Scholastic Assessment of Insurance productiveness from the marketing perspective

The Ghanaian insurance industry is on “life supporting machine” finding it very difficult to attract potential customers to patronize their services. Existing customers are also not loyal at all the reasons am yet to unravel. Individuals as well as organizations lack the interest of investing their scares resources in the insurance industry. Thus managers in this spectrum have to make it a point to constantly seek new ways to improve their services with the strategic intent of “loyalising” the hard won customers. It’s in the light of this that, this study is undertaken to examine whether relationship marketing strategies can be one of the assured ways of developing loyal customers. Again to ascertain how trust influence these relationship marketing strategies and customer loyalty. The population of the study is of some section of insurance subscribers in the greater Accra and central regional part of Ghana. Hypotheses of the study were analyzed using correlation and hierarchical regression analysis. Selfadministered questionnaires were distributed to respondents. The researcher theorizes and investigates that there is high positive correlation between the four underlying constructs of relationship marketing and customer loyalty. The results of this study again indicated that all the independent variables (communication, competence, commitment and bonding) have a positive significant impact on (dependent variable) customer loyalty through trust as the mediating variable. Managers are to note that the propensity to create customer loyalty depends on the level of trust they have built with its customers. Thus, the focus should be on investing in the customer’s trust which will subsequently lead to customer loyalty. Management of insurance services are to note that the findings provides a more reliable and empirical measure for describing and evaluating the level of their customer loyal with the services they deliver. It again provides empirical support for strategic decisions in several critical areas of their operations, and above all, provides a justifiably valid and reliable guide for designing workable relationship marketing strategies for creating loyal customers. Originality of this study is proven because it has empirically refined the body of knowledge relating to customer loyalty in the Ghanaian insurance industries. Index Terms—Relationship Marketing Strategies, Customer Loyalty, Trust, Insurance Industry, Ghana