Download CUSTOMER RELATION MANAGEMENT IN HOSPITALS

CUSTOMER RELATION
MANAGEMENT
MSc (CR)
DR. K K RAHEJA
WHAT WE WILL LEARN?
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CUSTOMER CENTRIC APPROACH
CUSTOMER SATISFACTION, VALUE,LOYALTY
VALUE CONCEPT
CUSTOMER PERCEIVED VALUE (CPV)
TOTAL CUSTOMER COST/TOTAL CUSTOMER
VALUE
VALUE PROPOSITION
TOTAL CUSTOMER SATISFACTION
MEASUREMENT TOOLS FOR SATISFACTION
QUALITY/ TQM
CRM
UNDERSTANDING BUSINESS
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A CUSTOMER IS NOT AN OUTSIDER TO OUR
BUSINESS
◦ .HE IS A DEFINITE PART OF IT.
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A CUSTOMER IS NOT AN INTERRUPTION OF
OUR WORK.
◦ HE IS THE PURPOSE OF IT.
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A CUSTOMER IS DOING US A FAVOUR BY
LETTING US SERVE HIM.
◦ WE ARE NOT DOING ANY FAVOUR TO HIM.
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A CUSTOMER IS NOT A COLD STATISTIC.
◦ HE IS A FLESH AND BLOOD HUMAN BEING
WITH FEELINGS
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A CUSTOMER IS NOT SOMEONE TO ARGUE OR
MATCH WITS WITH.
◦ HE DESERVES COURTEOUS AND ATTENTIVE
TREATMENT
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A CUSTOMER IS NOT DEPENDENT ON US.
◦ WE ARE DEPENDENT ON HIM.
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A CUSTOMER BRINGS US HIS WANTS.
◦ IT IS OUR JOB TO HANDLE THEM PROPERLY AND
PROFITABLY- BOTH TO HIM AS WELL AS US
A CUSTOMER MAKES IT POSSIBLE TO PAY US
OUR SALARY.
 A CUSTOMER IS THE MOST IMPORTANT PERSON
IN OUR BUSINESS.
MKG
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3M company claims that two thirds of its
product improvement ideas come from
listening to customers
CUSTOMER CENTRIC APPROACH
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Moving from sale & product philosophy to
Marketing philosophy… a better chance to the
company to outperform the competitors
◦ Corner stone of a well conceived marketing
orientation is strong Customer Relationship
◦ Connect with customers – informing, engaging,
energizing them in the process
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“MAKE THE CUSTOMERS THE CENTRE OF
YOUR CULTURE” – John chambers – CEO
Cisco systems
TRADITIONAL ORG CHART
TOP
MANAGEMENT
MIDDLE
MANAGEMENT
FRONT LINE PEOPLE
CUSTOMERS
ADDING VALUE TO CUSTOMERS
HDFC Bank/ other private banks were the first to
offer on-line real time banking across all channels
such as ATMs, Internet Banking, mobile banking
 Many new value added services
◦ collecting and delivering DDs, checks from customers’
premises,
◦ at par check facilities
Technological conveniences
+
modern, classy, efficient branch banking environment
created a paradigm shift in quality of customer
experience in the banking sector
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BUILDING CUSTOMER VALUE,
SATISFACTION & LOYALTY
Successful marketers are the ones who
add superior value to their customers.
 E-bay epitomises the New World Order
 With rise of technology, customer expect
more than connect , more than satisfy and
more than delight
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MODERN CUSTOMER ORIENTED
ORG CHART
CUSTOMER
C
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FRONT LINE
PEOPLE C
MIDDLE
MANAGEMENT
TOP
MANAGEMENT
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CUSTOMER PERCEIVED VALUE
(CPV)
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Customers tend to be value maximisers,
within the bounds of search costs, and
limited knowledge, mobility and income
difference between prospective customer’s
evaluation of all benefits and all costs of an
offering and perceived alternatives
TOTAL CUSTOMER VALUE- perceived
monetary value of bundle of economic,
functional, and psychological benefits
customers expect from a given market
offering.
The real price of anything is toil &
trouble of acquiring it – Adam Smith
TOTAL CUSTOMER COST- the bundle of
costs, customers expect to incur in
evaluating, obtaining, using and disposing
of the given market offering including
monetary, time, energy, and psychic costs
 V1:V2 – choose
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◦ V1 if ratio is >1/
◦ V2 if <1
CUSTOMER
DELIVERED VALUE
TOTAL
CUSTOMER
VALUE
PRODUCT
VALUE
TOTAL
CUSTOMER
COST
MONETARY
COST
SERVICE VALUE
TIME COST
PERSONAL
VALUE
ENERGY COST
IMAGE VALUE
PSYCHIC COST
APPLICATION OF VALUE
CONCEPT
Tractor – M& M v/s TAFE
Reliability, durability, performance, resale value
Differences in accompanying services- delivery,
training, maintenance
 Corporate image
 VALUE from 4 sources- product, services,
