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INTRODUCTIONS
Insurance is “Basically a protection against a financial loss which can arise on the
happening of an unexpected event. Insurance companies collect premiums to provide
for this protection. By paying a very small sum of money a person can safeguard
himself and his family financially from an unfortunate event.”
Insurance only spread the financial loses of insurance members over the whole of
remaining insured. Whole assets are not damaged thus insurance company act as
middle man for such social cooperation.
Life insurance policy affords protection to individual, widows and dependents to meet
the critical situation. Fire marine and miscellaneous polices help the development of
trade, commerce and industry hence the importance of insurance from social and
economic point of view is immense of economic growth.
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2009 April 15
May 36
June 48
July 51
Sub objectives
Recover
Retentio
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Satisfactio
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Figure 1.1 Conceptual Frame work
1.5 Methodology
Primary data
Interview
Questionnaires
Secondary data
Annual report of ceylinco insurance 2008
Other related report - policy book, Magazine
2.1 Introduction
A literature review discusses published information in a particular subject area, and
sometimes information in a particular subject area within a certain time period.
A literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a
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recap of the important information of the source, but a synthesis is a re-organization,
or a reshuffling, of that information. It might give a new interpretation of old material
or combine new with old interpretations. Or it might trace the intellectual progression
of the field, including major debates. And depending on the situation, the literature
review may evaluate the sources and advise the reader on the most pertinent or
relevant.
This chapter began with retention, measuring retention, Importance of customer
retention, Advantages of customer retention, Benefits of Customer Retention:
Statistics, Measuring Customer Retention.
2.2 Customer retention
In today's challenging economy and competitive business world, retaining their
customer base is critical to organization success. If they don't give their customers
some good reasons to stay, organization’s competitors will give them a reason to
leave. Customer retention and satisfaction drive profits. It's far less expensive to
cultivate organization existing customer base and sell more services to them than it is
to seek new, single-transaction customers. Most surveys across industries show that
keeping one existing customer is five to seven times more profitable than attracting
one new one.
A customer-focused approach among its employees is still not present. In this era of
intense competition, it is very important for any service company to understand that
merely acquiring customers is not sufficient because there is a direct link between
customer retention over time and profitability & growth. Customer retention to a great
extent depends on service quality and customer satisfaction. It also depends on the
ability of the organization to encourage customers to complain and then recover when
things go wrong. Complaints are natural part of any service activity as mistakes are an
unavoidable feature of all human endeavor and thus also of service recovery. Service
recovery is the process of putting things right after something goes wrong in the
service delivery.
Customer retention is the maintenance of continuous trading relationships with
customers over the long term. Customer retention is the mirror image of customer
defection or churn. High retention is equivalent to low defection. Customer retention
is about keeping the customers organization has spent that money to acquire.
And if you’re in an industry where they make multiple purchases over the years,
organization entire team should be very focused on retaining those customers:
Delivering service that’s consistent with your value proposition and brand
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Knowing the lifetime value for different segments and using that data to
improve your marketing
Studies say it costs ten times more to generate a new customer than to maintain an
existing one. If organization has a small number of customers, losing a few could
cripple company. Even if you have a large number of customers, a small increase in
retention rate should dramatically increase profits.
The maintenance of the patronage of people who have purchased a company’s goods
or services once and the gaining of repeat purchases. Customer retention occurs when
a customer is loyal to a company, brand, or to a specific product or service, expressing
long-term commitment and refusing to purchase from competitors. A company can
adopt a number of strategies to retain its customers. Of critical importance to such
strategies are the wider concepts of customer service, customer relations, and
relationship marketing. Companies can build loyalty and retention through the use of
a number of techniques, including database marketing, the issue of loyalty cards,
redeemable against a variety of goods or services, preferential discounts, free gifts,
special promotions, newsletters or magazines, members' clubs, or customized
products in limited editions. It has been argued that customer retention is linked to
employee loyalty, since loyal employees build up long-term relationships with
customers.
Customer retention has always been an important topic for the marketing. For sure,
the advantages of loyal clients are obvious. In the last years the concept had a
renaissance because of the new term CRM (Customer Relationship Management).
However, CRM comprises nearly every customer oriented activity from a complaint
hotline to client cards and client clubs. Often CRM is only implementing new systems
for data mining and client segmentation or operational systems like a complaint
management. But the thing is: data mining systems or client clubs are not the basis.
They are the cherry of the cake called client retention. A company like Porsche needs
no client club to tie up the customer to the brand.
