Shivangi_summer_internship_report_sbilife.docx

“LEAD GENERATION activities At SBI Life Insurance, Patna”

By

Shivangi Verma 56 Under the guidance of

Shri Sanjay Bhatnagar Regional Sales Manager Marketing Sbi Life Insurance, Patna

Prof. Neha Gupta Assistant ProfessorK J SIMSR

K J Somaiya Institute of Management Studies & Research May-June, 2013

.

DECLARATION

I

Ms. Shivangi Verma

Hereby declare that this project report is the record of th authentic work carried out by me during the period 4 May2015 to rd 3 June 2015 and has not been submitted to any other University or Institute for the award of any degree / diploma etc.

--------------------Shivangi Verma Roll No. 56

Date

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(On the letterhead of the Company/ Organisation, given and signed by the concerned authority in the Company / Organisation where student has done the Summer Training. It should also have Company/ Organisation Seal /Stamp.)

Certificate from Industry Guide

This is to certify that Ms. Shivangi Verma, a student of the Post-Graduate Diploma in Management PGDM-IB, has worked in our organization on a project assigned by us. To the best of our knowledge, this report is a product of the student’s own effort on the project conducted under our guidance and supervision.

Mr. Sanjay Bhatnagar Regional Sales Manger SBI Life Insurance, Patna GV Mall,Boring Road, Patna 3rd June 2015

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Certificate from Faculty Guide

This is to certify that Ms. Shivangi Verma, a student of the Post-Graduate Diploma in Management PGDM-IB, has worked under my guidance and supervision. This Summer Project Report has the requisite standard and to the best of our knowledge no part of it has been reproduced from any other summer project, monograph, report or book.

Dr. Neha Gupta Assistant Professor-Marketing K J SIMSR Vidyavihar, Mumbai-400077 Date

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ACKNOWLEDGEMENT Apart from efforts of the person doing the project, the success of any project depends largely on the encouragements and guidance of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of the project. I would like to show my deep regards to SBI Life for giving me an opportunity and a unique platform to earn exposure and garner knowledge in the field of marketing. I would like to express my sincere gratitude to Mr. Sanjay Bhatnagar and Prof Neha Gupta for guiding me through the project and always pushing me to my limits to achieve the best. I am grateful to Mr. Rajesh Arora and Mr. Jayant Singh who were there to show me right track and gave me support at critical junctures during the making of this project. It is due to their dedication and support that I have been able to successfully complete the project. I would also like to thank the Tennant team members who guided me throughout my journey. I appreciate the staff of SBI LIFE INSURANCE Co. Ltd. for their helpful nature and cheerful company

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Table of Contents Insurance marketing ........................................................................................................................... 14 People: ............................................................................................................................................ 14 Lead Management .................................................................................................................................. 15 The .......................................................................................................................................................... 15 Sales leads .......................................................................................................................................... 16 1. Group Products ............................................................................................................................... 26 2. Individual Products: - ..................................................................................................................... 26 1. Education of IAs .............................................................................................................................. 33 Age group of IAs ................................................................................................................................. 34 3.

Area of IAs .................................................................................................................................. 35

4.4.1 DESIGN PHASE OF ACTIVITIES FOR LEAD GENERATION ............................................................ 40 4.4.2 ACTIVITIES UNDER TAKEN FOR LEAD GENERATION (For IAs) ..................................... 49 3 days pre buzz event ..................................................................................................................... 49 

CROSS SELLING & CROSS REFERRAL ....................................................................................... 55

Feedback form for your Top Performer IA's ............................................................................... 66

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List of Tables Table No. Table1 Table2 Table3

Title ZONE WISE REGIONAL OFFICE SBI LIFE CLUBS &International Clubs Earning Potential of IA over a 5 Year Period

Table4.1

Education-wise Business Contribution-Insurance Advisors

Table4.2

Age wise Business Contribution-Insurance Advisors

Table4.3

Unit Managers- Business Contribution

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Page No.

List of Figures Figure No.

Title

Page No.

1.1

The Purchase Funnel

15

1.2

Market Share of Various Insurance Companies

27

2.1

Multi-Distribution Channel

73

2.2

Organization Structure and Department

2.3

Hierarchy in Retail Channel

4.1

COI Model for rural segment

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List of Charts Chart No.

Title

Page No.

1

Education wise business brought by IA

51

2

Age wise count of IA

52

3

Age wise business brought by IA

53

4

Area wise percentage of IA

54

5

Area wise business contribution of IA

55

6

No. of people insured

56

7

Market share of major players

57

8

Customer Satisfaction-LIC

58

9

Most preferred organisation

59

10

Customer Satisfaction-SBI LIFE

11

Brand Awareness

12

Cross sell & Cross Referral

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List of Abbreviations Abbreviation

Full form

1. CS

Corporate Solutions Group

2. COI

Centre of Influence

3. COT

Centre of Table

4. IA

Insurance Advisor

5. FA

Fashion Assistant

6. GC

Green Card

7. HNI

High Network Individual

8. MDRT

Million Dollar Round Table

9. TOT

Top of the Table

10. UM

Unit Manager

10 | P a g e

EXECUTIVE SUMMARY During the course of two months of my summer Internship in the Retail Agency Channel my focus area was activities for lead generation (for both customer and Advisors). I carried out the Market Research to understand the customers and advisors. My research is aimed at understanding the challenges faced by retail agency in SBI LIFE in Patna (Bihar, Jharkhand region) and flagging issues relating to competition in this sector. The life insurance sector has a small market and cover approx. 11% of population in India. As a growing sector, it is important that all players get a level playing field.SBI LIFE covers 7.7% market share in Individual New Business Premium (overall Industry including LIC) and operate with multi dimensional channel. In which retail agency channel contributes approx 42% of total business. This channel is mainly driven by advisors as they are the grass roots. So this report deals with various lead generation activities (LEADS-both in terms of IA and Customers) Through my study I have tried to substantiate this with facts and evidence proving that which segment of IAs is most productive and least productive. Besides, which segment is still unexplored to target as IAs. The purpose of this study is to better understand the middle market for life insurance and to identify segments that would allow the industry to better target customer needs. Methodology used is primary and secondary research depicted by graphs and charts, qualitative analysis of top performer IAs using sample test, brand awareness among people and customer satisfaction by surveys. Few surveys were conducted for HNI segment covering various government institutions like income tax department, central secretariat etc to check penetration of our advisors and brand awareness among this segment. Since may- June is recruitment time we are focusing more on recruitment activity for Insurance Advisors. We will be focusing on both rural and urban segment. I have also done brief study of this area and designed few activities which can be conducted later on.

The data collected through the surveys was statistically analyzed after identifying several variables from the survey results. The survey was carefully designed after various rounds of discussions, pilot surveys and literature review related to the Insurance Marketing. The research draws attention to the fact that Insurance Advisors in the age bracket of 65-74 and 45-54 are most productive and education wise Diploma holders and post-graduates and MBA people proved to be most efficient Insurance Advisors. Similarly among different profiles in Unit Managers, Assistant Branch Sales Managers were found to be most efficient. This once again proves how important it is to maintain long term relationship with customers, despite of adverse condition (for example-2007-08 crisis) as insurance selling is based on trust and faith. Many factors were unveiled from the responses collected, but some factors were very prominently visible. Factors like Networking, Self Motivating, Convincing Power, Customer Centric approach were found more dominant in our top 50 Advisors. So while recruiting and training these characteristics should be kept in mind. Further investigations uncovered the perceptions of the customers some of which were in contrast to the general perceptions. Although LIC being the legacy and market leader few of the customers were dissatisfied from it and are ready to switch to private players if they get better products and services are. In addition to this HNI Segment working in government 11

Institutes like Income Tax office, Central Secretariat were never been approached by our agents. Brand awareness and achievements about SBI Life was not known to many of them.

