURANCE

Reliance Money started its operations in 17 january,2006, and ranked third among the
private sector financial services & banking companies Other achievements of Reliance
Life insurance are as following.
 Reliance life insurance having more than 2 million customers and the largest
distribution network.
 Reliance life insurance generated revenuev of rs.239 crores and achieved break
even in the first year of operations.

 Reliance life insurance is a comprehensive financial services and solutions

provider, providing better customers service to satisfy & retain its customer with
various product offerd to the customer.

 As on March 31, 2008, Reliance Life Insurance had a distribution network of over
8,500 outlets in over 4,250 locations.

 Reliance Life Isurance is adding about 2,000 to 2,500 customers every day. It
currently having 2 lakh customers. And the traded volumes have crossed about Rs
1,200 crore.

 Company is looking at the opportunity for market expansion and hope to have
about 10,000 outlets by March 2008.That would give Reliance Life insurance an
all-India presence and a reach that is on a par with what State Bank of India
enjoys with about 9,500 branches.
MARKET SHARE OF LIFE INSURANCE CORPORATION(LIC)

LIC cover about 55% of market share. Other features of this company are as further.

 A wide geographic reach, growing clients and a diversified products and services.
 People easily belive in LIC.
 As we all know that LIC is an govt . body product offerd by LIC are more cheaper
than others. So that lower class people afford it.
 Annual revenue is much higher than others.

MARKET SHARE OF BAJAJ ALLIANZ

Company has market share of around 25%. Other characteristics of the company are as
following.

 Bajaj Allianz enrolled over 1.3 million customers. Witha trained sales force of
more than 100,000 agents,across India with its headquarters
 Bajaj Allianz lifeinsurance has a network of 550 offices spread across india.
 With an impressive growth of 216% in financial year 2005-2006, bajaj Allianz
has customer care center in 500 cities and above 100,000 insurance consultant
servicing in India.

GRAPHICAL REPRESENTATION OF MARKET SHARE

RELATION BETWEEN MARKET SHARE AND CRM

RANK IN CRM MARKET SHARE

LIC 1 38%
ICICI PRUDENTIAL 2 25%
LIFE INSURANCE
RELIANCE LIFE 3 21%
INSURANCE
BAJAJ ALLIANZ 4 16%

CONCLUSION OF MARKET SHARE THROUGH CRM

Thus we can say there is close and positive relationship between adoption of Customer
Relationship Management and market share of companies.
Being a private player in insurance sector ICICI prudential life insurance is providing
best services to its customers. Most customers of company are satisfied and many
customers have given it good ranking. We can see its impact as company has highest
market share which is about 49%.

Reliance life insurance is second in managing CRM. Many customers of company are not
satisfied. And company has 28% market share. Another reason for low market share is
that it has not been very long for company to enter in insurance market. Company started
its operations in janurary 2006 only.

Bajaj Allianz is third in providing various customers services so it has lower market share
then other two companies and that is about 25%.

LIC as a gvt body is first in providing services to its customers and have very good
culture of CRM. So company has largest market share then other three companies.

Thus CRM affect market share of the companies very closely. It has great impact on
profitability of the companies because if company has good market share it shows that
company is doing very well in industry and getting good profit margin. It is very
necessary for long run survival of companies in this competitive environment. So it is
necessary for companies to adopt very good CRM to satisfy its customers.

RELIANCE GROUP ENTERS GOLD RETAILING BUSINESS

Reliance , Anil Dhirubhai Ambani Group, Thursday announced its foray into retailing of
gold coin after it tied up with Swiss precious metal refining major Valcambi.

With this, the company will sell 24 carat 999.9 pure gold coins in denominations of 5gm
and 8gm at its select Reliance Money and Reliance World outlets of Reliance
Communications.
'Gold has always been an important element of Indian tradition. Even today, it is an
important financial investment. India is the largest consumer of gold in the world and we
feel that it is important to add this to our portfolio of existing products and services,'

He said that India is a biggest market for gold. The country imports over 800 tonnes of
gold a year.

The launch comes within a month of Reliance Money's foray into distribution of a range
of financial products and services in the country.

