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A PROJECT

REPORT ON
“LEAD GENERATION ACTIVITIES”
AT
“SBI LIFE INSURANCE”

SUBMITTED TO
SAVITRIBAI PHULE
PUNE UNIVERSITY
IN PARTIAL FULFILLMENT OF
REQUIREMENT OF
MASTEROF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
RICHA PANKAJ MEHTA

DEPARTMENT OF MANAGEMENT STUDIES


SANDIP FOUNDATION’S

SANDIP INSTITUTE OF TECHNOLOGY AND


RESEARCH CENTRE, NASHIK-422213.
2019-2020
STUDENT’S DECLARATION

I undersigned hereby declare that, the project entitled, “LEAD


GENERATION ACTIVITIES AT SBI LIFE INSURANCE” is executed
as per the course requirement of two year full time MBA program of
Savitribai Phule Pune University. This report has not been submitted by
me or any other person to any other University or Institution for a degree
or diploma course. This is my own and original work.

Place: ………………….
Date: ………………….. RICHA.P.MEHTA
ACKNOWLEDGEMENTS

I take this opportunity to extend my sincere thanks to The Principle, Prof (Dr.)
S.T Gandhe and H.O.D Prof (Dr.) Rakesh Patil for offering a unique
platform to earn exposure and knowledge in the field of Marketing and in
learning the practical implementation of various tools and techniques in such
environment.
I am also thankful to my project guide PROF. SARIKA PATIL who helped
me at all stages during this project and whose suggestion were indispensable
throughout and played a great role in making this a useful project.
I wish to extend my sincere and heartfelt gratitude to my guide Mr.deepak
wani development manager, who guided and encouraged me during the entire
tenure of the project. I also thank Mr.sachin sonawane, Branch manager, for
their co-operation and valuable advice throughout the course of the project. I
am able to say with conviction that I have immensely benefited from
auspicious and prestigious association as summer intern with SBI LIFE
INSURANCE COMPANY, Nashik.
CONTENTS

CHAPTER TITLE PAGE NO.


NO.
COLLEGE CERTIFICATE

COMPANY CERTIFICATE

STUDENT’S DECLARATION

ACKNOWLEDGEMENT

1. Executive Summary 1

2. Objectives of the Study 3

3. Company Profile 4

4. Theoretical Background 12

5. Research Methodology 19

6. Data Analysis and Interpretation 24

7. Findings 41

8. Suggestions / Recommendations 42

9. Conclusions 43

REFERENCES 44

APPENDIX 45
LIST OF GRAPHS
Sr. No Graph No. Title Of Graph Page
No.
1. 6.1 Gender 24
2. 6.2 Age 25
3. 6.3 Occupation 26
4. 6.4 Annual Income 27
5. 6.5 Investment Preferred 28
6. 6.6 % of Income Invested 29
7. 6.7 Type of Mutual Fund 30
8. 6.8 Time Horizon 31
9. 6.9 Regular Investor 32
10. 6.10 Knowledge about Mutual Fund 33
11. 6.11 Reason to invest 34
12. 6.12 Schemes preferred 35
13. 6.13 Medium of Information 36
14. 6.14 Source of purchase 37
15. 6.15 Attractive Feature 38
16. 6.16 Company Preferred 39
LIST OF TABLE
Sr. No Table No. Title Of Table Page No.
1. 5.1 Research Methodology 23
2 6.1 Gender 24
3 6.2 Age 25
4 6.3 Occupation 26
5 6.4 Annual Income 27
6 6.5 Investment Preferred 28
7 6.6 % of Income Invested 29
8 6.7 Type of Mutual Fund 30
9 6.8 Time Horizon 31
10 6.9 Regular Investor 32
11 6.10 Knowledge about 33
Mutual Fund

12 6.11 Reason to invest 34


13 6.12 Schemes preferred 35
14 6.13 Medium of Information 36
15 6.14 Source of purchase 37
16 6.15 Attractive Feature 38
17 6.16 Company Preferred 39
LIST OF FIGURES
SR. Figure No. Title Of Figure Page No.
No

1. 4.1 Decision Making Process 13

2. 4.2 Working Of Mutual Fund 18


CHAPTER 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

During the course of two months of my summer Internship in the Retail Agency Channel
my focus area was activities for lead generation (for both customer and Advisors). I carried
out the Market Research to understand the customers and advisors. My research is aimed at
understanding the challenges faced by retail agency in SBI LIFE in Patna (Bihar, Jharkhand
region) and flagging issues relating to competition in this sector. The life insurance sector
has a small market and cover approx. 11% of population in India. As a growing sector, it is
important that all players get a level playing field.SBI LIFE covers 7.7% market share in
Individual New Business Premium (overall Industry including LIC) and operate with multi
dimensional channel. In which retail agency channel contributes approx 42% of total
business. This channel is mainly driven by advisors as they are the grass roots. So this report
deals with various lead generation activities (LEADS-both in terms of IA and Customers)

Through my study I have tried to substantiate this with facts and evidence proving that
which segment of IAs is most productive and least productive. Besides, which segment is
still unexplored to target as IAs. The purpose of this study is to better understand the middle
market for life insurance and to identify segments that would allow the industry to better
target customer needs. Methodology used is primary and secondary research depicted by
graphs and charts, qualitative analysis of top performer IAs using sample test, brand
awareness among people and customer satisfaction by surveys. Few surveys were conducted
for HNI segment covering various government institutions like income tax department,
central secretariat etc to check penetration of our advisors and brand awareness among this
segment. Since may- June is recruitment time we are focusing more on recruitment activity
for Insurance Advisors. We will be focusing on both rural and urban segment. I have also
done brief study of this area and designed few activities which can be conducted later on.