It is recommended: Encourage women employment in UM level so difficult to handle women IAs (execute activities for lead generation designed for women in the report) Quality of UM - UM appraisal should be based on both “G”(Goal) and “M”(Managerial) level ,currently it is only G level because sometimes there is gap in education profile of an well educated IA( ex-Doctor, CA…etc) and Unit Managers so they find difficult to handle these high profile IA’s. Innovative ideas should be encouraged and if certain activities are successful they should be practised in other branches too. Practise activities to create strong SBI Life brand and positioning our brand and products before HNI segment. But to pitch them we require quality leads-so recruitment activity and training and development should be structured and properly planned. New working youths (age-23 to 30) should be tapped as most of them had just started their career and are not insured and are looking for tax saving products and good ROI.

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Chapter1

INTRODUCTION

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Introduction Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your positive contributions. Insurance marketing The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organisation survives and thrives in the right perspective. Marketing --Mix For Insurance Companies to best meet the needs of its targeted market. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. Out of Exclusive three P’s most important one is discussed below which is related to this study: People: Understanding the customer better allows designing appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. From the survey results of a recent poll among B2B sales and marketing executives, the most often mentioned marketing goals for the year ahead are lead generation and branding/awareness initiatives.

Lead Generation In marketing, lead generation is the generation of consumer interest or inquiry into products or services of a business. Leads can be created for purposes such as list building, e-newsletter list acquisition or for sales leads. The methods for generating leads typically fall under the umbrella of advertising, but may also include non-paid sources such as organic search engine 14

results or referrals from existing customers. Businesses strive to generate "quality" leads, those with a higher probability of a desired outcome. Lead generation is the process of making contacts which may lead to a sale or other favourable outcome. The leads may come from various sources or activities, for example, digitally via the Internet, through personal referrals, through telephone calls either by the company or telemarketers, through advertisements, events, and purchase of lists of potential customers. A 2014 study found that 78% of respondents cited email as the most-used channel for generating leads, followed by event marketing and finally content marketing. Social media was found to play only a minor role in lead generation. Another 2014 study found that direct traffic, search engines, and web referrals were the three most popular online channels for lead generation, accounting for 93% of leads. Lead generation is often paired with lead management to move leads through the purchase funnel. Lead Management is a set of methodologies, systems, and practices designed to generate new potential business clientele, generally operated through a variety of marketing campaigns or programs. Lead management facilitates a business's connection between its outgoing consumer advertising and the responses to that advertising. These processes are designed for business-to-business and direct-to-consumer strategies. Lead management is in many cases a precursor to sales management and customer relationship management. This critical connectivity facilitates business profitability through the acquisition of new customers, selling to existing customers, and creating a market brand. The purchase funnel The purchase funnel, or purchasing funnel, is a consumer focused marketing model which illustrates the theoretical customer journey towards the purchase of a product or service. In 1898, E. St. Elmo Lewis developed a model which mapped a theoretical customer journey from the moment a brand or product attracted consumer attention to the point of action or purchase. St. Elmo Lewis’ idea is often referred to as the AIDA-model - an acronym which stands for Awareness, Interest, Desire, and Action. This staged process is summarized below: 

Awareness – the customer is aware of the existence of a product or service



Interest – actively expressing an interest in a product group



Desire – aspiring to a particular brand or product



Action – taking the next step towards purchasing the chosen product

The purchase funnel concept is used in marketing to guide promotional campaigns targeting different stages of the customer journey, and also as a basis for customer relationship management (CRM) programmes and lead management campaigns. 15

Fig1.1 THE PURCHASE FUNNEL Sales leads are generated on the basis of demographic criteria such as FICO score, income, age, HHI, psychographic, etc. These leads are resold to multiple advertisers. Sales leads are typically followed up through phone calls by the sales force. Sales leads are commonly found in the mortgage, insurance and finance leads

1.2 INDUSTRY PROFILE

Indian Life Insurance industry was liberalised in 2001.The insurance industry of India consists of 52 insurance companies of which 24 are in life insurance business and 28 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. Apart from that, among the non-life insurers there are six public sector insurers. As per IBEF report, India’s life insurance sector is the greatest in the world, which includes 36 cr policies, which are expected to increase at a CAGR of 12-15 % over the next 5 years. The growth of the life insurance industry is driven by the factors like nominal GDP growth rate, favourable demographic profile, high household savings, rising income levels and increasing urbanization, approvals by IRDA, declining saving interest rates and the products offered. Also the government of India has taken various initiatives to promote insurance penetration in the country like for example most recent one-“Pradhan Mantri Suraksha Bima Yojna”.

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India’s insurable population is anticipated to touch 75 crores in 2020, with life expectancy reaching 74years.Furthermore, life insurance is projected to comprise35 % of total savings by the end of this decade, as against 26 % IN 2009-10. In 1993 the Government of Republic of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000.The same year that the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA-started issuing licenses to private life insurers. Apart from Life Insurance Corporation, the public sector life insurer, there are 23 other private sector life insurers, most of them joint ventures between Indian groups and global insurance giants.

Source: www.ibef.org (INDIA BRAND EQUITY FOUNDATION) Fig 1.2 MARKE SHARE OF VARIOUS INSURANCE COMPANIES

1.3Need & Scope of the study The papers which form part of this report entitled “Lead Generation-Activities” is an attempt to understand and discuss the various issues that the SBI LIFE (Retail Agency Channel) is dealing with, and to bring to the fore new activities and target unexplored segment that will help in generating leads both in terms of Customers and IA.

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Motivation: SBI Life as a brand has high market value among private players in this sector.SBI Life extensively leverages the State Bank Group relationship as a platform of cross selling and has a ready distribution set up of over 18000 branches of SBI selling various insurance products. Despite all the supporting factors SBI Life has not been able to achieve a respectable market share. Thus, the main managerial problem proposition which was intended to be solved was to know the reasons behind various loopholes existing in retail channel and subsequently devise a strategy to reduce the flagging issues and challenges faced by this channel. The lacunae in company’s marketing and retail agency strategy need to be found out to know the gaps between company and the market. There is a need to find the target segment to generate best quality leads for this segment, customer’s expectations to build a supporting strategy and increase SBI Life’s market share in this region. An in depth insight into the problem proposed could only be gained by directly interacting with intermediateries and with the end customers.

OBJECTIVE OF PROJECT is to design activities for lead generation and modify various activities undergoing to strengthen the grass root of retail channel and to generate "quality" leads, those with a higher probability of a desired outcome.

Business problem faced in retail agency channel:  To convince people to become advisors, to generate good leads.  Innovative ideas for lead generation, recruitment of efficient advisors and their proper training so that they can bring good business, make use of their primary and secondary network both.  To attract HNI segment and to manage the HNI segment and attrition rate for advisors, employ concepts that may prove more effective in customer creation and retention.  Another big challenge is attracting committed and quality talent to the industry. It is important to have good quality sales managers and agent advisors to ensure needbased selling and right-selling.

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Chapter2

COMPANY PROFILE

19

COMPANY PROFILE 2.1 SBI LIFE:

SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the largest state-owned banking and financial services company in India, and BNP Paribas Assurance. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26% of the capital. BNP Paribas Cardif is the life and property & casualty insurance arm of BNP Paribas, one of the strongest banks in the world. BNP Paribas Group, having presence in more than 80 countries ranks highly in Retail Banking, Investment Solutions and Corporate & Investment Banking. Along with its 5 Associate Banks, State Bank Group has the unrivalled strength of over 18,000 branches across the country, arguably the largest in the world In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave the company a AAA/Stable/P1+ rating.SBI Life is one the top private players in the insurance sector of India. It offers life insurance policies, investment plans, unit linked life insurance plans. There are around 17,000 employees in the company, working in its 762 branches. Business: Continuing its track record of sustainable growth, SBI Life Insurance has posted a record profit of Rs. 820 crore, during the financial year ending March 31, 2015, an increase of 11% over the last financial year. Operational efficiency has been the key driver of SBI Life’s profitability. The Company is the once again market leader amongst the private life insurers, in New Business Premium (NBP), for the financial year 2014-15. Awards and Accolades of SBI Life Insurance (few latest ones):  SBI Life wins and best practice in learning transfer for improving business bottom line.SBI Life wins three awards at “World HRD Congress 2015” and “FINNOVITI”-Digital Innovation Award 2015, for Connect Life.  Most Trusted Private Life Insurance Brand 2011, 2012 and 2013 by The Economic Times, Brand Equity and Nielsen Survey  Most Admired Life Insurance Company and The Best Life Insurance Company in the Private sector by the BFSI 2014  Non-Urban Coverage - Life Insurance by the Indian Insurance Awards, 2014 for its wide presence and market penetration,Golden Peacock National Training Award, 2014 by Golden Peacock Awards Secretariat – Institute of Directors

