Customer

Relationship
Management
- Malobika Chakravarty
M.Pharm+MBA (QA-03)
 Q1. What is the current status and what are the prevailing “Customer Relationship Management”
practices in Indian Pharmaceutical Industry? What are your predictions about the future trends in CRM
in Indian Pharma Industry between now and the year 2025 ? [You can write about individual Indian
Pharma Companies]

Ans)

Customer Relationship Management (CRM):- CRM is based on the belief that developing a relationship
with customers is the best way to make them loyal, and that loyal customers are more profitable than
non-loyal customers.

They focus more on retaining old customers than to acquire new customers.

Shift from traditional relation building method to CRM in Pharma Industry:-

Traditional relation building method- A sales/medical representative prepare a customer list (of doctors)
in his or her sales territory and prepare their call plans for the day/week/month in accordance with this
customer list. These representatives often do not enlist into the call plan, those doctors who do not
prescribe their products, and devote extra time and effort on doctors who are most responsive to their
products. If armed with the right information, a representative can call on doctors according to their
likelihood of responding to specific brands, and can carry out detailing and sampling of specific brands
resulting in higher customer profitability.

CRM- Pharmaceutical companies are gradually realizing that they can no longer afford to be only product
or market focused. Hence they have to focus now on customer relationship management (CRM) and gain
a complete understanding of their current and potential customers. Companies, which implement CRM,
not only increase the efficiency of their sales and marketing efforts, but also enhance their customer’s
experience and loyalty towards the pharmaceutical company.

1. Changing Customer
needs
Doctors Doctors
Pharma 2. Increased Competition
Company 3. Effect of Digitalization Pharma
Company

Payer Patient Payer Patient

Traditional
Method CRM
Current Status of CRM in Indian Pharmaceutical Industry

Global index for the sales and marketing function of Indian pharma companies is called EY Digital maturity
Index (EYDI) for Customer Engagement.

Developing Established Leading

53% 7%
1. Beginners 3. Explorers 5. Disruptors

• No digital strategy in place • Some strategic elements • Focus on being digital,

relating to digital, but not not just doing digital;
• Limited use of technology digital backend and front
consistent across the
to capture rep interaction end processes fully
organization
connected
• Digital experiments are
• Analytical CRM and limited
limited and conducted • Connected digital
CLM activities enabling more
within organizational silos ecoystem is good;
real-time macro segmentation
with decentralized decision Omnichannel customer
making • Limited digital coordination experience; controlled
across sales and marketing experiment to scale
• Traditional digital
functions processes
channels of engagement
• Strong digital channels in • Digital innovation is
place, but working coordinated throughout
independently the organization with a
40% clear coordinated approach
to leverage organizational
2. Conservatives 4. Practitioners
learnings
• Selective digital strategies at • Holistic digital strategy
• Personalized and
department level established across commercial
connected experience;
functions — commercial and
• CRM in place for compliance omnichanne
medical
and activity monitoring; limited
field automation and basic • Optimized multichannel
customer segmentation (using engagement, leveraging data
traditional methods) to deliver dynamic, advanced
customer insights, targeting
• Digital governance at
and experience creation
department level; limited
integration of digital programs • Digital, part of the corporate
mission; strong governance
• Limited digital channels of
across the organization
engagement
• Coordinated digital
channels; multichannel; limited
personalization
 The assessment evaluates how pharma organizations perform across 15 parameters spanning two key
dimensions: Organizational readiness (strategy and culture, governance and capability) and
stakeholder engagement (sales reps, physicians and patients).
 On the five-point scale of digital maturity, most Indian pharma companies today fall into the
“beginners” and “conservatives” categories. Most of them are yet to develop any clear digital strategy
and have limited digital channels of engagement.
 The relatively fewer “explorers” are midway through their digital journey. They have a partially
defined digital strategy and are now evaluating the option of scaling up initiatives and capabilities.
 Overall, the Indian players remain far behind their global peers, many of whom are now cautiously
treading toward becoming “digital practitioners.”