A key principle of relationship marketing is the retention of customers through
varying means and practices to ensure repeated trade from preexisting customers by
satisfying requirements above those of competing companies through a mutually
beneficial relationship This technique is now used as a means of counterbalancing
new customers and opportunities with current and existing customers as a means of
maximizing profit and counteracting the "leaky bucket theory of business" in which
new customers gained in older direct marketing oriented businesses were at the
expense of or coincided with the loss of older customers. This process of "churning"
is less economically viable than retaining all or the majority of customers using both
direct and relationship management as lead generation via new customers requires
more investment.
5
Many companies in competing markets will redirect or allocate large amounts of
resources or attention towards customer retention as in markets with increasing
competition it may cost 5 times more to attract new customers than it would to retain
current customers, as direct or "offensive" marketing requires much more extensive
resources to cause defection from competitors. However, it is suggested that because
of the extensive classic marketing theories center on means of attracting customers
and creating transactions rather than maintaining them, the majority usage of direct
marketing used in the past is now gradually being used more alongside relationship
marketing as its importance becomes more recognizable.
According to Buchanan and Gilles the increased profitability associated with
customer retention efforts occurs because of several factors that occur once a
relationship has been established with a customer.
• The cost of acquisition occurs only at the beginning of a relationship, so the
longer the relationship, the lower the amortized cost.
• Account maintenance costs decline as a percentage of total costs (or as a
percentage of revenue).
• Long-term customers tend to be less inclined to switch, and also tend to be
fewer prices sensitive. This can result in stable unit sales volume and increases
in dollar-sales volume.
• Long-term customers may initiate free word of mouth promotions and
referrals.
• Long-term customers are more likely to purchase ancillary products and high
margin supplemental products.
• Customers that stay with you tend to be satisfied with the relationship and are
less likely to switch to competitors, making it difficult for competitors to enter
the market or gain market share.
• Regular customers tend to be less expensive to service because they are
familiar with the process, require less "education", and are consistent in their
order placement.
• Increased customer retention and loyalty makes the employees' jobs easier and
more satisfying. In turn, happy employees feed back into better customer
satisfaction in a virtuous circle.
2.3 Importance of Customer Retention
Why are customers more profitable for service firms over a period of time? There are
a number of reasons for this. To begin with, to acquire a customer a company incurs
promotional costs like advertising, sales promotion etc. It is said that it costs five
times more to attract a new customer than retaining one. The operating cost decreases
when a customer stays. Services being rich in experience and credence qualities, it
takes some time for customers to get accustomed to it and once they are used to the
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service and are satisfied with the service provider ,they tend to purchase more over a
period of time.
As they remain satisfied with a service provider, they spread a positive word of
mouth, which is very effective in case of services for attracting new customers.
Longer the customer stays with an organization, more the organization knows about
him, which enables it to offer customized services which make it difficult for the
customer to defect. This may even provide opportunities to the organization to charge
price premium by offering individualized services which may be difficult for the
competitors to offer.
Considering the importance of retaining customers in service business, Reichheld &
Sasser coined a term ‘Zero Defection’. They highlighted that companies can boost
profits by almost 100% by retaining just 5% more of their customers. Further, it is
also very important to understand the life time value of a customer. Further, if by a
positive word of mouth, he brings just one more customer to the organization, his
value to the organization doubles. Therefore, it is important for all the employees in
the organization to understand the life time value of their customers. Once they
understand it, they will treat the customer accordingly and will focus on building
relationship with the very people who keep them in business.
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Fostering greater interaction between business and customer
Today’s markets are increasingly moving away from mass produced standard
products and services, towards a more customized market, where products and
services are tailored to meet customers’ specific requirements. Having a repeat
customer is an opportunity for you to build a more focused relationship based on your
customers’ specific needs and requirements. Being ensured of having a customer who
comes back, you have more confidence to suggest improvements, provide insights to
better understand their needs and consequently design products and services that are
relevant. Having a repeat business also provides an opportunity for the buyer and the
seller to co-create products and services.
Having more delighted customers
Effective customer retention strategies allow you to move from the zone of customer
satisfaction to customer delight. Studies have shown that customer delight is achieved
only when there is a perfect synergy between the buyer and seller – when the seller
understands exactly what the buyer needs and the buyer understands what the seller
can deliver exactly what he needs. If you are able to delight your customers, you have
better chances of them coming back to you, since they now know why you are
different from the rest of competition.
Acquiring new customers can cost five times more than satisfying and
retaining current customers
A 2% increase in customer retention has the same effect on profits as cutting
costs by 10%
The average company loses 10% of its customers each year
A 5% reduction in customer defection rate can increase profits by 25-125%,
depending on the industry
The customer profitability rate tends to increase over the life of a retained
customer
Companies can boost profits anywhere from 25 to 125% by retaining merely
5% more existing customers.
