Application of CRM in offering insurance to commercial vehicle loan borrowers

Abstract

Commercial vehicle loan borrowers of India constitute a segment of customers with a unique socioeconomic background, financial literacy level and lifestyle. Lending money to that segment involves high risk. Keeping this fact in mind, the studied company attempted to understand the need of this segment, explored the various lifestyle issues affecting the loan repayment and the financial loss to the customer’s family. Then, base these explorations, the company developed unique initiatives that would not only retain customers, but add value to the customers and the family. Such initiatives are quite relevant to the present context when all financial companies have been geared up to create value through unique approach to customer relationship. With this backdrop, this paper enumerates one of such unique CRM initiative taken by the studied company and tries to measure its effectiveness by analysing the primary and secondary data taken on different dimensions of effectiveness. The paper has been presented as a case study of one non-banking financial company that has developed unique CRM initiatives. This case can throw insight into the ways financial companies are doing relationship marketing.