CRM Implementation Failure at Cigna Corporation

At a press conference in December 2002, the management of Cigna Corporation (Cigna), one of the largest health insurers in the US, announced that problems in their customer database systems had resulted in misquoting their number of customers by an extra 900,000. The beginning of 2002 saw Cigna face problems on many fronts including customer service and profitability. The company's membership fell due to poor customer service and by the end of 2002, the membership was 12.5 million, down from 13.3 million at the end of 2001. For the fiscal year 2002, Cigna reported revenues of US$ 19.34 billion and a net loss of US$ 398 million (Refer Exhibit I for Cigna's consolidated statements of income between 1999 and 2004).