'We are happy to partner with Reliance Money for precious metals and would continue to
offer high quality of precious metals to Indian consumers through this partnership' said
Michael Mesaric, MD, Valcambi SA.

Valcambi is a global leader in precious metal refining. It operates one of the world's
largest integrated precious metals plants at Balerna, Switzerland.

Its precious metals refinery is one of the largest such facilities in the world. In 2004, its
plant treated over 600 tones of precious metals.

CURRENT SCENARIO OF CRM IN FINANCIAL SERVICES

INDUSTRY

Increased competition, new technologies, and the shift in power from the provider to the
customer have produced unrelenting pressure on financial services institutions. The once
distinct lines separating the banking, insurance, and securities industries are quickly
disappearing. The traditional geographic and product line barriers have been eroded by
deregulation, technology, and new entrants. Instead of going to the bank branch or an
insurance office, more customers visit the ATM, website, or even their mobile phone to
conduct their financial activities. These business pressures are well established, but
fundamental strategic challenges and obstacles to success still remain.
Customers, faced with a dizzying array of financial products and services, expect
customized offerings, value, ease of access, and personalization from their providers.
Today, customers are expecting even more individual attention, responsiveness,
customization, and access yet are not necessarily willing to pay a premium for these
services. High customer expectations and lower exit barriers threaten to increase
customer attrition.
These market forces point to one overwhelming strategic imperative: customer-focused
strategy. Customers are willing to build long-term relationships based on trust and mutual
respect with firms that provide a differentiated and personalized service offering. Over
the past few years, financial institutions responded to intensified competition and high
customer attrition by entering each other’s markets to capture greater “wallet share” and
ostensibly lower their economies of scale. Forward-looking financial industry executives
wanting to keep pace with the rapid changes are seeking to better understand, respond to,
and anticipate the challenges of the new marketplace. To thrive, let alone survive in this
shifting market, financial institutions must take their strategies one step further. To
command premiums for new services and build a loyal customer following, financial
institutions must achieve a multidimensional view of their customer base and deliver a
legitimate branded promise that retains their most profitable customers. Unfortunately,
fragmented customer data locked in legacy systems eludes successful execution of
customer-focused strategies.
A customer-focused strategy requires CRM solutions that can access back office systems
and translate operational data into actionable insights toward proactively serving
customers. This white paper discusses the changing financial services industry and then
outlines the way in which solutions like Oracle’s PeopleSoft Enterprise customer
relationship management (CRM) can help financial organizations build customer and
channel loyalty, enhance customer relationships, and increase profitability and market
share.