The data collected through the surveys was statistically analyzed after identifying several
variables from the survey results. The survey was carefully designed after various rounds of
discussions, pilot surveys and literature review related to the Insurance Marketing.

The research draws attention to the fact that Insurance Advisors in the age bracket of 65-74
and 45-54 are most productive and education wise Diploma holders and post-graduates and
MBA people proved to be most efficient Insurance Advisors. Similarly among different
profiles in Unit Managers, Assistant Branch Sales Managers were found to be most
efficient. This once again proves how important it is to maintain long term relationship with
customers, despite of adverse condition (for example-2007-08 crisis) as insurance selling is
based on trust and faith. Many factors were unveiled from the responses collected, but some
factors were very prominently visible. Factors like Networking, Self Motivating,
Convincing Power, Customer Centric approach were found more dominant in our top 50
Advisors. So while recruiting and training these characteristics should be kept in mind.

Further investigations uncovered the perceptions of the customers some of which were in
contrast to the general perceptions. Although LIC being the legacy and market leader few of
the customers were dissatisfied from it and are ready to switch to private players if they get
better products and services are. In addition to this HNI Segment working in government
Institutes like Income Tax office, Central Secretariat were never been approached by our
agents. Brand awareness and achievements about SBI Life was not known to many of them.

It is recommended:
Encourage women employment in UM level so difficult to handle women IAs (execute
activities for lead generation designed for women in the report)
Quality of UM - UM appraisal should be based on both “G”(Goal) and “M”(Managerial)
level ,currently it is only G level because sometimes there is gap in education profile of an
well educated IA( ex-Doctor, CA…etc) and Unit Managers so they find difficult to handle
these high profile IA’s.
Innovative ideas should be encouraged and if certain activities are successful they should be
practised in other branches too.
Practise activities to create strong SBI Life brand and positioning our brand and products
before HNI segment. But to pitch them we require quality leads-so recruitment activity and
training and development should be structured and properly planned.
New working youths (age-23 to 30) should be tapped as most of them had just started their
career and are not insured and are looking for tax saving products and good ROI.
Chapter 2

objective
Introduction
Insurance comes under the service sector and while marketing this service, due care is to be
taken in quality product and customer satisfaction. While marketing the services, it is also
pertinent that they think about the innovative promotional measures. It is not sufficient that
you perform well but it is also important that you let others know about the quality of your
positive contributions.

Insurance marketing
The term Insurance Marketing refers to the marketing of Insurance services with the aim to
create customer and generate profit through customer satisfaction. The Insurance Marketing
focuses on the formulation of an ideal mix for Insurance business so that the Insurance
organisation survives and thrives in the right perspective.
Marketing --Mix For Insurance Companies to best meet the needs of its targeted market. The
marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price,
place, promotion, people, process & physical attraction. Out of Exclusive three P’s most
important one is discussed below which is related to this study:

People:
Understanding the customer better allows designing appropriate products. Being a service
industry which involves a high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training, development and strong
relationships with intermediaries are the key areas to be kept under consideration. Training
the employees, use of IT for efficiency, both at the staff and agent level, is one of the
important areas to look into.
From the survey results of a recent poll among B2B sales and marketing executives, the most
often mentioned marketing goals for the year ahead are lead
generation and branding/awareness initiatives.

Lead Generation
In marketing, lead generation is the generation of consumer interest or inquiry into products
or services of a business. Leads can be created for purposes such as list building, e-newsletter
list acquisition or for sales leads. The methods for generating leads typically fall under the
umbrella of advertising, but may also include non-paid sources such as organic search engine
results or referrals from existing customers. Businesses strive to generate "quality" leads,
those with a higher probability of a desired outcome.
Lead generation is the process of making contacts which may lead to a sale or other
favourable outcome. The leads may come from various sources or activities, for example,
digitally via the Internet, through personal referrals, through telephone calls either by the
company or telemarketers, through advertisements, events, and purchase of lists of potential
customers. A 2014 study found that 78% of respondents cited email as the most-used channel
for generating leads, followed by event marketing and finally content marketing. Social
media was found to play only a minor role in lead generation. Another 2014 study found that
direct traffic, search engines, and web referrals were the three most popular online channels
for lead generation, accounting for 93% of leads.
Lead generation is often paired with lead management to move leads through
the purchase funnel.
Lead Management is a set of methodologies, systems, and practices designed to generate
new potential business clientele, generally operated through a variety of marketing campaigns
or programs. Lead management facilitates a business's connection between its outgoing
consumer advertising and the responses to that advertising. These processes are designed
for business-to-business and direct-to-consumer strategies. Lead management is in many
cases a precursor to sales management and customer relationship management. This critical
connectivity facilitates business profitability through the acquisition of new customers,
selling to existing customers, and creating a market brand.
Chapter3

COMPANY PROFILE
COMPANY PROFILE

2.1 SBI LIFE:

SBI Life Insurance is a joint venture life insurance company between State Bank of
India (SBI), the largest state-owned banking and financial services company in India,
and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance
the remaining 26% of the capital. BNP Paribas Cardif is the life and property & casualty
insurance arm of BNP Paribas, one of the strongest banks in the world. BNP Paribas Group,
having presence in more than 80 countries ranks highly in Retail Banking, Investment
Solutions and Corporate & Investment Banking. Along with its 5 Associate Banks, State
Bank Group has the unrivalled strength of over 18,000 branches across the country, arguably
the largest in the world

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the
company a AAA/Stable/P1+ rating.SBI Life is one the top private players in the insurance
sector of India. It offers life insurance policies, investment plans, unit linked life insurance
plans. There are around 17,000 employees in the company, working in its 762 branches.