Only one out of 25 dissatisfied customers will express dissatisfaction.
Happy customers tell 4 to 5 others of their positive experience. Dissatisfied
customers tell 9 to 12 how bad it was.
Two-thirds of customers do not feel valued by those serving them.
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to calculate the percentage versus existing customers, and not underestimate the loss
rate by tallying new customer acquisitions into the mix.
The customer retention rate refers to the number of customers lost over a period of
time. It is normally calculated by the percentage of lost customers versus existing
customers over a quarterly or annual period, without tallying new customer
acquisitions.
While there are obvious benefits to keeping customers loyal and maintaining high
customer retention rates, it can be extremely challenging for management to keep
retention rates up. This guide will explore some of the best customer retention
strategies, important topics and common challenges related to customer retention:
According to ROI expert Tom Pisello, CEO and President of Alinean, the customer
retention rate is calculated by determining the number of customers lost over a period
of time compared to repeat customers over the same amount of time. Pisello said, "A
customer is one who continues to make purchases, and a lost customer is one who has
made purchases, but does not repeat these purchases for some time. The key is to
analyze the repeats over a long enough horizon."
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and magazine subscriptions are bought on an annual basis. Carpet tiles and hi-fis are
not. If the normal hi-fi replacement cycle is four years, then retention rate is more
meaningful if it is measured over four years instead of twelve months. Additional
complexity is added when companies sell a range of products and services, each with
different repurchase cycles. Automobile dealers might sell cars, parts, fuel and service
to a single customer. These products have different repurchase cycles which make it
very difficult for the dealer to have a whole of customer perspective on retention.
Sometimes companies are not clear about whether an individual customer has
defected. This is because of the location of customer related data, which might be
retained in product silos, channel silos or functional silos.
This is the number of customers doing business with a firm at the end of a
trading period, expressed as percentage of those who were active customers at
the beginning of the period.
This is the value of sales achieved from the retained customers, expressed as a
percentage of the sales achieved from all customers who were active at the
beginning of the period.
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CHAPTER -03
INSURANCE
3.1 Introduction
Insurance, in law and economics, is a form of risk management primarily used to
hedge against the risk of a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium,
and can be thought of as a guaranteed and known small loss to prevent a large,
possibly devastating loss.
Insurance is a form of risk management in which the insured transfers the cost of
potential loss to another entity in exchange for monetary compensation known as the
premium
There are mainly two parties involved in this – the insurer and the insured. The
insurer is the insurance company who will provide the cover to the insured against
any financial losses. The insured may be an individual person or a group of people
like an employer, members of a society. The insurance rate is a factor used to
determine the amount to be charged for a certain amount of insurance coverage, called
the premium.
Insurance is appropriate when you want to protect against a significant monetary loss.
Take life insurance as an example. If you are the primary breadwinner in your home,
the loss of income that your family would experience as a result of our premature
death is considered a significant loss and hardship that you should protect them
against. It would be very difficult for your family to replace your income, so the
monthly premiums ensure that if you die, your income will be replaced by the insured
amount. The same principle applies to many other forms of insurance. If the potential
loss will have a detrimental effect on the person or entity, insurance makes sense.
3.2 Principles of insurance
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3.2.2 General Principles
Other principles apply to all kinds of insurance.
Insurance can provide compensation only for the actual value of property. It
cannot cover the loss of sentimental value, for example.
There must be a large number of similar risks so that the likelihood of a claim
can be spread among other policyholders. It must be possible for insurers to
calculate the chance of loss so that a premium can be set which matches the
risk.
Losses must not be deliberate and not inevitable. Clearly, you could not buy
fire insurance for a house which was already burning or life insurance for
someone on his or her deathbed.
Lastly, there are some risks which have financial implications so vast that they
can be dealt with only by the state. These risks (mainly those arising from war
or the major escape of nuclear or radioactive material) are normally not
insurable.
Insurance takes the risk away from people's lives and businesses. It brings
peace of mind to the policyholder. In return for paying premiums the
policyholder knows that, if the unexpected happens, financial compensation
will be available from the fund of premiums.
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3.3.3 DISABILITY INSURANCE
There are two types of disability insurance. One is simple disability insurance and the
other is total disability insurance. In case of simple disability insurance, a financial
support on monthly basis is provided by the insurer to the policy holder if he is unable
to work due to an injury or an illness. But permanent disability insurance provides the
reimbursement if a person becomes permanently disabled.