personnel & image – perceives M & M delivering
greater customer value
 Examines total cost of transacting which is more
than money – “real price of anything is toil & trouble
of acquiring it”
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How this decision making theory can be
applied to M&M to succeed in selling?
 Improve its offering in 3 ways
 Increase total customer value
 Reduce buyer’s nonmonetary costs
 Reduce product’s monetary costs
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REASONS FOR NOT CHOSING
THE IDEAL
Buyer might be under order to buy at the
lowest price
 Buyer will retire before company realises
the TAFE tractor is more expensive to
operate
 Buyer enjoys long term relation with
TAFE sales person
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IMPLICATIONS OF CPV
Seller must assess the total customer value
and total customer cost with each
competitor’s offer
 Seller who is at CPV disadvantage has two
options to increase TCV – augmenting offer’s
product/ services/ personnel/ image
 or decrease TCC – by reducing price,
simplifying the ordering and delivery process
or absorbing buyer’s risk by offering
warranty.
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DELIVERING HIGH CUSTOMER
VALUE
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LOYALTY – “ a deeply held commitment to
re-buy or re-patronise a preferred product
or service in the future despite situational
influences and marketing efforts having the
potential to cause switching behaviour.”Oliver
Key to generating high customer loyalty is to
deliver high customer value- superior value
proposition- specific market segmentsuperior delivery system
VALUE PROPOSITION
Whole cluster of benefits the company
promises to deliver: more than core
positioning of the offering
 A statement about the resulting
experience, customers will gain from
company’s market offering and from their
relationship with suppliers
 Whether promise is kept will depend
upon company’s ability to manage its
value-delivery system
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VOLVO – positioning is “SAFETY” but buyer is
promised other benefits – long lasting car, good
service, long warranty period
 BRITISH AIRWAYS flying First Class Executives–
beats others by
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meeting customer’s needs for conveniences and
rest at every step of journey.
Express check-in and security clearance,
pre flight meals in first class lounge,
putting reclining seats into flat beds,
in UK fast tracked custom area speeds them on their
way
“competing on Value” – SIMON KNOX &
STAN MAKLAN- too many companies
create a value gap by failing to align brand
value with customer value
 Marketers should spend as much time
influencing company’s core processes as
they do designing the brand profile
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TOTAL CUSTOMER
SATISFACTION
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Offer’s performance in relation to buyer’s
expectations
Satisfaction is person’s feelings of pleasure or
disappointment resulting from comparing a
product’s perceived performance in relation
to his expectations
Try to deliver a high level of customer
satisfaction subject to delivering acceptable
levels of satisfaction to other stakeholders,
given its total resources.
MEASURING SATISFACTION
IBM tracks how satisfied customers are with
each IBM salesperson and makes this a factor in
each salesperson’s compensation.
 a highly satisfied customer
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stays longer,
buys more (new & upgrades of company),
talks favourably,
pays less attention to competitor’s products,
is less sensitive to price.
Offers product or service ideas to company,
costs less to serve than new as transactions are
routine
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Measure customer satisfaction regularly- key
to customer retentionLink between customer satisfaction &
customer loyalty is not proportional
◦ At lower level of satisfaction customer are likely
to abandon the company
◦ At middle level- fairly satisfied but easy to switch
when a better offering comes in way
◦ High satisfaction level – repurchases/ spreads
good works
METHODS OF MEASURING
CUSTOMER SATISFACTION
Periodic survey
 Monitoring customer loss rate
 By hiring mystery shoppers
 Asking the right questions is important
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◦ perhaps one questions matters the most
“would you recommend this product or
service to a friend?”
High satisfaction rating – make sure that
target market knows about it.