Business: Continuing its track record of sustainable growth, SBI Life Insurance has posted a
record profit of Rs. 820 crore, during the financial year ending March 31, 2015, an increase
of 11% over the last financial year. Operational efficiency has been the key driver of SBI
Life’s profitability. The Company is the once again market leader amongst the private life
insurers, in New Business Premium (NBP), for the financial year 2014-15.

Awards and Accolades of SBI Life Insurance (few latest ones):

 SBI Life wins and best practice in learning transfer for improving business
bottom line.SBI Life wins three awards at “World HRD Congress 2015” and
“FINNOVITI”-Digital Innovation Award 2015, for Connect Life.
 Most Trusted Private Life Insurance Brand 2011, 2012 and 2013 by The Economic
Times, Brand Equity and Nielsen Survey
 Most Admired Life Insurance Company and The Best Life Insurance Company in
the Private sector by the BFSI 2014
 Non-Urban Coverage - Life Insurance by the Indian Insurance Awards, 2014 for its
wide presence and market penetration,Golden Peacock National Training Award,
2014 by Golden Peacock Awards Secretariat – Institute of Directors

2.1.1 Vision, mission and values of the company:

Vision: "To be the most trusted and preferred life insurance provider”

Mission:"To emerge as the leading company offering a comprehensive range of life


insurance and pension products at competitive prices, ensuring high standards of customer
satisfaction and world class operating efficiency thereby becoming a model life insurance
company in India in the post liberalization period ".
Values:

 Trustworthiness
 Ambition
 Innovation
 Dynamism
 Excellence

2.1.2 Lines of business

SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance,
Retail Agency, Alternate Channel, Emerging Business and Corporate Solutions distribution
channels. SBI Life extensively leverages the State Bank Group relationship as a platform for
cross-selling insurance products .SBI’s access to over 100 million accounts across the
country provides a vibrant base for insurance penetration across every.
Multi Dimensional Model

CHANNELS

BANCA Retail Agency Alternate Channel Emerging Business CS

Fig 2.1 Multi-Dimensional Distribution Channel-SBI Life

BANCASURRANCE: Banc assurance in its simplest form is the distribution of life


insurance products through a bank’s distribution channel. Insurance companies see banc
assurance as a tool for increasing in their market penetration and premium turnover. It was
introduced in India when insurance industry was opened for private players. In India, a bank
can tie-up with one general insurance and one life insurance companies as mandate by IRDA
regulation. The banking sector in India comprises of more than 67,000 branches and around
20 crores bank accounts.

RETAIL AGENCY: Another innovative distribution channel that could be used are the non-
financial organizations. Agency Channel, comprising of the most productive force of over
110,000 Insurance Advisors, offers door to door insurance solutions to customers.
Conventionally, insurance products have been sold through agents, who are not the regular
employees of the organization but the organizational success, however, critically depends on
the effectiveness of these people. An agent is the public face of an insurance company. Most
of the insurance clients never get to see anyone else besides the agent. They are known by a
myriad of names like financial advisors, insurance agents, life advisors and certified financial
consultants. Due to increasing competition, the skill set of these agents has also been
undergoing a change.

CORPORATE SOLUTION GROUP: This group is responsible for bringing business

from corporate institutes.


ALTERNATE CHANNEL: Initially it was known as Institutional alliance. Alternative
channels such as banks, brokers, online i.e. direct, corporate agents and wire houses.

Emerging Business: It comprises of approaches like cross selling (selling an additional


product or service to an existing customer), Defence Marketing and Digital Initiatives.
CHAPTER 4
THEROTICAL BACKGROUND
Introduction
Insurance comes under the service sector and while marketing this service, due care is to be
taken in quality product and customer satisfaction. While marketing the services, it is also
pertinent that they think about the innovative promotional measures. It is not sufficient that
you perform well but it is also important that you let others know about the quality of your
positive contributions.

Insurance marketing
The term Insurance Marketing refers to the marketing of Insurance services with the aim to
create customer and generate profit through customer satisfaction. The Insurance Marketing
focuses on the formulation of an ideal mix for Insurance business so that the Insurance
organisation survives and thrives in the right perspective.
Marketing --Mix For Insurance Companies to best meet the needs of its targeted market. The
marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price,
place, promotion, people, process & physical attraction. Out of Exclusive three P’s most
important one is discussed below which is related to this study:

People:
Understanding the customer better allows designing appropriate products. Being a service
industry which involves a high level of people interaction, it is very important to use this
resource efficiently in order to satisfy customers. Training, development and strong
relationships with intermediaries are the key areas to be kept under consideration. Training
the employees, use of IT for efficiency, both at the staff and agent level, is one of the
important areas to look into.
From the survey results of a recent poll among B2B sales and marketing executives, the most
often mentioned marketing goals for the year ahead are lead
generation and branding/awareness initiatives.

Lead Generation
In marketing, lead generation is the generation of consumer interest or inquiry into products
or services of a business. Leads can be created for purposes such as list building, e-newsletter
list acquisition or for sales leads. The methods for generating leads typically fall under the
umbrella of advertising, but may also include non-paid sources such as organic search engine
results or referrals from existing customers. Businesses strive to generate "quality" leads,
those with a higher probability of a desired outcome.
Lead generation is the process of making contacts which may lead to a sale or other
favourable outcome. The leads may come from various sources or activities, for example,
digitally via the Internet, through personal referrals, through telephone calls either by the
company or telemarketers, through advertisements, events, and purchase of lists of potential
customers. A 2014 study found that 78% of respondents cited email as the most-used channel
for generating leads, followed by event marketing and finally content marketing. Social
media was found to play only a minor role in lead generation. Another 2014 study found that
direct traffic, search engines, and web referrals were the three most popular online channels
for lead generation, accounting for 93% of leads.
Lead generation is often paired with lead management to move leads through
the purchase funnel.
Lead Management is a set of methodologies, systems, and practices designed to generate
new potential business clientele, generally operated through a variety of marketing campaigns
or programs. Lead management facilitates a business's connection between its outgoing
consumer advertising and the responses to that advertising. These processes are designed
for business-to-business and direct-to-consumer strategies. Lead management is in many
cases a precursor to sales management and customer relationship management. This critical
connectivity facilitates business profitability through the acquisition of new customers,
selling to existing customers, and creating a market brand.

