Customer relationship and its influence on customer loyalty at Liberty Life in South Africa

M.Tech.South Africa exists, that focuses on Customer Relationship Management and Customer Loyalty. The study investigates Customer Relationship Management and its influence on Customer Loyalty at Liberty Life in South Africa. Over the past twenty years, the importance of the services industries to the world economy has grown. In the South African economy the services sector contributed 71.4% of South Africa’s total GDP in 2006. The world economy is struggling in the aftermath of the global financial crisis. Customers are cancelling their policies as they struggle to survive the down turn in investment and credit markets. Liberty Life experiences persistency problems as customers cancel their policies. Liberty Life is required to focus on its relationship with customers to increase customer loyalty. To establish the influence of trust, commitment, two-way communication and conflict handling on Customer Relationship Management and its influence on Customer Loyalty at Liberty Life in South African, an empirical investigation was conducted. The sample consisted on 254 customers visiting the customer walk-in-centres situated in Johannesburg, Cape Town, Pretoria and Durban. The study indicated that a significant positive relationship exists between trust, commitment and conflict handling, and Customer Relationship Management at Liberty Life. The study further revealed that a significant negative relationship exists between two-way communication and Customer Relationship Management at Liberty Life. In addition, the empirical investigation revealed that there is a significant positive relationship between Customer Relationship Management and Customer Loyalty at Liberty Life in South Africa. The study provided strategies for Liberty Life to improve and maintain its relationships between the organisation and customers if Liberty Life exhibits trustworthy behaviour, shows genuine commitment to service, communicates information to customers efficiently and accurately, thereby also listening to their iii customers and handling potential and manifested conflicts skilfully. This will ultimately, contributes to Customer Loyalty, which will ensure economic prosperity for Liberty Life