Preparing a project of this nature is an arduous task
and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected HO Dr.Pramesh Gautam, Head of epartment of !usiness "anagement # SVN.I.T. SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of MR. SANDEEP JAIN he rendered me all possible help me guidance while reviewing the manuscript in $nalising the report. I also extend my deep regards to my teachers # family members # friends and all those whose encouragement has infused courage in me to complete to work successfully. 1 PRASHANT JAIN MBA IV SEM. ACKNOWLEDGEMENT Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected # Head of epartment Dr.Pramesh Gautam, epartment of !usiness "anagement # S.V.N.I.T. SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of He rendered me all possible help me guidance while reviewing the manuscript in $nalising the report. I also extend my deep regards to my teachers # family members # friends and all those whose encouragement has infused courage in me to complete to work successfully. PRASHANT JAIN MBA IV SEM. 2 DELCLARATION BY THE CANDIDATE ate % I declare that the &IP PRO'()* R(POR* O+ ,I) O- I+I.# !R.+)H &./.R on "arket &egmentation is nay own work conducted under the supervision of MR. SANDEEP JAIN evelopment O0cer ,I) &agar # *o the best of my knowledge the report does not contain any work # which has been submitted for the award of any degree # anywhere. PRASHANT JAIN MBA IV SEM.
3 CERTIFICATE *he project report SIP PROJECT REPORT ON LIC O INDIA , SAGAR been prepared by PRASHANT JAIN MBA IV SEM. /uidance of MR. SANDEEP JAIN De!e"o#me$t O%&er LIC for the partial ful$llment of the egree of "!. S'($ature of the S'($ature of the S'($ature of the Su#er!'sor Hea) of the De#artme$t E*am'$er 4 CONTENTS CERTIFICATE OF COMPANY... i CERTIFICATE OF INSTITUTE.. ii ACKNOWLEDGEMENT...iii 1. INTRODUCTION 2. ABOUT THE ORGANISATION 3. COMPANY PROFILE 4. DETAILS OF PRODUCTS 5. RESEARCH METHODOLOGY 6. OBECTI!E OF THE STUDY ". NEED OF THE STUDY #. DATA COLLECTION METHODS $. LIMITATION OF THE STUDY 1%. SCOPE OF THE STUDY 11. CUSTOMER SATISACTION 12. DATA ANALYSIS AND INTERPREATION 13. FINDINGS 14. CONCLUSION 15. BIBLIOGRAPHY 16. &UESTIONNAIRE 5 INTRODUCTION LIFE INSURANCE IN INDIA Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC It should, however, be clearly understood that the following content is by no means an ehaustive description of the terms and conditions of an LIC policy or Its benefits or privileges. !or more details, please contact our branch or divisional office. "ny LIC "gent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured #or his nominee$ on the happening of the event insured against. %he contract is valid for payment of the insured amount during& '%he date of maturity, or '(pecified dates at periodic intervals, or ')nfortunate death, if it occurs earlier. "mong other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally ac*nowledged to be an institution, which eliminates +ris*+, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. ,y and large, life insurance is civili-ation.s partial solution to the problems caused by death. Life insurance, in short, is concerned with two ha-ards that stand across the life/path of every person& 1. %hat of dying prematurely leaving a dependent family to fend for itself. 6 0. %hat of living till old age without visible means of support. Customer satisfied with LIC service because the LIC totally concentrate customer relations and it ma*es customers attract towards the LIC Life Insurance Corporation of India #LIC$ is embar*ing on a number of customer relationship management initiatives to retain its foothold in the mar*et, in the wa*e of private players inching their way up in the life insurance sector.
%he Insurance behemoth is planning to tie/up with a number of ban*s to enable a payment gateway wherein the policyholders can ma*e their premium payments via credit cards.
LIC is planning to start a new portal for its policyholders where a customer can log in, get details on his1her policies, change the resident address when he1she shifts to a new place and even ta*e a printout of the income ta certificate. %he portal is li*ely to be ready in a month.s time.
