A Case Study of Ping an Life Insurance Company of China - Dissertation Example

Download file to see previous pages... In the competitive markets, development and maintenance of good customer relations are indispensable for the success and survival of an organization in the long term. In this context, the concept of Customer Relationship Management (CRM) has evolved and it has gained significant importance in the global business scenario. In the emerging markets, customer management theories are being practically considered in the decision making processes of business firms. At present, Chinese firms are increasingly applying the CRM system with the aim of facilitating good customer relationship. In the competitive framework of the market, choices and decisions of customers play an important role in the performance of businesses. Customers are the key element that plays an important role in the survival of business firms (Cheng, 2005). CRM systems allow firms in China to focus on the customers and take greater care of their demand through more personalized service offerings (Dyche, 2002). It has been found through research that winning a new customer is almost five times more costly to a firm than retaining the existing customers. On the other hand, an additional 5 percent of existing customers are capable of increasing the profit by nearly 100 percent (Cheng, 2007). This shows that it is very important for management to implement the CRM system in their organizations. CRM is one of the modern day developments that have taken corporate organizations to a greater level of business. Chinese firms are adopting the CRM system fast. This process involves the implementation of software that would record the details of the company’s relationship with its customers through the performance of various indicators. Several advantages have been found to be associated with the process of CRM and various benefits accrue to the companies that implement this system. However, certain limitations are also associated with the process of CRM. Ping An Life Insurance Company of China, Ltd. recognizes the importance of CRM. The company was established as a major subsidiary of the parent company, Ping an Insurance (Group) Company of China, Ltd. In the year 2002, Ping was the first company in China that had a shareholding structure. Gradually Ping An Insurance Group has grown and has begun offering various financial services including insurance products as core services and banking, securities, and investment services as tertiary businesses (Ping An, 2009). The CRM system helps the organization to focus on the business processes, marketing processes and customer service offerings of the company. This leads to the development of client relationship and maximization of ‘customer value’ in long run. In essence, implementation of CRM has brought a shift within the company from being a production-oriented organization into a customer-oriented organization. After implementing CRM, the company improves its communication channels. The information technology (IT) system acts as a coordinating agency across the different levels of operations (Kanji, 2002). Since the organization becomes more customer-centric, it also needs to train its employees in order to make them more involved in the business process and more efficient. ...Download file to see next pagesRead More