From Quality to Loyalty: How TQM-Driven Service Innovation Supports Customer Retention
DOI:
https://doi.org/10.51137/wrp.ijarbm.503Keywords:
Total Quality Management, Customer Retention, Service Innovation, Service Reliability, People-Centred CultureAbstract
Customer retention in insurance is increasingly influenced by rising client expectations, digital service alternatives, and stricter market-conduct regulation. While total quality management (TQM) is widely promoted as a means of ensuring consistent service delivery, the mechanisms through which it supports retention in regulated, information-intensive service environments remain under-explained, particularly in rapidly evolving African insurtech markets. This qualitative single-case study examines how employees in a large Johannesburg-based insurer (anonymised as InsurerX) understand and apply TQM practices to strengthen customer retention. Eight purposively selected stakeholders from customer-facing and quality-related roles participated in semi-structured interviews, with data analysed using reflexive thematic analysis supported by exploratory lexical patterning. Findings indicate that retention is conceptualised primarily as relationship continuity and value assurance rather than a transactional outcome. Three reinforcing TQM pathways were identified: 1) customer-voice loops that translate feedback into process improvement, 2) continuous-improvement routines that stabilise service reliability while enabling incremental service innovation, and 3) a people-centred quality culture aligning leadership, learning, and accountability with customer-experience outcomes. A contextual layer shows how regulatory scrutiny and switching options increase the reputational costs of service failures, positioning TQM as a strategic capability rather than a compliance requirement. The study frames TQM as a micro-foundation of service innovation in insurance operations and offers practical guidance for strengthening feedback systems, learning loops, and quality-driven experimentation.
References
Alateyyat, S. K., Jaaron, A. A. M., & Igudia, E. (2024). Unveiling the status of the TQM–performance link in the private, public, and third sectors: A systematic review. Total Quality Management & Business Excellence. https://doi.org/10.1080/14783363.2024.2348660
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Braun, V., & Clarke, V. (2008). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Deloitte. (2024/2025). Deloitte Africa Insurance Outlook 2024/2025. Deloitte. (Industry report). Available: https://www.deloitte.com/za/en/Industries/insurance/perspectives/africa-insurance-outlook-2025-2026.html (Accessed: 5 Dec 25)
Deming, W. E. (2018). Out of the crisis. MIT Press. https://doi.org/10.7551/mitpress/11457.001.0001
García‑Fernández, M., Claver‑Cortés, E., & Tarí, J. J. (2022). Relationships between quality management, innovation and performance: A literature systematic review. European Research on Management and Business Economics, 28(1), 100172. https://doi.org/10.1016/j.iedeen.2021.100172
Government of South Africa. (2017). Long-Term Insurance Act: Policyholder Protection Rules (Government Gazette No. 41321, Notice 1407). Available: https://www.gov.za/sites/default/files/gcis_document/201712/41321gon1407.pdf (Accessed: 1 Dec 25)
Henry, D. B., Tolan, P. H., & Gorman‑Smith, D. (2015). Clustering methods with qualitative data. Prevention Science, 16(2), 165–174. https://pmc.ncbi.nlm.nih.gov/articles/PMC4939904/
Holland, C. P., et al. (2024). Insurtech strategies: A comparison of incumbent insurance companies and tech start‑ups. (Open access article). https://pmc.ncbi.nlm.nih.gov/articles/PMC11835706/
International Association of Insurance Supervisors. (2024). Global Insurance Market Report 2024. IAIS. Available: https://www.iais.org/uploads/2024/12/Global-Insurance-Market-Report-2024.pdf (Accessed: 6 Dec 25)
Juran, J. M., & Godfrey, A. B. (Eds.). (2010). Juran’s quality handbook (6th ed.). McGraw‑Hill. Available: https://www.accessengineeringlibrary.com/binary/mheaeworks/4cff5963f549e6cc/f8e12d8949a7b3b959e84cdcc7b3f7f9e534e4ac22b05817a6c810e8572a4a95/book-summary.pdf (Accessed: 23 Nov 25)
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, 70(1), 71–79. Available: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2 (Accessed: 27 Nov 25)
KPMG. (2025, October 16). KPMG Insurance Industry Survey 2025: South African insurance sector demonstrates continued levels of resilience despite economic headwinds [Press release]. Available: https://assets.kpmg.com/content/dam/kpmg/za/pdf/2025/kpmg-insurance-industry-survey-2025-press-release-16-oct.pdf (Accessed: 4 Dec 25)
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service‑dominant logic perspective. MIS Quarterly, 39(1), 155–175. https://doi.org/10.25300/MISQ/2015/39.1.07
Morgan, R. M., & Hunt, S. D. (1994). The commitment‑trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38. https://doi.org/10.1177/002224299405800302
Mowforth, O. D., et al. (2023). Lived experience‑centred word clouds may improve research on patient experiences. BMC Medical Research Methodology, 23, 88. https://doi.org/10.1186/s12874-023-01897-6
National Treasury. (2015). Explanatory Policy Paper accompanying the CONDUCT OF FINANCIAL INSTITUTIONS BILL Paper accompanying the first draft of the COFI Bill. National Treasury. Available: https://www.treasury.gov.za/twinpeaks/cofi%20bill%20policy%20paper.pdf (Accessed: 8 Dec 25)
Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63, 33–44. https://doi.org/10.1177/00222429990634s105
Ovatoyou, Rogerwilco, & Ahlfeldt, J. (2024). The 2024 South African Customer Experience Report. (Industry report). Available: https://www.cx-report.co.za/sites/default/files/2024-07/The%202024%20South%20African%20Customer%20Experience%20Report%20%28small%29.pdf (Accessed: 5 Dec 25)
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple‑item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40. Available: https://www.marketeurexpert.fr/wp-content/uploads/2023/12/servqual.pdf (Accessed: 3 Dec 25)
Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46–54. Available: https://hbr.org/2003/12/the-one-number-you-need-to-grow (Accessed: 3 Dec 25)
Smit, L.‑M., Sutton, L. B., & Bezuidenhout, L. (2024). Interpersonal communication in the motor insurance sector during the claims stage. Acta Commercii, 24(1), a1315. https://doi.org/10.4102/ac.v24i1.1315
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE. https://uk.sagepub.com/en-gb/eur/case-study-research-and-applications/book250150
Yirga, S. A., & Beshir, M. A. (2025). The effect of total quality management practices on innovation: Evidence from selected agricultural technical and vocational education training colleges in Ethiopia. Journal of Innovation and Entrepreneurship, 14, 21. https://doi.org/10.1186/s13731-024-00460-x
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–46. https://doi.org/10.2307/1251929
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Ismail Sheik (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
