Thursday, December 12, 2019
Customer Relationship Management and Systems
Question: Discuss about the Customer Relationship Management and Systems. Answer: Introduction: The strategic customers are those who make an important impact on the company. They are categorized into four groups. The high life customers who creates greatest value of business, benchmarks who are well known and other consumers tend to copy them, the third set is the inspiration who inspire the organization to change its products and to slice on its cost and finally there are the cost magnets. These type of customers is essential to the company since they par huge amount of fixed costs so that other small consumers can benefit. (Hollensen, 2015). Some of the changes made by AIA were the: The AIA Malaysia deal with products like medical protection, motor insurance, home solution, saving and investment, life protection, and accident protection (Choudhury Harrigan, 2014). The high life customers of AIA Malaysia are the customers taking medical cover and those who take home solution cover. They are significant to the company since their investments make a great impact. The well-known customers are the customers taking motor insurance cover. They are benchmarks to the company and other people tend to copy them. Inspiration customer of the IAI are the people taking the life protection cover. The group always advice the company on changes to be made and finally, the last significant group are the cost magnet. They make huge investment that benefits the minority group. To AIA customers who make huge investment and savings are their cost magnet group. The premium strategy of AIA continued to aim at recruiting quality personnel and improving productivity. The number of new agent have increased by 30% in 2016 compared to the one in 2015 and this is due to the long term career programme. Generally, 27% increase in APN per active agent was due to higher agent productivity level, including the increase of overall case by 23%. The SSC has also enable AIA to make a relevant progress in the agency business Takaful, the 2015 ANP is doubled in the first half of 2016and the number of active producing Takaful agent has increased by 79% (Nourani, et al., 2016). AIA have make several changes to impress their customers. The company also focuses on customer experience through the use of advance technology, with more than 90% of new business in Malaysia introduced to iPoS. The company has also launched the mobile underwriting system which will help in monitoring and guiding significant customers. (Nourani, et al., 2016). Some other changes that have been made by the company are: In the CRM, there are five steps. They include customer portfolio analysis, value proposition development, customer intimacy, managing relationship, and network development. The customer portfolio analysis of AIA This is the first step in the CRM analysis and it help the organization to understand that not all customers are important. The CPA analysis has enabled AIA to identify customers who are not important for their development. They have categorized their customers into 4 groups, Sack, re-engineer, nature and invest. The group have help AIA to know the customers who they should target in future and those that they should deal with now (Khodakarami and Chan, 2014). The sackable customers the customers who do not have future or present value to the company. Invest clients are those who currently influence the company and have future potential like the medical protection clients like in AIA. The nurture customers of AIA are the life assured who currently benefit the company but after they pass away they will have no influence to the company. Lastly, the re-engineered are those who have future potential like accident protection The policy has helped AIA to choose the customer and to know them well. They use customer complains to generate future strategies. The AIA has collected data from their customers and they use to serve them. They use the data to serve their customers well and to know who, where and when to serve their significant customers. AIA has developed a significant network giving their clients option on where to contact them. They have partnered with banks, corporate sales teams, and brokers (Tan, et al, 2009). Wide network across Malaysia has help AIA to provide their services to customers efficiently and fast. The employee and customer relation also promote good networking. Value proportion development The company has used its network, and the CRM analyze to know the type of customers to serve and when to serve them. This has created a good rapport between the client and the company. The company has delivered desired wants by its customers in the field of motor insurance and life insurance. They are also able to understand customer need and preference For the connection of a company to be successful with purposefully major customers. They must re-invert edifices and process. The company must make changes as well as react to the customers complain. Managing customers also requires a strong customer service and AIA has qualified in training their management staff at all levels in UYS principles so as to begin the customer-centricity journey (Hollensen, 2015). The company has also replaced its old strategies with customer acquisition plan, customer development plan and customer retention plan There are four main supporting condition of the CRM. These are leadership and culture, people, processes, and data and IT. The main role of leadership is to provide project oversight and to set the level for CRM implementation this has been done by the AIA leadership by providing project in insurance and other facilities to its customers (Kamil Mat, 2014). Data are needed for analysis and for business operation since all the CRM stages uses data. The amount of insurance cover taken as well as savings is recorded by AIA through data analysis. People are also essential because without people the CRM cannot be implemented. People are the one who chose IT process, implement the CRM, and coordinate to ensure that the CRM works. Therefore the company has employed workers to serve the customers. Finally, processes are how things are done. They can be classified as horizontal or vertical. CRM processes include all customer facing in marketing as well as in sales (Tan, et al, 2009). References Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), pp.149-176. Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. Kamil, M. and Mat nor, N.B., 2014. Factors Influencing the Choice of Takaful Over Conventional Insurance: The Case of Malaysia. Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information Management, 51(1), pp.27-42. Nourani, M., Devadasi, E.S., Kwahu, Q.L. and Lu, W.M., 2016. Business excellence: the managerial and value-creation efficiencies of the insurance companies. Total Quality Management Business Excellence, pp.1-18. Tan, H.B., Wong, M.F. and Law, S.H., 2009. The effect of consumer factors and firm efficiency on Malaysian life insurance expenditure. International Journal of Business and Society, 10(1), p.59.