CORRELATION BETWEEN MARKETING COST AND NUMBER OF AGENTS AND THE INCREASE NUMBER OF NEW CUSTOMERS AND ACQUISITION COST OF PT. X

Abstract

This research’s purpose is to find out the correlation between marketing costs and number of agents and the increase number of new customers and acquisition cost within one of insurance companies in Indonesia, PT. X. The researcher chooses this particular topic because it is one way to confirm that all variables are closely related and impacted one another. The research used quantitative method and also used canonical correlation by using SPSS as the statistic tools, which the researcher believes that it represents the best correlation result. In addition, even though this research uses quantitative method but instead of questionnaire it only uses secondary data in certain period from March 2009 until October 2011. The final result of this research is the correlation number of marketing cost and number of agents toward the increase number of new customers and acquisition cost. Based on the result, marketing cost obviously has significant correlation with the increase number of new customers and acquisition cost while on the other hand number of agents has no significant correlation with them. These results are not completely in line with research questions since the number of agents, based on the result, is not considerably correlated with the last two variables. Based on the result, the research proposes several recommendations for the research object, PT. X. The researcher recommends the company to allocate more marketing cost and to prioritize the active agents. In addition, the researcher also proposes the company to find out the specific dominant marketing cost variable in order to make the research more complete. Last but not least, the researcher would like to recommend looking at other variables like customer management activities to dig deeper into understanding how significantly correlate is to marketing cost and acquisition cost.