CHANGING COMPETITIVE LANDSCAPE

Intensified competition and increased customer power have driven financial institutions
to pursue a variety of new strategies, all of which are dependent on new ways of
understanding and relating to customers. The unrelenting competitive force of the last
few years is only intensifying as financial institutions continue to expand their reach into
new products, geographies, and customer segments. For example, in 1985 a North
American small town typically had three banks. In 2006, that small town may have as
many as 5,000 banking options due to new online channels and global competition (from
Financial Services 2006—Delivery of Banking and Finance, Gartner Group, 26 October
2001). With the market for retail financial services suffering from over capacity and the
growing competition from online providers, the industry standard of 10 percent to 15
percent growth in earnings per share is increasingly hard to achieve.
The simple fact remains that many firms will not survive. Only those that adapt to a new
strategic imperative of customer-focused strategies stand a chance. Before elimination of
the Glass-Steagall Act in 1999, insurance, banking and securities firm strategies were
limited to serving markets in terms of their discrete products. Mega-merger consolidation
has resulted in “financial services retailers” such as Wells Fargo and Norwest that
eliminate product and geographic barriers. The fact that Prudential Insurance is now
Prudential Financial and covers brokerage, banking, financial planning, and real estate
services demonstrates the dramatic scope of this change. By managing multiple lines of
business, these firms are striving for greater economies of scale in an effort to control
costs and increase return on investment while at the same time drive market share
through cross-selling opportunities and global expansion. This is not enough. Expansion
without deep sophisticated customer intelligence can lead to unprofitable penetration of
the wrong markets or the use of ineffective sales and service channels.
As a result, customer set rather than product or geography increasingly defines market
strategy. It is a cold market reality that elimination of product and geographic barriers
enforces a customer-focused strategy. Customer lifestyle, lifestage, net worth, and
personal interests dictate the portfolio of products, channels, level of service, and
technology infrastructure required. New technologies such as online financial services
and banking through devices have created revenue opportunities but have also
exacerbated the scale of complexity. To use banks as an example of industry-wide trends,
a bank’s business, historically,
Customer Relationship Management in the Financial Services Industry Page 4
tended to be locally concentrated. Bank managers made decisions based on personal
contact and knowledge of the local business environment. The local bank or securities
firm can now create online services with global reach, but must also compete with
hundreds of other firms providing similar services.
Increasing competition, deregulation, and the internet have all contributed to the increase
in customer power. Technology has reduced customer barriers to exit, making it easier to
change banks or brokers without feeling the pinch in the wallet. Retaining customers and
minimizing attrition are both major concerns for financial services institutions, and
financial companies need to effectively leverage existing customer relationships and
make better use of customer information across the enterprise. Customer intelligence
translated into effective action is key.
USING CUSTOMER RELATIONSHIPS EFFECTIVELY FOR SUCCESS
“Customer relationship focus” is not simply a marketing catch phrase. It is a strategic
imperative. Financial institutions incapable of acting on insights from a multi-
dimensional customer view risk rapid erosion of their customer base to competitors who
can aggressively increase wallet share. True customer focus requires moving from a
product-centric view of customers to a complete customer-centric view of all holdings,
products, history, and relationships with other customers. Only such a multi-dimensional
view enables firms to identify high-value customers and develop the appropriate action
plans to resolve customer issues and cross sell other services. A complete transformation
of business processes, customer intelligence, and policies is necessary for a multi-
dimensional view of the customer.
The full integration of these systems and their associated business processes forms the
basis for customer relationship management or CRM. A CRM system links together the
disparate customer data residing in transactional legacy systems as well as ERP systems
into a single, complete view of the customer. The goal of CRM is to enable companies to
maximize the profitability of every customer relationship.
While many financial service providers segment customers to support product-focused
initiatives, very few segment their customers by the profitability potential of life stage
events. While all financial institutions segment their customer, most do not use the life-
stage event approach which necessarily yields a greater competitive advantage (from
Align Financial Services Analytics to Capture Wallet Share, GartnerGroup, 29 October
2001). Segmentation by life stage event, lets financial institutions sell to and support
customers throughout a life-long relationship. Only by understanding lifetime value over
the course of a customer’s relationship can financial institutions proactively manage the
long-term relationship with their customers. Predictive modeling must be made
actionable during the customer interactions in order to yield the greatest returns.
CRM investments in the financial services industry have increased operating efficiencies
and customer intelligence, but much more must be done to translate this intelligence into
increased revenue and profitability.
SOME GRAPHICAL PRESENTATIONS

• Annual Income of Respondents

Annual Income of Respondents No of Respondents

Less than Rs.100,000 03

Rs1-3 lakh 3

Rs.3-5 lakh 7

Rs5-10 lakh 2

Rsd10 lakh & above 0

Who influences you the most in your Investment decision ?

Influencing Sources No of Respondents

Banks 2

Friends 10

Relatives 7

Corporate Agents 3

Others 3

Do you aware of Reliance Life Insurance Company?

Aware of reliance life Not aware of reliance life
insurance insurance

90% 10%

Have you taken any policy of Reliance Life Insurance Company?

Policy holders of Reliance life Non-policy holders of Reliance life

20% 80%
 I find the services offered by Reliance Life Insurance are
beneficial/Satisfactory?

Response of Respondents No of Respondents

Strongly agree 7

Agree 7

Neither agree nor disagree 7

Disagree 3

Strongly disagree 1

No of Respondents

Strongly agree

Agree

Neither agree nor

SUGGESTIONS
disagree
Disagree

Strongly disagree
What mode of Communication will you be comfortable with on
receiving
Investment product details of Reliance Life ?

