Customer Care and Business Performance in the Service Industry; A Case Study of the National Insurance Corporation (Nic) Limited Kampala District, Uganda

ABSTRACT This study assessed the impact of customer care on business performance in the service industry, using National Insurance Corporation (NIC) Limited, Kampala office as the case study. The study specifically sought to: examine the impact of components of customer care; ascertain the contribution of customer attitudes; and assess the contribution of staff skills on customer care and business performance in NIC Limited. The Study Literature revealed the impact of components of Customer Care on business performance and the contribution of staff attitudes and skills on customer care and business performance ofNIC Limited. Data was collected using both qualitative and quantitative methods. The study used probability sampling and most specifically stratified sampling method. Data was got from both primary and secondary sources. Primary data was collected using questionnaires that were administered to a sample size of 90 staff of NIC Limited and 20 customers across Kampala. Interviews were also carried out by the researcher among a sample of top management officials, employees and customers of NIC Limited. Secondary data was gathered from; publications, internet, and unpublished documents. Data was analyzed and presented both in tables and graphical forms. The findings of the study revealed that, customer care had an impact on business performance in the service industry. It was also found out that components of customer care have an impact on the business performance of NIC Limited since good communication (88%), complaint handling (68%), physical facilitation (98%) and reward of customers (96%) profoundly contribute to the business performance of the service industry. The study also found out that other factors such as staff attitudes and personnel skills influence Customer Care and business performance in NIC Limited. However, complaint handling procedures were not well laid down for all to use easily and staff development by NIC in the areas of Insurance was wanting. It was recommended in the study that; NIC Limited should develop and clearly put in place procedures for complaint handling and ensure that they encourage professional development on matters of Insurance. Further work is also needed to better understand the processes through which customer care is inculcated and how the Businesses can successfully integrate these components into the Service Industry.