2.1.1 Vision, mission and values of the company: 20

Vision: "To be the most trusted and preferred life insurance provider” Mission:"To emerge as the leading company offering a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer satisfaction and world class operating efficiency thereby becoming a model life insurance company in India in the post liberalization period ". Values:     

Trustworthiness Ambition Innovation Dynamism Excellence

2.1.2 Lines of business SBI Life has a unique multi-distribution model encompassing vibrant Banc assurance, Retail Agency, Alternate Channel, Emerging Business and Corporate Solutions distribution channels. SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products .SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every. Multi Dimensional Model CHANNELS

BANCA

Retail Agency

Alternate Channel

Emerging Business

CS

Fig 2.1 Multi-Dimensional Distribution Channel-SBI Life BANCASURRANCE: Banc assurance in its simplest form is the distribution of life insurance products through a bank’s distribution channel. Insurance companies see banc assurance as a tool for increasing in their market penetration and premium turnover. It was introduced in India when insurance industry was opened for private players. In India, a bank can tie-up with one general insurance and one life insurance companies as mandate by IRDA regulation. The banking sector in India comprises of more than 67,000 branches and around 20 crores bank accounts. RETAIL AGENCY: Another innovative distribution channel that could be used are the nonfinancial organizations. Agency Channel, comprising of the most productive force of over 110,000 Insurance Advisors, offers door to door insurance solutions to customers. Conventionally, insurance products have been sold through agents, who are not the regular 21

employees of the organization but the organizational success, however, critically depends on the effectiveness of these people. An agent is the public face of an insurance company. Most of the insurance clients never get to see anyone else besides the agent. They are known by a myriad of names like financial advisors, insurance agents, life advisors and certified financial consultants. Due to increasing competition, the skill set of these agents has also been undergoing a change. CORPORATE SOLUTION GROUP: This group is responsible for bringing business from corporate institutes. ALTERNATE CHANNEL: Initially it was known as Institutional alliance. Alternative channels such as banks, brokers, online i.e. direct, corporate agents and wire houses. Emerging Business: It comprises of approaches like cross selling (selling an additional product or service to an existing customer), Defence Marketing and Digital Initiatives.

2.2 ORGANIZATION STRUCTURE SBI Life operates in states in three zones. It has 14 regional offices as shown below. This report is for SBI Life, Patna region which has 25 branches in Bihar and 17 branches in Jharkhand. SBI Life was the top most private life insurer in Patna Region with 20% share of New Business Premium amongst the private life insurance industry in the last financial year. SBI Life has a strong force of over 6,000 well trained Insurance Advisors spread across 42 branches and two Processing Centers in the Region. In addition, there are over 1,200 Certified Insurance Facilitators selling insurance in 1,389 State Bank branches in the Region. Thus, SBI Life reaches 100% of the districts of Bihar and Jharkhand through its own offices, its advisors and Certified Insurance Facilitators at State Bank of India. SBI Life has been successful in insuring 9.5% of the total population of Bihar and Jharkhand, which is better than the country’s average insurance penetration of 4%.

Table1: ZONE WISE REGIONAL OFFICE ZONE 1 Mumbai Ahmadabad Bhopal Bangalore

ZONE 2 Chandigarh Delhi Lucknow

ZONE 3 Kolkata Bhubaneswar North East Patna Jharkhand

2.2 SBI LIFE ORGANISATION STRUCTURE

22

Bihar

Fig 2.2 ORGANISATION STRUCTURE AND DEPARTMENTS

2.3RETAIL AGENCY CHANNEL: As already discussed above that in this channel insurance products have been sold through agents, who are not the regular employees of the organization but the organizational success however, critically depends on the effectiveness of these people. An agent is the public face of an insurance company. Each Agent/ Advisor is mapped under Unit Managers as shown in figure below. So we can say they are the bottom of the pyramid but plays vital role for this channel. This is the reason they are given various club membership on specific targets and rewards and recognition too and apart from this there is also career progression scheme for IAs. All this is discussed in detail below.

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Fig 2.3 HIERARCHY IN RETAIL AGENCY CHANNEL

2.3.1 INSURANCE ADVISORS: WHO CAN BECOME AN INSURANCE ADVISOR?    

Anyone-A businessman, distributor of financial products, housewife, agent-post office, mutual fund, general insurance. Minimum 18 years of age. Education qualification-10th pass( As per new IRDA laws implemented from April 2015 for both urban and rural).Earlier for Urban(with population>5000) it was 12th pass. Willing to work hard and enjoys meeting people.

BENEFITS OF BEING AN INSURANCE ADVISOR:  

Unlimited earning potential Opportunity to have regular addition income 24

 

No investment(capital/infrastructure/manpower) Be your own boss, have no pressure with flexible and convenient work timing

As per Industry Research, SBI Life Insurance Advisor’s productivity is around three times that of the industry average (Productivity= No. of policies sold per person per year) REWARDS AND RECOGINITION FOR INSURANCE ADVISORS:     

Premium SBI Life Club Membership# Membership to International Clubs( MDRT/ COT/ TOT ) Opportunity to join SBI Life Insurance Company as Sales Managers through “Utkarsh” program Win exciting prizes by participating in regular contests announced time to time Prizes include gift cards, utility items, consumer durables and incentive trips to exotic destinations

SBI LIFE CLUB Rising Star Club

Annual Premium or for Qualifying# Rs.2 lakhs

Divisional Sales Manager Club

Rs.3 lakhs

Area Sales Manager Club

Rs.5 lakhs

Regional Sales Manager Club Regional Director Club Country Head Club Executive Director Club Managing Director Club

Rs.10 lakhs

INTERNATIONAL CLUB Million Dollar Round Table(MDRT) Court of the Table(COT) Top of the Table(TOP)

Annual Premium or for Qualifying# Rs.33.8 lakhs in a Calendar Year Rs.1.01 Crore (3 times MDRT) Rs.2.02 Crore (6 times MDRT)

Rs.20 lakhs Rs.30 lakhs Rs.50 lakhs Rs.75 lakhs

Table 2: SBI LIFE CLUBS & Industry International Clubs

CLUB MEMBERSHIP BENEFITS:   

Rewards in cash ranging from Rs.750 to Rs.75,000 Petrol Vouchers Office Allowance CAREER PROGRESSION FOR IAs: 25

 

Promotion to UM Further promotion within UM group to Branch Sales Manager, Divisional Sales Manager, Area Sales Manager

An IA can aspire to join the Managerial Cadre of the company under the “UTKARSH” Scheme. EARNING POTENTIAL OF ADVISORS: From the table below we can see earning potential of an IA over a period of 5 years. If we assume an advisor in his first year sells on an average 5 policies in a month then he/she can sell 60 in a year. Assuming by next year his efficiency will increase and so will no. of policies. In addition to it average premium for SBI Life products is Rs. 25,000.Now applying the commission rate on new and renewed policies below chart is prepared. (All values in Rs.) YEAR NUMBER OF POLICIES PREMIUM(AVERAGE-RS.25,000) COMISSION @10 % (A) RENEWAL PREMIUM COMISSION @5 % (B) TOTAL COMISSION EARNED(A+B)

YR 1 YR 2 YR 3 YR 4 YR 5 60 80 100 120 150 15,00,000 20,00,000 25,00,000 30,00,000 37,50,000 1,50,000 2,00,000 2,50,000 3,00,000 3,75,000 NA NA

