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ASSIGNMENT OF CUNSUMER RELATIONSHIP

MANAGEMENT (MGT631)

ON

STUDY OF LIC TOUCHPOINTS

SUBMITTED TO: MR. RAJAN GIRDHAR

SUBMITTED BY: SHAHNWAZ ALAM

ROLL NO: R1813 A19

REGD. NO: 10800509

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About Life Insurance Corporation of India

The LIC or Life Insurance Corporation of India founded in 1956 is the largest life insurance company in India owned solely by the Government of India. LIC presently has 7 Zonal Offices and 100 Divisional Offices situated all around the country. In addition to an even distribution of 2048 branches located in different towns and cities of India, LIC also has a network of around one million agents who solicit life insurance policies to the public.

LICs Existing Touch points:

Pre-purchase Experience:

1. Advertising

LIC is working on a very impressive media mix for its advertisement and promotional campaign. LIC seems very aggressive in the field of advertisement and promotion to get aware in the market and advertise its product. LIC becomes the top most company in

Page |3 insurance sector which is invested highest amount on its advertisement. LIC has earmarked Rs. 100 crore as its advertising budget this year. LIC is in the process of rolling out a multi-media campaign, which will include press ads, television commercials, radio advertising and outdoor media campaigns. Ad campaign proved very successful tools for LIC to promote the products. LIC is doing the advertisement through the following medium: o o o o o o o Print Media Broadcast/TV commercials Radio Magazines News Papers Sponsorships Social events

o Interactive Media Through interactive media one can easily get the all necessary knowledge regarding the LIC products and different guidelines for the specific policy. One can easily aware with the schemes and different way of paying premium with the help of website. Interactive media provide ease to gain and to provide the customers with the minimum resources and maximum output. Mostly urban areas and upper class people prefer the interactive media even to share and pay the bills and premiums.

2. Customer Care
LIC has its own regional customer care numbers which are open for the customers through Monday to Friday 8.00 am to 8.00 pm, Saturday 10.00 am to 6.00 pm. By calling the customer care no anyone can get the knowledge of different LIC plans and also get the full information regarding their existing policy. Customer care interact the customers in such a way that they get motivated and join the LIC.

Purchase Experience:
1. Physical offices
The Life Insurance Corporation has a vast distribution network in the rural and semiurban areas. LICs operations span the length and breadth of the nation through seven zonal offices, 100 divisional offices, and 2,048 branch offices.

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Services provided at LIC Offices:

Change of address Issuing premium paid certificate Acceptance of life certificate for pension policies Resolving any policy related complaints Information on Premium position, Bonus, Loan, revival of lapsed policies LIC products Assistance for Filling up of forms, Registration on LICs Customer Portal

2. Sales persons
LIC has got a diverse sales force to sale the policies with the maximum reach in the specific city and state. LICs salesmen are highly motivated towards their work with a great potential of problem and confusion solving. LIC sales persons have all the necessary information regarding the policies and the offers provided by the company to the customers in different policies for different persons. They are well skilled to promote the LICs products and to make the customer keep in contact. They also help the company to create a database of the customers which can be used by the company in future planning and the suggestion taken by they also help the company to improve the product/policy as per the customer want.

3. Price
Pricing of insurance products, as empirically available in India shows that pricing is not in consequence with market realities. Life insurance premium are generally perceived as being too high while general insurance (especially motor insurance) is priced too low. Price is the primary factor that a customer relies on, so LIC make its plans/pay back plans in such a way that the customers would prefer their products. They have diversified the pricing model to grapes the more customer. Merging of private sector also pushed LIC to keep on revising their pricing model to make the LIC aware amongst the customers.

Post Purchase experience:

1. Products
LIC has number of products/policies to the customers from the time of Pregnancy/childhood to pension plans/seniority LIC provide the policies to the

Page |5 customers. LIC keep on introducing the LIC plan for the customers as they feel there is a need of such type of plans. Term Assurance Plans. 2) Children plans. 3) Pension Plans. 4) Unit Linked Plans. 5) LIC Micro Insurance Plan. 6) LIC Health Insurance Plans. 7) LIC Handicapped Dependents Plans. 8) Basic Life Insurance Plans. Many more.

2. Customers Services
LIC has its own regional customer care numbers which are open for the customers through Monday to Friday 8.00 am to 8.00 pm, Saturday 10.00 am to 6.00 pm. By calling the customer care no anyone can get the knowledge of different LIC plans and also get the full information regarding their existing policy. These no are toll free one can any time call the without thinking of bill.

Purpose and Utility of Existing Touch Points:

It provides competitive advantage to the company. It will help the company to increase the goodwill of the company so that the customers remember the company to a long time. It helps the company to spread the awareness of the products/policies. It helps the company to create the database of the customers.

Suggested Touch Points:

1. LIC should interact personally to aware the audience toward the plans offered by them. This is because the awareness regarding health and other format of insurance scheme is low in urban and rural areas. 2. LIC should hire a celebrity to interact with customers and motivate people to get insured against the contingencies. 3. They should interact the audience in cinemas and malls through advertisement.

Page |6 4. Loyalty programs should be conducted by the company to create the long life relationship with customers. Above listed touch points can be the prove effective to LIC and help LIC to cover the targeted population of India and help India to have a healthy and secured against the miss happening of life.

ADVANTEGES 1. It would be very effective.

DIS-ADVANTAGES 1. Preferences of the customers vary as per behavioral approaches.

2. It would create a sense of belongingness in the mind of customers.

2. It would be very costly and not very easy to interact each and every individual.

3. It would hit the mind of the customers directly and generate the demand up to some extent.

3. Require skilled and trained sales persons

4. It would bond the customer for long duration.

Recommendations:
1. LIC should introduce the new LIC plans in their health policies as there is huge potential in this portion of LIC, only 10% of people are health insured in India. 2. Life Insurance Corporation of India (LIC) is embarking on a number of customer relationship management initiatives to retain its customers hatched by its competitors. 3. LIC should start providing the policies without any paper work except the contract. Paper work should be reduced. 4. They should introduce the policies for the rural people to get aware the people. 5. They should reduce the communication gap amongst inter or intra state offices so that the effective decision can be taken at right time.

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References:

1. http://marketingpractice.blogspot.com/2008/03/lic-health-plus-scaring-hell-out-ofyou.html 2. http://www.exchange4media.com/e4m/news/fullstory.asp?section_id=1&news_id=5753 &tag=898&pict= 3. http://www.thump.in/ad-was-ad-review/lic-jeevan-varsha-musical-ad 4. http://www.indiantvads.com/search/label/LIC 5. http://www.exchange4media.com/e4m/others/analysis180108.asp 6. http://customer-care-center.blogspot.com/2011/01/lic-customer-care-number.html 7. http://www.moneylife.in/article/8/4412.html