,esides, it has already started wor* on allotment of customer folio number to *now each customer+s holding. 2%he allotment of customer folio number for all our holders will still ta*e a year.s time in this -one,3 4 5anda, regional manager, information technology, LIC #south/central -one$, said. 7 ABOUT THE ORGANIZATION Life Insurance in its modern form came to India from 6ngland in the year 1717. 8riental Life Insurance Company stated by 6uropeans in Calcutta was the first life insurance company on Indian (oil. "ll the insurance companies established during that period were brought up with the purpose of loo*ing after the needs of 6uropean community and Indian natives were not being insured by these companies. 4owever, later with the efforts of eminent people li*e ,abu 9uttylal (eal, the foreign life insurance companies started insuring Indian lives. ,ut Indian lives were being treated as sub/standard lives and heavy etra premiums were being changed on them. ,ombay 9utual Life "ssurance (ociety heralded the birth of first Indian life insurance company in the year 17:0, and covered Indian lives at normal rates. (tarting as Indian enterprise with highly patriotic motives, insurance companies came tito eistence to carry the message of insurance and social security through insurance to various sectors of society. ,harat Insurance Company #17;<$ was also one of such companies inspired by natioalism. the (wadeshi movement of 1;0=/1;0: gavwe rise to more insurance companies. %he )nited India in 9adras, 5ational Indian and 5ational Insurance in Calcutta and the 4industan Co/operative Insurance Company too* its birth in one of the rooms of the >orasan*o, house of the great poet ?abindranath %agore, in Calcutta. %he Indian 9ercantile, @eneral "ssurance and (wadeshi Life #later ,ombay Life$ were some of the companies established during the same period. Arior to 1;10. India had no legislation to regulate insurance business. In the year 1;10, the Life Insurance Companies "ct, and the Arovident !und "ct were passed. %he Life Insurance Companies "ct, 1;10 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. ,ut the act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. %he first two decades of the twentieth century saw lot of growth in insurance business. !rom BB companies with total business/in force as ?s. 00.BB crore, it rose to 1:< companies with total business/in/force as ?s. 0;7 crore in 1;C7. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. %he Insurance "ct 1;C7 was the first legislation governing not only life insurance but 8 also non/life insurance to provide strict state control over insurance business. %he demand for nationali-ation of life insurance industry was made repeatedly in the past but it gathered momentum in 1;BB when a bill to amend the Life Insurance "ct 1;C7 was introduced in the Legislative "ssembly. 4owever, it was much later on the 1;th of >anuary, 1;=<, that life insurance in India was nationali-ed. "bout 1=B Indian insurance companies, 1< non/Indian companies and := provident were operating in India at the time of nationali-ation, nationali-ation was accomplished in two stagesE initially the management of the companies was ta*en over by means of an 8rdinance, and later, the ownership too by means of a comprehensive bill. %he Aarliament of India passed the Life Insurance Corporation "ct on the 1;th of >une 1;=<, and the Life Insurance Corporation of India was created on 1st (eptember, 1;=<, with the obFective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had = -onal offices, CC divisional offices and 010 branch offices, apart from its corporate office in the year 1;=<. (ince life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to epand the operations and place a branch office at each district headquarter, re/ organi-ation of LIC too* place and large numbers of new branch offices were opened. "s a result of re/organi-ation servicing functions were transferred to the branches, and branches were made accounting units. It wor*ed wonders with the performance of the corporation. It may be seen that from about 000.00 crores of 5ew ,usiness in 1;=: the corporation crossed 1000.00 crores only in the year 1;<;/:0, and it too* another 10 years for LIC to cross 0000.00 crore mar* of new business. ,ut with re/organi-ation happening in the early eighties, by 1;7=/7< LIC had already crossed :000.00 crore (um "ssured on new policies. %oday LIC functions with 00B7 fully computeri-ed branch offices, 100 divisional offices, : -onal offices and the corporate office. LIC.s Wide "rea 5etwor* covers 100 divisional offices and connects all the branches through a 9etro "rea 5etwor*. LIC has tied up with some ,an*s and (ervice providers to offer on/lint premium collection facility in selected cities. LIC.s 6C( and "%9 premium payment facility is an addition to customer convenience. "part from on/line Gios*s and IH?