Mode of Communication No of Respondents

By Mailers 6

By tele calling 4

By Direct briefing 11

No Thanks! 4

No of Respondents

By mailers
By Tele calling
By Direct briefing
No Thanks
Proper implementation of CRM is very important in companies in security market to
increase profitability and customer satisfaction. Suggestions for proper implementation of
CRM are as following.

 STRATEGY FIRST, TECHNOLOGY SECOND: Business experts agree that

CRM projects go off track when companies buy technology before they have their
CRM business goals clearly in mind. The first step is to develop a strategy that
addresses the needs of current and potential customers. Consider the lifecycle
value of customers, taking into account different groups of customers, and which
ones are likely to yield the highest returns over the long run. Then select the
technology and vendors to help capture customer data and external sources, and
consolidate the information to add intelligence to the overall CRM strategy. Iron
out the organizational and people issues so that companies must overcome such
issues before a system that ties analysis and action can be fully effective. For
example, marketing staffs and salespeople don’t always communicate well, let
alone share data. This is particularly true in the traditional insurance industry
where independent brokers represent more than one company’s insurance
products. Marketing, sales, and service must work as a team and share
information. In order to facilitate sharing information, the business users (not just
management) must realize benefits to them before they adopt and advocate shared
information via any software system.

 DEVELOP THE RIGHT CONTACT STRATEGY: By knowing which offers

and incentives to offer to which customers and when, an organization won’t over
market to customers and it will build loyalty and retention. Such goals can be at
least as important as realizing cross-sell opportunities.

 INTEGRATE, ANALYZE AND REFINE DATA: Using the derived

knowledge of the customer, various strategies, such as one-to-one mass
marketing, have the potential to enable improved business and financial planning.
First, collect and consolidate customer-related data from the customer touch
points, current accounts, non-account internal information, and external data
sources. Next, integrate analysis across all customer touch points and from
additional customer profiling data measuring customer profitability, customer
segmentation, and customer retention. Finally, once knowledge is gained from
data integration and analysis, refine and focus business processes and
organizational structures based on improved customer understanding.

 CHANGE ACCOUNTS INTO CUSTOMERS: The traditional approach in

many organizations has been to associate their customers with accounts—to the
point of calling the account the customer and vice versa. Customers feel alienated
when they are treated “like a number” instead of a person with personal needs and
a history. A conventional account structure usually contains very little
 information and recommendations about the people, their needs, and relationships
to other people and organizations in the marketplace.

 BUILD CUSTOMER LOYALTY BY OFFERING EXCELLENT SERVICE:

In a competitive marketplace where price is not a differentiator, customers are
easily losit through indifferent service. It can be as simple as not calling a
customer back when promised, through to delivering an inferior product without
prompt rectification. Investment in a CRM system that tracks customer
interactions with the business and facilitates automating business processes
(workflow management) will lead to service excellence, paying dividends in
higher customer retention levels.

 IMPROVE PROFITABILITY BY MATCHING CHANNEL COST TO

CUSTOMER VALUE: Today, more than ever, it is important to identify the
profitable customers of a company, and to retain and grow them. This will be
achieved by regularly re-evaluating the profitability of all customers— typically
done by intensive analysis of information in a data warehouse—and feeding back
the revised profitability indices to business users of a CRM system. A practical
outcome of this exercise can be priority call routing in call centers, where
profitable customers get preferential treatment.

 STREAMLINE CUSTOMER COMMUNICATIONS: A CRM system can

help identify situations where multiple bills or marketing materials are sent to the
same physical location or postal address. This usually indicates that the systems
performing these functions all contain their own sources of customer information.
Consolidation of this information will reduce billing and marketing costs and
enhance customer relationships by streamlining communications.

 PROVIDE SECURITY AND PRIVACY: Customers’ demands for security and

privacy are increasing. Therefore, it is essential to develop an authentication
mechanism that provides security and password protection. Developing a
consumer household view rather than an account view is important, but consumer
privacy demands that the CRM system enable household constituents to “opt-out”
and not receive solicitations that other members may choose to subscribe to or
“opt-in.”
 CONCLUSION

