Customer Management: Approaches to Analyzing Behavior, Segmentation, Retention Practices, and Adding Value

This guide explores different approaches to analyzing customer behavior and segmentation, as well as retention practices and adding value for Murton Alexander Insurance Services Ltd. It covers topics such as traditional and current approaches to consumer behavior, different types of buying behavior, customer retention practices in different industries, and examples of customer-centric organizations. The guide also provides recommendations for managing customer relationships and improving organizational operations.

Customer Management

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Different approaches of analysing customers behaviour and identifying patterns......................3
Different approaches of segmenting customers and identifying target groups............................4
TASK 2............................................................................................................................................5
Explanation of customer retention practices for different industries...........................................5
Examples of adding value to customers.......................................................................................6
TASK 3............................................................................................................................................7
Examples of customer centred organization ...............................................................................7
Recommendations........................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Customers management is the definition of the process through which the relationships
between the organization and its people are considered to be made through sustainable success.
For this project the chosen organization is Murton Alexander Insurance Services Ltd. This is a
small scaled insurance organization which provides services related to wide range of products,
from car to home and also for commercial taxi. In this project the different ways in which the
organization deals with their customers have been examined. This project also talks about the
different skills which will support the customers relations.
MAIN BODY
TASK 1
Different approaches of analysing customers behaviour and identifying patterns
The different approaches to consumer behaviour are,
Traditional Approach
This approach is divided into two approaches,
Positivist Approach :
It lays emphasis on the causes of consumer behaviour which are proponents which can
directly relate to the effects of the different ways in which consumers make purchase decisions
(Islam, Jebarajakirthy and Shankar, 2021). The decision-making ad problem solving is the key as
there are some assumptions to this approach such as
Interpretivist Approach :
It is the approach which is referred to the approach of experimentalists. For this approach
the emphasis is given to the understanding the better needs. In this approach of consumer
behaviour the assumptions which are made are unique and different both between two customers.
It is hard for them to objectively measure the empirically tested generalization.
Current Approach

Materialism :
There are areas which implies with the consumer behaviours is shaped by the material
environment such as the money or passion.
Change :
This is the dynamic nature of the consumer behaviour according to which the process of
continuous motion and transformation is preferred.
Totality :
The consumptions of behaviour are considered to be interconnected in different forms
which influences the human behaviour.
Contradiction :
The internal contradictions like moods and emotions are considered to be the factor
which influences the complexity of the whole views of the consumer towards purchasing a well
consumed process (Ting and et.al., 2019).
From these approach the pattern which is analysed that towards every consumer there is a
certain need attached to them which influences their behaviour towards purchasing a certain
product. Similarly, the customers also have very similar outcomes to the ways in which they
address the different products. It can be said that the management of the organization is
considered to be the best way of differentiating the customers as per their requirements.
Different approaches of segmenting customers and identifying target groups
The different types of consumer behaviour are,
Complex buying behaviour :
These types of consumers are the ones which are buying really expensive and
infrequently bought product. For the insurance company these customers are the ones which
purchase insurance of high investment. These customers are considered to be very good for the
insurance company as they provide the company with the highest possible revenue.
Dissonance Reducing buying behaviour :
These customers are the one which have difficulties determining the differences between
brands. This gets them worried about the brands they need to choose. These customers are not
loyal towards an organization and can change preferences easily. Most organization focuses on
avoiding these customers as their behaviour make them less loyal to a certain company. For the

insurance services these types of customers are good for selling small scale services and products
(Gull and Pervaiz, 2018).
Habitual buying behaviours :
Such customers do not make different consideration as they have a very little
involvement of the product and the brand category. These customers make little to no
comparison between the different insurance companies before making the investment. Those
customers which have the habit of purchasing the insurance are seen to be the best for the
organization. It can be said that these customers are very loyal to the company if it is able top
provide them the services they desire or are expecting.
Variety Seeking behaviour :
This consumer behaviour entails the ways in which the customers tend to take services
from different organization. This is due to their lack of satisfaction from the products and
services of this organization. Those customers which are effectively seeking variety in their the
insurance services which they are looking for. These are the customers for which the want the
business to prepare.
TASK 2
Explanation of customer retention practices for different industries
Customer retention is the ability of an organization to retain its customers for some
specified period. This practice is considered to be the very effective for product or business
which tends to return to the same detection of how the business is able to continue to buy some
other ways of defects for another product or business. The role of the customer relationships
management is very important aspect for the customer relationship management is a technology
is considered to be helpful for managing the company's relationship and interactions with the
customers and potential customers. This method of CRM includes the marketing, sales, customer
services and support. It is also the platform which involves the business analysation and
customer intentions which help in improving the customers relationships. In different industries
this technology has been widely embraced throughout the business. Following are the customer
retention practices of different businesses,
Surprise Gifts and Discounts :
Customers are people which love to get appreciated that can show the customers for the
appreciation of the different surprise gifts and discounts. This is strategy in which the company is