(, Info Centres have been commissioned at 9umbai, "hmedabad, ,angalore, Chennai, 4yderabad, Gol*ata, 5ew 9 Delhi, Aune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its ("%6LLI%6 ("9A"?G offices. %he satellite offices are smaller, leaner and closer to the customer. %he digitali-ed records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in theliberali-ed scenario of Indian insurance and is moving fast on a new growth traFectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,C0,;== new policies by 1=th 8ct, 000=, posting a healthy growth rate of 1<.<:I over the corresponding period of the previous year. !rom then to now, LIC ha crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. %he same motives which inspired our forefathers to bring insurance into eistence in this country inspire us at LIC to ta*e this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families. (ome of the important milestones in the life insurance business in India are& 1717& 8riental Life Insurance Company, the first life insurance company on Indian soil started functioning. 17:0& ,ombay 9utual Life "ssurance (ociety, the first Indian life insurance company started its business. 1;10& %he Indian Life "ssurance Companies "ct enacted as the first statute to regulate the life insurance business. 1;07& %he Indian Insurance Companies "ct enacted to enable the government to collect statistical information about both life and non/life insurance businesses. 1;C7& 6arlier legislation consolidated and amended to by the Insurance "ct with the obFective of protecting the interests of the insuring public. 1;=<& 0B= Indian and foreign insurers and provident societies are ta*en over by the central government and nationali-ed. LIC formed by an "ct of Aarliament, vi-. LIC "ct, 1;=<, with a capital contribution of ?s. = crore from the @overnment of India. %he @eneral insurance business in India, on the other hand, can trace its roots to the %riton Insurance Company Ltd., the first general insurance company established in the year 17=0 in Calcutta by the ,ritish. 10 Life insurance Corporation of India #LIC$ %he Life insurance Corporation was established about BB years ago with a view to provide an insurance cover against various ris*s in life. " monolith then, the corporation, enFoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff strength of 1.0B la*hs employed and 0,0B7 branches and over si/la*hs agency force. LIC has hundred divisional offices and has established etensive training facility at all levels. "t the ape, is the 9anagement Development Institute, seven -onal %raining Centre and C= sales %raining Centers. "t the industry level, along with the @overnment and the @IC, it has helped establish the 5ational Insurance "cademy. It presently transacts individual Life Insurance business, group Insurance business, social security schemes and Aensions, grants housing loans through its subsidiary. "nd the mar*ets savings and Investment products through its mutual fund. It pays off about ?s <,000 crores annually to=.< million policyholders
11 LIC OERATES ALL O!ER INDIA 12 C"#$an% $r"fi&e %ype& Aublic limited company or @overnment/owned corporation !ounded& (eptember 1, 1;=< 4eadquarters& 4eadquarters in 9umbai, India #Harious other locations in India and abroad$ Gey people& %. (. HiFayan #Chairman$, D. G. 9ehta and %homas 9athew #9anaging Directors$ Industry& Life insurance Aroducts& Insurance and Aension Alans 6mployees& 8ver 10,00,000 Aarent& 5IL (ubsidiaries& LIC 4ousing !inance Limited, etc. Website& http://www.licindia.com 13 DETAILS OF RODUCTS Aroducts of LIC LIC ' (()*+ A+,-*. B(+(/i01 LIC.s >eevan "5)?"@ is a with profits plan specifically designed to ta*e care of the educational needs of children. %he plan can be ta*en by a parent on his or her wn life. ,enefits under the plan are payable at prespecified durations irrespective of whether the Life "ssured survives to the end of the policy term or dies during the term of the policy. In addition, this plan also provides for an immediate payment of ,asic (um "ssured amount on death of the Life "ssured during the term of the policy. A11,-(2B(+(/i0 Aayment of 00I of the ,asic (um "ssured at the start of every year during last C policy years before maturity. "t maturity, B0I of the ,asic (um "ssured along with reversionary bonuses declared from time to time on full (um "ssured for the full term and the %erminal bonus, if any shall be payable. !or eample, if term of the policy is 00 years, 00I of the (um assured will be payable at the end of the 1:th, 17th, 1;th year and B0I of the (um "ssured along with the reversionary bonuses and the terminal bonus, if any, at the end of the 00th year. D(*03 B(+(/i0 Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured. LIC - eewan !isore 14 Product summary: %his is an 6ndowment "ssurance Alan available for children of less than 10 years of age. %he policy may be purchased by any of the parent1grand parent. Commencement of ris" co#er: %he ris* commences either after 0 years from the date of commencement of policy or from the policy anniversary immediately following the completion of : years of age of child, whichever is later. Premiums: Aremiums are payable yearly, half/yearly, quarterly or monthly throughout the term of the policy or till earlier death of child. $onuses: %his is a with/profits plan and participates in the profits of the Corporation.s life insurance business. It gets a share of the profits in the form of bonuses. (imple ?eversionary ,onuses are declared per thousand (um "ssured annually at the end of each financial year. 8nce declared, they form part of the guaranteed benefits of the plan. " !inal #"dditional$ ,onus may also be payable provided policy has run for certain minimum period. LIC % Childs Career Plan Introduction: &his plan is specially desi'ned to meet the increasin' educational and other needs of 'rowin' children. It pro#ides the ris" co#er on the life of child not only durin' the policy term but also durin' the e(tended term )i.e. * years after the e(piry of policy term+. A number of Sur#i#al benefits are payable on sur#i#in' by the life assured to the end of the specified durations. Options: 1ou may choose &um .ssured 2&...3# "aturity .ge# Policy *erm# "ode of Premium payment and Premium 4aiver !ene$t. Payment of Premiums: 1ou may pay the premiums regularly at yearly# half5yearly# 6uarterly or 15 through &alary deductions over the term of policy. Premiums may be paid either for 7 years or up to 8 years before the policy term. LIC - ee!an C""aya Product summary: %his is an 6ndowment "ssurance plan that provides financial protection against death throughout the term of the plan. ,esides payment of (um "ssured immediately on death, one/ fourth of (um "ssured is payable at the end of each of last four years of policy term whether the life assured dies or survives the term of the policy. Premiums: Aremiums are payable yearly, half/yearly, quarterly, monthly or through salary deductions as opted by you throughout the term of the policy or till the earlier death. LIC - Child ,uture Plan Introduction: &his plan is specially desi'ned to meet the increasin' educational- marria'e and other needs of 'rowin' children. It pro#ides the ris" co#er on the life of child not only durin' the policy term but also durin' the e(tended term )i.e. * years after the e(piry of policy term+. A number of Sur#i#al benefits are payable on sur#i#in' by the life assured to the end of the specified durations. Options: 1ou may choose &um .ssured 2&...3# "aturity .ge# Policy *erm# "ode of Premium payment and Premium 4aiver !ene$t. Payment of Premiums: 1ou may pay the premiums regularly at yearly# half5yearly# 6uarterly or through &alary deductions over the term of policy. Premiums may be paid either for 7 years or up to 8 years before the policy term. 16 LIC ' (()*+ S3-(( Product summary: %his is an 6ndowment "ssurance plan offering the choice of many convenient premium/paying terms. It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term. Premiums: Premiums are payable yearly# half5yearly# 6uarterly# monthly or through &alary deductions# as opted by you# throughout the premium paying term or till earlier death. .lternatively premium may be paid in one lump sum. #uarantee$ %$$itions: *he policy provides for the /uaranteed .dditions at the rate of Rs. 89:5 per thousand &um .ssured for each completed year for $rst $ve years of the policy. LIC - &he .hole Life Policy %his plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder. 4owever, considering the increased longevity of the Indian population, the Corporation has amended the above provision, thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion of age 70 years or on epiry of term of B0 years from date of commencement of the policy whichever is later. %he premiums under the policy are payable up to age 70 years of the policyholder or for a term of C= years whichever is later. If the payment of premium ceases after C years, a paid/up policy for such reduced sum assured will be automatically secured provided the reduced sum assured eclusive of any attached bonus is not less than ?s.0=01/. (uch reduced paid/up policy is not entitled to participate in the bonus declared thereafter but the bonuses already declared on the policy will remain attach, provided the policy is converted in to a paid/up policy after the premiums are paid for = years. LIC % Amulya ee#an & 8n Death during the %erm of the Aolicy& (um "ssured On "aturity% +il 17 RESEARCH 'ETHODOLOG( D6!I5I%I85 8! ?6(6"?C4 Acc"r)in* t"+ the A),ance) Learner-s Dicti"nar% "f Current En*&ish 2 " careful investigation or inquiry specially through search for new facts in any branch of *nowledge.3 %o gain familiarity with a phenomenon or to achieve new insights into it. %o portray accuracy the characteristics of a particular individual, situation or a group. %o determine the frequency