The Role of Employee Responsiveness on Customer Retention in Health Insurance Companies in Uganda :

Abstract

The concept of employee responsiveness yields customer loyalty, which in the long run results into consistent customer retention. In this regard, this research report looks at how the excellent response from employees at International Air Ambulance, a health Management Organization will either affect business or improve it in as far as customer retention is concerned.

The objectives of the study include: to identify the forms of responsiveness to customer needs; to ascertain the level of employee responsiveness to the customers’ needs; and to determine the link between employee responsiveness and customer retention.

The researcher’s methodology incorporates an analytical cross-sectional study design. The study area used includes all International Medical Centers in Kampala District. The sample size was 80 respondents purposively used to obtain the up-to-date data for analysis. The data obtained with the use of questionnaire and interviews was analyzed using both Univariate and Bivariate analyses.

The findings from the research indicate that positive employee response to organization policies as shown in Table 6 increases the ability of the organization to retain its customers. It is found that the swiftness with which an employee reacts to client issues increases the chances to retaining customers 67 (83.75%) while only 13 (16.25%) suggested otherwise. The respondents stated that positive employee response to organisation policies like, upholding customer confidentiality 14 (70.8%, r=0.69); handling clients’ needs appropriately 24 (85%, r=0.70) and staff being time conscious 31 (93%, r=0.81).

In addition, respondents commented that other factors like, affordability 11 (86.7%), good services 30 (86.7%, r=0.71), variety of services 20 (82.6%, r=0.61), and location 8 (85.5% r=0.67), also influence the level of customer retention. The probability of employees continuing to use IAA services is highest if employees respond to client need fast by 31(93.0) and if they also respond to client needs positively by 24(85.0%).

Conclusively, the elements of employee responsiveness lead to customer loyalty and in the long run are said to have fundamental implications towards consistent customer retention. The researcher argues that in order to be effective in retaining customers, a complete understanding of the aspects of employee responsiveness should be emphasized.

The researcher therefore recommends; the need to increase & continue observing the swiftness with which clients’ needs are to be attended to; employees are to be encouraged to follow and respond to policies that favor clients and lastly availability of good and a variety of services should be put into consideration so as to create an attractive and enticing environment that supports customer retention.