 Internet – a tool for spreading words
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PRODUCT & SERVICE QUALITY
“fitness to use”
 “Conformance to requirements”
 “freedom from variations”
 American Society for Quality Control – “
the totality of features and characteristics
of products or service that bear on its
ability to satisfy stated or implied needs.”
– a customer centric definition
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Quality of Selling- whenever the seller’s
product or service meets or exceeds the
customer’s expectations
 Quality of company- that satisfies most of its
customers’ needs most of the time
 Conformance quality v/s performance quality
 TOTAL QUALITY - key to value creation
and customer satisfaction.
 Quality is everybody’s job just as marketing
is everybody’s job
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Responsibilities of marketer in a quality centred
company◦ Participate in formulating strategies and policies of
the company win through total quality excellence
◦ Deliver marketing quality alongside production
quality- delivering each marketing activity to highest
standards- research/ sales training/ advertising/
customer service
TQM
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An organisation wide approach to
continuously improve quality of all
organisation’s processes, products and
services
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GE’s former chairman, John F Welch Jr-
“Quality is our best assurance to
customer’s allegiance, our strongest
defense against foreign competition, and
the only path to sustained growth and
earnings
DETERMINANTS OF SERVICE
QUALITY
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RELIABILITY
RESPONSIVENESS
ACCESS
COURTESY
COMPETENCE
COMMUNICATION
CREDIBILITY
SECURITY
UNDERSTANDING
TANGIBLES
(1985)
SOURCE: PARSURAMAN et al
TO ENCOURAGE QUALITY
DEMING’S PRIZE – Japan
 MALCOLM BALDRIDGE NATIONAL
QUALITY AWARD – in U.S.
 EUROPEAN QUALITY AWARD
 QUALITY CIRCLES (QCFI)
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Product and service quality, customer satisfaction,
company profitability are intimately connected.
Higher levels of quality result in higher level of
satisfaction, support higher prices and sometimes
lower costs.
 In following TQM, some may lose focus – on
processes & how they are doing business rather
than customer needs and wants & why they are
doing business
 ROQ – improve quality only on those dimensions
that produce tangible customer benefits, lower
costs, increased sales
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A STUDY
Companies who adopt primarily
 revenue boosting approach ( externally
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focusing on growing demand through increasing
customer’s preferences for quality)
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do better than those who primarily focus
on cost reduction emphasis (internally
focusing on improving efficiency of internal processes)-
CUSTOMER LIFETIME VALUE
James V Putten of American Express- “best
customers outspend others by 16 to 1 in retailing,
13 to 1 in restaurant, 12 to 1 in airlines, 5 to 1 in
hotel and motel business
 80-20 rule – top 20% customers generate 80%
profit
 Sherden – 20-80-30 modification – top 20%
customers generate 80% profit half of which are
lost in serving 30 % of unprofitable customers
 IMPLICATION- company could benefit by
“firing” its worst customers
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Conversely, it is not the largest customer
who yield most profit. They demand
considerable service and deepest
discounts
 Small customers pay full price but receive
minimal service, but cost of transacting
them reduces profitability
 Midsize customers – pay full price, receive
good service and offer best profitability
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PROFITABLE CUSTOMER
A person, household or company that over time
yields a revenue stream that exceeds by an
acceptable amount the company’s cost stream of
attracting, selling and servicing that customer
 Emphasis is on life time stream of revenue and
cost and not on profit from a particular
transaction
 Banks lose money on 45% of retail customers
 Handling unprofitable customers by
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◦ Raising fees
◦ Reduce service support
CUSTOMER PROFITABILITY
ANALYSIS
PRODUCT
 CUSTOMER
 P1, P2, P3, P4
 C1, C2, C3,
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CLV
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Maximising long term customer profitability
Net present value of stream of future profit