1 INSURANCE ADVISORS:

WHO CAN BECOME AN INSURANCE ADVISOR?

 Anyone-A businessman, distributor of financial products, housewife, agent-post


office, mutual fund, general insurance.
 Minimum 18 years of age.
 Education qualification-10th pass( As per new IRDA laws implemented from April
2015 for both urban and rural).Earlier for Urban(with population>5000) it was 12th
pass.
 Willing to work hard and enjoys meeting people.

BENEFITS OF BEING AN INSURANCE ADVISOR:

 Unlimited earning potential


 Opportunity to have regular addition income
 No investment(capital/infrastructure/manpower)
 Be your own boss, have no pressure with flexible and convenient work timing

As per Industry Research, SBI Life Insurance Advisor’s productivity is around three times that of the
industry average (Productivity= No. of policies sold per person per year)

REWARDS AND RECOGINITION FOR INSURANCE ADVISORS:

 Premium SBI Life Club Membership#


 Membership to International Clubs( MDRT/ COT/ TOT )
 Opportunity to join SBI Life Insurance Company as Sales Managers through
“Utkarsh” program
 Win exciting prizes by participating in regular contests announced time to time

Annual Premium
or
SBI LIFE CLUB for Qualifying#
Rising Star Club Rs.2 lakhs
Divisional Sales Rs.3 lakhs
Manager Club
Area Sales Rs.5 lakhs
Manager Club
Regional Sales  Prizes include gift cards, utility
Rs.10 lakhs
Manager Club items, consumer durables and incentive trips
Regional Director to exotic destinations
Rs.20 lakhs
Club
Country Head Club Rs.30 lakhs
Executive Director
Rs.50 lakhs
Club Annual Premium
Managing Director INTERNATIONAL or
Rs.75 lakhs CLUB for Qualifying#
Club
Million Dollar
Round Rs.33.8 lakhs in a
Table(MDRT) Calendar Year
Court of the Rs.1.01 Crore (3
Table(COT) times MDRT)
Top of the Rs.2.02 Crore (6
Table(TOP) times MDRT)

Table 2: SBI LIFE CLUBS & Industry International Clubs

CLUB MEMBERSHIP BENEFITS:

 Rewards in cash ranging from Rs.750 to Rs.75,000


 Petrol Vouchers
 Office Allowance

CAREER PROGRESSION FOR IAs:

 Promotion to UM
 Further promotion within UM group to Branch Sales Manager, Divisional Sales
Manager, Area Sales Manager

An IA can aspire to join the Managerial Cadre of the company under the “UTKARSH”
Scheme.

EARNING POTENTIAL OF ADVISORS:


From the table below we can see earning potential of an IA over a period of 5 years. If we
assume an advisor in his first year sells on an average 5 policies in a month then he/she can
sell 60 in a year. Assuming by next year his efficiency will increase and so will no. of
policies. In addition to it average premium for SBI Life products is Rs. 25,000.Now applying
the commission rate on new and renewed policies below chart is prepared.
(All values in Rs.)
YEAR YR 1 YR 2 YR 3 YR 4 YR 5
NUMBER OF POLICIES 60 80 100 120 150
PREMIUM(AVERAGE-
RS.25,000) 15,00,000 20,00,000 25,00,000 30,00,000 37,50,000
COMISSION @10 % (A) 1,50,000 2,00,000 2,50,000 3,00,000 3,75,000
RENEWAL PREMIUM NA 15,00,000 35,00,000 60,00,000 90,00,000
COMISSION @5 % (B) NA 75,000 1,75,000 3,00,000 4,50,000

TOTAL COMISSION
EARNED(A+B) 1,50,000 2,75,000 4,25,000 6,00,000 8,25,000

Table3: Earning Potential over a 5 Year Period

2.4 PRODUCT PROFILE

SBI Life Insurance products are of two types- Individual and Group Plans. Few of them are
discussed below:

1. Group Products

RiNn Raksha Scheme: - This scheme covers the House, Vehicle, Education and Personal
Loans. It is a Group Credit plan, where in unfortunate event of death the loan outstanding
amount (according to EMI Schedule) is adjusted with the claim received from SBI Life
Insurance Co.

2. Individual Products: - These products can be sold by the Certified Insurance Felicitators
(CIF, a staff member specifically trained, as per IRDA norms, for sale of individual
insurance products).At present the main products for sale are:-

Saral Shied

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max
Entry age: 60 years Maturity/vesting age: 65 years Min. term 5 years, Minimum Sum
Assured Rs.7.50 Lacs/Maximum Rs. 24.00 Lacs, Riders: Preferred Term/Accidental Death
Benefit/Accidental Total Permanent Disability is also available.

Smart Shield

It is an individual without profit pure term insurance plan. Minimum age: 18 years Max
Entry age: 65 years Maturity/vesting age: 70 years Min. term 5 years, Minimum Sum
Assured-Rs.25.00Lacs/Maximum-no limit, Riders: Preferred Term/Accidental Death
Benefit/Accidental Total Permanent Disability is also available

Smart Money Back

It is an individual endowment assurance product with money back plan where in case
policyholder is alive at specific durations (end of policy years).During the policy term, a
fixed % of the basic sum assured is paid to him as survival benefit in fixed number of
instalments. Minimum Age: 14 years Max Entry Age: 58 years Maturity/vesting age: 70
years, Term 12/15/20/25 years.
Subh Nivesh

It is an individual participating traditional savings cum whole life endowment plan primarily
designed as savings vehicle with protection along with income generation and wealth
transformation. It is a regular premium plan for a term varies from 5 to 30 years with a
minimum annual premium payment of Rs. 6000.00 per annum and minimum/maximum
entry age is 18/60 years.