with which something occurs or with which it is associated with something else. %o test a hypothesis of a casual relationship between variables. T(E OF RESEARCH %he research design for my research is )escri$ti,e in nature where the end obFective is predetermined and the obFective of my research is to find out the solution of predetermine problem. Descri$ti,e research is that research which is concern with describing the characteristic of a particular individual or of a group. In descriptive research must be able to define clearly what we want to measure and must find adequate method for measuring it along with a clear cut definition of which he want to study. It includes surveys and fact findings enquiries of different *inds. 18 OB.ECTI!ES OF THE STUD( %he main obFective of this study is to carry on brief study on 2Customer satisfaction survey on insurance products of LIC 8ther obFectives of this proFect are as follows& %o identify the insurance needs of the Indian population with respect to their emotional, physical and financial conditions. Comparative study of various insurance players in the mar*et %o study the varied reasons of availing life insurance plans %o clearly understand the rationale behind the investment in policies of LIC and private sector insurance companies %o test the awareness of customers on various aspects of life insurance policies offered by LIC and other private sector insurance companies and find whether there is any relation between them. %he prime obFective of the study is to find out the level of satisfaction of a customer #policy holders or beneficiary$ so far as the settlement of claims. %o find out the procedure of claim policy holder or the beneficiary NEED OF THE STUD( 19 %o study the customer satisfaction of LIC of India. %o study the selling mechanism and various technique involved in the LIC of India %o understand the consumer perceptions regarding the LIC of India. %o study the consumer behavior and reaction towards the LIC of India %o study the investors behavior and perception towards LIC of India
20 SA'LING 'ETHOD
SA'LE UNIT / %he sample unit which is used for collecting data about the ICICI retirement policy is customer having the LIC of India. ("9AL6 %6C45IJ)6/ Deliberate technique is used in this study. Deliberate samplings involve purposive or deliberate selection of particular unit of the universe for constituting a sample.
DIFFERENT T(E OF SA'LE DESIGN %here are different types of sample design based on two factors they are as follows& "$ 8n the basis of presentation ,$ 8n the basis of selection of technique 8n the basis of presentation it can be classified as follows a$ probability sampling b$ non/probability sampling on the basis of element selection technique it can be classified as follow& a$ restricted selection technique b$ unrestricted selection technique ,ut the sample design are basically two types& a$ probability sampling b$ non probability sampling In this study we have used the probability sampling technique i.e selecting randomly from the large no of universe. 21 DATA COLLECTION %he data collection which is used in this proFect are as follow& Arimary data/ this is the data collocated a fresh and for the first time. "nd thus happen to be original in character for the purpose of research. investigation at hand there are various methods of collecting primary data such as K 8bservation methods Interview method %hrough schedules etc. I have selected questionnaire method collection the primary data. 0/ (econdary dataL %his is the data collected usually start their investigation by eamining secondary data to see whether their problems could problems could partly or wholly is solved without collecting costly primary data (econdary data provide starting points for research and offers by advantage of low and ready availability. (econdary data can be collected from various sourced li*e. Internal sources @ovt. publications Aeriodical and Fournals Commercial data ,oo*s, maga-ine and newspapers %elephones M internet 22 LI'ITATION OF STUD( 1. 8nly LIC of India have been studied 0. 8nly few customers were considered for the study C. %he study was carried out in sagar only, hence the results cannot be etended to 5ational level. B. !ew respondents are not cooperative enough owing to their busy (chedule. =. %ime was not enough to study the all aspects of the proFect report 23 SCOE OF STUD( %he various scope of study are as follows& o %he study was conducted at the macro level it can also be conducted at the national level o %he study was improvement LIC of India it can also be used to study other insurance plans of LIC of India. o %he study can also be etended to study the mar*et share of the different insurance company o %he study can also be about the 4? system of LIC of India o %he study can also be about the investors behavior towards LIC of India 24 ORGANISATION STR+CT+RE O LIC Chairman
