A customer retention strategy for Phoenix Insurance Company
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.
Applied project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2020
customer retention, customer acquisition, organizational growth, claim settlement processes