A customer retention strategy for Phoenix Insurance Company
Date
2020-05
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Abstract
Phoenix Insurance Company is a Ghanaian-owned establishment that contracts in claim
settlement and insurance of properties founded in the year 1995. The key objective of this
project is to find the main challenge Phoenix Insurance faces, and to go through needed
stages to uncover an adequate result for the challenge.
Phoenix Insurance has suffered customer churn and has difficulty in retaining its clientele.
This has led to them having low customer retention and making it problematic to attract new
customers.
A qualitative research approach was used to discover the most effectual means by which
Phoenix Insurance can retain its customers. Semi-structured interviews were used to gather
information from both the workers of Phoenix Insurance and its customers, and a convenient
sampling method was used based on the convenience of the interviewees. Findings from the
study, such as poor claiming processes and lack of motivation, were used to craft a solution
suited to the identified problem of Phoenix Insurance. The solution is a customer retention
strategy based on the customer loyalty plan, which involves prospective ways to retain a customer. The customer loyalty plan consists of seven main components, namely, service
quality, trust, switching costs, commitment, corporate image, customer satisfaction, and
communication. With all these, when implemented, the customer retention strategy will be
able to help Phoenix Insurance decrease its customer churn and increase its retention ratio,
thus attracting new customers.
The results suggested that there is high customer churn in the company; as a result, claim
management processes, product pricing, competition, internal processes, and lack of
customer appreciation. The researcher recommends Phoenix Insurance to communicate
properly with their customers to gain feedback for improvements, appreciate customers, and
work harder to gain customer trust. For reviews, a future reader or researcher can research deeper into Customer Relationship Management and how it can affect the company. I could
not elaborate on Customer Relationship Management because its technicalities, a future
researcher, can build a CRM Application for the company for the fast and reliable claim
processing.
Description
Applied project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2020
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Applied project
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Keywords
customer retention, customer acquisition, organizational growth, claim settlement processes