1,50,000

15,00,000 35,00,000 60,00,000 90,00,000 75,000 1,75,000 3,00,000 4,50,000

2,75,000

4,25,000

6,00,000

8,25,000

Table3: Earning Potential over a 5 Year Period

2.4 PRODUCT PROFILE SBI Life Insurance products are of two types- Individual and Group Plans. Few of them are discussed below: 1. Group Products RiNn Raksha Scheme: - This scheme covers the House, Vehicle, Education and Personal Loans. It is a Group Credit plan, where in unfortunate event of death the loan outstanding amount (according to EMI Schedule) is adjusted with the claim received from SBI Life Insurance Co. 2. Individual Products: - These products can be sold by the Certified Insurance Felicitators (CIF, a staff member specifically trained, as per IRDA norms, for sale of individual insurance products).At present the main products for sale are:26

Saral Shied It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry age: 60 years Maturity/vesting age: 65 years Min. term 5 years, Minimum Sum Assured Rs.7.50 Lacs/Maximum Rs. 24.00 Lacs, Riders: Preferred Term/Accidental Death Benefit/Accidental Total Permanent Disability is also available. Smart Shield It is an individual without profit pure term insurance plan. Minimum age: 18 years Max Entry age: 65 years Maturity/vesting age: 70 years Min. term 5 years, Minimum Sum Assured-Rs.25.00Lacs/Maximum-no limit, Riders: Preferred Term/Accidental Death Benefit/Accidental Total Permanent Disability is also available Smart Money Back It is an individual endowment assurance product with money back plan where in case policyholder is alive at specific durations (end of policy years).During the policy term, a fixed % of the basic sum assured is paid to him as survival benefit in fixed number of instalments. Minimum Age: 14 years Max Entry Age: 58 years Maturity/vesting age: 70 years, Term 12/15/20/25 years. Subh Nivesh It is an individual participating traditional savings cum whole life endowment plan primarily designed as savings vehicle with protection along with income generation and wealth transformation. It is a regular premium plan for a term varies from 5 to 30 years with a minimum annual premium payment of Rs. 6000.00 per annum and minimum/maximum entry age is 18/60 years. Smart Wealth It is an individual Unit Link single premium insurance product. This product provides the policyholders two types of investment return, namely Guaranteed Return and Market Linked Return. Minimum Term 10 years, Minimum Premium Amount Rs.50000 Smart Pension It is a ULIP pension product with minimum single premium mode of Rs. 50,000/-and no maximum limit of premium. It has 4 fixed policy terms: 10/15/20/25 years. The minimum & maximum entry age is 30 years and 65 years respectively Minimum Term 10 years, Maturity Benefit: 1/3rd of commutable, 2/3rd Annuity (compulsory), Death Benefit, Fund Value. Smart Scholar It is a unit-linked non-participating product for securing the future needs of the child. The risk cover is on the life of the proposer who is the life assured. The nominee at the point of sale must be a child whose interest the policyholder wants to protect. Entry age for child-0 to17 years, for parents 18 to 57 years. 27

Smart Elite It is an individual unit-linked product designed mainly for preferred (HNI) customer. It offers Limited Premium paying Term and Single Premium payment option.

Chapter3

RESEARCH METHODOLOGY

28

RESEARCH METHODOLOGY OBJECTIVE: 

To segment Insurance Advisors on the basis of Age, Education and Occupation.



To analyse which segment brings most business



To segment various designations of Unit Managers and IAs mapped under them, how much target achieved and remaining and business brought by them.



To find behaviour analysis of Top performing IAs, what makes them more successful than others, what lacks in other IAs



To identify % of dissatisfied clients of SBI Life Insurance’ s biggest competitor, knowing whether all individuals having spare income buy insurance policies, most customer preferred which organization and their awareness about SBI Life

RESEARCH DESIGN: Present study is a Descriptive research conducted in SBI LIFE, Patna. It specially focuses on IAs and UM’s of Bihar and Jharkhand region. I have used Descriptive research because I am interested in knowing which segment brings most business and is most productive so that accordingly I can design my activities for lead generation.

3.1 PRIMARY RESEARCH

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Beyond the secondary research, primary research was carried out in Patna. Primary research involves collecting data about a given subject directly from the real world. This report consists of two Primary researches.

1. Qualitative Analysis of the findings to determine the behaviour analysis of Top performing IAs 2. Quantitative Analysis on Brand Awareness and Customer Satisfaction SAMPLE SIZE: The research was conducted with the sample size of 75 for the first primary research and 50 for second primary research.

PRIMARY DATA:

For surveys on top performer IAs and consumer brand awareness and customer satisfaction primary data was collected. The steps undertaken for the first primary research were: Survey the concerned individuals from various Government Institution in Patna, people visiting malls, shop owners of many areas etc. Quantitative Analysis of the findings to determine the factors affecting the buying behavior of the customers, brand awareness, satisfaction and scope of cross referral and cross selling. The target segment consisted of:       

Central Secretariat (New Sachivalaya), Patna Income Tax Office, Patna Central Water Commission, Kasturba Path, Patna P & M Mall, Kurzi, Patna Central Mall, Dakbangla Chowaraha, Patna Boring Road, Patna Gandhi Nagar, Patna

For the second primary research data was collected from various other branches of SBI Life in Patna.

3.2 SECONDARY RESEARCH 30

The research was initiated by finding out details of existing Insurance Advisors and Unit Managers in entire Bihar & Jharkhand Region SAMPLE SIZE: The research was conducted with the sample size of 5578 and with the sample size of 230 UMs and IA mapped under them. SECONDARY DATA: Secondary data is collected from company records & file. This report consists of two secondary researches: 1. Demographic Analysis of IAs 2. Analysis of Unit Managers

31

Chapter 4

DATA ANALYSIS AND INTERPRETATION

32

4.1 DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC WISE ANALYSIS OF IA As discussed in chapter 3, first secondary research was conducted to understand the demography of Insurance Advisers. The following data analysis was done to examine which segment is most efficient and productive and vice-versa.

1. Education of IAs TABLE NO. 4.1

EDUCATION TYPE SSC HSC Diploma Graduate Post Graduate MBA Grand Total

% business Per person COUNT OF IA Business brought contribution Contribution 566 111335022.6 10.79132862 196704.9869 3767 608456398 58.97562858 161522.8028 19 4728094 0.458278221 248847.0526 1340 274321480.7 26.58905685 204717.5229 99 31513440 3.054491561 318317.5758 7 1353768 0.131216171 193395.4286 5798 1031708203

(Source: - Data Records from company) Graph No.1: Education wise Business brought by IAs

33

INTERPRETATION & SUGGESTION:Though the highest % of business is brought by HSC group but their per person contribution is least. From the above table we can interpret that per person contribution of post graduate is highest and per person contribution of diploma holders is second highest.

Age group of IAs TABLE NO. 4.2 year of birth 1991-97 1981-90 1971-80 1961-70 1951-60 1940-50 total

age 18-24 25-34 35-44 45-54 55-64 65-74

Business COUNT OF per person brought % contri IA % count contri 73740748.01 7.147442249 729 12.57330114 101153.2895 352881452.7 34.20361024 2268 39.11693687 155591.4694 411074582 39.8440742 1893 32.64918938 217155.0882 167548996 16.23995966 766 13.21145222 218732.3708 21894843.58 2.122193418 122 2.104173853 179465.931 4567581 0.442720237 20 0.344946533 228379.05 1031708203 5798

(Source: - Data Records from company) Graph No.2: Age wise count of IAs

Graph No.3:Age wise Business brought by IAs

34

INTERPRETATION & SUGGESTION: Out of the 5578 IAs in entire Bihar and Jharkhand Region, max of them are from age bracket 25-34and then from age bracket 3544.Max business is also brought by IAs under age bracket 35-44.

But when it comes to per person business contribution max business is made by IAs under age bracket 45-54 and 65-74.As we can see no of IAs in age bracket 65-74 is least but business brought by them is good enough. So we should focus in targeting this retired segment of people.

3. Area of IAs Chart No.4:

Graph No.5: Area wise business contribution of IAs 35

INTERPRETATION & SUGGESTION:

28% Insurance Advisors (IAs) belongs to rural area and contribute 24% of business and 72%

IAs belongs to urban area and contribute 76% of business. So we can say there is enough scope in rural segment to grow.