9anaging Director 6ecutives Directors Chiefs Nonal 9anagers ?egional 9anagers Divisional 9anagers 100 (eniors Divisional 9anagers 9ar*eting 9anagers (ales 9anagers (enior ,ranch 9anagers #4ead of the ,ranch$ "ssistant ,ranch 9anagers (ells Development 8fficers 25 i;erent .gent UBLIC RELATION DEART'ENT %he Aublic ?elation Department in LIC is divided into three maFor categories. 5amely& 1. Communication Department 0. Crisis 9anagement Department C. Aublicity Department Chief Aublic ?elation 8fficer A?8 #Communication Dept.$ A?8 #Crisis 9anagement Dept.$ A?8 #Aublicity Dept.$ 26
)H.IR".+ O- ,I)
A),LIC ?6L"%I85(
C899)5IC"%I85 D6A"?965% A),LICI%O D6A"?965%
C?I(I( 9"5"@6965% D6A"%965% What is customer satisfactionP Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. %he level of satisfaction is determined not only by the quality and type of customer eperience but also by the customer.s epectations. A cust"#er #a% 0e )efine) as s"#e"ne 1h"2 Q has a direct relationship with, or is directly affected by your agency and receives or relies on one or more of your agency.s services or products. Customers in human services are commonly referred to as service users, consumers or clients. 27 Q "n organisation with a strong customer service culture places the customer at the centre of service design, planning and service delivery. Customer centric organisations will& Q determine the customers epectations when they plan Q listen to the customer as they design Q focus on the delivery of customer service activities Q Halue customer feedbac* when they measure performance. Wh% is it i#$"rtant? %here are a number of reasons why customer satisfaction is important in Insurance Sect"r2 Q 9eeting the needs of the customer is the underlying rationale for the eistence of community service organi-ations. Customers have a right to quality services that deliver outcomes. Q 8rgani-ations that strive beyond minimum standards and eceed the epectations of their customers are li*ely to be leaders in their sect"r3 Q Customers are recogni-ed as *ey partners in shaping service development and assessing quality of service delivery. %he process for measuring customer satisfaction and obtaining feedbac* on organi-ational performance are valuable tools for quality and continuous service improvement.Customer satisfaction, a sinebuss term, is a measure of how products and services supplied by a company meet or surpass customer epectation. It is seen as a *ey performance indicator within business and is part of the four of a $alanced Scorecard. In a competitive marketplace where businesses compete for customers# customer satisfaction is seen as a key di;erentiator and increasingly has become a key element of business strategy. &1' *here is a substantial body of empirical literature that establishes the bene$ts of customer satisfaction for $rms. Organi<ations need to retain existing customers while targeting non5 customers= &2' . "easuring customer satisfaction provides an indication of how 28 successful the organi<ation is at providing products and:or services to the marketplace. )ustomer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product:service to product:service. *he state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. *he level of satisfaction can also vary depending on other factors the customer# such as other products against which the customer can compare the organi<ation>s products. 29 30 Customer (atisfaction in : (teps in LIC It(s a )e** +no)n fa,t t"at no -usiness ,an e.ist )it"out ,ustomers/ In t"e -usiness of 0e-site $esi1n2 it(s important to )or+ ,*ose*y )it" your ,ustomers to ma+e sure t"e site or system you ,reate for t"em is as ,*ose to t"eir re3uirements as you ,an mana1e/ 4e,ause it(s ,riti,a* t"at you form a ,*ose )or+in1 re*ations"ip )it" your ,*ient2 ,ustomer ser!i,e is of !ita* importan,e/ 0"at fo**o)s are a se*e,tion of tips t"at )i** ma+e your ,*ients fee* !a*ue$2 )ante$ an$ *o!e$/ 1. 6ncourage !ace/to/!ace Dealings *his is the most daunting and downright scary part of interacting with a customer. If you>re not used to this sort of thing it can be a pretty nerve5 wracking experience. Rest assured# though# it does get easier over time. It>s important to meet your customers face to face at least once or even twice during the course of a project. 31 "y experience has shown that a client $nds it easier to relate to and work with someone they>ve actually met in person# rather than a voice on the phone or someone typing into an email or messenger program. 4hen you do meet them# be calm# con$dent and above all# take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking# you>re well on your way to a sale. 43 Res$"n) t" 'essa*es r"#$t&% 5 6ee$ ("ur C&ients Inf"r#e) *his goes without saying really. 