Smart Wealth

It is an individual Unit Link single premium insurance product. This product provides the
policyholders two types of investment return, namely Guaranteed Return and Market Linked
Return. Minimum Term 10 years, Minimum Premium Amount Rs.50000

Smart Pension

It is a ULIP pension product with minimum single premium mode of Rs. 50,000/-and no
maximum limit of premium. It has 4 fixed policy terms: 10/15/20/25 years. The minimum &
maximum entry age is 30 years and 65 years respectively Minimum Term 10 years, Maturity
Benefit: 1/3rd of commutable, 2/3rd Annuity (compulsory), Death Benefit, Fund Value.

Smart Scholar

It is a unit-linked non-participating product for securing the future needs of the child. The
risk cover is on the life of the proposer who is the life assured. The nominee at the point of
sale must be a child whose interest the policyholder wants to protect. Entry age for child-0
to17 years, for parents 18 to 57 years.

Smart Elite
It is an individual unit-linked product designed mainly for preferred (HNI) customer. It offers
Limited Premium paying Term and Single Premium payment option.
CHAPTER 5

 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

OBJECTIVE:

 To segment Insurance Advisors on the basis of Age, Education and Occupation.

 To analyse which segment brings most business

 To segment various designations of Unit Managers and IAs mapped under them, how

much target achieved and remaining and business brought by them.

 To find behaviour analysis of Top performing IAs, what makes them more successful

than others, what lacks in other IAs

 To identify % of dissatisfied clients of SBI Life Insurance’ s biggest competitor,

knowing whether all individuals having spare income buy insurance policies, most

customer preferred which organization and their awareness about SBI Life

RESEARCH DESIGN:

Present study is a Descriptive research conducted in SBI LIFE, Patna. It specially

focuses on IAs and UM’s of Bihar and Jharkhand region. I have used Descriptive

research because I am interested in knowing which segment brings most business and

is most productive so that accordingly I can design my activities for lead generation.

3.1 PRIMARY RESEARCH

Beyond the secondary research, primary research was carried out in Patna. Primary research

involves collecting data about a given subject directly from the real world.

This report consists of two Primary researches.

1. Qualitative Analysis of the findings to determine the behaviour analysis of Top


performing IAs
2. Quantitative Analysis on Brand Awareness and Customer Satisfaction

SAMPLE SIZE: The research was conducted with the sample size of 75 for the first primary
research and 50 for second primary research.

PRIMARY DATAFor surveys on top performer IAs and consumer brand awareness and

customer satisfaction primary data was collected.

The steps undertaken for the first primary research were:

Survey the concerned individuals from various Government Institution in Patna, people
visiting malls, shop owners of many areas etc.

Quantitative Analysis of the findings to determine the factors affecting the buying behavior
of the customers, brand awareness, satisfaction and scope of cross referral and cross selling.

The target segment consisted of:

 Central Secretariat (New Sachivalaya), Patna


 Income Tax Office, Patna
 Central Water Commission, Kasturba Path, Patna
 P & M Mall, Kurzi, Patna
 Central Mall, Dakbangla Chowaraha, Patna
 Boring Road, Patna
 Gandhi Nagar, Patna

For the second primary research data was collected from various other branches of SBI Life
in Patna.

3.2 SECONDARY RESEARCH

The research was initiated by finding out details of existing Insurance Advisors and Unit

Managers in entire Bihar & Jharkhand Region

SAMPLE SIZE: The research was conducted with the sample size of 5578 and with the

sample size of 230 UMs and IA mapped under them.

SECONDARY DATA:

Secondary data is collected from company records & file.

This report consists of two secondary researches:

1. Demographic Analysis of IAs

2. Analysis of Unit Managers


3. .1 DATA ANALYSIS AND INTERPRETATION

4.DEMOGRAPHIC WISE ANALYSIS OF IA


5. As discussed in chapter 3, first secondary research was conducted to understand the
demography of Insurance Advisers. The following data analysis was done to examine
which segment is most efficient and productive and vice-versa.

6. 1. Education of IAs
7. TABLE NO. 4.1

COUNT OF % business Per person


EDUCATION TYPE IA Business brought contribution Contribution
SSC 566 111335022.6 10.79132862 196704.9869
HSC 3767 608456398 58.97562858 161522.8028
Diploma 19 4728094 0.458278221 248847.0526
Graduate 1340 274321480.7 26.58905685 204717.5229
Post Graduate 99 31513440 3.054491561 318317.5758
MBA 7 1353768 0.131216171 193395.4286
Grand Total 5798 1031708203
8. (Source: - Data Records from company)
9. Graph No.1: Education wise Business brought by IAs

700000000 608456398
600000000

500000000

400000000
274321480.7
300000000 Business brought

200000000 111335022.6
100000000 4728094 31513440 1353768

0
SSC HSC Diploma Graduate Post MBA
Graduate
10.

INTERPRETATION & SUGGESTION:Though the highest % of business is brought by

HSC group but their per person contribution is least. From the above table we can interpret

that per person contribution of post graduate is highest and per person contribution of

diploma holders is second highest.