4.2 DATA ANALYSIS AND INTERPRETATION

36

ANALYSIS OF UNIT MANAGERS As discussed in chapter 3, second secondary research was conducted to segment various designations of Unit Managers and IAs mapped under them. The following data analysis was done to examine which segment has achieved its target and which segment is yet to achieve, business brought by them. TABLE NO. 4.3

INTERPRETATION & SUGGESTION: Out of total 258 UM’s Agency Manager are maximum in no. i.e. 48 and have maximum no of IAs mapped under them i.e. 1121.Inspite of being max in terms of sales force but per person contribution is comparatively low. On the other hand Assistant Branch Sales Manager are most efficient one as their- per person contribution is maximum. As they are the seniors ones and with the company since long term we can say one of the reason behind their success is their long term relation with customers. In spite of 2007-08 crisis they didn’t turned faces from their customers, they faced them and convinced them that market will become stable and grew in long term. So it is very important to maintain long term relationship with customers and should not avoid them during crisis or mishap 37

4.3Univariate Statistical Analysis- One Sample Test 4.3.1 Instrument To analyze the data collected from first primary research i.e. behavior analysis of Top Performer IAs and perform Statistical test to get the results SPSS Tool from IBM has been used Refer the APPENDIX G: Analysis from SPSS

4.3.2 Data analysis: As explained in the previous section, data was collected using the survey of concerned people (Top Performer Insurance Advisors) from various Unit Managers in Patna Region. The qualitative analysis technique used on the gathered data The parameters were rated by the respondents on a scale of importance, giving the level of importance they feel the parameter holds for them while judging the Top Performer IA mapped under them. The response was collected on a Likert scale. The responses to these parameters were then coded into numeric data by assigning each level of importance a numeric value: Very Good Good Neutral Poor Very Poor

1 2 3 4 5

Objective: One sample test will be used Justification: Interval scale is required to use one sample test Data analysis H0: µ=3 The average perception of the managers for all the characteristics to become successful Advisors is not different from 3 i.e. central or neutral H1: µ<>3 The average perception of the managers for all the characteristics to become successful Advisors is different from 3 i.e. central or neutral Factors Communication Skill Convincing Power

Hypothesis H0: µ=3

p-value .000

Dec(alpha/2=.025) P
H1: µ< rel="nofollow">3 H0: µ=3

.000

P
H1: µ< rel="nofollow">3 38

Stout(Dabang)

H0: µ=3

.061

P>a accept

Networking

H1: µ<>3 H0: µ=3

.000

P
Customer Service

H1: µ< rel="nofollow">3 H0: µ=3

.000

P
Self-Motivating

H1: µ< rel="nofollow">3 H0: µ=3

.000

P
Street-smart(Jugaad)

H1: µ< rel="nofollow">3 H0: µ=3

.000

P
H1: µ< rel="nofollow">3

Interpretation: From the above table it is observed that only for one characteristic i.e. Stout, null hypothesis is accepted as p>alpha so we can say that there is no significant difference in average perception for this characteristic, therefore we conclude that there is no favourable and unfavourable opinion of managers w.r.t the above mentioned characteristic. For the rest characteristics networking with friends p value < alpha so we reject null hypothesis and we accept alternative hypothesis so we can say there is significant diff in avg perception for the mention characteristics. We will refer one sample statistic one sample statistic parameter Networking Convincing Power Communication Skill Customer Service Self-Motivating

Mean 1.5882 1.8235 2.000 1.8824 1.5588

decision Strongly favourable favourable favourable Strongly favourable

From above table it is observed that managers think that the networking and self motivating characteristics are extremely useful to become top performer IA, convincing power and customer service is also quite useful characteristic that makes an IA top performer. Communication skill and street smart can be useful depending on an individual

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4.4.1 DESIGN PHASE OF ACTIVITIES FOR LEAD GENERATION After undergoing both primary and secondary research various activities have been designed for lead generation. Major findings from research such as- target women to bridge gap between Women IA and Unit Managers, target retired people and post graduates as they are most productive segment, have been covered while designing activities. Since rural segment covers only 26% and contributes 24% of business, few activities are exclusively designed to promote this segment as we know rural market is emerging market and next upcoming market of our country. Apart from this these activities are targeting to unexplored segment and also modified version of few past successful activities.

ACITIVITY 1: APPARTMENT DRIVE Target Segment: Women living in societies and apartments through secretary of those apartments (we can even target these secretaries). Why: Women prefer flexibility in work, women are more social, good convincing power, prefer to earn extra money if given opportunity. Example-‘FENOMENA’-initiative to enrol women (Tata AIG), helps women to become stronger & deal with real world better. Discuss success story by giving Real Scenario examples- Few top MDRT member are females(in Sbi Life)-Anju Singh, Sahanaj Parween,Asha Kumari, Usha Kumari (earning more than 50k/month). Activity to be taken place-Canopy activities in apartments or societies involving secretary of those apartment to convey message and ask them to join AWARENESS about any disease or small health camp in their own apartment initiated by SBI LIFE. But requires 1-2 days pre buzz to gather enough crowd on the day of activity (pre buzz can be created by paper inserts two day before and few posters relating to the topic, time and venue of activity) Time-4 to 5(can be changed as per their convenience), best time for activity is 8th maywomen’s day Also describe benefits given to our advisors, various club member ship, success stories of our top women performer if possible call one of them on the spot. Few products such as SMART CHAMP need to be discussed – so that selling of policies based on life-stages can be done. (so that if not IA then they can become our customer).

40

ACITIVITY 2: Morning Activity #2-“FAVOURITE DADAJI/DADIJI contest” Target Segment: Old age, retired people (VRS), or 50+ Why: Retired govt officials such as Advocate, CAs, Clerks have good social network (lot of clients during their service period) and also their word of mouth matters as their experienced is countable. Also in our research we have seen this segment brings good business. Activity to be taken place-Canopy activities in parks or roads where they go for morning walk and sit with their friends and discuss retirement plan. Conduct some customer engagement activity such as-ask them to fill survey on choose best post retirement activity, FAVOURITE DADAJI contest/FAVOURITE DADIJI (ask few sets of question related to their grand children like how much time you spent with them? which game you play with them? how you convince them if they don’t listen you, best story you have told them and they have told you…..poems recited by them.. etc.). Award to be given is small piggy bank by SBI LIFE for their grand kids… Time-6 to 7:30(can be changed as per their convenience) MESSAGE to be conveyed is they still have chance to earn much extra money apart from pension by leveraging on their social contacts. Flexible work hours Also describe benefits given to our advisors, various club membership, success stories of our old age performer (age group 50+ constitute 20% of our Advisors) Few products such as SMART CHAMP,(so that if not IA then they can become our customer for their grand children or ask their children to buy our products etc).

ACITIVITY 3: UNIVERSITIES/COLLEGE DRIVE-#BACK TO COLLEGE Target Segment: COLLEGE Students –Bcom, BBA, MBA grad who want to do summer internship+ want to build career in insurance field (even various girls’ college-Patna Women College, CIMAGE, A.N College, and L.N Mishra College). Why: Prefer to earn extra money, can leverage their network as well as their parents, not much problem with communication skills and good convincing power. Though this age group is not Activity to be taken place-Guest lecture to be conducted in their colleges to convey them concept of insurance advisors, growth in this field(as per “UTKARSH”),align company’s mission, vision & values with IA’s mission ,vision ,values ,leverage on BRAND of companyemphasis on accreditation of company(ranked 36th in best place to work, most trusted private life insurance as per Nielsen and ET) 41

Time-prefer morning slot (can be changed as per discussion with placement committee) MESSAGE to be conveyed is that reward for a hard working insurance advisors are comparable to other professionals-engineer, doctor, CA’s etc Also describe benefits given to our advisors, various club membership , success stories of our top performers ,between 25-35 age group(how this group constitute 40% of our sales force in IA’s and contribute 35% of business),Foreign exposure to MDRT members etc. Activity3.1- Similar activity but target audience here is professor and teachers of these institutes. As seen during surveys penetration of SBI Life among these teachers is very less so they can be our target customer and if possible pitch few of them for becoming advisors as it will generate quality leads both in terms of customers and advisors

ACITIVITY 4: Target Segment: Small and Medium scale business-medical shops, boutiques, parloursaloons, internet café, photo copy shop, kirana stores, and coaching centres Why: Prefer to earn extra money, can leverage their network, these individuals are well established& in regular contact with their client & if paid well can go long way in selling insurance plan. They even interact with their client on daily basis & often provide even credit service in terms of monthly billing. Activity to be taken place-Divide area wise all such places ,prepare small pamphlets specially for these target segment depending on their interest and how they can earn more money out of their existing business .Give examples of few IA’s working in this field and how successful they are along with their business Time- afternoon time when not much customer in their work place so that they can give you their valuable time Also describe benefits given to our advisors, various club membership, success stories of our top performers, foreign exposure to MDRT members etc. Few products can be explained which are related to them.

