Customer Relationship

Management

How to Measure Customer Relationship?

Market Research is the tool that can be used to measure both c

behaviour and customer satisfaction. This is the tool which can pr
accurate information to a company on all aspects of customer rel
viz.;
Customer behaviour
Customer loyalty
Customer satisfaction
Customer service
Response
Complaint redressal
Customer needs

How to Measure Customer Relationship?

Market Research can provide the following type of information
1. Customer Related Information
Customer perception on economy and growth plan
Customers own plan
Changing need pattern in the segment
Changing pattern of financing need
Customers opinion on competitor companies
Customers expectation on services
Customers decision making process/factors

How to Measure Customer Relationship?

2. Customer Feedback
Customer feedback on company
Customer preferences
Customer perception
Critical success factors
Customer satisfaction
Customer loyalty
Service & maintenance
Complaint management
Price

3. Competitors Plan and Strategy

Competitors perception of environment and trends
Competitors perception of company and its strengths & weaknes
Competitors growth plan and strategy
Competitors products and services

How to Measure Customer Relationship?

Market Research Process
Identification of Objectives

Planning the Approach

Desk Research-Secondary Sour

Data/Information Collection

Field Survey-Primary Source

Data Analysis

Conclusions

Action Plan Formulation

Report Preparation &

Recommendations

How to Measure Customer Relationship?

Market Research Process
Desk Research: Secondary Source/Data
Company records
Data released by the Government
Independent research organisation
Business Journals
Published data
Libraries/Internet
Professional & Trade Associations
Example;
Environment details
Market trends
Market behaviour

How to Measure Customer Relationship?

Market Research Process
Field Survey: Primary Source/Data
Customers / Users
Consultants / Experts / Specialists
Retailers
Wholesalers

Types of Survey
Factual
Observational
Experimental

Accuracy

Quality

Quality
&
Accuracy

Sample Size

How to Measure Customer Relationship?

Below

Bench Mark

Above

Strategy Formulation from Data Analysis

Unsatisfied Customer
Potential Loss

Delighted Customer
Leader

Need for Serious

Improvement
Laggard

Need for Improvement

Also Ran

Below

Above
Customer Expectation

CUSTOMER RESPONSE

A customer response conveys a customers perception about the company/P

These perceptions can be classified in to different categories based on the eff

they create on the customer.
1. IMPRESSION
Totally satisfactory
Full information with personal touch
Full information but with indifference
Uninterested
2. ATTITUDE
Positive and helping
Indifferent
Negative
3. INFORMATION TRANSFER
Full
Part
Nil
Negative

CUSTOMER RESPONSE
4. EMOTIONAL TOUCH
Yes
No
5. EFFORTS
Extraordinary (went out of the way)
Normal
No efforts
6. CONCERNS & EMPATHY
Fully involved
No involvement or apathetic
7. CLARITY
Full
Partly
8. UNDERSTANDING OF QUERY
Fully
Partly
Misunderstanding

CUSTOMER RESPONSE
Customer
Concern
Customer
Importance

Customer
Orientation

Respons
e

Initiative

Drive

Objectivity

Pragmatism

CUSTOMER RESPONSE
What Response Must Provide or Pre-requisite of Good Response

Fast

Confidence
Builder

Positive

Comfort
Provider

Good
Respons
e

Informative

Create Bond

Comprehensiv
e

Approachable

CUSTOMER RESPONSE
Response Medium
Face-to-face communication
Telephone
e-mail
Fax
Letter
Internet

CUSTOMER RESPONSE
Human Resources Quality / Attributes Required for Good Response
Positive thinker
Analytical & Logical
Pro-active and integrator
Comprehensive
Empathy
Personal relationship
Solution finder
Cool & Patient

CUSTOMER SATISFACTION
What is Customer Satisfaction?
Customer Satisfaction is the customers perception that a company has met
his / her expectation FULLY, EFFICIENTLY & PROMPTLY
Factors Affecting Customer Satisfaction

Product: efficiency, quality, price, performance, durability etc.

Customer service
Ability to meet commitments
Complaint handling
Life cycle of product
Company response

In other words;
1. Company behaviour
2. Product & service performance

CUSTOMER SATISFACTION

Customer Satisfaction

Human Factors
Response
Service
Adherence to Commitment
Complaint Handling
Customer Importance
Orientation
Attitude

Product Factors
Performance
Efficiency
Price
Quality
Durability
Availability

CUSTOMER SATISFACTION
Measurement
Customer
Related

Business
Related

Customer Satisfaction
Measurement
Reasons

Competitor
Related

Company
Related

Performance
Related

CUSTOMER SATISFACTION
Business Related

Measurement

Judge the effectiveness of its business- how much customer-centric is the company
Provides quantified information on;
How many customers have been lost?
How much business has been lost?
How much profit has been lost?
Satisfied customers can be the extended marketing arm of the company
Unsatisfied customers can be affect the company business
Unsatisfied customers is lost without giving the company an opportunity to undo
the damage
Loss of customer is loss of business opportunity and profitability
Chanalises the companys resources to bridge the gap in customer satisfaction

CUSTOMER SATISFACTION
Customer Related

Measurement

How many customers have been lost?