able to increase the frequency of their purchase of their products or services. TD bank one of the
most convenient bank of America surprised the client with the personalized gift of Disney Land
tickets.
Providing excellent customer services :
The customer services provided by the company is also very important and effective in
the nature of getting a first glance towards the consideration of the excellent customers. Most
organizations believe in providing better customers services. Adobe is a company of IT software,
which was able to retain its customers by providing response to the customer service complaints
before they were made by the customers (Bidoni and Montreuil, 2021).
Customer surveys :
Customer surveys are not services, but they are very helpful for the organization in the
development of a better insight of different areas of issues and problematic patterns faced by the
customers. Taco Bell has been a very company which relied on its customer surveys for
measuring the problems for creation of a high quality, standards experienced. This company did
this by encouraging the employees to ask the customer about the areas in which they can
understand the incentive programs.
Being Active towards the community :
For an organization being an active community is a very effective measure that helps he
business in increasing the social consciousness which means to pay customer attention to
whether the organization provides the charity to the employees for taking part in the community
improvements schemes. Sony has done an exceptional job with the play-station community
providing an online space for gamers to connect with each other. This is a way in which the
organization is able to develop customer retention with the help of building relations between the
customers (8 Best Customer Retention Strategies Your Business Should Use, 2021).
Examples of adding value to customers
An organization is able to add value to the customers by differentiating the price of the
finished products and services to the cost of the input which involves production process.
Following are the examples through which value can be added,
Building a brand :

The development of the reputation of the quality of the product is a very effective way in
which it is able add value to the customers. For example Nike sells its products in a much more
innovative way in comparison to its production cost.
Delivering excellent services :
The services of the organization are considered to be personally very attentive and it
helps in making the difference of the high price of the medium. It is very common in the
insurance industry as the customers choose the organization which have better services.
Product features and benefits :
The organization has been seen to enable the functionality of the different versions o9f
the software which allows the organization in charging the higher prices in comparison to the
medium ones. Customers feel value added when they gain higher features and benefits from the
products.
TASK 3
Examples of customer centred organization
Following are the examples of customer centric organizations,
Starbucks :
This organization by building on the needs of the customers adapted the operations and
marketing for balancing the efficiency and effectiveness of the Starbucks. This was done by the
organization without sacrificing the quality of the products (Ho and et.al., 2019).
Patagonia :
Patagonia an organization was able to be customer centric through building trust. In this
process it utilized transparency. With the help of its environmental goals the company was able
to develop trust.
Zappos :
It is one of the excellent ways in which Zappos made the operations customer centric as it
provided excellent customers.
The benefits from the customer centric operations an insurance company can have are,
 Understanding the customers decision-making journey.
 Focusing on the customer benefits through sales.
 Supporting new customers for reduction of cost.
 Working with customers for improving efficiency.

Recommendations
For Murton Alexander Insurance Services Ltd it will be very important to ensure that it is
able to manage the customers. It is considered that the for the management of the customer
services the best practices it needs to focus on are, empowering the every employees so that they
can provide better services to the customers. It will also be a very effective practice for the
customers to manage the expectations. For nailing the first impression of the company it will be
a very essential task to collect the data as much as you can so that it can be used for offering
them better services. The personalization of the relationship with the customers is very important
for the insurance company to achieve the trust and believe of the customers. It can be said that
the company which wants to achieve success they need to maintain the focus on their business
towards the development of the organizational operations.
CONCLUSION
With the help of this project it can be concluded that Murton Alexander Insurance
Services Ltd focuses on customer management a lot as it provides the business with customer
retention and development. In this project with the help of different examples of organization in
various industries the customer relationship management has been understood.

REFERENCES
Books and Journals
Bidoni, Z.B. and Montreuil, B., 2021. Enabling Scientific Assessment of Large Scale
Hyperconnected Urban Parcel Logistics: Scenario-based Demand and Customer
Behavior Modeling. In IIE Annual Conference. Proceedings (pp. 1118-1123). Institute
of Industrial and Systems Engineers (IISE).
Gull, M. and Pervaiz, A., 2018, April. Customer behavior analysis towards online shopping
using data mining. In 2018 5th International Multi-Topic ICT Conference (IMTIC) (pp.
1-5). IEEE.
Ho, S.C., and et.al., 2019. A machine learning approach for predicting bank customer behavior
in the banking industry. In Machine Learning and Cognitive Science Applications in
Cyber Security (pp. 57-83). IGI Global.
Islam, H., Jebarajakirthy, C. and Shankar, A., 2021. An experimental based investigation into the
effects of website interactivity on customer behavior in on-line purchase context.
Journal of Strategic Marketing. 29(2). pp.117-140.
Ting, C.T., and et.al., 2019. Environmental consciousness and green customer behavior: The
moderating roles of incentive mechanisms. Sustainability. 11(3). p.819.
Online
8 Best Customer Retention Strategies Your Business Should Use, 2021[Online]. Available
through: <https://www.commbox.io/8-best-customer-retention-strategies-your-business-
should-use/>