The Influence of Customer Relationship Management on Customer Retention in the Insurance Sector, Malaysia

Abstract

Insurance is the service sector where competition is stiff to attract new or retain the current
customers among insurance organizations. Customer relationship management (CRM) is the
strategy what helps the insurance organizations to adapt to be competitive in the insurance
industry. CRM helps the insurance organizations to retain the customers through the CRM
practice to concentrate on the need of individual customers in the long-term period and
contributes a lot to customer satisfaction, loyalty, and retention. This research objective is to
examine the effects of customer relationship management on customer retention in the
insurance industry of Kuala Lumpur, Malaysia. The researcher adopted the CRM dimensions
which are customer orientation, knowledge management, CRM organization and CRM
technology as independent variables to examine its effects on customer retention.