expected over customer’s life time purchases
E.g. cost of acquisition of new customer
Cost of average sales calls(incl salary, commission,
incentives ) – 300/Av no. of sales calls to convert an average
prospect to a customer – 4
Cost of attracting new customer- 1200
Add to it cost of advertising/ promotion
Average CLV is estimated as under
Annual customer revenue -500
Av no, of loyal years – 20
Company profit margin- 10%
CLV- 1000
Spending more to attract customer than they are
worth
 Fewer sales calls/ spend less pre sales call,
stimulate higher spending/ retain customer
longer/ sell them high profit product
 A CONCEPT TO HELP MARKETERS TO
ADOPT LONG TERM PERSPECTIVE
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CUSTOEMR EQUITY
Aim of CRM is to produce high customer
equity- A total of discounted life time values
of all firm’s customers
 3 drivers of customer equity
 VALUE EQUITY- objective assessment
 BRAND EQUITY- subjective & intangible
assessment
 RELATIONSHIP EQUITY
 Value management
 Brand management
 Relationship management
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STRUCTURE OF PRESENTATION
CRM PROCESS
 e- CRM (electronic – web based)
 h- CRM (human resource management )
 s –CRM (supplier based)
 LOYALTY & REPEAT VISITS TO EARN
POINTS/ SPECIAL DISCOUNTS IN
BILLING)
 p- CRM (Partners of Hospitals– GPs/
Nursing Homes)
 Partners of CRO ?
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MARUTI (AUTOCARD)
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http://www.slideshare.net/saurabh2821/m
aruti-summer-project-presentation
WHAT IS CRM
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CRM is a business strategy to select and
manage customers to optimize long-term
value. It requires a customer-centric business
philosophy and culture to support effective
marketing, sales and service processes. The
CRM has been transformed recently from
one-to-many mass-communication
philosophy to more individualized, one-toone communication.
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According to experts, while every rupee
spent on advertising yields Rs. 250 in
revenues, the same spent on customer
services yields Rs. 2500 in revenues.
(Internetworld-August'2001)
CRM…..
A process of managing detailed information
about customers and carefully managing all
customers “touch points” to maximise
customer loyalty
 A customer “touch point” is any occasion on
which a customer encounters the brand and
product- form actual experience to personal
or mass communication to causal
observation
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For a hotel –
 reservations-check in- check outfrequent stay programmes- room servicebusiness services- exercise facilitieslaundry service- restaurant- bars
 For a hospital- ………….
 For a CRO - ……………..
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ADVANTAGES OF CRM
AIDS CUSTOMER SERVICE Improved customer satisfaction rating
 acquire and retain customers
 every customer interaction converted into
healthcare management opportunity
 provides support to customer service
representative with relevant information
 transforms healthcare org into customer
centric healthcare providers
 provides solutions to deal with customer
related issues – decision making
BOOSTS SALES AND MARKETING
 caters to demands of sales , marketing and
customer service
 helps increase existing sales effectiveness (spending
more time with customers, spending less time chasing, needed information)productivity improvement
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helps in business forecast
increases effectiveness of call centres
increase sales globally
Increased win rates
Increased margins – knowing customers better, providing a value
sale, discounting prices)
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AIDS OVERALL PROFITABILITY
◦ excellent industry knowledge and thus
reducing medical errors
◦ Decreased general sales and marketing admin
cost – specified target customer- needs &
wants; not wasting money on mailing to all
customers
◦ reduces operating costs, reduces errors and
improves patient relations
◦ improves overall efficiency
◦ latest IT tech
IN HOSPITAL PRACTICE
provides means of communication
between doctor & patients
 maintains comprehensive database about
patients thus organisation can have better
MIS
 helps in initiatives of medical management
through collation of information of
patients, hospitals and supplementary
providers
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CRM
CRM is an integrated approach that uses today’s