Age group of IAs

year of Business COUNT per person


birth age brought % contri OF IA % count contri
1991-97 18-24 73740748.01 7.147442249 729 12.57330114 101153.2895
1981-90 25-34 352881452.7 34.20361024 2268 39.11693687 155591.4694
1971-80 35-44 411074582 39.8440742 1893 32.64918938 217155.0882
1961-70 45-54 167548996 16.23995966 766 13.21145222 218732.3708
1951-60 55-64 21894843.58 2.122193418 122 2.104173853 179465.931
1940-50 65-74 4567581 0.442720237 20 0.344946533 228379.05
total 1031708203 5798
(Source: - Data Records from company)

Graph No.2: Age wise count of IAs

COUNT OF IA
2500 2268
1893
2000

1500

1000 766 COUNT OF IA


729

500
122 20
0
18-24 25-34 35-44 45-54 55-64 65-74

Graph No.3:Age wise Business brought by IAs


450000000
400000000 Business brought
350000000
300000000
250000000
200000000 Bu…
150000000
100000000
50000000
0
18-24 25-34 35-44 45-54 55-64 65-74
INTERPRETATION & SUGGESTION: Out of the 5578 IAs in entire Bihar and

Jharkhand Region, max of them are from age bracket 25-34and then from age bracket 35-

44.Max business is also brought by IAs under age bracket 35-44.

But when it comes to per person business contribution max business is made by IAs under
age bracket 45-54 and 65-74.As we can see no of IAs in age bracket 65-74 is least but
business brought by them is good enough. So we should focus in targeting this retired
segment of people.

1. Area of IAs
Chart No.4:

AREA WISE % COUNT OF IA


Rural
28%

Urban
72%

Graph No.5: Area wise business contribution of IAs

INTERPRETATION & SUGGESTION:

28% Insurance Advisors (IAs) belongs to rural area and contribute 24% of business and 72%
IAs belongs to urban area and contribute 76% of business. So we can say there is enough
scope in rural segment to grow.
4.4.1 DESIGN PHASE OF ACTIVITIES FOR LEAD GENERATION
After undergoing both primary and secondary research various activities have been designed
for lead generation. Major findings from research such as- target women to bridge gap
between Women IA and Unit Managers, target retired people and post graduates as they are
most productive segment, have been covered while designing activities. Since rural segment
covers only 26% and contributes 24% of business, few activities are exclusively designed to
promote this segment as we know rural market is emerging market and next upcoming
market of our country. Apart from this these activities are targeting to unexplored segment
and also modified version of few past successful activities.

ACITIVITY 1: APPARTMENT DRIVE


Target Segment: Women living in societies and apartments through secretary of those
apartments (we can even target these secretaries).
Why: Women prefer flexibility in work, women are more social, good convincing power,
prefer to earn extra money if given opportunity.
Example-‘FENOMENA’-initiative to enrol women (Tata AIG), helps women to become
stronger & deal with real world better.
Discuss success story by giving Real Scenario examples- Few top MDRT member are
females(in Sbi Life)-Anju Singh, Sahanaj Parween,Asha Kumari, Usha Kumari (earning
more than 50k/month).
Activity to be taken place-Canopy activities in apartments or societies involving secretary of
those apartment to convey message and ask them to join AWARENESS about any disease or
small health camp in their own apartment initiated by SBI LIFE. But requires 1-2 days pre
buzz to gather enough crowd on the day of activity (pre buzz can be created by paper inserts
two day before and few posters relating to the topic, time and venue of activity)
Time-4 to 5(can be changed as per their convenience), best time for activity is 8th may-
women’s day
Also describe benefits given to our advisors, various club member ship, success stories of our
top women performer if possible call one of them on the spot.
Few products such as SMART CHAMP need to be discussed – so that selling of policies
based on life-stages can be done. (so that if not IA then they can become our customer).
ACITIVITY 2: Morning Activity #2-“FAVOURITE DADAJI/DADIJI contest”
Target Segment: Old age, retired people (VRS), or 50+
Why: Retired govt officials such as Advocate, CAs, Clerks have good social network (lot of
clients during their service period) and also their word of mouth matters as their experienced
is countable. Also in our research we have seen this segment brings good business.
Activity to be taken place-Canopy activities in parks or roads where they go for morning
walk and sit with their friends and discuss retirement plan.
Conduct some customer engagement activity such as-ask them to fill survey on choose best
post retirement activity, FAVOURITE DADAJI contest/FAVOURITE DADIJI (ask few sets
of question related to their grand children like how much time you spent with them? which
game you play with them? how you convince them if they don’t listen you, best story you
have told them and they have told you…..poems recited by them.. etc.).
Award to be given is small piggy bank by SBI LIFE for their grand kids…
Time-6 to 7:30(can be changed as per their convenience)
MESSAGE to be conveyed is they still have chance to earn much extra money apart from
pension by leveraging on their social contacts. Flexible work hours
Also describe benefits given to our advisors, various club membership, success stories of our
old age performer (age group 50+ constitute 20% of our Advisors)
Few products such as SMART CHAMP,(so that if not IA then they can become our customer
for their grand children or ask their children to buy our products etc).

