| Author | Wu, Minhua |
| Call Number | AIT RSPR no.SM-02-04 |
| Subject(s) | Insurance--Marketing--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;no. SM-02-04 |
| Abstract | Established in 1984, Royal & Sun Alliance Insurance (Thailand) is a joint venture general
insurer with three prominent Thai trading groups namely Banpu, Mitr Phol Group and Yip
In Tsoi, and Royal and Sun Alliance Group, the world's oldest insurance company since
1710. To explore the potential of personal insurance business, R&SA launched the first
transactional website www.royalsun.co.th on 30 October 2000. At the end of2001, the total
revenue generating from the online business is 12 million Baht, which is considered small
in comparison to the conventional channels. The problem is that Thai consumers are
reluctant to relinquish the personal aspect of the purchasing experience. The only way for
R&SA is to offer such emotional and social relationships to its customers through online
community.
This research first reviewed the definition of online community, the fundamental of which
is about social interaction and social ties. How online community can help a company to
establish connective relationships with its customers is then illustrated. For service
company, the relational quality is more important than the technical one because services
offered are quite similar between competitors. Good service will bring in loyal customers.
In Auto/home insurance, a 5% increase in loyalty lifts lifetime profits per customer by
84%.
For R&SA, the problems are what kind of online community can be created and how it can
be hosted. Based on the nature of insurance industry, a topical online community is
suggested. For RoyalSun community, the process we expect is: fantasy to attract people;
interest to retain them; relationship to lock them and transaction to benefit them.
Specifically, three stages designed for the development of the online community are: 1)
generating traffic; 2) concentrating traffic; and 3) locking in traffic. The research also
suggests transactions be designed to retain profitable account. To successfully implement
the strategy, R&SA must address the issues of brand focus, community size and
composition, and ultimately the objectives, management, and skills involved in running the
RoyalSun community.
In personal insurance market, R&SA brand is only started to be known to mass consumers.
The advantage is that R&SA introduced its transactional website. The establishment of
online community of course will not only help R&SA in building connective relationships
with its customers but also help R&SA in instilling the brand in consumers' mind and help
it in fully fulfilling its business transformation on the Internet. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-02-04 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tocquer, Gerard; |
| Examination Committee(s) | Bechter, Clemens;
Sununta Siengthai; |
| Scholarship Donor(s) | China Scholarship Council (CSC); |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2002 |