KYAMBOGO UNIVERSITY

SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP

DEPARTMENT OF BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP
BACHELORS OF BUSINESS STUDIES WITH EDUCATION
YEAR 2 SEMESTER 2 2025
COURSE UNIT : AIDS TO TRADE AND BUSINESS CALCULATIONS
GROUP ASSIGNMENT
GROUP C

NAME REGISTRATION SIGNATURE

NUMBER
MUSABI DERICK
NATOCHO CAROLYNE
SSERWADDA DENIS
BUYUNGO PIUS

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INSURANCE
This is a means of protection from financial loss. It is a form of risk
management, primarily used to hedge against the risk of contingent or
uncertain loss. The amount of money paid by an individual or organisation
for the insurance cover /protection to an insurance company is called
premium

TERMS USED IN INSURANCE

1. Pooling of risks.
This is where persons exposed to a common risk contribute small amounts of
money called premiums towards a common pool from which those few who
actually suffer loss as a result of the risk are compensated.
2. Premium.
This is the amount paid periodically by the insured to the insurer as
consideration for the insurance cover provided by the insurer. This money
constitutes the pool from which compensation is made to those who suffer
losses.
3. Insured.
This is a person, firm or any business organization that takes out an
insurance cover and is promised by the insurance company compensation in
the event of a loss.
4. The Insurer.
This is the insurance company granting insurance policy/cover e.g. NIC, Excel
insurance, gold star Insurance, United Assurance, Swico, Jubilee insurance
company among others
5. Risk.
This is an event against which an insurance cover/policy is taken out e.g. fire,
accident, robbery etc.

Risks are divided into two; -

a) Insurable risks.
These are risks whose probability of occurrence can statistically be
determined from past experience e.g. accident, theft, fire etc.
b) Non-Insurable risks.
These are risks whose probability of occurrence cannot be accurately
determined by statistical information i.e. records on which to carry out
calculations are missing e.g. floods, earthquakes, war etc.
6. An actuary.
This is a professional person who calculates the premium rates basing on the
information given and statistics.
7. Loss
This is the occurrence of the event against which insurance cover/policy is
taken out. If the entire property insured is destroyed the loss is said to be
total loss, if part of the property insured is destroyed then it is a partial loss.
8. Assurance.
This refers to the insurance cover/policy against an event that is bound to
happen. e.g. death
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9. Sum insured.
This is the value of the property to be insured as stated by the owner at the
time of applying for insurance policy.

10. Over insurance.

This is when the insured over declares the value of his/her property at the
time of taking out the insurance policy. He/she will be required to pay a
higher premium, but in event of a total loss, he/she will be paid the correct or
actual value of a commodity.

11. Under Insurance.

This is when the insured under declares the value of his/her property. He is
charged a lower premium, but in event of a total loss, he/she is paid only the
sum insured which is less than the actual value of the property i.e. he/she is
not fully compensated.
12. Re-insurance.
This is when an insurance policy company insures a risk with a second
insurance company or with more than one insurance company. This is true
when the property insured is very valuable to be handled by the first
insurance company i.e. when the risk is so heavy that one company can’t
carry it alone, so it insurer’s part or all of it with another insurance company.
2 13. Co-Insurance (Double insurance).
This is when the article/property is insured against similar risks with a
number of insurance companies i.e. the owner of the property insurers it with
various companies anticipating that in case of loss, the various companies
contribute the sum insured. However, it is unwise because in case of a loss,
only the amount for the loss is contributed by all the insurance companies
like it would have been with one company.
14. Insurance underwriter.
This is a person who negotiates and enters into insurance contract on his
behalf. An underwriter is an official of the insurance company who is given
authority to accept risks on behalf of his office.
15. An insurance policy.
This is a document that contains all conditions and terms of the insurance
contract.
16. Insurance Broker.
This is a specialist who brings the insurer in contact with the insured and
negotiates on behalf of the insured for the best terms and amount of
premium.
17. Adjustor/Assessor.
This is a skilled person who is given the responsibility of calculating the
losses, he estimates the extent of the loss suffered by the insured when the
claim is made.
18. Life Annuity.
This refers to the contract with the insurance company that will provide a
person with regular income in future beginning at a certain age. The main