We have seen through study that CRM is very important for profitability and market
share of the company. Through hypothesis we come to know that different CRM provides
different level of satisfaction to its customers. Its proper implementation is very
important for maintaining and increasing customer satisfaction. That is very important for
long term sustainability of the organizations.
So there is no doubt that customer-focused strategies are essential to unlocking customer
value and increasing retention. Gaining “wallet share” through effective marketing and
cross-selling, together with an understanding of the drivers of customer profitability, can
only be achieved through sophisticated CRM solutions with analytics.
As a result, financial service organizations have excellent reasons to adopt an enterprise-
wide CRM strategy. As the financial services industry moves from a transaction-centric
to a customer-centric business approach, effectively leveraging customer relationships
becomes all the more critical. The financial needs of customers change throughout their
lifetime, providing incentives for financial institutions to cultivate lifelong and profitable
customer relationships. A customer’s loyalty increases as the length and quality of the
relationship increases.
To achieve this goal, a CRM system must integrate operational data from all customer
touch points with powerful analytical applications. If used effectively and innovatively,
this approach will enable a financial organization develop a strategy that delivers the
most appropriate products and services to the customer.
. As a result, financial institutions are able to prioritize products, services and resources to
their key customers. This truly collaborative solution helps “know, win, and keep”
customers worldwide.
 ANNEXURE

QUESTIONNAIRE

NAME : ADDRESS:

AGE:

GENDER:

OCCUPATION

1. Why did you invest your money in share market?

a. High return
b. Liquidity
c. Regular income
d. Tax benifit

2. Through which company do you invest in INSURANCE market?

a. Reliance LIFE
b. ICICI Prudential
c. Bajaj Allianz
d. TATA AIG
e. HDFC
f. Met Life
g. Other

3. Why did you opted for this company for investment purpose?

a. Liquidity
b. Safety
c. Brand name
d. Services
4. What do you think is main goal of the company?

a. Increasing sales
b. Providing basic services with sales
c. Providing value added services
d. Providing tailor made services.

5. For how long you have been with the company?

a. Less than six months

b. Six month to two years
c. Two to five years
d. More than five years

6. Do you think improvement is required in company in terms of customer relationship

management?

a. Much improvement
b. Little improvement
c. No improvement

7. Do you want to invest through Reliance Money?

a. Yes

b. No

c. wants to get information

d. already investing through Reliance Money

8. In case you do not want to invest through Reliance Money, what is your perceived
problem?
 a. Previous bad experience

b. No knowledge

c. Time constraints

d. Poor services

9. Are you satisfied with the services provided by your company?

a. Highly satisfied

b. Partially satisfied

c. Unsatisfied

10. Give rank to these companies in terms of Customer Relationship

Management: Reliance life, ICICI pru, tata AIG, Bajaj Allianz.

a. Poor

b. Average

c. Good

d. Don’t know
 FINDINGS

This project work which is based on “Analytical study of various competitions

floated by RELIANCE LIFE INSURANCE and it’s impact on sale” which was done only
in …………. region had required a lots of research work,analysis since main purpose of
doing this project work is to know how competitors and customers are effected by
competitions floated by RELIANCE LIFE INSURANCE and how it has increased it’s
sale.After completion and analysis of this project work there are some findings which are
described below-

• 30 -40 age group is highest invester group in insurance business since they have
reached a age where they are having money to invest and right time also due less
mortality risk which is followed by age group 40-50 .
• Main investers in insurance business from ….. region are businessman (250)
followed by other educated segment of society such as doctors (100) ,teachers
(80).

• In insurance sector of LIC is having it’s highest customers (340 customers) it is

enjoying benefit of oldest and public sector company which is followed by
RELIANCE LIFE INSURANCE (56customers).

• Analysis shows that 93% customers of RELIANCE LIFE INSURANCE are

satisfied by their company.

• Survey which was carried out from March – july 2007 ,it was found that most
customers have taken ULIP Policy followed by child plan and very less number
of customer have taken health plan.

• After analysis it can be seen that 53% customers are aware of products
while 36% percent are well aware of products and services offered by
RELIANCE LIFE INSURANCE this is effect of company’s effort that they
have generated this much awareness only 11% customers are unaware of their
products and services.

• According to survey 82% customers have seen campaign launched by

RELIANCE LIFE INSURANCE and 75% customers says that it is effective
than campaign launched by other companies.