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that their trustees voted to end the sale of such policies 15 years before the
Emancipation Proclamation.
Life insurance dates only to ancient Rome; "burial clubs" covered the cost of
members' funeral expenses and helped survivors monetarily. Modern life insurance
started in 17th century England, originally as insurance for traders merchants, ship
owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to
the famous Lloyd's of London.
3.5 Life insurance
Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a sum of money upon the occurrence of the
insured individual's or individuals' death or other event, such as terminal illness or
critical illness. In return, the policy owner agrees to pay a stipulated amount called a
premium at regular intervals or in lump sums. There may be designs in some
countries where bills and death expenses plus catering for after funeral expenses
should be included in Policy Premium.
As with most insurance policies, life insurance is a contract between the insurer and
the policy owner whereby a benefit is paid to the designated beneficiaries if an
insured event occurs which is covered by the policy.
The value for the policyholder is derived, not from an actual claim event, rather it is
the value derived from the 'peace of mind' experienced by the policyholder, due to the
negating of adverse financial consequences caused by the death of the Life Assured.
To be a life policy the insured event must be based upon the lives of the people named
in the policy.
There is a difference between the insured and the policy owner (policy holder),
although the owner and the insured are often the same person. For example, if Joe
buys a policy on his own life, he is both the owner and the insured. But if Jane, his
wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy
owner is the guarantee and he or she will be the person who will pay for the policy.
The insured is a participant in the contract, but not necessarily a party to it.
The beneficiary receives policy proceeds upon the insured's death. The owner
designates the beneficiary, but the beneficiary is not a party to the policy. The owner
can change the beneficiary unless the policy has an irrevocable beneficiary
designation. With an irrevocable beneficiary, that beneficiary must agree to any
beneficiary changes, policy assignments, or cash value borrowing
Life insurance may be divided into two basic classes – temporary and permanent or
following subclasses - term, universal, whole life and endowment life insurance. Term
assurance: provides for life insurance coverage for a specified term of years for a
specified premium. The policy does not accumulate cash value. Term is generally
considered "pure" insurance, where the premium buys protection in the event of death
and nothing else.
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Permanent life insurance is life insurance that remains in force (in-line) until the
policy matures (pays out), unless the owner fails to pay the premium when due (the
policy expires OR policies lapse). The four basic types of permanent insurance are
whole life, universal life, limited pay and endowment.
3.5.1 Benefits of life insurance
Life Insurance provides the dual benefits of savings and security. The following
benefits explain why this investment tool should be an integral part of your financial
plans.
Planning for life stage needs - Life Insurance not only provides for financial
support in the event of untimely death but also acts as a long term investment.
You can meet your goals, be it your children's education, their marriage,
building your dream home or planning a relaxed retired life, according to
your life stage and risk appetite. Traditional life insurance policies i.e.
traditional endowment plans, offer in-built guarantees and defined maturity
benefits through variety of product options such as Money Back, Guaranteed
Cash Values, Guaranteed Maturity Values.
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span is utilized to provide a steady source of income during the retired phase
of life.
Protection plus savings over a long term - Since traditional policies are
viewed both by the distributors as well as the customers as a long term
commitment; these policies help the policyholders meet the dual need of
protection and long term wealth creation efficiently.
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became the first registered company in Sri Lanka in 1939, and the only indigenous
business dealing in insurance - a sector that was the domain of British colonial firms
up until then.
The late Senator Justin Kotelawala's dream to establish and encourage an indigenous
entrepreneurial spirit in the people of Sri Lanka is a living reality today. He dared to
dream and never lost sight of it. His legacy of thinking big lives on, even today, in
every existing and new Ceylinco venture that is born
Established in 1987, Ceylinco insurance is today in the enviable position of being the
leading private sector insurer for over a decade. It is currently placed among the
country's blue chip companies. The premium income of the division exceeded Rs.
2.15 billion in 2001 -the highest recorded by a private sector insurer in Sri Lanka.
With Life insurance and annuity products being the core business areas, it has
developed the largest network of insurance agents, who can be accessed by customers
in the remotest parts of the country. A dedicated sales force, professionally trained in
Life insurance, supports the vision of covering every Sri Lankan with a Ceylinco Life
policy.
Quick and fair claims settlement with minimum fuss and an islandwide network of 77
computerized branches are some of the attributes that customers have come to
appreciate. The Life Fund of the company has exceeded Rs. 6 billion, indicating the
fastest growing Life Fund in the industry.