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difference between life annuity and life assurance is that life assurance
protects the family and dependents while life annuity protects the individual.
19. Beneficially.
Is a person entitled to receive compensation from a certain insurance policy.
20. Surrender value.
This is the money paid back to the insured party when he/she decides to
cease or cancel the insurance cover before the period specified expires.
Usually the refund is less than the full value of the premiums already paid
because the insurer has to meet expenses of documentation and issuing of
the policy

TYPES OF INSURANCE
Insurance can be broadly divided into two classes i.e.
1. Life Insurance (assurance)
2.Non life insurance/General/property Insurance

LIFE ASSURANCE
This covers insurance of human life. A person can only insure life in which he
has insurable interest. The term “assurance” confirms that the event insured
against must take place, the only uncertainty is when it will happen.

TYPES OF LIFE INSURANCE (ASSURANCE)

POLICIES

Whole life Policy.

This is a life assurance policy which requires payment of premium for the
entire lifetime or a specified period of time until an agreed age. The total sum
insured is only paid after the death of the insured. This policy provides money
for the dependants who are the beneficiaries after the death of the insured.
E.g. in this policy there is a policy called nomination. This is when the insured
names the people who will benefit from the policy after his death.

2. Endowment Policy (Term Assurance).

This policy requires payment of premium for a specified period. The sum
assured is payable for the dependants or the holder at the expiry of the
period or at death whichever comes first. E.g. one may undertake
endowment policy up to the age of 60. If the holder dies at 50 years, the
policy comes to an end and payment is made to dependants.

3. Group Life Policy.

This policy is organized for groups of workers in an industry. Premium is paid
through monthly deductions from their wages so that they may be paid after
retirement. In this case the insured and his beneficiaries will enjoy the
payment from the insurer.

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4. Life Annuity.
This insurance contract provides the insured with a future regular income
beginning at a certain age and continuing for life or a specified number of
years. It is also a form of life assurance aimed at insuring against living too
long.

5. Temporary Life Policy/ travel insurance.

This is when a person insures him/herself for a short period. E.g. when one is
going for a journey and after the journey the policy expires e.g. a
businessman travelling by air from Entebbe to Dubai.

6. Sickness Policy.
This may be arranged for a specified disease such that the insurance
company can cater for the medical bills.

GENERAL INSURANCE
This type of insurance covers risks to property. An individual can insure
property as long as he/she has an insurable interest in it. General insurance
can be divided into three major forms i.e. accidents, fire and marine
insurance.

ACCIDENT INSURANCE
This department insures vehicles covering a wide range of risks. Under the
accident department the following policies are offered. 5
1. Motor vehicle policy.
This covers vehicles damaged or lost in accidents. Motor vehicle policy may
be third party or comprehensive.
a) Comprehensive Motor Insurance Policy.
This policy aims to compensate all those involved in an accident i.e. both the
vehicle and third party.
b) Third Party Risk Policy.
This is compulsory for all motor vehicle owners. Here only loss inflicted upon
a third party is covered i.e. compensation is made to the parties insured by
the vehicle but not the vehicle itself.
2. Fidelity Guarantee.
This policy protects the employer and employee against financial loss caused
by dishonest workers. The policy is used by financial institutions whose
employees are exposed to a large sum of money in the conduct of their
duties e.g. a bank can undertake a fidelity guarantee policy against dishonest
cashers, accountants and bank managers.
3. Personal accident policy.
This policy covers an individual who gets injured as a result of an accident. It
is sometimes taken as part of life assurance. If the insured is hospitalized, he
is paid an equivalent of his salary for the days he is in hospital. The medical
bill is also paid by the insurer.

