The role and value of customer relationship management systems on customer retention in a life insurance organisation in the Western Cape, South Africa

Abstract

This research study is focused on the role and value of customer relationship management (CRM) information and communication technology’s (ICT) potential for customer retention (CR) in the life insurance business in South Africa’s Western Cape Province. This study is located within the management research paradigm because it investigates business problems with the aim of providing recommendations for their improved management. The primary focus of this research is to examine the role and value of CRM ICT potential on CR in the life insurance sector in South Africa’s Western Cape Province. Many insurers have some form of retention program in place, however with the advent of technology, new entrants in the market, tough economic conditions and clients becoming more financially conscious, insurers need to seek new methods to retain clientele. The research is attempting to uncover if CRM ICT will have an impact or influence on CR within the life insurance industry in South Africa’s Western Cape Province. This study applies a quantitative research method, examining the causal link between CRM ICT and CR in the life insurance industry, by administering a questionnaire that established the relationship between CRM ICT and CR. The study’s sample was one hundred clients from one walk-in centre of a major life insurance company. All clients completed the questionnaire without any preselection. Clientele were randomly selected, thus, a fair representation of the larger population pertaining to the research problem exists. Computer-aided spreadsheet software was used to collate and analyse data by means of quantitative methods.