ACITIVITY 5: Target Segment: Few unexplored Segment till now that can bring good business if targeted properly. GROUPS

PLACE

ACTIVITY 42

PHARMACIST/ MR’s

On their seminars or monthly meeting or associations

Since they have selling experience and their work require them to meet hundreds of people daily can leverage their skills and become good financial advisors. They can get easy access to data of hospital(for example-list of newly born parents).So there comes need and occasion to give them advise to be financially secure. Even these people meet 10-20 new people daily and talk to them so enough databases to leverage.

NURSES/Compounders/ Attendants of Doctors

ACCOUNTANTS/ Small Advocates/ Clerks

Various government officesActivity is to approach Central Secretariat ,Patna High such people who work for Court etc senior government officials because they are street smart people and n no of people approach them for favour so in return they can sell our products.

BHMS/BAMS Doctors

Sponsorship snacks in their association meeting

Present small ppt on why to become IA and how they are the family doctors of many families so they know in and out about their needs and can easily pitch

Seasonal Employees(merchant navy, sugar industry…etc)

NAVY Institutes in BiharIndian Ocean Marine Academy, Amanatullah Marine Academy,

Merchant Navy people need to be extra secure about their family since they are far away from them for a long period so easy to sell them various product as a customer also they have huge network

B P Marine Academy (many others around 10-15). 43

among themselves so can also work as advisor during their off role period. Even students pass out from these academies get their first ship after 7-8 months by that time they are in need of money so can be targeted to leverage this opportunity. Government retired /Railway retired/CRPF

Sponsorship snacks/Garlands in their farewell or retirement ceremony

Show them various products beneficial for them (try to pitch them as customer because they get huge sum of money that day and can easily invest certain amount in insurance).Meanwhile also discuss their post retirement plan and give them an option to become our financial advisors(tell them benefits of various club membership, foreign exposure etc)

Wives of Civil Service Officers-IAS/PCS

Sponsorship their kitty parties or club meetings

These are HNI Segment they can be our good customer for policies likeAlso this region has total

ACITIVITY 6: Target Segment: Primary and junior school teachers Why: Prefer to earn extra money, can leverage their network, can target customers from both rural and urban area and “word of mouth” of teacher really counts, teachers can easily communicate their ideas and have good convincing power. They have huge network (there are more than 50k employee in these posts)

44

Activity to be taken place-Canopy activity in front of office where their monthly meeting (BRC Meeting, CRC meeting) takes place OR can sponsorship snacks for them after meeting and then convey their idea Time-after meeting MESSAGE to be conveyed is that this profession requires three simple things-Client First, Networking and Perseverance Pays and they are already good in these things .Besides reward for a hard working insurance advisors are comparable to other professionals-engineer, doctor, CA’s etc Also describe benefits given to our advisors, various club memberships, success stories of our top performers, how many contract teachers are doing well in rural segment, foreign exposure to MDRT members etc. Few products can be explained which are related to them.

ACTIVITY 7: “My Papa Is the Best” Event to be organized on Father’s Day. Such occasions should not be missed to create touch points and awareness. VENUE: Apartments and Societies ACTIVITY: “Card Making Competition” in which students from entire apartment can participate and showed the love for father by making beautiful cards. Then call both parents at the time of award distribution and show them beautiful cards made by their kids. Then our advisors can talk to them as have they secured their child’s future…etc

ACTIVITY2: VENUE: Malls and if possible arrange projector and play latest advertisement of Sbi life (#papa hain Na), also “great dad campaign” advertisement…etc ACTIVITY: Games such as: Small games like fathers who had their children pictures on their wallet or vice versa-give chocolates etc as prize. Keep a white board near the canopy and ask to write messages for their father and ask them to write phone number below it then we will call and gift the best winning message. Do you have selfie with your father…? (If yes, show and take chocolate) Give them small quizzes to be filled by both fathers and children. Example-complete the sentences-1.Responsible fathering is………………, 2.To secure my children’s future……….., 3)……………makes me happy father etc. 45

GIFTS: Chocolates, mugs on father’s day, small batches written “great dad” or “best dad”…etc

Since only generating Leads is not enough –follow up leads, recruit efficient candidates, train them well, convert into customer or advisors and than last but not the least feedback and customer satisfaction is also equally important. So last three activities are designed keeping accordingly:

ACITIVITY 7: Target Segment: HR and Managers who recruit IA’s Why: Because another challenge in this industry is attracting committed & quality talent to the industry. Important to have good quality sales manager and agent advisors to ensure “need-based selling & right selling” because we have lost many customers due to wrong selling and dissatisfied customer creates lot of negative publicity. Activity to be taken place-Train them to take structured interview, take behavioural oriented notes during interview, ask open ended question, Time-during IA’s interview ACITIVITY 8: Target Segment: Selected IA’s Why: Because another challenge in this industry is attracting committed & quality talent to the industry. Important to have good quality sales manager and agent advisors to ensure “need-based selling & right selling” because we have lost many customers due to wrong selling and dissatisfied customer creates lot of negative publicity. Activity to be taken place-In post recruitment training: 46

 ORIENTATION: align mission , vision , goal ,culture of company with IA’s mission , vision , goal and culture  CASE METHOD-Identify problem(need in this case) , analyze problem(of customer) ,propose solution ,choose best solution(let customer choose best solution )  ROLE PLAYING: Situation –real life  IN-BASKET TECHNIQUE: Allow them to take no of decisions in allocated time, quality of decision , priority chosen  OFF JOB TRAINING: Supported by audio visual ,include session to show various campaigns of SBI LIFE and tell them how to connect with them to people(for exrecent : “GREAT DAD” Campaign, #PAPA HAI NA ) Time-Post recruitment training Message to be conveyed is that with increasing level of income, cost of living, and longer life expectancy, IA need to be trained and be their primary source of financial advisors. The Customer-Advisor relation need to be deepened by suggesting life-stage related selling. ACITIVITY 9: Target Segment: Existing Customer/New Customer Why: It is not only imp to focus on new customer but also in retaining old or existing one .As we can see there is significant % of customer who collapse their policies in between or surrender it. Activity to be taken place PROVIDING GOOD SERVICE( CRM Department at zone ,division and branch level for providing better and quicker service to policy holders, solving queries)  REFERALS through existing customer and giving certain gifts (suppose if they referred 5 and out of them 3 converted)  TARGET MARKETING(taking data from nearby hospitals about newly born babies parents and pitching them for products related to education etc , newly married couples from courts …etc)  CRE(Customer Relation Executive) ensures efficient delivery by making customer touch points, ensure retrieval of service failures, should conduct campaign for closer customer relationship, study “customer satisfaction level” and also conduct time bound surveys to assure the service quality & suggest appropriate measures for improvement. ACITIVITY FOR RURAL AREAS: As we know in rural areas best tool of marketing is “word of mouth”. So target those people whose word of mouth really influences these people. Even while interacting these segment it was found brand awareness about SBI Life is almost nil in this segment. 47

Target Segment: Rural segment Why: In India bottom of pyramid can’t be neglected as they contribute huge no in our population. Also seen from data analyses that rural sector contributes 28% of IA’s and contributes almost 24% of business. Activity to be taken place-Follow COI Model for Rural Segment

Fig4.1 COI MODEL FOR RURAL SEGMENT

Meet people in villages (mainly opinion leaders ),village sarpanch, panchayats and influence them to become our IA’s as they comes under SEC R1 who have exposure to urban environment and people in villages come to them to seek advice .  REFERALS: Rural communities tend to be closer than urban societies and reference groups have greater importance. Relatives and people from the same cast and community are important reference groups.  HEALTH CAMPS: Organize health camps in villages to increase awareness of SBI LIFE also take leverage on parent name.(Conduct camps for awareness of few major diseases which might affect them and their children, then relate with videos how life insurance is protection shield for their family if any mishap takes place)  CROSS-SELLING via RELATIONSHIP PROGRAMS: Relationship programs have also been aimed to cross sell other products of same company. Example-SBI launched SBI Tiny, deposit scheme for rural areas where depositors could open accounts as small saving account in SBI with zero balance and deposit amount as small as 5 RS. This initiative was essentially aimed at developing a relationship with villagers, which could evolve opportunities to offer loans and insurance to same customers. 48

Even participating in more CSR activities, tie-up with NGO’s will built good relations with rural segment.