Which customers has been lost?
Why and where they have been lost?
Identifying preventive measures
To identify value the customer assigns to companys product & services
Customers decision making factors
Customer needs and requirements
Develop empathy- to become customer-centric company

CUSTOMER SATISFACTION
Company Related

Measurement

Feedback on strengths & weaknesses and also on the competitors

Identify core competencies to develop future business strategies
Companys market image and standing
Customers perception on the company
Companys position vis--vis benchmark

Competitors Related
Loss of company is gain of competitor
Identify strengths & weaknesses of competitors to chart suitable strategies
Relative position of competitors w.r.t benchmark to anticipate type of competiton

CUSTOMER SATISFACTION
Performance Related

Measurement

Opportunity to improve existing products and services

The actual cost of customer turnover
How the company is performing from customers perception?
How sharp is the companys competitive edge

CUSTOMER SATISFACTION
Measurement Methods
Every company must have a set of tools and methodology to collect hard data
on customer expectations, needs and level of its fulfillment to provide the
following information;
Identifying needs of customers
Factors considered by customers as important
Customer feedback on these factors to company and other competitors
Benchmark
Deviation between customer expectation and company achievement
Deviation between company achievement and benchmark

Direct Methods
Customer feedback surveys
Informal chat / interviews with customers
Surprise visit to market

Indirect Methods
Transient change in complaints
Transient change in loyalty

CUSTOMER SATISFACTION
Analysis of Customer Satisfaction Measurement
Important and decisive factors from customers perception
Customer expectation method
Average score obtained by the company and competitors against the above factors
Classification of factors into different identities that can be leveraged
(Price, Delivery, Quality, Services etc.)
Customer Satisfaction Index (CSI)
Total score obtained by the company based on customer feedback
CSI =
Total score expected by the customer for company to obtain

Customer Excellence Index (CEI)

Total score obtained by the company based on customer feedback
CEI =
Total score based on benchmark for excellence

CUSTOMER SATISFACTION
How to promote Customer Satisfaction

Listening to customers
Identifying factors needing attention and developing an action plan
Striving to make the company as one trusted by the customers
Developing customer satisfaction as corporate culture

CUSTOMER SATISFACTION
Action Plan for Enhancing Customer Satisfaction
Identify factors having impact on customers

Map the competitors on these factors

Map the company on these factors

Identify Benchmark

Measure relative divergence from BM

Measure relative divergence from BM

Estimate Customer Satisfaction Index

Estimate Excellence Index

Companys S&W

Leverage Strengths

Action Plan for Weakness

Allocate Resources
Remedial Action for
Bridging the gap with BM

Prioritise
Remedial Action for
Weaknesses

CUSTOMER SATISFACTION
Skills for Handling Customers

General Skills

Behavioural Skills

Listen patiently to customers

Empathise
List possible options
Choose the best option
Be flexible in approach
Inform customers the action taken
Establish rapport with customers
Create positive first impression

Develop instant rapport

Provide confidence and comfort
Avoid controversies
Avoid arguments
Develop skills to handle upset customers
Keep cool under extreme provocation
Manage the associated stress

CUSTOMER SATISFACTION
Training the Staff

Provide practical training

Time management
Need for fast and positive response
Coping with pressure
Pro-active approach
Result oriented action

Develop Top to Bottom

Customer Oriented Culture

Loyalty & Customer Retention

Complaint Management

CUSTOMER LOYALTY & RETENTION

A customer can be satisfied, he may even be delighted but he may or
may not be loyal.
Customer satisfaction is an emotional and sentimental issue. It is a
feeling, a feeling of satisfaction over a job well done in the past.
Loyalty is related to the act of the customer in future.

CUSTOMER LOYALTY & RETENTION

Reasons for satisfied but disloyal customer

Entrepreneur
Customer

Outdated
Company

Satisfied
but
Disloyal
Customer

(Feels that for his new requirements

The cos products & services is outdated)

(Creates more options to get more

benefits or value for money)

Lead by other
competitors
(Has better options due to new
competitors)

CUSTOMER LOYALTY & RETENTION

Reasons for unsatisfied but loyal customer

Lack of Options

(May not have alternatives or

monopoly segment)

Dissatisfied
but Loyal
Customer
Improved
Company
(Impressed due to improved
performance by the co.)