ACITIVITY 3: UNIVERSITIES/COLLEGE DRIVE-#BACK TO COLLEGE


Target Segment: COLLEGE Students –Bcom, BBA, MBA grad who want to do summer
internship+ want to build career in insurance field (even various girls’ college-Patna Women
College, CIMAGE, A.N College, and L.N Mishra College).
Why: Prefer to earn extra money, can leverage their network as well as their parents, not
much problem with communication skills and good convincing power. Though this age group
is not
Activity to be taken place-Guest lecture to be conducted in their colleges to convey them
concept of insurance advisors, growth in this field(as per “UTKARSH”),align company’s
mission, vision & values with IA’s mission ,vision ,values ,leverage on BRAND of company-
emphasis on accreditation of company(ranked 36th in best place to work, most trusted private
life insurance as per Nielsen and ET)
Time-prefer morning slot (can be changed as per discussion with placement committee)
MESSAGE to be conveyed is that reward for a hard working insurance advisors are
comparable to other professionals-engineer, doctor, CA’s etc
Also describe benefits given to our advisors, various club membership , success stories of our
top performers ,between 25-35 age group(how this group constitute 40% of our sales force in
IA’s and contribute 35% of business),Foreign exposure to MDRT members etc.
Activity3.1- Similar activity but target audience here is professor and teachers of these
institutes. As seen during surveys penetration of SBI Life among these teachers is very
less so they can be our target customer and if possible pitch few of them for becoming
advisors as it will generate quality leads both in terms of customers and advisors
ACITIVITY 4:
Target Segment: Small and Medium scale business-medical shops, boutiques, parlour-
saloons, internet café, photo copy shop, kirana stores, and coaching centres
Why: Prefer to earn extra money, can leverage their network, these individuals are well
established& in regular contact with their client & if paid well can go long way in selling
insurance plan.
They even interact with their client on daily basis & often provide even credit service in
terms of monthly billing.
Activity to be taken place-Divide area wise all such places ,prepare small pamphlets
specially for these target segment depending on their interest and how they can earn more
money out of their existing business .Give examples of few IA’s working in this field and
how successful they are along with their business
Time- afternoon time when not much customer in their work place so that they can give you
their valuable time
Also describe benefits given to our advisors, various club membership, success stories of our
top performers, foreign exposure to MDRT members etc.
Few products can be explained which are related to them.

ACITIVITY 5:
Target Segment: Primary and junior school teachers
Why: Prefer to earn extra money, can leverage their network, can target customers from both
rural and urban area and “word of mouth” of teacher really counts, teachers can easily
communicate their ideas and have good convincing power. They have huge network (there
are more than 50k employee in these posts)
Activity to be taken place-Canopy activity in front of office where their monthly meeting
(BRC Meeting, CRC meeting) takes place OR can sponsorship snacks for them after meeting
and then convey their idea
Time-after meeting
MESSAGE to be conveyed is that this profession requires three simple things-Client First,
Networking and Perseverance Pays and they are already good in these things .Besides
reward for a hard working insurance advisors are comparable to other professionals-engineer,
doctor, CA’s etc
Also describe benefits given to our advisors, various club memberships, success stories of our
top performers, how many contract teachers are doing well in rural segment, foreign exposure
to MDRT members etc.
Few products can be explained which are related to them.

ACTIVITY 6: “My Papa Is the Best” Event to be organized on Father’s Day. Such
occasions should not be missed to create touch points and awareness.

VENUE: Apartments and Societies

ACTIVITY: “Card Making Competition” in which students from entire apartment can
participate and showed the love for father by making beautiful cards. Then call both parents
at the time of award distribution and show them beautiful cards made by their kids. Then our
advisors can talk to them as have they secured their child’s future…etc
Chapter 6

CONCLUSION

& RECOMMENDATION
DISCUSSION

6.1 Results

The managerial Decision Problem in the start of the project was to find ways and segment
target to generate LEADS (in terms of IA and Customers both) and increase efficiency of
Retail Agency channel by resolving various problems existing in this channel. The
managerial decision problem was divided in different research objectives covering different
aspects of the research.

 Demographic analysis to understand the performance of the Advisors based on –


age, education, area etc
Secondary Research on the existing IAs of this region gave a vivid picture on their
demography wise performance like which age group people , education profile are
most successful. So while designing new activities those segment were targeted.

 Derive the prime factors existing in Top performers IAs

Many factors were unveiled from the responses collected, but some factors were very
prominently visible. Factors like networking, Self Motivating, Convincing Power,
Customer Centric approach were found more dominant in our top 50 Advisors. Also
factors like communication skills, street-smart were considered to be important
factors. Few of these activities can be inculcated through proper training and
development program.
 Understanding Customer’s perception, Brand awareness and satisfaction level

The responses working in government institutes like Income Tax office, Central
Secretariat were never been approached by our agents. Brand awareness and
achievements about SBI Life was not known to many of them collected from
customers covering all income groups were analyzed and the data uncovered the
perceptions of the customers, some of which were in contrast to the general
perceptions. Although LIC being the legacy and market leader few of the customers
were dissatisfied from it and are ready to switch to private players if they are…..HNI
Segment.

6.2 RECOMMENDATION

Regarding challenges faced by retail agency

After entire research, data interpretation and analysis of activities taking place for lead
generation in SBI LIFE, Patna Region. I would like to give some recommendation to
improve quality of IAs and UM’s and also some solution to the problem faced by them in

retail channel.

 Lack of women employment in UM level so difficult to handle women IA’s


 Special training program exclusively for women
 UM appraisal should be based on both “G” (Goal) and “M”(Managerial) level
,currently it is only G level because sometimes there is gap in education profile of an
well educated IA( ex-Doctor, CA…etc) and Unit Managers so they find difficult to
handle these high profile IA’s.
 Portal should have place for innovative ideas where employees can share their
innovative ideas and certain monetary awards can be tied up for such activities so
that such innovative practices can be shared and excelled.
 Strategy implemented in most successful branch can be replicated in other branches
too so that overall SBI Life can get benefit.
 Few stringent practices need to be followed as their rivals are doing .For example-
10/10 Rule followed in Max Life(where IA’s are required to have 10 leads ready by
10 am in the morning at any cost)
 Follow NEED and BENEFIT based segmentation in order to avoid miss-selling. It
will increase customer satisfaction and will be a WIN WIN situation.
 While follow up we should follow “pull strategy” rather than “push strategy”. For
example-when an IA is called for Recruitment interview make sure do not use words
–Please come to our venue etc rather it should be –Congratulations you have been
selected for interview round in India one of the leading company in life insurance,
make sure to bring all your documents and be on time.
 While advice based sales through agency distribution remains the most suitable
distribution channel, to expand the reach there is a need to utilize the existing retail
distribution networks available in the both rural and urban areas