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 4. Employer’s liability Policy (workman’s compensation).
This policy covers compensation to workers who may sustain injuries while at
the work place. E.g. a construction company can undertake this policy to
cover injuries sustained by the employees while at the place of work.
5. Machine breakdown and consequential loss policy.
This policy compensates a firm or owner for the loss incurred as a result of
breakdown of machines. This policy is supposed to cater for the loss of profits
when machines have broken down.
6. Bad debts policy.
This policy protects businessmen against losses caused by failure of their
customers to pay their debts.
7. Aviation and Aviation hull.
This policy covers loss or damage to an aircraft i.e. it covers individuals
against losses resulting from air accidents on delayed flights which can cause
losses. E.g. if a trader is transporting flowers and there is a delay in flight,
losses are likely to be incurred, so this policy covers such losses.
8. Cash or goods in transit policy.
This policy covers any risks against goods or cash while being transported
from one place to another.
9. Public Liability Insurance.
This covers any possible damage to the public caused by consumption of a
good e.g. when the public is injured as a result of faulty goods sold by a
producer or injury which may occur to a person while passing near the
property of the insured e.g. at the construction site.

FIRE INSURANCE
The fire department insures people against losses resulting from fire
outbreak.
Under this department we have the following policies;
1. Fire outbreak and consequential loss.
This policy compensates an individual/firm against loss resulting from fire.
The fire should not have been intentionally cause by the insured.

Consequential loss policy covers losses as repairs are being made to fire
damaged property e.g. loss of profits following fire.
2. Burglary and theft policy.
This policy covers the holder against breakage into premises and theft of
goods. It is normally undertaken by businessmen, banks, landlords etc.

3. All risks office equipment policy.

This covers equipment and office machinery such as computers, printers etc.
4. All risk household policy.
This insures household property against damage or loss e.g. household
furniture, electrical appliances etc.

MARINE INSURANCE

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This refers to the insurance of ships and goods being carried in those ships
including passengers. These are insured against damage, injury, or loss
caused by water body disasters like storms. Marine insurance is divided into
two sections i.e.
a) Marine hull section. This offers insurance against the ship or vessel itself
and not the goods on the ship. Damage may be brought about by storms,
collusions of the ships etc. the owner of the ship is the one that has the
insurable interest in this policy.
b) Marine Cargo Section. This offers cover against any risk that may occur
to the cargo on the ship while in transit. When cargo is in transit it may get
lost or damaged. A certificate of insurance is often issued by an insurance
company as proof that insurance cover has been granted to the cargo on the
ship.

POLICIES OFFERED BY MARINE INSURANCE

1. Voyage policy.
This is a policy which is issued to cover one specified journey. E.g. Mombasa
to Cape Town. The insurance company is only liable to losses covered during
that particular voyage. The insurers’ responsibility ends as soon as the
voyage is completed.
2. Time Policy.
This covers loss that may be incurred within a specified period of time. It can
be a month to a year. The insurance agreement ends as soon as the time has
expired.
3. Mixed Policy.
This combines both the journey and time policy into one policy. E.g. one can
insure Cargo being transported from Mombasa to Cape Town for a month.
4. Floating/Open/Declaration Policy.
This covers losses on a particular route for a specified period of time and all
ships that sail along this route during that particular period are covered by
that policy.
5. Valued Policy.
Under this policy the insured is compensated with that value which is agreed
upon at the time of taking up the policy i.e. before the voyage is undertaken.
6. Unvalued Policy.
In this policy compensation to be paid is calculated after the risk insured
against has occurred. Most marine policies are unvalued.
7. Port risk policy.
This covers a ship while in a port for a specified period of time.
8. Fleet policy.
This is an insurance policy covering a number of ships belonging to one
company.
9. Construction policy.
This policy covers a ship during its construction.