Ceylinco Insurance has also produced the first batch of Diploma holders from the
prestigious Life Underwriters Training Council in the US, and it is the only Sri
Lankan company to send the highest number of participants to the famous Million
Dollar Round Table (MDRT). Recent innovations pioneered in the Life insurance
industry include a unique insurance policy for ladies, a cash bonus for policyholders,
surgical insurance cover, and granting of scholarships to policyholders' children.
Undoubtedly, the company's innovative policies and its professional sales force will
enable it to reach the overall leadership in the industry in Sri Lanka.
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Ceylinco Insurance plans
01 Pranama
Ceylinco Life Pranama is a special scholarship scheme starting from the year 5
scholarship right upto university. This scholarship scheme was introduced in late 2001
and the first ever scholarship award ceremony was held in January 2002. Those
eligible for the Ceylinco Life Pranama Scholarship scheme will only be children of
Ceylinco Life Policyholders who achieve the highest academic results district-wise. If
child excels in studies, sports, culture, arts and even if child has invented something
new and gained recognition, you may apply for a Ceylinco Pranama Scholarship.
Ceylinco Life Advance payment policy pays advance payments regularly & pays the
balance amount at maturity with bonuses. The life Cover is not reduced although the
advance payments are paid periodically
03. Double Growth
The Life Cover and the Maturity Benefit both grow by 10 or 5 per cent per year in this
new product, aptly branded “Ceylinco Life Double Growth” ensuring that the value of
the policy grows with each year, holding its own against inflation and other
investment options in the market
04. Divisayura
Ceylinco Life Divisayura is specialized product which provides an affordable life
cover for fishermen in the coastal belt of the country, in keeping with the company’s
vision of providing a life cover for every family.
05. 65 Plus
For the first time life insurance policyholders will be covered for critical illness after
the age of 65. "65plus" from Ceylinco life is the unique scheme to cover loyal
policyholders for 20 critical illnesses even after they reach 65 years. Any policyholder
who has been a policyholder for 10 years and age above 65 years could benefit under
this scheme. All health insurance policies cease its benefits once the policyholder
reaches 65 years. Ceylinco Life insurance policyholders however need not to worry as
they will be covered for 20 critical illnesses for their life time. Once a policyholder
reaches 65 years and has been a policyholder for 10 years he / she will qualify to
benefit under the 65 plus scheme
06 Aloka
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“Ceylinco Life Aloka" scheme is an Education Grant, which mainly aims at extending
financial assistance to the children of deceased policyholders. This scheme ensures
that the loss of his or her guardian will not result in the disruption of a bereaved
child's education. Under this scheme a monthly allowance of Rs. 1,500/- will be paid
to the parent/guardian for 03 years.
07. Endowment
Ceylinco Life Endowment is a very attractive product from Ceylinco Life. This is
providing life insurance in the most flexible way, customizing to each customer.
08 FIB
Ceylinco Life FIB can replace an income for the period of 10 years after the death of
wage earner and the dependents/beneficiaries will be guaranteed a lump sum payment
for 10 years for them to meet their expenses
09 Yearly Benefits
This is a Single premium plan, where an annual payment to be paid out at the end of
each policy year. The Annual payment percentage will be declared at the beginning of
each year. The Single premium will be returned at the maturity of the policy.
There is a Death benefit attached to this cover after the first 12 months, which is
105% of the Single Premium.
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contribute to the amounting expenses, it usually adds to your expenditure. But now,
thanks to “Ceylinco Life Major Surgery”, you can avail yourself for almost any type
of surgery with no significant expenditure.
14. Yugadivi
Ceylinco Life YUGADIVI is offered as a special privilege to the Spouse of a
Ceylinco Life Policyholder, enabling a Policyholder to extend cover to his or her
spouse, for the same sum assured - for a few rupees more. Opting for the YUGADIVI
Privilege is not only convenient, but it also strengthens family security - particularly if
the spouse contributes to the family income.
15 Digasiri Plus
Life is full of uncertainties. When critical illnesses strike the effect is shattering. It
paralyses you and your family, emotionally, physically, and economically. Ceylinco
Life Digasiri, the first critical illness policy covers you and your family for 25 critical
illnesses. This unique Critical Illness Policy pays you on diagnosis or upon
undergoing surgery.
16 Pradeepa
The unique feature would be that it offers a life cover of Rs. 100,000/= for a term of 5
years for only one single payment of Rs. 1250/=. The maximum cover under the new
scheme is Rs. 400,000/=. No hassles of going for medical examinations, just a simple
application to be filled and the policy will be delivered within a day.
