University of the Philippines Manila College of Arts and Sciences Department of Physical Sciences and Mathematics
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UNIVERSITY OF THE PHILIPPINES MANILA COLLEGE OF ARTS AND SCIENCES DEPARTMENT OF PHYSICAL SCIENCES AND MATHEMATICS Health Insurance Corporation Customer Relationship Management Tool (HICorpCRM) A special problem in partial fulfillment of the requirements for the degree of Bachelor of Science in Computer Science Submitted by: Paul John N. Macaraeg June 2015 Permission is given for the following people to have access to this SP: Available to the general public Yes Available only after consultation with author/ SP adviser No Available only to those bound by confidentiality agreement No ACCEPTANCE SHEET The Special Problem entitled “Health Insurance Corporation Customer Relationship Management Tool (HICorpCRM)” prepared and submitted by Paul John N. Macaraeg in partial fulfillment of the requirements for the degree of Bachelor of Science in Computer Science has been examined and is recommended or acceptance. Ma. Sheila A. Magboo, M.Sc. Adviser EXAMINERS: Approved Disapproved 1. Gregorio B. Baes, Ph.D. 2. Avegail D. Carpio, M.Sc. 3. Perlita E. Gasmen, M.Sc. 4. Richar Bryann L. Chua, M.Sc. 5. Vincent Peter C. Magboo, M.D., M.Sc. 6. Bernie B. Terrado, M.Sc. Accepted and approved as partial fulfillment of the requirements for the degree of Bachelor of Science in Computer Science. Ma. Sheila A. Magboo, M.Sc. Marcelina B. Lirazan, Ph.D. Unit Head Chair Mathematical and Computing Sciences Unit Department of Physical Sciences Department of Physical Sciences and Mathematics and Mathematics Alex C. Gonzaga, Ph.D., Dr.Eng. Dean College of Arts and Sciences iii Abstract The health insurance industry is saturated by big companies competing for market share. This saturation has induced a change of focus towards this health insurance companies towards their customers which went from customer acquisition to customer retention. A need for a more holistic approach towards customer relationship management is needed which entails the need for SMS, Telephone and Email helplines. No SMS enabled customer relationship management tool is of existence in the health insurance market hence utilization of the pros brought about by the said technology hasn't been felt by its players yet. This need for an SMS enabled CRM tool could be substantiated through the utilization of a GSM modem and KANNEL for WAP based communication with a CodeIgniter based PHP web application that utilizes MySQL database so as cost and setup would be minimized for this software. Kay Words: health insurance company, sms enabled crm tool iv Contents Acceptance Sheet ……………………………………………………………………………………. i Abstract ……………………………………………………………………………………. ii List of Figures ……………………………………………………………………………………. v List of Tables ……………………………………………………………………………………. vi I. Introduction ……………………………………………… 1 A. Background of the Study ……………………………………………… 1 B. Statement of the Problem ……………………………………………… 4 C. Objectives of the Study ……………………………………………… 7 D. Significance of the Project ……………………………………………… 15 E. Scope and Limitations ……………………………………………… 18 F. Assumptions ……………………………………………… 19 II. Review of Related Literature ……………………………………………… 20 III. Theoretical Framework ……………………………………………… 24 IV. Design and Implementation ……………………………………………… 36 A. Entity Relationship Diagram ……………………………………………… 37 B. Database Dictionary ……………………………………………… 38 C. Object Diagram ……………………………………………… 41 D. Format Messages ……………………………………………… 44 E. Technical Architecture ……………………………………………… 46 V. Results ……………………………………………… 47 VI. Discussion ……………………………………………… 62 VII. Conclusion ……………………………………………… 64 VIII. Recommendation ……………………………………………… 65 IX. References ……………………………………………… 66 iii X. Appendix ……………………………………………… 70 A. Source Code ……………………………………………… 71 XI. Acknowledgement ……………………………………………… iv List of Figures Table Page 1 Short Messaging Service 25 2 Context Diagram 36 3 Entity Relationship Diagram 37 4 Object Diagrams 41 5 Login Screen 47 6 Dashboard 48 7 Customer Profile 48 8 Customer Registration 49 9 Customer Upload 49 10 Customer Update 50 11 Customer List 50 12 CustomerMessaging 51 13 Customer Referral – Company Selection 51 14 Customer Referral – Service Selection 52 15 Customer Advisory 52 16 SMS History 53 17 Companies 53 18 Company Registration 54 19 Company Partner Update 54 20 Company Profile 55 21 Company Details 55 22 Company Personnel 56 23 Personnel Registration 56 24 Personnel Update 57 25 Personnel List 57 26 Company Services 58 v 27 Service Registration 58 28 Service Update 59 29 Service List 59 30 System Accounts 60 31 User Registration 60 32 User Update 61 33 User Profiles 61 vi List of Tables Table Page 1 Transaction Number Specification 8 2 Data Dictionary 38 vii I. Introduction A. Background of the Study Article II, Section 15 