LOSSES IN MARINE INSURANCE

1. Actual total loss.
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This is a term used in marine insurance to refer to the complete loss of a ship
or if cargo is completely destroyed and can’t be recovered.
2. Constructive total loss.
This is when the ship is not lost but has to be abandoned or if the cargo is so
seriously damaged as to be of no practical use as intended.
3. Average loss.
This is where a ship suffers only partial damage. The ship can be repaired
and even the goods can be used, it is of two types;-
a) General Average loss.
This is where the loss is shared by the ship owner and the owner of the cargo
e.g. some cargo may have been thrown overboard to prevent the ship from
sinking. To be fair to all the loss has to be shared by the ship owner and the
owner of the cargo.
b) Particular Average Loss.
This occurs when part of the cargo or the ship suffers damage and a partial
loss is suffered by either the ship owner or the owner of the cargo.

Differences between Insurance and Assurance

1. Insurance covers events that may or may not happen hence all general
policies are insurance policies while assurance covers events that are bound
to happen whose uncertainty is only when they will happen, hence all life
policies are assurance policies.
2. Insurance means indemnity against loss which can be calculated, while the
term assurance means that the loss can’t be calculated.

PROCEDURE/STEPS FOLLOWED WHEN TAKING OUT AN INSURANCE

1. An intending applicant makes an enquiry directly or indirectly through an
insurance broker on how to get cover for a risk.
2. Filling in a proposal form. This form constitutes an application for insurance
and signifies willingness of the applicant to pay the premium.
3. Calculation and payment of premium basing on the information obtained
from a proposal form.
4. Issue of a cover note (binder). This is issued as proof that the premiums
have been accepted by the insurer who now undertakes to indemnify
(compensate) the insured.
5. Issue of an Insurance Policy. This document constitutes a contract between
the insured and insurer.
6. Filling a claim form. If the event insured against happens, the insured has
to inform the insurer and fill a claim form to claim compensation.
7. The insurance company will send assessors/adjustors to survey the
property and assess the extent of loss. On receipt of the survey report due
compensation is paid to the insured.
8. Termination of the contract.

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BENEFITS OF INSURANCE TO BUSINESS IN UGANDA
Insurance enables individuals and organisations not to suffer the
financial loss that would arise from the occurrence of insured risk.
Insurance therefore,
 Provides payment for covered losses when they occur. The
uncertainty of paying for losses out of pocket reduces since the
insurance company will indemnify in case of the insured risk
happening
 Gives a peace of mind because one is rest assured that in case the
risk happens, he is compensated by the insurance company thereby
enabling investment of larger amounts of investment.
 Provides financial protection to the dependants in case of death of
the breadwinner and this is only possible for life policies.
 It is a means of mobilising investment funds. When the insurance
companies invest the collected funds in various activities like stock
exchange, forex trading among others
 Provides savings for future prosperity and continuity of the business
in case of life insurance and general insurance policies respectively
 Controls and reduces losses through and provides risk management
advice to the public and those insured
 Enables continuity of small businesses that also depend on the big
insured business
 Reduces individual burden on the society for example funeral
services, education of the children in case of death of the bread
winner. - Risk Management: Insurance helps businesses manage
risks, protecting them from potential losses and damages. This is
particularly important in Uganda, where businesses face various
risks, including natural disasters, theft, and accidents ¹.
 Insurance provides financial protection to businesses by covering
unforeseen events, such as fires, floods, or other disasters. This
ensures that businesses can recover quickly and minimize losses.
 Having insurance can help businesses comply with regulatory
requirements in Uganda. For instance, the Insurance Regulatory
Authority of Uganda (IRA) requires businesses to have certain types
of insurance, such as workers' compensation insurance.
 Insuring a business can increase its credibility and reputation. It
demonstrates a commitment to risk management and financial
responsibility, which can attract customers, investors, and partners.
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  Insuring a business can improve its access to credit. Banks and
other financial institutions may require businesses to have insurance
as a condition for lending.
 protects businessmen and other individuals against loss of property
by paying them when loss occurs.
 It is a means of saving. In life insurance individuals are encouraged
to save for old age and retirement. E.g. under whole life policy an
individual saves money to cater for their family needs after his
death.
 Businessmen can use insurance policies as security for loans from
other financial institutions.
 It is a source of government revenue. Insurance companies pay
taxes to the government in form of corporation taxes.
 Insurance creates employment opportunities. Insurance companies
provide employment to people e.g. those qualified in business
management, accountants, auditors etc.
 Insurance contributes to a country’s invisible exports hence earning
foreign exchange.
 Insurance promotes trade. Businessmen are able to export or import
without fear of loss.
 It educates the public about the possible risks in trade. When
insurance companies advertise their services, they also inform the
public about the possible risks in the business.
 Compensation in case of sickness or loss of life of the employees
leads to reduction of costs of businessmen (through workman’s
compensation policy).
 Insurance contributes to the growth of the economy through pooled
resources which are invested in development projects and
infrastructure.
 Compensation in case of sickness or loss of life leads to reduction of
social costs to the government because funds are provided by the
insurers to assist the victims.
 Insurance companies act as trustees for traders i.e. can stand for
them in case of reference.