4.4.2 ACTIVITIES UNDER TAKEN FOR LEAD GENERATION (For IAs) ACTIVITY EXECUTED IN RURAL SEGMENT 1)“RECRUITMENT ACTIVITY” VENUE: Activity took place in “Dhanaura block”-Patna from 15-17 may. 3 days pre buzz event-our team visited various village panchayats talked to people there. Even hired auto n 4 wheelers with loud speaker announcing for main event going to held on coming Sunday –“Financial sector” recruitment activity- avail chance to become Insurance Advisors @ SBI LIFE (all announcement in Hindi ).Besides distributing small form to fill personal information and asking them to bring it in Sunday at BDO office for further activity . Grand Finale-On Sunday around 500 people appeared .After taking their details presentation was showed and shortlisted people were called to office interview. Finally around 300 people were called for interview in three days in slot of 100 each. Suggestion: Interview was structured one as proposed in one of the activity in design phase so that candidate took it as a serious one and was counselled to fill the skill gap by our training program. During interview to check their networking they were given a form to fill at least ten names with their phone number, occupation, income whom they will like to give advice about our financial products. Later on selected candidates were called for training .Since enough no. of people did not turn up for these training sessions so this was another major challenge in this field. So this time counselling done during interview regarding skill gaps turned fruitful and ratio of people turning up in trainings increased from 50% to almost 80%.

ACTIVITY EXECUTED IN URBAN SEGMENT 1.“ROJGAAR MAILA(JOB-FAIR) ACTIVITY” VENUE: Activity took place in “Miller School”-Patna from 11th June. 49

Rojgaar Mela is funded by Bihar Sarkaar and organised twice in a year. Our team organised our canopy from 9am in the morning. There were various other competitors too like HDFC Life, ICICI Prudential, and Max Life etc. So in order to increase our visibility we displayed two banners of SBI Life along with one umbrella and one standee. Also since it was a huge ground I asked one or two member to enquire few candidates where they were filling form .I myself asked few candidates what sort of profile they are looking for ,their educational background etc. In return when they asked who I am I told we are from SBI Life stall no 24, we are looking for confident people like you for our Sales Officer and Financial Advisor post. This helped in diverting the creamy layer towards our stall in that huge activity. We collected more than 250 forms till mid day. While collecting form we marked few forms seeing their profile and body language and networking area whom we will definitely contact. SUGGESTION: This activity could be more fruitful if our Unit Managers are bit agile and active. They should respond to people’s query regarding job profile etc. Banners displayed were related to SBI Life products-smart champ etc. Rather it would be good if it was related to IA and their rewards and recognition(in Hindi).There was mismatch in the profile entered while online registration and displayed in stall(such small mistakes should be kept in mind though both term mean same but still created confusion among participants)

2) CROSS REFERAL IA- ACTIVITY In this activity each IA is asked to refer 5-10 friends or relatives. But who do not share much common network. Once list of friends is prepared then convince them to become our advisors. SUGGESTION: Since in this activity it is possible advisors have fear that their referral will eat out their network if comes in same business. So to convince them is difficult. So managers should first enrol one customer under that IA. Then take that advisor for small treat like a cup of coffee or lunch their they can just glance through his contacts while chatting and ask him about his friends and list down 5-10 names from his contacts and then from next day onwards try to meet all of them and try to convince them Even I have designed one such activity for “cross referral customers”. In this activity few loyal customers are contacted and asked to refer few potential friends or relatives who can buy our products. We can give them certain incentives like gift hampers if 2 or 5 of their referred friends turn out to be our customer.

50

CHAPTER 5

FINDINGS & INTERPRETATION

51

4.1 Interpretations and Findings The following were the findings based on the quantitative analysis of the gathered data Primary research done on brand awareness and customer satisfaction: 

22% people do not have life insurance and they are mainly in age bracket of 2330.Out of these 22% uninsured segment 64% belong to income group A, 21% belong to income group B,14% belong to income group C Graph No.6:



Among 78% insured people, 76% have their life insurance from LIC, 8% from SBI Life .But among these 8% mainly people chose SBI Life because their relatives are employed either in SBI or SBI Life.10% any other include mainly GIC(Group Insurance) ,PLI()which is mandatory for few government institutes.



Out of 76% LIC customer,16% are dissatisfied from LIC, they can be potential targets for SBI Life. 52

Out of 76% LIC customers, 84% said reason for selecting LIC is that it is govt and most reliable, whereas 13% said due to good service and 3% due to their customer centric approach. We can change mindset of these 16% by improving our services and customer centric approach. Graph No.8:



13% People rated SBI Life as No.1 Insurance Company. Our Biggest Competitor is Bajaj Allianz and HDFC Life. Even Other contribute significant ratio of 10% which can’t be ignored (it comprises mainly Birla Sun Life, GIC,PLC etc).We should try to capture their market.

53



82% People said that they have never been contacted by SBI Life Insurance Advisors, out of these mainly belong to HNI Segment (falling under income group B and C).Beside this 38% people are dissatisfied from SBI Life mainly because of extra deduction , Graph No.10



Only 19% were aware about this fact that SBI Life Equity Fund gives more than 20% return in last ten years. Many showed their interest about this after knowing it and showed their willingness towards it. So achievements need to be marked more aggressively and Brand Awareness need to be increased. Graph No.11:

54



CROSS SELLING & CROSS REFERRAL: 42% People said that they may purchase new product from SBI Life. Few already existing customers said they may prefer purchasing another product if any such product comes of their interest. Beside this 45% said that they may recommend their friends/Relatives for SBI life. Whereas, 51% said they Can’t say until they purchase and are satisfied Graph No.12:

55

Chapter 6

CONCLUSION & RECOMMENDATION

56

DISCUSSION 6.1 Results The managerial Decision Problem in the start of the project was to find ways and segment target to generate LEADS (in terms of IA and Customers both) and increase efficiency of Retail Agency channel by resolving various problems existing in this channel. The managerial decision problem was divided in different research objectives covering different aspects of the research. 

Demographic analysis to understand the performance of the Advisors based on – age, education, area etc Secondary Research on the existing IAs of this region gave a vivid picture on their demography wise performance like which age group people , education profile are most successful. So while designing new activities those segment were targeted.



Derive the prime factors existing in Top performers IAs



Many factors were unveiled from the responses collected, but some factors were very prominently visible. Factors like networking, Self Motivating, Convincing Power, Customer Centric approach were found more dominant in our top 50 Advisors. Also factors like communication skills, street-smart were considered to be important factors. Few of these activities can be inculcated through proper training and development program. Understanding Customer’s perception, Brand awareness and satisfaction level The responses working in government institutes like Income Tax office, Central Secretariat were never been approached by our agents. Brand awareness and achievements about SBI Life was not known to many of them collected from customers covering all income groups were analyzed and the data uncovered the perceptions of the customers, some of which were in contrast to the general perceptions. Although LIC being the legacy and market leader few of the customers were dissatisfied from it and are ready to switch to private players if they are…..HNI Segment.

6.2 RECOMMENDATION Regarding challenges faced by retail agency After entire research, data interpretation and analysis of activities taking place for lead generation in SBI LIFE, Patna Region. I would like to give some recommendation to improve quality of IAs and UM’s and also some solution to the problem faced by them in retail channel.  