4e all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers> 6ueries within the space of a few hours# but at least email or call them back and let them know you>ve received their message and you>ll contact them about it as soon as possible. (ven if you>re not able to solve a problem right away# let the customer know you>re working on it. " good eample of this is my Web host. %hey+ve had some trouble with server hardware which has caused a fair bit of downtime lately. "t every step along the way I was emailed and told eactly what was going on, why things were going wrong, and how long it would be before they were wor*ing again. %hey also apologised repeatedly, which was nice. 5ow if they server had Fust gone down with no eplanation I thin* I+d have been pretty annoyed and may have moved my business elsewhere. ,ut because they too* time to *eep me informed, it didn+t seem so bad, and I at least *new they were doing something about the problems. %hat to me is a prime eample of customer service. 73 Be Frien)&% an) A$$r"acha0&e . fellow &itePointer once told me that you can hear a smile through the phone. *his is very true. It>s very important to be friendly# courteous and to make your clients feel like you>re their friend and you>re there to help them out. *here will be times when you want to beat your clients over the head repeatedly with a blunt object 5 it happens to all of us. It>s vital that you keep 32 a clear head# respond to your clients> wishes as best you can# and at all times remain polite and courteous. 83 Ha,e a C&ear&%9Define) Cust"#er Ser,ice "&ic% *his may not be too important when you>re just starting out# but a clearly de$ned customer service policy is going to save you a lot of time and e;ort in the long run. If a customer has a problem# what should they do? If the $rst option doesn>t work# then what? &hould they contact di;erent people for billing and technical en6uiries? If they>re not satis$ed with any aspect of your customer service# who should they tell? *here>s nothing more annoying for a client than being passed from person to person# or not knowing who to turn to. "aking sure they know exactly what to do at each stage of their en6uiry should be of utmost importance. &o make sure your customer service policy is present on your site 55 and anywhere else it may be useful. :3 Attenti"n t" Detai& ;a&s" <n"1n as =The Litt&e Niceties=> Have you ever received a Happy !irthday email or card from a company you were a client of? Have you ever had a personalised sign5up con$rmation email for a service that you could tell was typed from scratch? *hese little niceties can be time consuming and aren>t always cost e;ective# but remember to do them. (ven if it>s as small as sending a Happy Holidays email to all your customers# it>s something. It shows you care= it shows there are real people on the other end of that screen or telephone= and most importantly# it makes the customer feel welcomed# wanted and valued. ?3 Antici$ate ("ur C&ient=s Nee)s 5 G" Out Of ("ur Wa% t" He&$ The# Out 33 &ometimes this is easier said than done@ However# achieving this supreme level of understanding with your clients will do wonders for your working relationship. *ake this as an example% you>re working on the front5end for your client>s exciting new ecommerce endeavour. 1ou have all the images# originals and $les backed up on your desktop computer and the site is going really well. uring a meeting with your client he:she happens to mention a hard5copy brochure their internal marketing people are developing. .s if by magic# a couple of weeks later a )5RO" arrives on their doorstep complete with high resolution versions of all the images you>ve used on the site. . note accompanies it which reads% /0i- you mentioned a hard-copy brochure you were wor"in' on and I wanted to pro#ide you with lar'e-scale copies of the 'raphics I1#e used on the site. 0opefully you1ll be able to ma"e use of some in your brochure./ 1our client is heartily impressed# and remarks to his colleagues and friends how very helpful and considerate his 4eb designers are. "eanwhile# in your o0ce# you lay back in your chair drinking your Ath cup of co;ee that morning# safe in the knowledge this happy customer will send several referrals your way. @3 H"n"ur ("ur r"#ises It>s possible this is the most important point in this article. *he simple message% when you promise something# deliver. *he most common example here is project delivery dates. )lients don>t like to be disappointed. &ometimes# something may not get done# or you might miss a deadline through no fault of your own. Projects can be late# technology can fail and sub5contractors don>t always deliver on time. In this case a 6uick apology and assurance it>ll be ready .&.P wouldn>t go amiss. 34 Conclusion )ustomer service# like any aspect of business# is a practiced art that takes time and e;ort to master. .ll you need to do to achieve this is to stop and switch roles with the customer. 4hat would you want from your business if you were the client? How would you want to be treated? *reat your customers like your friends and they>ll always come back.