CRM Practices in Indian Pharmaceutical Industry

Though there are several models of CRM but the most popular and best fit model, to the Pharma industry
is that of IDIC model proposed by Peepers & Rogers in 2004. The main aspect of this model and the major
reason for its appropriate applicability to the Pharmaceutical industry is that this model helps build a
closer one to one relationships with customers (which is the exact requirement of Pharma marketing).

I- Identify-This is the first step of the model and it requires identifying who is the actual customer. In
Pharmaceutical industry this job can be accomplished by the MRs who can identify the current &
prospective prescribers (doctors) for their products by conducting a regular retail (chemist) survey in their
sales/geographic territory. After these customers have been identified, an MR can study his/her
prescription at the retail counter or by interacting with the doctors or through his/her associates such as
nurses, ward boys, attendants etc. An in-depth analysis of the prescribing behaviour/pattern gives an idea
to the MR as to which molecule/brand the doctor prefers to prescribe in which ailment, this lays the
foundation for the next step in the model.

D- Differentiate- this means differentiating/segregating /segmenting the customers into various

categories/segments depending upon the level of value to a company and the variety of needs they have.
Accordingly the customers (doctors) are segmented into high priority, medium priority & low priority
categories based upon their prescription habits, brand preference, number of patients attended, profile
of patients catered to, etc. This provides an idea about the value of each such customer to the company.
From here originates a differentiated approach for each customer. Unlike a typical sales person an MR
does not give a canned sales presentation (same for all).Each call made by the MR is pre-planned and the
detailing notes for each call are recorded in the CRM software.

I- Interaction- this stage represents effective interaction between MR and the doctor. The call plan
prepared in the previous stage, comes handy at this point of time. An MR can make an effective detailing
presentation about the selected brands chosen by him on the basis of customer analysis done earlier. This
helps him/her to make a better rapport with the customer (doctor) during first few calls which eventually
leads to better relationship in future calls. Once a rapport based relationship is developed between an
MR and doctor than prescription generation becomes easier.

C- Customization- as discussed in the earlier stage, each doctor in the MR’s master customer list, presents
a different challenge to him/her. Therefore customized detailing, sampling, sales presentation & order
booking tactics during each call is the art of selling in Pharma markets. The companies that train their field
force and equip their sales team with requisite tools and techniques, are able to generate brand loyalty
for their product brands as well as the corporate brand. As is seen in the case of top ten Pharmaceutical
companies selected for the purpose of this research study.

EMERGENCE OF ONLINE CRM (E-CRM) IN INDIAN PHARMACEUTICAL MARKET

Use of contemporary methods of building relationships through internet based tools and methods such
as online CRM software

A typical CRM methodology includes imparting training to the employees and briefing them with the use
of a special purpose CRM software. An important aspect of CRM in this case is to handle incoming calls
and emails. The information collected through CRM software is used for promotion and surveys such as
conducting ‘customer satisfaction’ surveys.

TYPES OF PHARMACEUTICAL E-CRM

1. Operational CRM:
 Provides support to front office business processes such as marketing, sales and services.
 Processes involve direct interaction with customers
 With the help of operational CRM software, a medical rep can easily store his/her interactions
with the customers (doctors), in customer contact history and anyone throughout the
organization, who wishes to retrieve customer information can do so anytime from anywhere
 Includes managing campaigns, enterprise marketing automation, sales force automation, sales
management systems etc.

2. Analytical CRM:
 This type of CRM is particularly suited to the needs of marketing and product management team
or Brand managers in a Pharma firm.
 Designing and executing targeted marketing campaigns such as those designed for
specific/selected products or those designed for doctors in a particular geographic/ sales
territory.
 Designing and executing special purpose campaigns such as customer acquisition (adding new
doctors to the doctor list of the company), cross-selling (promoting new products to the doctors
who are already prescribing some other product of the company), up- selling (on the basis of
customer profile seen by the doctor, upgrading the type or number of products on promotion to
that particular doctor), add-on selling etc.
 Analyzing customer (doctor’s) prescribing behavior in order to make decisions relating to
products and services. For example: type of pharmaceutical formulations to be developed,
probable pricing of the medicines etc. is done on the basis of information drawn from the data
provided by analytical CRM.
 The information available to the management decision makers is available through
management information systems (MIS) which in turn are supported by this type of CRM.