of the Philippine Constitution (1987) upholds the right of Filipino citizens to avail quality and affordable health care. The health condition of an individual is regarded with so much importance because of its economic and social benefit. The World Health Organization (2015) even recognizes the role of health in development and productivity. For instance, economic values pertaining to how much an individual could be billed for in exchange for life saving surgeries could hit up to $53,400 or Php 2,349,600 per hospital stay as the advisory board company (2014) dictates, on procedures such as heart valve procedures. These facts substantiate the claim that the health insurance industry is of great importance for they provide people with aid in terms of keeping themselves healthy and well. The health industry in the Philippines shares about 1.4% of the country's total 2012 GDP, about $3,808,000,000 or Php 167,552,000,000 of the total expenditures for health. It is such a profitable market that the private sector and government agencies progressively invest upon. This has lead to the emergence of various companies offering health care insurance for a wide range of customers with varying age groups, economic stratas and religious factions. As per the Commission on Insurance (2014) there are 31 big life insurance companies dominating the health care market in which PhilAm Life & Gen. tops the hierarchy in terms of networth by having Php 28,775,973,266 in their sleeves. This number of health insurance companies posed a challenge in terms of the membership they incur through time. As the paper: “Factors Influencing Cutomer Loyalty of Mobile Phone Service: Empirical Evidence from Koreans” (Lee, 2009) points out, companies nowadays operate on fields of similar interests which saturates the various disciplines hence unsatisfactory perception towards one could lead to a 1 company's demise for consumers could easily shift to others (Harrington, 2014). This has lead marketing departments to focus more on customer retention rather than on customer acquisition efforts (Lee, 2009) for good words of mouth are better than fresh bundles cash as it serves as an indicator of a companies' stability, integrity and commitment, based on the report made by the U.S. Survey Report as well (2014). This has lead companies to invest more on efforts to make consumers feel a greater sense of value towards them by providing services as efficiently and as effectively as possible (Roddy, 2014). The great promises of various information and communications infrastructures ranging from SMS, Emails to Telephone helplines has been of great value to health insurance companies (Roddy, 2014) for they provide cheap means of reaching out to customers ranging from a dollar to 500 bucks or more per customer which in turn returns to them 10x more of their initial investment, figures visualized by FrugalTech (2014). Of these technological pathways Emails and Telephone helplines dominates the customer relations management area of health insurance companies, as reflected by the means utilized by the top 10 life insurance companies in terms of net worth. Emails and Telephone helplines provide good quality of service to members , as they have the perception that they are interacting with real persons on the other end, however these technologies has a proven drawback which involves customers waiting for responses in a long period of time especially on telephone helplines which requires them to be held on the line for an average duration of 56 seconds or more (Roddy, 2014). This length of time needed for a consumer to avail of the customer relations services offered by companies has been proven to be a primary factor for them to feel less of importance towards that company hence minimizing their retention towards it, as what the U.S. Survey Report (2014) has found out. Other technologies such as SMS has already been proven, by the University of California 2 concluded with their Group Case Study on Boomerang (2011) , to be of great value for it provides a method with which companies could easily respond to customer requests for an automated response system could be put in place of the human factor needed for the two previously cited (Riley, Schmidt, & Tubin, 2011). The SMS mode of conversing with consumers has not been explored that much by health insurance companies in the Philippines although with it poses a great promise if utilized properly. The reason as to why this happens is inconclusive and no study has been put up in place to do so. 3 B. Statement of the Problem The time-to-respond drawbacks posed about by the leading information and communications technology infrastructures being utilized by health insurance companies which are Email and Telephone Helplines poses a great risk towards the efforts of these companies to promote customer retention