technology to collate information from all diverse
channels- sales, marketing, customer care, field service.
 TRANSFORMED INTO HOSPITAL SETTING –
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FRONT OFFICE,
CONSULTANT SERVICES,
WARD OPERATIONS,
PATIENT SATISFACTION SURVEY TEAM,
MARKETING,
BILLING,
ADMINISTRATION
Captures customer information from
various processes, AND
 empowers you with customer knowledge
that enables you to provide
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◦ innovative,personilised high-quality customer
service.
CRM PROCESS
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FIRST MAP YOUR HOSPITAL PROCESSES – FROM ENTRY
OF PATIENT IN THE HOSPITAL TO FINAL DISCHARGE
FROM THE HOSPITAL
INTEGRATE IT IN THE EXISTING OPERATIONAL
SYSTEMS
BUILD A FUNCTIONAL AND TECHNICAL TEAM- A
CROSS FUNCTIONAL TEAM WITH VERTICAL INDUSTRY
KNOWLEDGE, IT SKILLS AND PROJECT MANAGEMENT
CAPABILITIES
BUSINESS INTELLIGENCE OUT OF THESE DATA
DATA COLLECTION/ DATA TRANFORMATION
DATA STORAGE
PRESENTATION AFTER ANALYSIS
PREREQUISITES
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24*7 AVAILABILITY
ENTERPRISE WIDE APPLICABILITY
WELL INTEGRATED INTO BUSINESS
OPERATIONS AND EXISTING IT
INFRASTRUCTURE TO ARRIVE AT
OPTIMUM INTEGRATION AND
INTERFACING STRATEGY
GAP ANALYSIS
CAPTURE PROCESS NEEDS AND
COMMUNICATE WITH TECHNOLOGY/
MANAGEMENT ADMINISTRATION
• Attributes can be
 related to product
Cognitive elements : serve as means to an
end
 or (ii) related to psychology
◦ Recognition as important customer and
personal favours by staff
BACKOFFICE
OPERATIONS
SYSTEM
CUSTOMER
CONTACT
PRODUCT DATA
(TARIFF/ PACKAGE)
SALES ORDER
CUSTOMER APPLICATION
ARCHITECTURE
CALL
CENTRE
DAT
A
INT
EGR
ATI
ONEAI
CUSTOMER
INTERACTION
DATABSE
MANUFACTU
RING
SFA
TELESALE
S
MARKETIN
G
ORDER
FULFILLME
NT
INVENTORY
SELF
SERVICE
P
A
R
T
N
E
R
S
DATA MART
CAMPAIGN
CUSTOMER
RESPONSE
MANAGEM
ENT
CHURN
ANALYSIS
ANALYTICAL CRM DATA
MINING
C
U
S
T
O
M
E
R
S
SOURCE:
COGNIZANT
TECH
Mass marketing v/s one to one
marketing
MASS MARKETING
ONE TO ONE MARKETING
1
Average customer
Individual customer
2
customer anonymity
customer profile
3
Standard product
Customised offering
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Mass production
Customised production
5
MASS DISTRIBUTION
Individualised
6
Mass advertising
Individualised message
7
Mass promotion
Individualised incentives
CRM MARKETING
Don Peppers & Martha Rogers
Identify your prospects & customers
 Differentiate customers in terms of their needs
and their value to your company
 Interact with individual customers to improve
your knowledge about their individual needs
and to build stronger relationship
 Customise product services and messages to
each customers
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ATTRACTING, RETAINING, GROWING
CUSTOMERS
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Challenge is to produce delighted customers
List of suspects
Convert them into prospects
Customer churning-adding water to leaking
bucket
Retention- erect high barriers or deliver high
customer satisfaction
Complaint management
Make it easier to complain-suggestion forms/ toll
free numbers/ web sites/ email addresses
Respond quickly and constructively to any
complaint
MARKETING MEMO
Set up a 24*7 toll free hotline
 Contact the complaining customer as
quickly as possible
 Accept responsibility
 Use customer service people who are
empathic
 Resolve complaint swiftly & to customer’s
satisfaction
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BREAKING DOWN CRM
CRM IMPERATIVE Acquiring right customer
 Crafting right value proposition
 Instituting best processes
 Motivating employees
 Learning to retain customers
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YOU GET IT WHEN
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You have identified most valuable customer
You have studied what your customer needs
today and will need tomorrow
You have researched best way to deliver product
or services, alliances needed to strike,
technologies to invest in, service capabilities you
need to developer acquire
You know what your employees need to foster
Customer relationship
Identified HR systems to boost employee loyalty
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You have calculated your share of their
wallet for your product or services
You have surveyed what your competitors
offer today and will offer tomorrow
You have spotted what services or product
you will offer
You have analysed what your competitors
are doing ot win your high value customers
Your senior management monitors customer
defection metrics