3. Sales Intelligence CRM

 Similar to analytical Intelligence CRM but is intended to be a more direct sales tool and therefore
is majorly used in sales.
 Sends message alerts to sales staff regarding opportunities related to cross-selling/up-
selling/switch selling etc., messages related to sales performance, customer trends, customer
margins, customer alignment etc.
 This tool is really very useful to MRs because often they get engrossed in their day-to -day sales
activities to such an extent that they forget to maintain, update and work upon their customer
(doctor) list. With the help of this tool they can easily manage and update their customer list on
regular basis and can also make necessary amendments in it, as per the requirement.
 The updates given by this tool also help MRs in planning their sales calls and handling customers
according to the current updates about their prescription trends and potential prescription
profile, given by this CRM software.

4. Campaign Management CRM

 This type of CRM combines the elements of operational and analytical CRM. This type of CRM is
also particularly useful in Pharma sales activities.
 MRs often carry out special or specific campaigns for giving a short term boost, to Sales of
selected products in their sales territories.
 It includes:
 Forming target groups according to selected client base. The criteria used for delineating these
groups is based on the geographic location/ prescription profile/ suggestions from the MR
covering those territories/ specialty of the doctor etc. At times even retailers (chemist) are also
included in this sales promotion drive. The chemists are selected on the basis of the number of
customers attended i.e. Patient footfall in a day/week or on the basis of their geographical
location.
 Sending campaign related promotional material to the selected recipients (doctors/chemists)-
through e-mails/telephone/ SMS/post etc. This not only reduces the work pressure on sales team
but also assists and reinforces their in -call efforts and helps increase their efficiency and
ultimately improves their sales output in their individual territories.
 This CRM keeps a track, stores and also analyzes the campaign statistics. It also analyzes trends
and tracks responses. This regular monitoring of the campaign results, help the MRs and sales
team members to continue or discontinue the running campaign or focus more on areas or
avenues/customers from whom response is good. This also helps in streamlining campaign
activities and brings in the concurrent changes if required. This reduces chances of failure of
campaigns and gets desired output from them.

5. Collaborative CRM-
 This type of CRM covers the aspects related to company’s dealings with the customer. Since
customers are handled by departments such as sales, technical support and marketing.
Therefore this type of CRM plays a crucial role in integrating the activities performed by these
departments.
 In Pharma sales it is very useful because although the front line sales is handled by the MRs or
the sales team of the Pharma company but the back end support to this department is given
 either by the brand/product managers who are a part of marketing department and technical
issues particularly those related to mode of action of the drug/side effects/indications/ contra-
indications of the drug etc. are resolved by the technical support department. The main objective
of this CRM is to utilize the information that has been collected from all departments and use
the same to improve the quality of services provided by the sales campaigns. This particular CRM
help the staff members from different departments to share information collected by them when
interacting with customers.

6. Mobility solutions (use of mobile phones as a CRM tool)

 Mobile phones have their application in almost every aspect of Pharma marketing.
 Now MRs can efficiently spend their dead time by performing work related activities on mobiles.
 Mobile aids the MR to plan, prepare & deliver effective sales presentations within the
restrictive time given by the doctors.
 Mobility solutions also help the sales team in GPS based planning, effective calls management,
sample management, travel requests management and report generation.

Current & Future CRM trends in the Pharmaceutical industry

There are custom CRMs available for pharmaceutical companies, hospitals, doctors, independent
pharmacies, and wholesalers. The CRM systems that have earned an excellent reputation for
helping in improving pharmacy operations are Abacus, Eluzzion CRM, IMS Health, M R Reporting,
StayInFront, Pharmapod, ActisCRM, Pharmacode, Synergistix, Prophet CRM, etc.

