What is likely a result of unclear record-keeping practices?

Unclear record-keeping practices can lead to a number of issues that may detrimentally affect an organization's ability to retain customers. When records are mismanaged or not accurately maintained, it can result in mistakes such as incorrect policy information, billing errors, or delayed responses to customer inquiries. These issues can frustrate customers and erode their trust in the service being provided.

Customers expect timely and accurate information regarding their policies and claims. If an insurer cannot deliver this due to poor record-keeping, it creates a negative experience that may compel customers to seek alternatives with better service reliability. In contrast, effective record-keeping is essential for ensuring smooth operations, enhancing client interactions, and maintaining compliance with regulations, none of which directly address the impact on customer retention when records are unclear.