ATTRIBUTES OF CRM IN HOSPITALS
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PRODUCTS ARE –
◦ services being offered
 PRODUCTION AND CONSUMPTION OCCUR
SIMULTANEOUSLY
 SERVICE INDUSTRY IS people-intensive and
people-oriented,
 High contact service outlet, interpersonal
relationship between staff and customers
greatly influence the quality of service and
customer satisfaction
PECULIARITIES OF CRM PGME IN
HOSPITAL
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customers/ suppliers are not involved in sales
activities or design/ development of hospital
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products/ services are not jointly developed with
custoemrs/ suppliers or other organisation
◦ unlike manufacturing and consumer service organizations,
customers usually rely on the expertise of the health care
professionals for the design and delivery of care services.
◦ there is less enthusiasm among customers to become
involved in the process design or development of new
products and services at hospitals.
CRM MARKETING
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THROUGH PERSONAL COMMUNICATION
Collection of information from target customers
Devise billing schemes for patients at the
bottom of the pyramid
Communicating various services being offered
by the hospital
Building knowledgebase on customer and
members of the family
Customer spending patterns for healthcare
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Loyalty programmes depending on the
customer wallet size
Special offers to existing customers and
family members
Express registration and priority
consultation
Personalisation when customer arrives at
the front desk
Personal messages for child immunisation
Specialised medical checkup plans
Refer a friend of relative scheme
 Analyse and improve on room revenue
 Higher patient satisfaction
 Customer satisfaction survey and
treatment customisation
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STRATEGIC ISSUES
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firms would adopt CRM only if it
◦ costs less in retention
◦ profits are more due to lower defection rates
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customer also willingly foregoes other
options and limits the choice in the hope for
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greater efficiency in decision making
reduction in information processing
achieving more cognitive consistency
reduction of perceived risks
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5 STRATEGIC ISSUES (BERRY 1983)
◦ DEVELOPING A CORE SERVICE
◦ CUSTOMISING THE RELATIOSHIP TO
INDIVIDUAL CUSTOMER
◦ AUGMENTING THE CORESERVICE WITH
EXTRA BENEFITS
◦ MARKETING TO EMPLOYEES SO THAT
THEY PERFORM WELL FOR CUSTOMERS
INTEGRATION
A ROBUST MANAGEMENT
PROGRAMME
 TO INTEGRATE CRM WITH SUPPLY
CHAIN MANAGEMENT AND
HOSPITAL OPEARTIONS, MIS AND IT
INFRASTRUTURE
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CUSTOMER RETENTION MANAGEMENT
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SERVICE QUALITY – (QUALITY DEPT)
CUSTOMER SATISFACTION – CUSTOMER
SATISFACTION SURVEY
ORGANISATION’S ABILITY TO ENCOURAGE
COMPLAINTS AND THEN TO RECOVER WHEN THINGS
GO WRONG – (PATIENT GREIVANCE COMMITTEE)
WHY CUSTOMERS SWITCH –
◦ PRICING
◦ INCONVENEINCE
◦ CORE SERVICE FAILURES (SERVICE MISTAKES/ BILLING
ERRORS)
◦ SERVICE ENCOUNTER FAILURES
◦ RESPONSE TO SERVICE FAILURES
◦ COMPETITION
◦ ETHICAL PROBLEMS
COMPLAINT MANAGEMENT
SYSTEM
VISIBILITY- COMPLAINT BOX
 ACCESSIBILITY- HOW TO COMPLAIN;
LESS FORMAL
 RESPONSIVENESS- T BE DEALT
QUICKLY
 CUSTOMER FOCUSED APPROACH
 ACCOUNTABILITY
 CONTINUOUS IMPROVEMENT
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SERVICE RECOVERY STRATEGIES
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OFFER GOODIES- CONCESSIONS/
DISCOUNTS
STEPS
◦ MEASURE THE COST OF SERVICE RECOVERY
– QUANTUM OF DAMAGE
◦ BREAK CUSTOMER SILENCE AND LISTEN
CLOSELY FOR COMPLAINTS
◦ ACT FAST
◦ FRONTLINE STAFF SHOULD BE TRAINED
AND EMPOWERED
◦ CLOSE THE CUSTOMER FEEDBACK LOOP
MANAGING WAITING
CUSTOMERS WAIT BECAUSE DEMAND AND
CAPACITY DOESNOT MATCH
 REDUCE WAITING TIME AS WELL AS PERCEIVED
WAITING TIME
 HOW TO DO IT
◦ ANALYSE ITS OPERATIONAL PROCESS – REMOVE
BOTTLENECKS/ INEFFICIENCIES
◦ IF UNAVOIDABLE – USE RESERVATION SYSTEM
◦ KEEP HIM OCCUPIED
◦ PROVIDE “WAITING DURATION INFORMATION”-KEY
IS TO IMPRESS UPON HIM THAT HE HAS NOT BEEN
FORGOTTEN
◦ KEEP RESOURCES NOT SERVING THE CUSTOMER
OUT OF SIGHT – IDLE EMPLOYEES
TRY TO REDUCE PRE-SERVICE
WAITING TIME BY TRANSFERRING
PRE-SERVICE WAITING TO SERVICE
ENCOUNTERS PHASE
 A SMILING PERSON