17 Randaru
Ceylinco Life Ran Daru is the means by which every loving father can fulfill his
hopes and dreams for his precious child. If, unexpectedly, you aren’t there for your
child anymore, your plans for your child’s future development will be a reality with
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Ceylinco Life Ran Daru, while the shadow of your love watches over your precious
child.
19 Shilpa
Thinking about the further education needs of your child when planning for her/his
future is a concern that many parents share. No matter how much you plan for their
future it is impossible to predict whether you will have the financial stability to give
them the education that they deserve.
20 Supreme
Ceylinco Life Supreme, the investment oriented investment plan, is the only life
policy that pays the full policy value at maturity without any deductions of the
generous periodic payments that are made every 4 years. In addition, the policy value
at maturity is further enhanced by dividends”
21 Uthum
Uthum is a comprehensive insurance policy that covers you and your dependants.
What is unique about Ceylinco Life Uthum is that even after receiving your benefits
at maturity; Ceylinco Life Uthum continues to provide a lifetime cover for no
additional fee.
22 Sipsetha
The first-ever Education Plan –it’s unique, in that it protects your child's future and
provides for education. SIPSETHA pays Education Annuities during the decisive
Ordinary Level, Advanced Level and higher studies years. More importantly,
SIPSETHA will triple the Annuity and waive further payment of premium, if your
child is left without your support. SIPSETHA will help you provide your child with
the all-important extra help, to help him or her emerge above the rest in competitive
examinations.
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With Ceylinco Life Family Hospital Cash, you get a daily payment in the event of
your hospitalization and you are paid for every day in hospital. In case you are
admitted to intensive care unit you will be paid an additional Rs.2, 500/- per day,
irrespective of your payments already taken.
CHAPTER-04
RESEARCH METHODOLOGY
4.1 Introduction
The system of collecting data for research projects is known as research methodology.
The data may be collected for either theoretical or practical research for example
management research may be strategically conceptualized along with operational
planning methods and change management. Research methodology is where you
describe the how goanna gather information (methods) this can be survey interview,
litterateur review etc. And then explain each method what are they, what you will do
in each method.
Some important factors in research methodology include validity of research data,
Ethics and the reliability of measures most of your work is finished by the time you
finish the analysis of data.
Formulating of research questions along with sampling weather probable or non
probable is followed by measurement that includes surveys and scaling. This is
followed by research design, which may be either experimental or quasi-experimental.
Methodology includes a philosophically coherent collection of theories, concepts or
ideas as they relate to a particular discipline or field of inquiry: [citation needed]
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II. Secondary data
Primary data
Primary data is data that we collect ourselves. It is the information that is developed
or gathered by the researcher specifically for the research project to be done. Primary
data are the facts and figures that are newly collected for a rese
1. Interview
2. Questionnaires
Secondary data
Secondary data will be obtained from the following ways.
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4.4 Method of data evaluation
After the data analysis, it must be evaluated to get the decision. Here the decision
rule will be applied. That is univariate measures calculated to the decision. The
likert’s scale is given 1-4 to each statement in the questionnaires. Based on the value
indicated in the questionnaire, the average value for each factor is considered. The
mean value lies between 1- 4 which strongly disagrees to strongly agree.
1) Strongly disagree
2) Disagree
3) Agree
4) Strongly agree
1 2 3 4
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CHAPTER-05
DATA PRESENTATION & ANALYSIS
5.1 Introduction
This chapter contains the data presentation and analysis in which personal data and
research variable. Data were Presentation and analysis. In this process all the collected
data from 100 samples have been categorized and analyzed on the following basis.
The data from customers are being analyzed in two categories as personal &Research
information.
This chapter contains the data presentation and analysis in which personal data and
research variable. Data were Presentation and analysis.
25
Figure 5.1 Age distribution
26
Figure 5.3 Civil status
27
Source: Survey Data
5.2.5 Occupation
The following table 6.5 shows occupation. 10% fount professional, 36% were found
be teachers & 13% were clerical. 33% and 08% of customers represent under the
occupation category of unskilled workers & students.
Table 5.5 Occupation
Occupation Frequency Percentage
professional 10 10%
teacher 36 36%
clerical 13 13%
unskilled workers 33 33%
students 08 08%
Total 100 100%
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Source: Survey Data
5.2.6 Income
Income was categories in to four classes. 24% customer represents the income below
Rs 10000.46% & 25% customer represents the income range Rs 10000-20000& Rs
20000-30000 respectively. 15% represent above Rs 5000. Those were in the
following table 6.6.