Generate Brand Awareness in the customers

As the results are evident the awareness of brand is low, and majority of the people who fall
in the aware category are just familiar with the name of the brand or Parent brand and not
with the achievements or product portfolio or the offerings. This need to be taken care of at
the earliest and needs some aggressive marketing. Following are some steps which would
help initiate the process:

• Increase visibility

– Promotional Activities in malls- on special events like-Father’s day, Independence Day etc

– Increasing touch points for the already existing customers

– Educating customers about your USPs

Tapping the New Consumers

As the end customers are getting more and more aware about the various brands present in
the market, they need to be tapped immediately before our rivals do so. As seen from
analysis many new customers can be engaged who have just started working in age group of
(23-28) and are not insured. The emerging middle class population, growing affluence and
the absence of a social security system combine to make India one of the world’s most
attractive life insurance markets

– Educating these customers bout our USPs-greatest return in equity fund compared to any
other player.
– Increase penetration in this segment because it easy to convince them as they are not much
loyal for LIC compared to their parents. In short we can say that it is to convince millennial
than baby boomers for insurance by private players
– In order to penetrate in HNI segment-organize activities in their area of residence- C.R
Colony, ASHIYANA nagar etc

6.3Limitations and Challenges

 The most crucial amongst all the limitation is that of time constraint two month was

not enough to conduct all designed activities.

 The sample Area and Sample size was limited due to time constraints.

 The locations of the sites for Interview were scattered all over the cities, making it
difficult to cover
 Spokespeople and respondents were skeptical and reluctant to divulge information.
 There is no verification for the statements made by them.
 All the observation and recommendation are based on the feedback and responses
obtained from the survey.

 During survey’s respondents didn’t have time, they were busy in their work, they
even denied to spare their one minute on listening word “insurance”. It was hard to
convince them that, I am not an agent.
 It was difficult to meet the concerned people and had to make multiple trips to the
same place
 Some responses were contrasting to the my perception
 There is no verification for the statements and claims made by the respondents

6.4LEARNING FROM THE PROJECT

 firsthand experience of the industry and the market

 Market Insights and intricacies in the real world

 Preparing questionnaire and conducting surveys and interviews

 Outcomes contrasting to my perceptions and expectations


During the project I got to know about the market dynamics of the Life Insurance industry,

how the industry has changed from the time it got liberalised. I got to know entire procedure

from eligibility criteria for an advisor, various do’s and don’ts, IRDA norms applicable for

retail agency channel. I got to know the ground realities of business by working with sales

team and actually going with them on place of activities. I never thought that real operating

procedure is like that, what I did in summer training. I thought it’s all about, what we

typically say, “Put the formula and get the answer.” but I realized that it is not about just

putting the concept & getting the result. Again same thing cannot get same result always, as it

is different kind of people with whom we are dealing each time. I got opportunity to interact

with two edges of pyramid-bottom of pyramid (rural segment here in exterior of Bihar) and

the apex of pyramid (HNI segment –IAS/PCS). Like convincing people from rural areas

understanding their needs and designing activities for them were quite different from those of

HNI segment.
BIBLIOGRAPHY
5.2 BIBLIOGRAPHY

Journals, Blogs & Reports

References: Media Reports, Press Releases, IRDA Journal


IBEF REPORT
Rural Retail Banking-2020
PWC-Life Insurance-2020-competiting for a future
Bandhan and Regional E-Magazine (SBI Life)
Research paper and HBR cases
HBR Case study-LIC
Recent Trends in the Market Strategies of Life Insurance Corporation of India

Customer Service Strategies for the Insurance Industry-GENESYS

Web Site:

1. www.sbilife.co.in

2. E-bandhan (Sbi Life portal)-www.ebandhan.net


ANNEXURE
Appendix D: Survey Form -1

QUESTIONNAIRE

NAME: AGE:
CONTACT NO:

OCCUPATION:

AREA OF RESIDENT: CITY:

Q.1 Income Group:


A) Up to 3 Lakhs B) 3 to 5 Lakhs C) More than 5 Lakhs
Q2. Do you buy insurance products?
Yes NO
If Yes, with whom?
 LIC SBI Life Bajaj Allianz ICICI Prudential  HDFC Life  Any other
Why do you prefer the above organization?
A) Reliability B) Good Services C) Customer centric D) Good Returns E) NOT
How much satisfied are you with your product and organization?
A) Very Satisfied B) Satisfied C) Dissatisfied D) Very Dissatisfied
Q.3. Rate the names of the following organization from 1 to 4 in the order that they come to
your mind when you hear the name “insurance”?(1-most preferred)
 LIC SBI Life Bajaj Allianz ICICI Prudential HDFC Life  Any
other
Q. 4. Why do you invest in insurance? Rate the following from 1 to 4.(1-most preferred)
Life Cover Tax Rebate Gives good ROI Secured
Future
Q.5. Has any SBI LIFE INSURANCE advisor contacted you during the past 6 month?
Yes NO
Q. 6. Have you ever purchased product of SBI LIFE?
Yes NO
If Yes, which one
Q.8.How much satisfied are you with your preferred product of SBI?
A) Very Satisfied B) Satisfied C) Dissatisfied D) Very Dissatisfied
Q.9.Do you know SBI Life Equity Fund has given more than 20% Return in last ten year?
Yes NO
Q.10.Would you prefer to buy another policy/or new policy from SBI LIFE?
A) Definitely Purchase B) May Purchase C) Can’t say D) May not purchase E)
Definitely will not purchase
Q.11.Would you recommend SBI Policies to your friends/Relatives?
A) Strongly recommend B) May recommend C) Can’t say D) May not recommend
E) Will not recommend

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