OTHER STRATEGIES
FINANCIAL BONDS – DISCOUNTS ON
REPEAT USAGE- LOYALTY PROGRAMMES
 SOCIAL BONDS- PERSONAL TOUCH;
INTERPERSONAL RELATIONSHIP: PATIENTS’
MEET/ DEALERS’MEET: CAMPS;
 CUSTOMISATION BONDS- TAILOR MADE
PREGROAMMES – KNOWN CONSULTANT/
SURGEON/ KNOWN STAFF
 STRUCTURAL BONDS – MIX OF ALL ABOVE –
HIGHLY CUSTOMISED (e. g. TAX
CONSULTANT/ DOCTOR)

CUSTOMER RECALL
MANAGEMENT
HIGHLY SPECIALISED SERVICE- TO
WIN BACK DEFECTED CUSTOMERS –
 PERSONALISATION STRATEGIES- reestablish the contact. I.T. tools will give
requisite info. design more suitable and
customised bundles of offer as if it is an
exclusive for them


DIFFERENTIATION STRATEGY-
◦ provide unique and superior value in terms of
quality, special features or after-sales service

CUSTOMER DELIGHT APPROACH –
◦ when found wrong – find it out in back office
instead of arguing with customer- apology
followed by correction and compensations
(element of surprise is to shock the customer in
a pleasant way.
◦ loyalty(brand ambassador)/
◦ publicity (word of mouth)
CUSTOMER CENTRIC
ORGANISATIONAL STRUCTURE



‘it is the organisation and not the marketing
dept that shapes and drives the brand. the
org makes the journey in getting close to
customer
Many fail to put customer at its focus
(INSPITE OF MARKETING/ PATIENT
SATISFACTION/ CRM PROGRAMMES)
CUSTOMER EXPEREINCE MANAGEMENT
– not just product. deliver right customer
expereince. (service/ ambience/ product
naming/ smell)
E-CRM

CRM/e-CRM is a fast growing area and
technology providers are now rushing to
capitalize on this with plethora of
software products like Siebel,
Vantive/peoplesoft, Clarify, Broad Vision,
Baan, Pivotal and SAP and Oracle
Applications.
e-CRM
One of the most effective tool for services
company
 Several functional categories for service
company’s sites Online brochure
 Interactive sale
 E-mail
 E-service request
 Payment options
 Product comparison
 Link up with other service companies

WHY TO ADOPT e-CRM
Reduces cost of companies
 Enables businesses to extend its
personalised reach
 Coordinates marketing initiatives
 Helps leveraging customer information
for more effective E-marketing & Ebusiness initiatives
 Focuses business on improving customer
relationships

FEATURES




DRIVEN BY DATA WAREHOUSE
FOCUSES ON REACHING OUT TO
CUSTOMERS ACROSS MULTIPLE
CHANNELS
ENABLES COMPANY TO
ACCOMMODATE NEW MARKET
DYNAMICS
IDENTIFIES CUSTOMER’S PROFITABILITY
AND PROFIT POTENTIAL TO DEVELOP
EFFECTIVE INVESTMENT ALLOCATION
DECISION
LOOP -HOLES
CHANNEL CENTRIC NOT CUSTOMER
CENTRIC
 NON EXISTENT CUSTOMER CENTRIC
METRICS
 INTEGRATION WITH DEPARTMENTS
IS UNCOMMON

TECHNOLOGIES OF e-CRM
VOICE PORTALS
 WEB PHONES
 BOTs OF SOFTWARE ROBOTS

◦ SEARCH ENGINES- YAHOO/WEB CRAWLER
◦ NATURAL LANGUAGE SEARCH- ASKJEEVES/
BRIGHTWARE/ INTERMEDIA
◦ CHATTER BOTs- ARTIFICAL LIFE/NATIVE MINDS
◦ EMAIL BOTs- EGAIN/ KANA COMMUNICATIONS

VIRTUAL CUSTOMER REPRESENTATIVE
Mobile Messaging Platform
The features provided by the solution
include:





Providing patients the ability to query for information
such as appointment details, monthly or annual
checkup details and doctor availability.
Sending reminders to former patients for fresh
medical checkups.
Instructing patients on certain activities to be carried
out by them before a scheduled checkup.
Informing doctors, patients and franchisees on the
arrival of test results.
Requesting a physician’s contact details.
Requesting a doctor’s visiting hours.
Requesting a patient’s ward and room number.
Automatically sending personalized greetings to
patients on their birthdays and anniversaries.
 Querying by Doctors of their appointment schedules.
ADVANTAGES
 reduce patient enquiry handling and communication
costs,
 increases revenues,
 and above all ensure better service to patients.