DOCTRINES/PRINCIPLES OF INSURANCE

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Principle of indemnity
It states that the insurer should not benefit from the insurance
company but be restored to his/her initial position in the time of
undertaking the insurance policy for example when Emmanuel insures his
car against an accident and the incident happens, Emmanuel will be given
another car of the same monetary value as the one he had before like
34million=34million
Principle of insurable interest
It states that one can only insure a property in which he can loose
financially and has a legal authority over it for example a wife can insure a
husband, a father can insure a child but he can not insure a child of his
brother. One can only insure a car in which he/she has a financial benefit
in it.
Principle of proximate cause
It states that one can only be compensated in case the risk that has
led to the loss is the same as the one insured against or related to the one
insured forexampe Arnold insures his shop against fire and at the end the
shop catches fire due to electricity within the shop or from the
neighbouring shop but when it is not intended by him.
Principle of utmost good faith
It states that all the parties to take on the insurance contract should
disclose all the true facts required within the insurance policy. Both the
insurance company and the insured should disclose all the needed
information worthily as requested.
Principle of subrogation
It states that in case the risk has happened and the insured has
been compensated, the insurance company takes on the ownership of the
property that was initially owned by the insured for example in case
Samson insured his car against an accident and the incident happens
when all the defined terms and conditions have been met, he is
compensated and the insurance company takes on the ownership of the
scrap vehicle.
Principle of contribution
It states that only parties who paid premium can benefit from the
insurance contract. In this principle, only members within the insurance
contract can demand for their rights in case one party does not respond to
the terms and conditions of the contract. For example, if Edrine insured
his car with Sanlam against an accident but the car gets an accident when
the friend is the one driving without a valid driving permit, the insurance