Table 5.6 Income
Income range Frequency Percentage
Below Rs 10000 20 20%
Rs 10000-20000 42 42%
Rs 20000-30000 25 25%
Above Rs 300000 13 13%
Total 100 100%
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Source: Survey Data
Standard deviation =
x f fx x2 fx2
Strongly disagree 1 3 3 1 3
Disagree 2 15 30 4 60
Agree 3 57 171 9 513
Strongly agree 4 25 100 16 400
100 304 30 976
Mean = 304/100
= 3.04
Standard deviation = 976 - 304 2
100 100
= 9.76 - 3.04 2
= 9.76 - 9.2416
= 0.5148
Figure 5.7
Source: Survey Data
Question 02
30
You can get best service from ceylinco insurance company?
Table 5.8
x f fx x2 fx2
Strongly
disagree 1 9 9 1 9
Disagree 2 18 36 4 72
Agree 3 59 177 9 531
Strongly agree 4 14 56 16 224
100 278 30 836
Mean = 278/100
= 2.78
2
Standard deviation = 836 - 278
100 100
= 8.36 - 2.78 2
= 8.36 - 7.7284
= 0.6316
Figure 5.8
Table 5.9
x f fx x2 fx2
Strongly
disagree 1 7 7 1 7
Disagree 2 13 26 4 52
Agree 3 59 177 9 531
Strongly agree 4 21 84 16 336
100 294 30 926
31
Mean = 294/100
= 2.94
2
Standard deviation = 926 - 294
100 100
= 9.26 - 2.94 2
= 9.26 - 8.6436
= 0.6164
Figure 5.9
Table 5.10
x f fx x2 fx2
Strongly
disagree 1 3 3 1 3
Disagree 2 14 28 4 56
Agree 3 47 141 9 423
Strongly agree 4 36 144 16 576
100 316 30 1058
Mean =316/100
= 3.16
2
Standard deviation = 1058 - 316
100 100
= 10.58 - 3.16 2
= 10.58 - 9.9856
= 0.5944
Figure 5.10
Table 5.11
32
x f fx x2 fx2
Strongly
disagree 1 2 2 1 2
Disagree 2 16 32 4 64
Agree 3 68 204 9 612
Strongly agree 4 14 56 16 224
100 294 30 902
Mean = 294/100
= 2.94
2
Standard deviation = 902 - 294
100 100
= 9.02 - 2.94 2
= 9.02 - 8.6436
= 0.3764
Figure 5.11
Table 5.12
x f fx x2 fx2
Strongly
disagree 1 6 6 1 6
Disagree 2 36 72 4 144
Agree 3 40 120 9 360
Strongly agree 4 18 72 16 288
100 270 30 798
Mean = 270/100
= 2.7
2
Standard deviation = 798 - 270
100 100
= 7.98 - 2.7 2
= 7.98 - 7.29
= 0.69
Figure 5.12
33
Source: Survey Data
Question 07
Do you feel that your ceylinco insurance company agent is sufficiently skillful &
honest to give you’re an effective service?
Table 5.13
x f fx x2 fx2
Strongly disagree 1 2 2 1 2
Disagree 2 16 32 4 64
Agree 3 75 225 9 675
Strongly agree 4 7 28 16 112
100 287 30 853
Mean = 287/100
= 2.87
2
Standard deviation = 853 - 287
100 100
= 8.53 - 2.87 2
= 8.53 - 8.2369
= 0.2931
Figure 5.13
Table 5.14
x f fx x2 fx2
Strongly disagree 1 0 0 1 0
Disagree 2 10 20 4 40
Agree 3 74 222 9 666
Strongly agree 4 16 64 16 256
100 306 30 962
Mean =306/100
= 3.06
2
Standard deviation = 962 - 306
100 100
34
= 9.62 - 3.06 2
= 9.62 - 9.3636
= 0.2564
Figure 5.14
x f fx x2 fx2
Strongly disagree 1 2 1 2
Disagree 2 28 4 56
Agree 3 126 9 378
Strongly agree 4 168 16 672
100 324 30 1108
Table 5.15
Mean = 324/100
= 3.24
2
Standard deviation = 1108 - 324
100 100
= 11.08 - 3.24 2
= 11.08 - 10.4976
= 0.5824
Figure 5.15
35
Do you like work or held the relationship between you & ceylinco insurance company
at long time?
