The Influence Of Relationship Marketing On Customer Retention By British American Insurance Company

Abstract

The inability of an organization to retain its customers translates to loss of potential future business which has a negative effect on revenue and possible profits. A firm’s best customers are not those who buy one product or service but rather the ones who keep coming back for more. Organizations however overlook this fact; majority are concerned with acquiring new customers not realizing the potential that lies with existing ones. They fail to get the full customer lifetime value due to a failure of maintaining strong and valuable relationships with them. This study aims to determine how Britam insurance employs relationship marketing to ensure that its existing customer base remains intact and builds on its future revenue while giving it a competitive edge within the Kenyan insurance industry. The study used interview guides as the source of gathering primary data. The guide had open ended questions which focused on getting details about the various elements of relationship marketing used in the firm. The interviews were carried out among the marketing managers, sales managers, product development team and customer service. Content analysis was used to analyze the data collected from the interviews. The study concluded that there was indeed a positive contribution of relationship marketing towards customer retention. The level of customer service, brand image, pricing and quality of products has a high impact on customer retention whereas incentives and delivery channels have a relative impact on retention. The study recommends the need for organizations to employ a variety of relationship marketing practices as opposed to focusing on only one element. In so doing, they will be able to enhance customer experience and retention.