Customer
Inertia
(Averse to change)

CUSTOMER LOYALTY & RETENTION

Customer Satisfaction Loyalty Grid

Retrospect

Leader

Lost

Trapped

H
Loyalty

CUSTOMER LOYALTY & RETENTION

Advantages of Loyalty

Business Growth

Profitability

Loyalty
Advantag
es

Business
Ambassadors

Reduced Mktg.
Expenditure

CUSTOMER LOYALTY & RETENTION

Drivers of Customer Loyalty

Attitude

Products & Services

Emotional
Rational
Entrepreneur
Inertia

Highly differentiated
Multi-product offerings
High service component

CUSTOMER LOYALTY & RETENTION

Customer Loyalty Breakers

Dissatisfaction
Intense competition
High expectation
New options

CUSTOMER LOYALTY & RETENTION

Customer Loyalty Management

Loyalty
Tracking

Assess
Customer Value

Measure
Loyalty

Re-measure
Loyalty

Devise
Action Plan

Identify
Loyalty Drivers

CUSTOMER LOYALTY & RETENTION

Customer Loyalty Management
Major Activities

1. Customer Value Assessment

2. Loyalty Measurement & Loyalty Index
3. Loyalty Tracking
4. Loyalty Retention Strategy
5. Assessment of effectiveness of CLM & course correction

CUSTOMER LOYALTY & RETENTION

1. Customer Value Assessment
Value of Customer Customer Loyalty Grid

Pitfalls

Patrons

Neglected

Premium

H
Customer Loyalty

CUSTOMER LOYALTY & RETENTION

2. Loyalty Measurement

Measurement of customer satisfaction cannot provide authentic

information on their loyalty, but measurement of loyalty can give
a definite indication about his retention.

LI =

Business Secured
Business Available

CUSTOMER LOYALTY & RETENTION

3. Tracking Loyalty

Secured

Net
Business

Time

Lost
Course correction

CUSTOMER LOYALTY & RETENTION

4. Loyalty Retention

1. Communication

7. Response

2. Emotion

8. Attention

3. Needs

9. Empathy

4. Satisfaction

10. Transparency

5. Credibility

11. Differentiation

6. Services

12. Positioning

CUSTOMER LOYALTY & RETENTION

Strategy for Reclaiming Lost Customer

Business
Lost

Meet
Customer

Action
Plan

Analysis

Corrective
Measures

Customer
Feedback

Meet
Customer

Reasons for
Loss

CUSTOMER COMPLAINT MANAGEMENT

Why Customers Complain?
The customer is looking for redressal from the company and has the
confidence and trust in the companys ability to address the issue.
In customers opinion, the company has performed below his ability
unintentionally.

There exists an emotional bond between the company & the customer.
Complaints are like early warning system
It is what the company does after receiving the complaint that makes all
the difference.

CUSTOMER COMPLAINT MANAGEMENT

Complaint Generation Process?
Customers Assessment
of Company

Customer
Expectation

Analyze

Companys
Offerings

Deficient
Performance

Lack of
Proper Handling
by the Company
Competitors
Ability

Complaint

Frustration /
Anger

Intensificati
on
Major
Complaint

CUSTOMER COMPLAINT MANAGEMENT

Advantages of Complaint Analysis
Feedback

Problem
Identification

Generic Deficiency
Identification

Market Trends &

Behaviour

Customer Needs &

Perception

CUSTOMER COMPLAINT MANAGEMENT

Classification of Complaints
Factual

Psycho/Behav
iour

Habitual

Distractive

Delay from
company

Lack of attention

Compulsive

Aggressive to
avoid nonpayment

Deficient
performance

Lack of priority

Publicity

Non-adherence to
instruction
manual

Quality

Carelessness

Negative attitude

Negligence

Warranty

Improper
behaviour

Competitors
jealousy

Inertia from the

buyer leading to
overall delay

Breakdown

Lack of
cooperation

Price/Discount

Lack of
communication

CUSTOMER COMPLAINT MANAGEMENT

Complaint Management Traps
Deaf Ears

Apology but
no Action

Legal Suits

CUSTOMER COMPLAINT MANAGEMENT

Complaint Management Flow Chart

Complaint

Acknowledgement

Analysis

Cause Identification

Classification
Serious
Casual
Routine
Type
Generic
Past History
New

Customer Information

Reasons
Co. fault
User negligence
Customer Information

Fresh/Residual
Problem

Implications
Cost
Time

Remedial Action

Customer Information

Follow-up
Monitoring

Smooth
Operation

Complaint
Resolved

Satisfied &
Loyal Customer

Customer
Acceptance

CRM Practices in Pharma

CRM in Pharma

Operational CRM supports traditional transactional processing for dayto-day front-office operations or systems that deal directly with the
customers (Sales, Marketing & Customer Service)
Operational CRM processes customer data for;
Managing campaigns- Marketing
Sales Force Automation- Sales Force

CRM in Pharma

Analytical CRM supports back-office operations and strategic analysis

and includes all systems that do not deal directly with the customers (Data
warehouse & Data mining)
Analytical CRM analyzes customer data for;
Designing and executing targeted marketing campaigns
Planning customer acquisition, Consolidation & Retention
For cross-selling, up-selling, add-on-selling etc.
Analyzing customer behaviour in order to make decisions
relating to products and services, including feedback on new
product introductions etc.