Table 5.16
x f fx x2 fx2
Strongly disagree 1 1 1 1 1
Disagree 2 5 10 4 20
Agree 3 58 174 9 522
Strongly agree 4 36 144 16 576
100 329 30 1119
Mean = 329/100
= 3.29
2
Standard deviation = 1119 - 329
100 100
= 11.19 - 3.29 2
= 11.19 - 10.8241
= 0.3659
Figure 5.16
St Dis A St M St
ro agr gr ro ea an
ng ee ee ng n da
ly ly rd
de
Statements di ag via
sa re tio
gr e n
ee
36
3) The life insurance plans of the ceylinco
insurance company provide highest 7 13 59 21 2.94 0.65
benefits for you?
Stranded
No of respondent Mean
deviation
37
In this chapter collected data presented in the table and pie & column chart was
analysis. It considers of the personal & research information. Overall analysis of
factors determines the customer retention of the ceylinco insurance life policies.
CHAPTER-06
CONCLUSION & RECOMMENDATION
6.1 Introduction
This chapter explores conclusion and recommendation of the research finding through
the data obtain from 100 samples of respondents who enjoy the variety of life
insurance policy of ceylinco insurance. Conclusion about levels of customer retention
of ceylinco insurance, according to collected from research information. Finally
recommendations are provided for the outcomes of each statement to improve the
level of customer retention.
6.2 Conclusions
The data was collected from the customer’s retention of the ceylinco insurance
company badulla branch. The collected data analyzed in the earliest chapter.
Based on the percentage of the customers 100 sample size was collected. The age,
gender, civil status, education qualification, occupation, monthly income, was
analyzed in the personal information the questionnaire. According to the collected
personal information, most of the sample customers were middle age, get married,
educated, higher income customers who got life insurance.
The reason for increasing insurance demand middle age is,
1. They are employees and they have family.
2. They wish to serve a part of money in their income for future.
3. They have interested their children’s future
4. Uncertainly of country situation.
38
5. Most of the business leaders are male
The married peoples are interested in the taken insurance for the benefit of there
partner as well as their children & the medical expenses. Generally educated people
easily understand every matter so most of graduate & other higher qualifications
clearly understand benefit of insurance policies. They take insurance in the reasons
mainly contribute increase the percentage of customers.
According to analyzed research data the ceylinco insurance company has moderate
customer retention. Because customers don’t know about the insurance plans,
benefits, quality, other service. Customers obtain & understand difficult to insurance
policies,
6.3 Recommendations
The ceylinco insurance company in badulla branch has to take some action ti terrain
its customers for long time.
Introduce new insurance policies to customers
Free premium for continuous purchase
Give chance to the customers who failed to pay the premium
Give some gifts
Increase the promotion tools (advertising, personal selling)
Establish membership cards and membership programs
Satisfaction surveys, followed up by phone calls and letters
Frequent buyer programs which permit customers to build up equity
Databases that keep track of customer’s purchases, preferences,
complements and complaints, which are used to carry out loyalty
building services and dialogs.
Integrated marketing programs where the advertising, direct
communications, customer service, database marketing and sales
programs are all orchestrated together and designed to build loyalty.
Segmentation of the customer base by lifetime value groups, and
different marketing programs designed for each segment.
PART 01
Personnel Details
Please tick “X” in the correct answer
1. Age
39
Below 18 years
18-36 years
36-35 years
Over 50 years
2. Gender
Male Female
3. Civil status
Single Married
4. Education Qualifications
Up to year 11
G.C.E. O/L
G.C. E. A/L
Graduate
Other qualification
5. Occupation
Professional
Teacher
Clerical
Unskilled workers
6. Monthly income
Below Rs 10000
Rs 10000-20000
Rs 20000-30000
Above Rs 300000
PART 02
Research Details
40
Evaluate the statement on the basis of the point given below
1. Strongly disagree
2. Disagree
3. Agree
4. Strongly agree
1 2 3 4
1 2 3 4
9 The life insurance plans of the ceylinco insurance company provide highest
benefits for you?
1 2 3 4
10 The insurance plans, policies & procedure of ceylinco insurance company are
understand able easily?
1 2 3 4
11 The preumim payment of the ceylinco insurance company is less than other
insurance company?
1 2 3 4
1 2 3 4
41
13 Do you feel that your ceylinco insurance company agent is sufficiently skillful
& honest to give you’re an effective service?
1 2 3 4
14 Are you satisfied the ceylinco insurance company policy & benefits?
1 2 3 4
1 2 3 4
16 Do you like work or held the relationship between you & ceylinco insurance
company at long time?
1 2 3 4
REFERENCES
1. Lecturer notes
Customer service management
Mr. Jayapalan
42
4. F:\projet\44\advantages\Customer Retention - Benefits.mht
5. http://www.dbmarketing.com/index.html
43