Fostering Digital Engagement and Customer Retention in Indian Insurance : An Empirical Study

Authors

  •   Neha Singh Research Scholar (Corresponding Author), GITAM School of Business, GITAM (Deemed to be University), Rushikonda, Visakhapatnam - 530 045, Andhra Pradesh
  •   Rajeshwari Panigrahi Professor, GITAM School of Business, GITAM (Deemed to be University), Rushikonda, Visakhapatnam - 530 045, Andhra Pradesh
  •   Rashmi Shekhar Associate Professor, Amity Institute of Information Technology, Amity University, Patna - 801 503, Bihar

DOI:

https://doi.org/10.17010/ijom/2024/v54/i7/174017

Keywords:

Digital engagement

, customer retention, insurance, technology acceptance model, structural equation modeling.

Paper Submission Date

, August 30, 2023, Paper sent back for Revision, April 1, 2024, Paper Acceptance Date, April 30, Paper Published Online, July 15, 2024

Abstract

Purpose : Internet penetration in India has significantly increased over the past decade, making digital engagement accessible and affordable. This paper investigated the digital engagement of life insurance customers in India, its influence on customer retention, and the impact of perceived usefulness, perceived ease of use, and perceived value.

Methodology : A mixed method approach was adopted based on an exploratory sequential design to identify the constructs and test their relationship. The authors analyzed data from 375 respondents and used confirmatory factor analysis and path analysis to test the main hypotheses using the AMOS v24 software.

Findings : The findings showed that perceived ease of use and usefulness positively impacted consumers’ digital engagement. In the life insurance industry, digital engagement has a large and favorable impact on perceived value and customer retention, with perceived value acting as a partly mediating factor in customer retention.

Practical Implications : Promoting the digital adoption of services among consumers is imperative for service providers to ensure better customer management, irrespective of sector and service or product. The consumer decision-making process is intricate in the life insurance sector due to the product’s complexity and the long-term association between the consumer and service provider. The study findings will help service providers focus on significant touchpoints to improve customer engagement by enhancing the engagement activities’ ease of use, usefulness, and perceived value.

Originality : The paper extended our understanding of the determinants of digital engagement and its subsequent impact on consumers in the context of life insurance, which has not been explored in the existing literature.

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Published

2024-07-01

How to Cite

Singh, N., Panigrahi, R., & Shekhar, R. (2024). Fostering Digital Engagement and Customer Retention in Indian Insurance : An Empirical Study. Indian Journal of Marketing, 54(7), 68–82. https://doi.org/10.17010/ijom/2024/v54/i7/174017

Issue

Volume 54, Issue 7, July 2024

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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