CRM in Pharma

Industry Scenario
Market
Very fragmented market
> Rs. 40,000 Crores
Healthy double digit growth
>16,000 players in the organised & unorganised sector
50 brands for every molecule
> 30,000 brands
Challenge of Brand Differentiation

CRM in Pharma

Industry Scenario
Customer
> 6 Lac doctors
GP:Specialist 70:30
Hardly 20% to 30% doctors are covered
Covered doctors are exposed to 70-100 companies promotion
MR is the only key media to reach out to the doctors
Challenge of Building Business

CRM in Pharma

Meet the challenges of the industry through CRM initiatives using the
IDIC model.
Steps in IDIC Model
Identification
Differentiation
Interaction
Customization

CRM in Pharma
Identification
Doctor list of MR capturing details;
Name
Address
Telephone (clinic & residence)
Mobile
e-mail
Qualification
Specialty
Visit days & timings
Memberships & Associations
Business support (products & value)

CRM in Pharma
Differentiation
Doctor are classified according to business support & potential to the company;
KOL
ABC

CRM in Pharma
Interaction
To get to know the doctor intimately with a view to build relationship;
Hobbies
Like & Dislikes
Family details
Memorable Dates (B.D, W.A, Childrens B.D)
Interaction at two levels;
1.MR can personally collect the data during his day to day working
2.Company can send structured questionnaires to doctors
Build data base on the doctors;
Professional information: Associations, Journals read, Splty, Qualification
Personal information: Hobbies, Interests, BD, WA etc of Dr, Wife & Children

CRM in Pharma
Customization
Utilising the collected data to provide personalised services;
Tele calls/Gifts/Greetings cards/Bouquets/Personal letter on BD/WA
Sending exclusive gifts and services based on interests & hobbies
Providing subscription to journals & magazines
Loyalty Programmes (communicate details & exclusivity of the activities)
Direct Marketing Brand campaigns, New launch mailers, Brand contests
Call Centre (Telemarketing)
Internet (Company & Brand specific URLs)

CRM in Pharma
Measurement
Execute the programmes and continuously monitor the business
returns to Delete, Downgrade or Upgrade the doctor
Rxtion support from doctors in CRM v/s doctors not in CRM
Business support over a particular time period
Business support before and after implementing CRM
Critical Success Factor for CRM
Innovative & Creative initiatives
Commitment to CRM at all levels
Resource support from top management
Clear guidelines and budget limits
Implementation, Control & Evaluation
Measurement of returns
Perseverance

CRM in Pharma
CRM is practiced at;
Doctor Level
Medical books & Journals
Conference participation
Conference registration
CMEs & DGMs
Sponsoring medical meetings
Medical camps
Hospital clinical meets
Exclusive splty. club
Samples
Special events & campaigns

Travel: Air / Train tickets

Accommodation: Five star hotels
Car services
Expensive gifts
Foreign tours
Contests / Games on Brand prescriptions
Donations
Meeting personal & household expenses
Special discounts on products

CRM in Pharma
CRM is practiced at;
Chemist / Stockist Level
Schemes / Trade offers / Bonus
Contests
Merchandising
Sponsorships of trade meetings
Gifts
Special clubs

CRM in Pharma
CRM is practiced at;
Patient Level
Free camps
Free samples / Discounts on products
Free / Discounted laboratory tests
Disease awareness programmes by doctors
PIS: Posters, Leaflets, Booklets on diseases
Gifts / Takeaways on Special days
Contests
Public programmes for spreading awareness

CRM in Pharma
CRM Hierarchy in Pharma

HO list of identified potential customers viz. 1000 drs.

in the country

HO

RSM
AM
MR

RSM list of identified potential customers viz. 50 drs.

in the region
AM list of identified potential customers viz. 50 drs.
in the area
Emotional activities: memorable dates, festivals etc.
on a list of identified potential customers viz. 20 drs
in the territory.

Provide clear guidelines and budget limits

Implement necessary reporting formats

CRM in Pharma

? IFPMA Code
? OPPI Code

CRM in Pharma

Thank You