A PROJECT REPORT ON CRM

IN LIC

SUBMITTED BY: RAJAT VERMA

REG NO. 11715607
SEC: Q1746
 CONTENT
• INTRODUCTION
• SCOPE
• OBJECTIVES
• PROBLEM
• RESEARCH METHODOLOGY
• FINDING
• LIMITATION
• SUGGESTION
 INTRODUCTION
• Customer Relationship Management is a
comprehensive strategy and process of
acquiring, retaining and partnering with
selective customers to create superior value
for the company and the customer. It involves
the integration of marketing, sales, customer
service, and the supply-chain functions of the
organisation to achieve greater efficiency and
effectiveness in delivering customer value.
•Customer relationship management (CRM) is a system
for managing a company’s interactions with current
and future customers. It often involves using
technology to organize, automatic and synchronize
sales, marketing, customer service and technical
support. CRM, uses the benefit of data management
that allows data resources to work as a single
integrated database.
 • With the increase in the number of insurance companies in the market and
consumers becoming more aware of different policies. Insurance companies
have realized the importance of CRM. The cost of attracting a new customer is
five times more than that is incurred to make an existing customer happy.
Therefore, to survive in the market, insurance companies need to implement
CRM in their organizations. This is the key to success in the industry. The
organizations can succeed who have been able to build a base of their loyal
customers, because a loyal customer advocates the companies’ products much
better than the organization itself. The basic existence of the organization lies in
the hands of its customers. It can be easily concluded that for success, it is
necessary to implement CRM in the right manner
 SCOPE
• The study has been undertaken mainly to
highlight the customer relationship management
with Life Insurance Corporation of India in
JAMMU District .This study is extremely useful to
research scholars to gain knowledge in customer
relationship management. It helps the practicing
managers to know about the trends in marketing
scenario for arriving at better decisions. It helps
the customers to rate the services provided by
the insurance industry.
 OBJECTIVES
• firstly to study the Customer Relationship Management program of
Life Insurance Corporation of India,

• to assess the effectiveness of Customer Relationship Management

program of Life Insurance Corporation of India.
•
3. Attitude of the policyholders towards the CRM in life insurance
industry in JAMMU district.
•
4. Attitude of the Agents towards the CRM in life insurance industry
in JAMMU district.
•
5. Attitude of the employees towards the CRM in life insurance
industry in JAMMU district
 PROBLEM
• Investors are confusing because various
policies are available in market. So this study
will help the customers to understand the
customer’s satisfaction and perception level
about life insurance policies with respect to
Life Insurance Corporation of India with
respect to JAMMU District and how a
customers satisfied while they selects,
organizes and interprets the quality of service
and product offered by the company.
 RESEARCH METHODOLOGY
• Research methodology is a way of systematically solve the
research problem in this study. In this research adopted
various steps for collecting the data. This research has been
done with the aid of both the primary and secondary data.

• The source of primary data is drawn from a sample survey of

100 customers of LIC of India The data’s are derived through
well structured questionnaire. The secondary data is drawn
from variety of source like research articles from Journals,
Magazines, Books, New Reports and Websites.
 STUDY AREA
Data for this research was gathered from both primary and secondary sources.

• Primary source Information from the management of LIC through questionnaires

and personal Interviews served as the primary source.

• Secondary source

• The secondary source was gathered from facts concerning customer relationship
matters in LIC and publications that relate to CRM in general. These were obtained
from libraries, internet and from newspaper articles and publications.

• Research Approach

Questionnaires, interviews, reports and question guides were the main tools used
in generating the data for this study. A descriptive and qualitative analysis was also
used for this research because of the unwillingness of some members of staff to
release or give vital information of the company to the researcher.
SAMPLE SIZE( 100 RESPONDENT)
 SAMPLE UNITS
• The Sample Unit selected for the study is
Customers of LIC, JAMMU.
 DATA ANALYSIS & INTREPRETATION
• Table 1: Annual income of the LIC policy
holders.
INCOME RESPONDENT %
BELOW 1 LAKHS 12 12

1 LAKHS – 5 LAKHS 50 50
5 LAKHS – 10 17 17
LAKHS
ABOVE 10 LAKHS 21 21

The table-1 resembles that 50% of the policy holders said that their annual income is between 1
Lakhs – 5 Lakhs, 21% of policy holders have their annual income above 10 Lakhs, 17% of
policy holders said that their annual income is between 5 Lakhs – 10 Lakhs and 12 % of them
said their annual income is below 1 lakhs.
Table 2: Response and guidance at regular intervals of agents is satisfactory
regarding the LIC policies

FACTORS RESPONDENT %
STRONGLY AGREE 49 49
AGREE 24 24
NEITHER AGREE 14 14
NOR DISAGREE
DISAGREE 9 9
STRONGLY 4 4
DISAGREE