35 DATA ANAL(SIS AND INTERRETATION DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANYS NAME NO.OF RESPONDENT SHARE (%) L.I.C. 78 78 RELIANCE LIFE INSURANCE 3 3 ICICI PRUDENTIAL 10 10 SBI LIFE 7 7 HDFC TOTAL 100 100 36 INTERPRETATION 78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents. DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS BENEFITS NO.OF RESPONDENTS SHARE (%) Cover Future Uncertainty 55 55 Tax Deductions 20 20 Future Investment 25 25 TOTAL 100 100 37 INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas !"% and !5% of the# believe that the other benefits are $a% deduction and future invest#ents respectively. DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE NO3OF RESONDENTS SHARE ;A> 9oney ,ac* @uarantee 1= 1= Larger ?is* Coverance C: C: 6asy "ccess to "gents : : Low Aremium C0 C0 Company.s ?eputation 11 11 %8%"L 100 100 38
INTERPRETATION &a'ority of the respondent ()7%* found Larger risk coverance as the #ost attracted feature of the all. 39 DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS POLICY TYPE NO. OF RESPONDENTS SHARE (%) LIFE POLIC !5 !5 "O" LIFE POLIC 25 25 #OT$ %5 %5 40 INTERPRETATION 75% of the respondents have Life Insurance +olicy ,hile -5% have both. ($he % is calculated out of !8" positive response* 41 DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDENTS SHARE (%) . saving tool 81 81% . ta% saving device 7- 7-% . tool to protect your fa#ily 1"" 1""% INTERPRETATION 81% of the respondents have perception of Insurance being a saving tool. .nd 7-% of the respondents have perception of Insurance being a ta% saving device. /ut 1""% of the respondents are ,ith the vie, that Insurance is a tool to protect your fa#ily. Fin)in*s 42 1$ Aerception of most of the respondents i.e., B0I is good, C0I is very good, 1;I ecellent and only :I have a poor perception about LIC. 0$ CCI the respondents came to *now about LIC products from friends, 0;I from various advertisement, 01I from family members and 1:I from other sources. C$ 9aFority of the customers are satisfied with the service of the company. C;I say the service is very good, C0I say its good, 1:I say its ecellent and only 10 are not satisfied. B$ 9aFority of the customers are satisfied with the beneficial schemes the company. <:I say that LIC is giving beneficial schemes to its customers, 0BI they are not getting any such schemes and ;I cant sat about these things =$ 7CI of respondents say that the charges are reasonable and only 1:I are not happy with the service charges <$ .;CI of respondents prefer to pay by cheque, :I by draft and non of the respondents prefer cash for paying premium. :$ 7:I of respondents say that they are satisfied with the company.s service and only 1CI are not happy with the service. 7$ :<I of respondents say that they are satisfied with the product.s surrender value and only 0BI are not happy. ;$ ;0I of respondents say that they are satisfied with the online facility and only 7I are not satisfied. 10$ ;BI of respondents say that they are satisfied with the promotional schemes and only 7I are not satisfied. 43 CONCLUSION Wor*ing with LIC Life Insurance for two months was a very nice and a good learning eperience. It has helped me a lot learning about different *inds of investments and the pros/corns of its. It has also helped me to *now about how wor*s in a corporate world is done. %hough we had a very nice eperience but we had to face some problems even, li*e we were not given any identity card by the company so sometime it became very difficult for us to convince people that we are from the company and not an agent.9ostly small investors are not satisfied with the charges of the LIC. 1. Customers are much more relying upon LIC. 0. Aeople donRt rely upon private insurance sector. C. "ll products are not attractive to the customers so that *ind of products are very hard to sale. B. Less number of traditional plans that.s why people who really need traditional plans are still not satisfied. =. 9aFority of the customers are satisfied with the beneficial schemes the company. <. 9aFority of the customers are satisfied with the service of the company 44 REFERENCE B""<s2 9ar*eting 9anagement & Ahilip Gotler 9ar*eting ?esearch & C.?.Gothari We0sites2 www.hdfcinsurance.com www. icicipru life.com www. lic india.com BUESTIONNAIRE 45 2ame:333333.3 Address:33333333. Profession333333 333333333333 A'e:33333333 333333333333 Contact 2o:33333.. 1$What do you thin* about LIC product P "$6cellent ,$Hery @ood C$@ood D$Aoor 0$ !rom where did you got information of LIC products P "$!riends ,$!amily members C$"dvetisements D$8thers C$ Whether LIC giving eficient service to its customers P "$6cellent ,$Hery @ood C$@ood D$Aoor B$ Whether LIC gives beneficial schemes to its eisting customers P "$Oes ,$5o C$Cant say =$ Is the maintenance charges M fees are reasonableP "$Oes ,$5o 46 <$ Which mode of payment do you prefer to pay your premium P "$Draft ,$Cheque C$Cash :$ "re you satisfied with the service of LIC P "$Oes ,$5o 7$ "re you satisfied with the product.s surren)er ,a&ue P "$Oes ,$5o ;$ Whether LIC offering additional "n&ine faci&ities P "$Oes ,$5o 10$ Whether LIC offering effective promotional schemes P "$Oes ,$5o 11$ "ny furher suggession to serve you better P 47 48 49 50 51 52 53 54 55 56 57 58 59