• According to 48% customers agents of RELIANCE LIFE INSURANCE are more

responsible for bringing business as for whole for Life insurance business also
agents are also contributing most so this shows RELIANCE LIFE INSURANCE
has adopted right strategy.

• 46% customers have said that product and services offered by RELIANCE LIFE
INSURANCE in comparison to any other life insurance company, 34% Have
said it as good while 20% said that it is RELIANCE LIFE INSURANCE
 excellent.

SUGGESTION:

RELIANCE LIFE INSURANCE is one of the pioneer in private life insurance company
in India having it’s brand image and largest market share among all the players. They had
developed and implemented a number of competition in market . It have been a forefront
in fulfilling customer service and ultimately it‘s sale is increasing.

During the survey , the respondents proposed a number of recommendations to improve

effectiveness of competition floated by RELIANCE LIFE INSURANCE in order to gain
it’s market share .It could gain more market share if the proposed recommendation is
taken into account.

Some of the most feasible suggestion are given below:

1 Raise customer awareness:

 RELIANCE LIFE INSURANCE have generated a lots of awareness but still it needs to
provide more awareness .They are constantly providing a range of products offering in
terms of customer, competitors to garner market share.

2 Build customer loyalty:

RELIANCE LIFE INSURANCE should accelerate the pace of change to
capture market share and to create loyal customers which increase customer equity in
turn.

3 Develop relationship management:

Relationship count a lot as customer has tendency to stick with the

brand even it is beyond the objective and subjective assessment of it’s worth. The
challenges is to reactivate dissatisfied customer through win – back strategies and
strengthening customer retention.

4 Provide necessary follow-up:

RELIANCE LIFE INSURANCE should provide information to it’s customer

about it’s new offering . They can make follow-up calls and request them to visit to their
websites.

CONCLUSION

At last after doing whole survey work analyzing the work and inferring finding out of
it ,it can be concluded that RELIANCE LIFE INSURANCE is successful in floating
competition in market .It’s is having highest market share after LIC .most responsible
factor for bringing business in a insurance company is their agents which is also there in
RELIANCE LIFE INSURANCE which is giving advantage in acquiring customers it’s
advertisement campaign is also effective in comparison to other companies.

RELIANCE LIFE INSURANCE is also having a very good marketing strategies it has
raised awareness in it’s customer in a effective manner so it is able to overtake it’s
customers It’s initiatives included tie-up with the Dabbawalla Organisation in Mumbai
for a direct marketing exercise, to talk to the customer through a non-cluttered route, and
thereby have a higher impact. IT is launching effective advertisements to generate
awareness in which RELIANCE LIFE INSURANCE is successful to a large extent. In
addition to advertising, the company has also initiated several activities to raise consumer
awareness about life insurance and RELIANCE LIFE INSURANCE. “It includes
seminars - RELIANCE LIFE INSURANCE regularly holds consumer awareness meets
on ‘the need for retirement planning’ in different cities such a Pune,

Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are very well
attended and have contributed significantly towards increasing awareness about the
category and the company Customer are getting positive effect from advertisement of
RELIANCE LIFE INSURANCE and are well satisfied with RELIANCE LIFE
INSURANCE. Since there is cut throat competition in marker but competition which
RELIANCE LIFE INSURANCE has floated is giving Positive effect to it and it is
helping in increasing it’s sale by satisfying it’s customers.

REFERENCES

www.avivaindia.com

www.bajalallianz.co.in

www.birlasunlife.com
www.google.com

www.hdfcinsurance.com

www.iciciprulife.com

www.indiatelevision.com

www.maxnewyorklife.com

www.reliancelifeinsurance.com

www.sbilife.co.in

www.tata-aig.co.in

GLOSSARY

Insuree-Denotes the policy holder of particular type.

Insurer- Represents a particular insurance company.

Risk- The chance of an outcome not occurring as planned.

Risk premium- The difference between the expected yield-to –maturity of a risk bond
and the expected yield to maturity of a similar default-free bond.
Underwriting- Underwriting is effectively a guarantee wherein the underwriter(usually a
bank ,financial institution,broker) agrees to purchase a certain number of shares in the
event the issue is unsubscribed for a certain fee.