Lack of women employment in UM level so difficult to handle women IA’s Special training program exclusively for women 57



    



UM appraisal should be based on both “G” (Goal) and “M”(Managerial) level ,currently it is only G level because sometimes there is gap in education profile of an well educated IA( ex-Doctor, CA…etc) and Unit Managers so they find difficult to handle these high profile IA’s. Portal should have place for innovative ideas where employees can share their innovative ideas and certain monetary awards can be tied up for such activities so that such innovative practices can be shared and excelled. Strategy implemented in most successful branch can be replicated in other branches too so that overall SBI Life can get benefit. Few stringent practices need to be followed as their rivals are doing .For example10/10 Rule followed in Max Life(where IA’s are required to have 10 leads ready by 10 am in the morning at any cost) Follow NEED and BENEFIT based segmentation in order to avoid miss-selling. It will increase customer satisfaction and will be a WIN WIN situation. While follow up we should follow “pull strategy” rather than “push strategy”. For example-when an IA is called for Recruitment interview make sure do not use words –Please come to our venue etc rather it should be –Congratulations you have been selected for interview round in India one of the leading company in life insurance, make sure to bring all your documents and be on time. While advice based sales through agency distribution remains the most suitable distribution channel, to expand the reach there is a need to utilize the existing retail distribution networks available in the both rural and urban areas

Generate Brand Awareness in the customers As the results are evident the awareness of brand is low, and majority of the people who fall in the aware category are just familiar with the name of the brand or Parent brand and not with the achievements or product portfolio or the offerings. This need to be taken care of at the earliest and needs some aggressive marketing. Following are some steps which would help initiate the process: • Increase visibility – Promotional Activities in malls- on special events like-Father’s day, Independence Day etc – Increasing touch points for the already existing customers – Educating customers about your USPs Tapping the New Consumers As the end customers are getting more and more aware about the various brands present in the market, they need to be tapped immediately before our rivals do so. As seen from analysis many new customers can be engaged who have just started working in age group of (23-28) and are not insured. The emerging middle class population, growing affluence and the absence of a social security system combine to make India one of the world’s most attractive life insurance markets 58

– Educating these customers bout our USPs-greatest return in equity fund compared to any other player. – Increase penetration in this segment because it easy to convince them as they are not much loyal for LIC compared to their parents. In short we can say that it is to convince millennial than baby boomers for insurance by private players – In order to penetrate in HNI segment-organize activities in their area of residence- C.R Colony, ASHIYANA nagar etc

6.3Limitations and Challenges 

The most crucial amongst all the limitation is that of time constraint two month was not enough to conduct all designed activities.

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The sample Area and Sample size was limited due to time constraints.

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The locations of the sites for Interview were scattered all over the cities, making it difficult to cover

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Spokespeople and respondents were skeptical and reluctant to divulge information.

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There is no verification for the statements made by them.

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All the observation and recommendation are based on the feedback and responses obtained from the survey.

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During survey’s respondents didn’t have time, they were busy in their work, they even denied to spare their one minute on listening word “insurance”. It was hard to convince them that, I am not an agent.

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It was difficult to meet the concerned people and had to make multiple trips to the same place

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Some responses were contrasting to the my perception

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There is no verification for the statements and claims made by the respondents

6.4LEARNING FROM THE PROJECT 

firsthand experience of the industry and the market

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Market Insights and intricacies in the real world

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Preparing questionnaire and conducting surveys and interviews

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Outcomes contrasting to my perceptions and expectations 59

During the project I got to know about the market dynamics of the Life Insurance industry, how the industry has changed from the time it got liberalised. I got to know entire procedure from eligibility criteria for an advisor, various do’s and don’ts, IRDA norms applicable for retail agency channel. I got to know the ground realities of business by working with sales team and actually going with them on place of activities. I never thought that real operating procedure is like that, what I did in summer training. I thought it’s all about, what we typically say, “Put the formula and get the answer.” but I realized that it is not about just putting the concept & getting the result. Again same thing cannot get same result always, as it is different kind of people with whom we are dealing each time. I got opportunity to interact with two edges of pyramid-bottom of pyramid (rural segment here in exterior of Bihar) and the apex of pyramid (HNI segment –IAS/PCS). Like convincing people from rural areas understanding their needs and designing activities for them were quite different from those of HNI segment.

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PICTURES SHOWING LEAD GENERATION ACTIVITIES

PICTURE1: ROJGAAR MELA ACTIVITY PIC

PICTURE2: RECRUITMENT ACTIVITY @ DHANORWA BLOCK

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PICTURE3:IA OF THE MONTH

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BIBLIOGRAPHY 5.2 BIBLIOGRAPHY Journals, Blogs & Reports References: Media Reports, Press Releases, IRDA Journal IBEF REPORT Rural Retail Banking-2020 PWC-Life Insurance-2020-competiting for a future Bandhan and Regional E-Magazine (SBI Life)

Research paper and HBR cases HBR Case study-LIC Recent Trends in the Market Strategies of Life Insurance Corporation of India Customer Service Strategies for the Insurance Industry-GENESYS

Web Site: 1. www.sbilife.co.in 2. E-bandhan (Sbi Life portal)-www.ebandhan.net

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ANNEXURE Appendix D: Survey Form -1 QUESTIONNAIRE NAME:

AGE:

CONTACT NO: OCCUPATION: AREA OF RESIDENT:

CITY:

Q.1 Income Group: A) Up to 3 Lakhs

B) 3 to 5 Lakhs

C) More than 5 Lakhs

Q2. Do you buy insurance products? Yes NO If Yes, with whom?  LIC SBI Life Bajaj Allianz

ICICI Prudential

 HDFC Life  Any other

Why do you prefer the above organization? A) Reliability B) Good Services C) Customer centric

D) Good Returns

E) NOT

How much satisfied are you with your product and organization? A) Very Satisfied B) Satisfied C) Dissatisfied

D) Very Dissatisfied

Q.3. Rate the names of the following organization from 1 to 4 in the order that they come to your mind when you hear the name “insurance”?(1-most preferred)  LIC

SBI Life

Bajaj Allianz

ICICI Prudential

other 64

HDFC Life

 Any

Q. 4. Why do you invest in insurance? Rate the following from 1 to 4.(1-most preferred) Life Cover

Tax Rebate

Gives good ROI

Secured

Future Q.5. Has any SBI LIFE INSURANCE advisor contacted you during the past 6 month? Yes NO Q. 6. Have you ever purchased product of SBI LIFE? Yes NO If Yes, which one

Q.8.How much satisfied are you with your preferred product of SBI? A) Very Satisfied

B) Satisfied

C) Dissatisfied

D) Very Dissatisfied

Q.9.Do you know SBI Life Equity Fund has given more than 20% Return in last ten year? Yes NO Q.10.Would you prefer to buy another policy/or new policy from SBI LIFE? A) Definitely Purchase

B) May Purchase

C) Can’t say

D) May not purchase E)

Definitely will not purchase Q.11.Would you recommend SBI Policies to your friends/Relatives? A) Strongly recommend

B) May recommend

E) Will not recommend

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C) Can’t say

D) May not recommend

Appendix D: Survey Form -1

Feedback form for your Top Performer IA's (Please fill this survey it will help you to find more productive Advisors.) QUES1) Please fill following information about Top Performer IA mapped (directly/indirectly) under you: * Name:

Age

Occupation

Education: (please tick any one of the option) O O O O O O

HSC SSC GRADUATION POST GRADUATION MBA DIPLOMA

QUES2) Rate his/her characteristics mentioned below on a scale of 1 to 5(where 1-very good; 2-good; 3-neutral; 4-poor; 5-very poor)  Communication skill  Convincing Power  Stout(Dabang)  Networking 66

 Customer Service  Self-Motivating  Street-smart(Jugaad) QUES3) She/he is the member of which of the following club/contest? * o o o o o o o o o o o o

MDRT COT TOT DSM ASM RSM RD CH ED MD Contract None

QUES4) What makes a person successful IA, in your consideration (apart from above mentioned characteristics) ?

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