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company can not compensate Edrine because his friend was not within
the contract.
PROBLEMS FACED BY INSURANCE COMPANIES IN UGANDA
 Limited penetration in the market: most of the people in
Uganda do not support insurance as they think it is another
way of wasting money which leaves few people and
organisations interested in insurance hence affecting
insurance companies.
 High startup capital as regulated by insurance regulatory
authority of Uganda (IRA): most of the insurance companies
like the new ones into the market face a problem of limited
capital to start for example as regulated by IRA for any
insurance company to sell life policies should buy reinsurance
of at least 4billion.
 High competition from other insurance firms which leads to
high costs of sales promotion and advertising so as to
compete favourably in the market for example jubilee
insurance has put up signposts and adverts on television
stations and radios.
 Low-income levels of the people of Uganda: many people in
Uganda work on hand to mouth which makes it hard for them
to buy insurance policies which are expensive hence affecting
the performance of the insurance companies such as Sanlam,
jubilee and prudential Uganda.
 Limited skilled labour: the world of insurance needs people
who are well trained and equipped with the knowledge of
insurance whereby few people are willing to pursue courses of
insurance hence a problem to the insurance companies.
 High taxes charged by the government: the government
charges high taxes on several insurance policies for example
under motor third party the insurance company takes around
21% of the total premium paid by the client.
 Operational Challenges: Managing and settling claims
efficiently and fairly, accurately assessing risks and setting
premiums, managing policyholder data, premiums, and
benefits and the need to Adhere to regulatory requirements
and industry standards
 Financial Challenges: insurance companies face difficulties in
Generating sufficient returns on investments to support
business growth, setting aside adequate reserves to cover
future claims, maintaining sufficient capital to meet regulatory
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 requirements and also Managing operational expenses,
including salaries, marketing, and technology costs.
 Market Challenges: insurance companies being many in the
market, they do involve in Competing with other insurance
companies for market share, Attracting and retaining
customers in a crowded market, adapting to changing market
trends, such as shifts in consumer behaviour, Responding to
changes in regulatory requirements and industry standards.
 Technology Challenges which include upgrading or replacing
outdated technology systems, leveraging data analytics to
inform business decisions, protecting customer data and
systems from cyber threats, embracing digital technologies to
improve customer experience and operational efficiency.
 Risk Management Challenges which require accurately
assessing and pricing risks, implementing effective risk
mitigation strategies, Managing the impact of catastrophic
events, such as natural disasters, Protecting the company's
reputation and brand

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 KYAMBOGO UNIVERSITY
SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP
DEPARTMENT OF BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP
BACHELORS OF BUSINESS STUDIES WITH EDUCATION
YEAR 2 SEMESTER 2 2025
COURSE UNIT : BUSINESS RESEARCH METHODS
GROUP ASSIGNMENT
GROUP C

RESEARCH PROPOSAL
SUBMITTED
ON..............................................................................................................................
NAME REGISTRATION SIGNATURE
NUMBER

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TOPIC: ENHANCING CUSTOMER RETENTION STRATEGIES IN E-
COMMERCE BUSINESSES THROUGH PERSONALIZATION AND
LOYALTY PROGRAMS

1. Introduction and Background

Customer retention has become one of the key challenges for e-commerce
businesses in the digital age. While attracting new customers is crucial for
growth, retaining existing ones often leads to higher profitability, better
brand loyalty, and sustained business success. According to research
Hwan sung, increasing customer retention rates by just 5% can boost
profits by 25% to 95%. Despite this, many e-commerce platforms struggle
with high customer churn rates, which is detrimental to long-term
profitability.
The e-commerce industry has grown exponentially in the last decade, with
increasing competition and a shift toward online shopping. However,
businesses often focus primarily on customer acquisition rather than
retention, overlooking the significance of nurturing long-term
relationships. Key strategies such as personalization and loyalty programs
have been identified as effective in improving customer retention, but
their actual implementation and impact on customer behaviour remain
insufficiently understood.
This research aims to explore and evaluate the effectiveness of
personalized marketing strategies and loyalty programs in improving
customer retention for e-commerce businesses.

2. Problem Statement

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E-commerce businesses face high rates of customer turnover, resulting in
lost revenue and increased marketing costs. Despite the known benefits of
personalization and loyalty programs, many businesses are either not
implementing them effectively or are unable to measure their true impact
on customer retention. As a result, there is a need for a detailed
investigation into the most effective strategies for retaining customers in
the competitive e-commerce market.

3. Research Objectives
The primary objective of this study is to identify, evaluate, and
recommend strategies for improving customer retention in e-commerce
businesses. Specifically, the research aims to:
 To assess the impact of personalized marketing strategies for
example tailored product recommendations, personalized emails on
customer loyalty and retention.
 To examine the effectiveness of loyalty programs points systems,
exclusive offers, in increasing repeat purchase rates and customer
satisfaction.
 To investigate the role of customer experience in customer
retention.
 To provide actionable recommendations for electronic commerce
businesses to enhance customer retention through the combination
of personalized marketing and loyalty initiatives.

