Exploring the Difference between Stayers and Switchers as Corporate Customers for Life Insurance Companies in Sindh

Abstract

Purpose – Competitiveness plays crucial role retaining the old customers. This lays importance on understanding the factors that influence and drive customers’ retention. Basing on the above, the Purpose of this paper to investigate and examine whether the Stayers, Satisfied Switchers, and Dissatisfied Switchers of corporate customers differ in their overall satisfaction with the service provided by their existing/current life insurance company.<br />Methodology – This study has used survey via questionnaires for data collection. 75 corporate customers on the basis of convenience sampling were examined by using ANOVA and Discriminant Analysis techniques. <br />Findings – The results show that Dissatisfied Switchers (who switched -in) are the most satisfied, and Satisfied Switchers are the least satisfied customers. Similar sort of results were found for customer’s loyalty. These three groups were found to be strongly discriminated by the people factor (specifically the professional insurance employees). <br />Research limitations – The data is gathered from some big cities of Sindh through convenience sampling technique. There are many other cities where access of information is not possible due to cost and time management. Further research can be made on the same just by extending the sample size by considering more cities of Sindh. <br />Practical implications – As the findings of this study reveal that the Dissatisfied Switchers are of the primary concern for life insurance companies. Keeping in view the results the life insurance companies should treat these groups differently with regard to potential investment strategy.<br />Originality/value – This study has not been done before in Sindh. Although some studies are found in European countries but this has been done first time in Sindh and Pakistan

Factors Influencing Switching Behavior of Telecom Customers in Saudi Arabia

“…The expectation level of new customers is influenced by previous experiences with the service of former company (LaTour & Peat, 1980). Butt et al (2012) found that dissatisfied switchers are more satisfied in the new company than satisfied switchers and stayers. Also, they found that satisfied switchers are significantly less satisfied than stayers.…”

“…(Skogland & Siguaw, 2004). Butt, Bhutto, and Abbas (2012) argue that research about stayers and switchers are little and limited. They stated that switching and staying behavior of the customer is strongly related with the satisfaction level.…”

Segmenting Customers with Data Analytics Tools: Understanding and Engaging Target Audiences

“…This approach underscores the significance of prioritising the retention of current customers over the pursuit of new ones. By identifying and catering to the unique needs and preferences of distinct customer segments, an organisation can bolster its bottom line and foster lasting customer loyalty, solidifying its position in the market and sustaining long-term growth (Butt et al, 2012).…”

“…Segmenting a customer base enhances the depth of an organisation's relationship with its clientele. While the acquisition of new customers remains essential, the preservation of existing clientele is of paramount importance (Butt et al, 2012).…”