SMART COMPANY

TRADITIONAL COMPANY –
◦ attribute to recession

SMART COMPANY◦ continuously increases the sales and profit

WHY SMART COMPANIES ARE SO SUCCESSFUL
◦ because they do business differently- in different ways

WHAT IS THAT DIFFERENT WAY –
◦ working for immediate gain (a short term approach) and
looking at customers as by-product.
 only 3 of fortune 500 companies are working after 100 years

smart companies work for customers and
profit is a by product.
◦ they cared for customers and paid highest
returns to their shareholders

how do you retain customers for lifetime?◦ simply by building lifetime relationship with them.
not only knowing and liking each other, but loving
and trusting each other.

means creating a strong bond
HOW ONE MAY SHOW DISRESPECT
Product claims with no backups
 Horrible customer’s service
 Treating Gen Ward patients shabbily As a healthcare provider (supplier of a service
or product) lifelong relationship comes with
employees’ involvement

ISO 9000:2000

CUSTOMER FOCUS:- ORGANISATION DEPEND UPON
THEIR CUSTOMERS AND THEREFORE UNDERSTAND
CURRENT AND FUTURE CUSTOMERS NEEDS, SHOULD
MEET CUSTOMERS’ REQUIREMENTS AND STRIVE T
EXCEED CUSTOMERS’ EXPECTATIONS

KEY BENEFITS –
◦ INCREASED REVENUE AND MARKET SHARE OBTAINED
THROUGH FLEXIBLE RESPONSES TO MARKET
OPPROTUNITIES
◦ INCREASED EFFECTIVENESS IN THE USE OF
ORGANISATIONS’ RESOURCES FOR CUSTOMERS
SATISFACTION
◦ IMPROVED CUSTOMER LOYALTY LEADING TO REPEAT
BUSINESS
ISO….
INVOLVEMENT OF PEOPLE- PEOPLE AT ALL
LEVELS ARE ESSENCE OF ORGANISATION AND
THEIR FULL INVOLVEMENT ENABLES THEIR
ABILITIES TO BE USED FOR ORGANISATION’S
BENEFITS
 KEY BENEFITS –

◦ MOTIVATED, COMMITTTED, INVOLVED PEOPLE
◦ INNOVATION AND CREATIVITY IN FURTHERING THE
ORGANISATION’S OBJECTIVES
◦ PEOPLE BEING ACCOUNTABLE FOR THEIR
PERFORMANCE
◦ PEOPLE EAGER TO PARTICIPATE IN AND
CONTRIBUTE TO CONTINUAL IMPROVEMENTS
h-CRM= HRM+CRM






NOT ONLY TO BE DATABASED MARKETING
SYSTEM
IT IS ALL ABOUT PEOPLE: CUSTOMERS AND
EMPLOYEES
AND THERE IS ONLY ONE OBJECTIVE: BUILD
LIFELONG RELATION WITH THEM
H-CRM ENABLED COMPANIES ARE THE
SMART COMPANIES BECAUSE THEY DO
THINGS DIFFERENTLY
MANAGEMENT
EMPLOYEES
MANAGEMENT
EMPLOYEES
CUSTOMERS
PRINCIPLES OF h-CRM







BUILD LIFELONG REALTION WITH
CUSTOMERS
DEVELOP LIFELONG RELATION WITH
SMPLOYEES
ALL CUSTOMERS ARE NOT THE SAME
ALL EMPLOYEES ARE NOT THE SAME
MOTIVATE CUSTOMERS FOR LOYALTY
MOTIVATE EMPLOYEES FOR LOYALTY
ONLY A LEADER CAN RETAIN PEOPLE
MODEL OF h-CRM

GETTING STARTED –
◦ UNDERSTAND BUSINESS

LEAD PEOPLE –
◦ IDENTIFY YOUR CORE VALUES

DELIGHT PEOPLE –
◦ CONCEPTS/ PRODUCT TO EXPERIENCE/CUSTOMER
SERVICE/ PERCEPTION/CREATING DELIGHT/EMPLOYEE
PERCEPTION AND DELIGHT/ SATISFACTION
CONSISTENCY MODEL

MAKE PEOPLE LOYAL◦ CUSTOMER & EMPLOYEE LOYALTY

IMPLEMENTATION ISSUE –
◦ ROLE OF TECHNOLOGY/ BRANDING/ MANAGING
CHANGE/ FINANCING
CRM IN HOSPITALS
BUYER’S MARKET AS COMPARED TO SELLER’S
MARKET
• HOSPITALS NEED TO UPGRADE
TECHNOLOGICALLY AS WELL AS ITS SERVICES
•HOSPITALS NEED TO REACH OUT.
•PATIENTS CHOOSE HOSPITAL BECAUSE OF NAME
AND IMAGE
•