4. Research Questions
 How does personalized marketing influence customer retention in e-
commerce businesses?
 What are the key factors that make loyalty programs successful in
encouraging repeat purchases and increasing customer loyalty?
 What role does the overall customer experience (including website
usability, shipping, and customer service) play in retaining
customers for e-commerce businesses?
 How do e-commerce businesses measure the success of their
retention strategies, and what metrics are most indicative of
customer loyalty?

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5. Literature Review
Previous research has shown that personalization can significantly
improve customer retention. For example, a study by Hwan sung
Company found that personalized experiences drive 40% more revenue
for electronic commerce platforms than non-personalized ones. Similarly,
loyalty programs have been shown to increase customer lifetime value
(CLV) and foster repeat purchases The integration of artificial intelligence
(AI) in personalization also allows for more dynamic, responsive customer
interactions that are crucial for retention.

6. Methodology
To address the research objectives, this study will employ a mixed-
methods approach, combining both qualitative and quantitative research
techniques.
a. Survey:
A survey will be distributed to a sample of customers who have made
purchases from various e-commerce businesses. The survey will include
questions on:
 Frequency of repeat purchases
 Satisfaction with personalized marketing and offers
 Usage and satisfaction with loyalty programs
 Overall customer experience (website usability, shipping, etc.)

b. Case Study Analysis:

A detailed analysis will be conducted on a few successful e-commerce
businesses known for implementing personalized marketing and loyalty
programs. The case study will examine their customer retention strategies
and measure their impact on customer loyalty and repeat purchases.
c. Customer Retention Metrics:
Customer retention metrics, such as repeat purchase rate, customer
lifetime value (CLV), and churn rate, will be collected from participating
businesses to track the effects of the strategies implemented. These
metrics will provide concrete data on the effectiveness of different
strategies.
d. Interviews with E-commerce Managers:

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In-depth interviews with marketing and customer retention managers
from e-commerce businesses will provide insights into the practical
challenges and successes of implementing personalized strategies and
loyalty programs.

7. Data Analysis
Quantitative data from surveys and customer retention metrics will be
analysed using statistical methods, including correlation analysis and
regression models, to determine the relationship between personalized
marketing efforts, loyalty programs, and customer retention.
Qualitative data from interviews and case studies will be analysed using
thematic analysis to identify common patterns, challenges, and best
practices.
8. Expected Outcomes/hypothesis
The study is expected to provide:
 A clear understanding of how personalization and loyalty programs
influence customer retention.
 A framework for e-commerce businesses to design and implement
effective retention strategies.
 Insights into how businesses can measure the success of their
retention efforts.
 Recommendations on how businesses can enhance customer
experience to improve loyalty and retention.

9. Significance of the Study

This research is significant because it will help e-commerce businesses
develop more targeted, effective strategies for improving customer
retention, thus increasing their long-term profitability. By providing
evidence-based recommendations on personalized marketing and loyalty
programs, the study will help businesses optimize their retention efforts,
reduce customer churn, and create stronger customer loyalty.
10. Timeline
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Phase Timeline

Literature Review and Background Month 1

Survey Distribution and Data Collection Month 2-3

Case Study Analysis Month 3-4

Data Analysis and Interpretation Month 5

Report Writing and Recommendations Month 6

11. Budget Estimate

Item Estimated Cost

Survey Tools and Software UGX 2,000,000

Participant Incentives UGX 3,600,000

Data Analysis Software UGX 4,000,000

Research Assistant UGX 700,000

Miscellaneous (travel, printing) UGX 1,000,000

Total UGX 11,300,000

12. References
 MTN Uganda annual report (2020). "Impact of Loyalty Programs on
Customer Retention in E-commerce.
 Hwan sung report. (2021). "The Value of Personalized Experiences in
E-commerce.
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