The above table-2 indicates that 49% of the policy holders said that they are
strongly agree that the response and guidance of agents at regular intervals
regarding the policies, 24% said they are agree, 14% of them said neither
agree nor disagree, 9% of them said disagree and 4% of them said that they
are strongly disagree with the response and guidance of agents at regular
intervals regarding the policies.
 Table 3: Policies / Plans of LIC is superior to or more attractive than the
private insurance companies

FACTOR RESPONDENT %
STRONGLY AGREE 43 43
AGREE 25 25
NEITHER AGREE 13 13
NOR DISAGREE

DISAGREE 13 13
STRONGLY 6 6
DISAGREE

• The above table-3 indicates that 43% of the policy holders said that they are strongly agree
that policies /plans of LIC is superior to or more attractive than the private insurance
companies, 25% said they are agree, 13% of them said disagree, 13% of them said neither
agree nor disagree and 6% of them said that they are strongly disagree that policies /plans of
LIC is superior to or more attractive than the private insurance companies.
 TABLE4: On scale of “extremely dissatisfied” to “extremely satisfied” how would
you rate your level of satisfaction with life insurance?

BENEFIT RESPONDENT %

EXCELLENT 48 48

GOOD 38 38

POOR 14 14

INTREPRETATION:

48% of the respondents believe that they are life insurance service is excellent

Whereas, 38% and 14% of them believe that the life insurance service good and poor
respectively.
 TABLE 5: How likely are you to recommend life insurance to a friend
or relative? Would you say the chances are?

BENEFIT RESPONDENT %

EXCELLENT 65 65

GOOD 25 25

POOR 15 15

• 65% Says excellent, 25% Says good and 15%

Says poor.
 TABLE6: How likely are you to repurchase products and services from life
insurance? Would you say the chances are?

BENEFIT RESPONDENT %

EXCELLENT 60

GOOD 30

POOR 10

• 60% Says Excellent, 30% Says Good and 10% Says poor.
 TABLE 7: How likely you rate the overall quality of your
relationship with life insurance all of your experiences? Would
you say the chances are?

BENEFIT RESPONDENT %

EXCELLENT 30 30

GOOD 60 60

POOR 10 10

• 30% Says Excellent, 60% Says Good and 10% Says Poor.
TABLE 8: How would you rate your satisfaction level in regards
to customer service?

BENEFIT RESPONDENT %

EXCELLENT 65 65

GOOD 30 30

POOR 5 5

• 65% Says Excellent, 30% Says Good and 5% Says poor.

 TABLE 9: Which policy would you choose out of all reliance
insurance policies?

• A. endowment plan 15%

• B. special endowment plan 25%
• C. cash flow plan 35%
• D. child plan 30%

INTREPRETATION
• 15% Says endowment plan, 25% says special endownment plan,
35% says cash flow plan and 30% says child plans.
 TABLE 10: How would you rate your satisfaction level in
regards to your current policy plan?

BENEFIT RESPONDENT %

EXCELLENT 60 60

GOOD 15 15

POOR 25 25

• 60% Says Excellent, 15% Says Good and 25% Says poor.
 TABLE11:
How would you rate your satisfaction level in regards to service
of life insurance service?

BENEFIT RESPONDENTS %

EXCELLENT 60 60

GOOD 35 35

POOR 5 5

• 60% Says Excellent, 35% Says Good and 5% Says poor.

 FINDINGS
• Males have more liking towards the LIC policies.

• It is found that life cover plan, investment plan attract customer most.

• It is found the Customers are satisfy with the life insurance service.

• life insurance service Gives best satisfaction to its customers.

• Most of the customers want life insurance corporation service again.

 LIMITATIONS
• The research is confined to a certain parts of JAMMU and does not
necessarily shows a pattern applicable to all of Country.

• The result of the present study was based on the opinions and
experiences of the respondents. In opinions survey there would always
be possibilities of individual business in opinions, and results look
unreliable. This business could not be eliminated.

• There might be drop error i.e. the respondents who are willing as well as
able may not be contacted.

• The information collected and opinions are of customers as to what they

feel. Thus the accuracy and information collected depends upon the
perception of each respondent and circumstances involved.
• Due to time constraint more information can not be collected. As no
work has been done earlier in this regard so scarcity of secondary data is
also there.
 SUGGESTIONS

• Creating more awareness about the products.

• Focusing more on all Schemes .
• Focusing First on Existing Policyholders .
• Focusing on CRM Practices .
• Focusing First on Existing Policyholders .
• To increase the level of insurance penetration
LIC may focus on bringing products that suit
to the rural customers.
 CONCLUSION
• The present study concludes that the LIC of India needs
to embrace CRM as a philosophy and adopt a strategy
for managing customer relationships that effectively
addresses three key areas namely people, process and
technology. The study impresses that a CRM
programmed will never be successful without the
complete commitment and participation of the staff.
Hence, LIC of India needs to focus on creating a
customer-centric culture right from the administrative
staff to the senior executives. Customer centricity can
be achieved through a strong top management focus,
comprehensive communication and training programs
that teach their employees how to use CRM
applications, the benefits of doing so along with
appropriate incentive policies.