The Influence of Customer Relationship Management to Customer Satisfaction and Retention in Property and Casualty
THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMER SATISFACTION AND RETENTION IN PROPERTY AND CASUALTY INSURANCE
BROOKE ELLEN LYTTLE
Bachelor of Arts in Psychology and Criminal Justice Kent State University May, 2003
Submitted in partial fulfillment of requirements for the degree MASTER OF ARTS IN PSYCHOLOGY at the CLEVELAND STATE UNIVERSITY May, 2008
This thesis has been approved for the Department of Psychology and the College of Graduate Studies
Thesis Chairperson, Steven D. Slane, PhD
Department & Date
Brian F. Blake, PhD
Department & Date
Leslie E. Fisher, PhD
Department & Date
THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMER SATISFACTION AND RETENTION IN PROPERTY AND CASUALTY INSURANCE BROOKE ELLEN LYTTLE ABSTRACT
Customer relationship management (CRM) emerged in the 1990’s, promising to revolutionize the business and customer dynamic. At present, CRM has yet to live up to its promise of individualized customer relationships with carefully targeted customers. In property and casualty insurance, customer and insurer relationships are important. It is more cost effective to retain current customers than to acquire new ones. This thesis explores the history of CRM and how its proper implementation can help identify areas of customer satisfaction and retention in the property and casualty insurance industry. Data were collected from a regional property and casualty insurer and analyzed to determine customer satisfaction standards. A factor analysis and several multiple
regressions were conducted to determine whether satisfaction on identified standards was a predictor of stated likelihood to renew the policy. The overall regression examined independent variables under the control of the insurance company and showed a significant overall prediction, with 48.0 percent of the variance explained. When looking at the significant unique contributors, satisfaction with premium/policy factor had the
BROOKE ELLEN LYTTLE
Bachelor of Arts in Psychology and Criminal Justice Kent State University May, 2003
Submitted in partial fulfillment of requirements for the degree MASTER OF ARTS IN PSYCHOLOGY at the CLEVELAND STATE UNIVERSITY May, 2008
This thesis has been approved for the Department of Psychology and the College of Graduate Studies
Thesis Chairperson, Steven D. Slane, PhD
Department & Date
Brian F. Blake, PhD
Department & Date
Leslie E. Fisher, PhD
Department & Date
THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMER SATISFACTION AND RETENTION IN PROPERTY AND CASUALTY INSURANCE BROOKE ELLEN LYTTLE ABSTRACT
Customer relationship management (CRM) emerged in the 1990’s, promising to revolutionize the business and customer dynamic. At present, CRM has yet to live up to its promise of individualized customer relationships with carefully targeted customers. In property and casualty insurance, customer and insurer relationships are important. It is more cost effective to retain current customers than to acquire new ones. This thesis explores the history of CRM and how its proper implementation can help identify areas of customer satisfaction and retention in the property and casualty insurance industry. Data were collected from a regional property and casualty insurer and analyzed to determine customer satisfaction standards. A factor analysis and several multiple
regressions were conducted to determine whether satisfaction on identified standards was a predictor of stated likelihood to renew the policy. The overall regression examined independent variables under the control of the insurance company and showed a significant overall prediction, with 48.0 percent of the variance explained. When looking at the significant unique contributors, satisfaction with premium/policy factor had the