GLENMARK CRM PRACTICE

 Glenmark Pharmaceuticals is a global, research-driven company with its headquarters located in
Mumbai, India, and is one of the main generic medicine providers in central Europe. The company
employs over 4100 people around the world and has branded generic formulation interests in
more than 95 countries, including India, Europe, Brazil, Latin America, Russia, Africa and Asia.
 Glenmark Pharmaceuticals recently began searching for a system that would support the
management of other fields, such as medical samples distribution and the distribution of financial
documents. Glenmark also wanted a system that would be cost effective.
 Glenmark Pharmaceuticals has signed a 5-year agreement with Data3s for CRM and sales force
support platform.
 Data3s, a pharmaceutical CRM company and the creator of eluzzion CRM, proved to be the right
fit for Glenmark Pharmaceuticals.
 Data3s is an IT solutions provider that offers services and expertise to a variety of customers and
industries. Eluzzion CRM, the company’s customer relationship management (CRM) software,
provides tools for a wide range of sales, marketing financial, human resources, and IT companies.
 As its range of users suggests, eluzzion offers a variety of use cases under one CRM platform:
1. For sales representatives in the field, this software lets users prioritize sales targets based on
segmented profile data that includes value and profitability forecasts. Eluzzion also lets sales
representatives record visit frequency and share activity data.
2. Marketing features connect sales representatives with their company’s marketing efforts
through instant access to online dashboards and web reports. This information helps both sales
representatives and in-office marketers determine the optimal contact frequency and establish
customer preferences
3. For pharmaceutical wholesalers, eluzzion provides expense management tools that record,
track, and manage sales force related expenses, creating an accurate cost-per-product analysis
that measures promotional activity against revenue for a detailed explanation of RIO. This
expense tracking feature also helps companies view financial information in real time as it relates
to each phase of the sales funnel.
4. Eluzzion’s human resources capabilities include seamless aggregation of employee
performance data based on key performance indicators and generates reports for easy
comparison and analysis. The CRM software’s analytics also calculate the value each doctor has
to your business and aggregates warehouse and stock data into reports.
 CRM solutions can serve numerous countries and corporate affiliates together. Glenmark believes
this allows for greater standardization without losing the unique demands of each
individual country. When more countries operate on the same platform, top management and
headquarters tend to be more interested in what is going on in their region.
Future:
 Glenmark's extended contract provides a number of new offerings from Data3s, including an
upcoming SaaS CRM solution for mobile devices (eluzzion Mobile) to be launched early next
year, as well as extended applications for Clinical Trials, Key Account Management, and a fully-
integrated Closed Loop Marketing platform for tablets.
 GSK CRM PRACTICE
 GSK CRM technology includes Contact Management, Flexible Security & Access Permissions,
Billing & Invoicing Functionality, Data Reporting, Mobile CRM including a Mobile App and Alerts,
Sales Performance Management. They Manage each customer case individually and efficiently
to improve customer satisfaction levels.
 GSK to deploy Veeva Network, Veeva Align, and Veeva CRM Approved Email to execute its
multichannel vision and strategy in more than 90 countries.
Benefits of using Veeva CRM by GSK
 GSK could progress with Veeva CRM by delivering more informed, tailored interactions with
their customers across many touch points and channels.
 Using CRM software gave competitive advantage to GSK by better customer engagement
1. GSKs sales force was equipped with iPads and our teams focused on engaging HCPs through
various channels like webinars, the Rural Van initiative, which resulted in wider access and also
the dissemination of high quality scientific education, in keeping with our new global commercial
model. Company have countered the challenge to our prices by growing volumes. With the
launch of Veeva CRM (a customer relationship management tool), they aim to provide HCPs with
information about our medicines in more convenient ways, using their channels of preference.
Company’s field force was equipped with Tablets, which enabled them to capture HCP insights
and preferences on digital channels.
2. Also, the Company has successfully piloted a digital project, “Infectious Smiles”. This is a
comprehensive, integrated 360º multi-channel program with a new tele-call component. This
will enable your Company to become more predictive in our value proposition as your Company
continues to expand the program and tailor engagements best suited to HCP and patient needs.
3. Veeva CRM enabled the dissemination of high-quality scientific education on our medicines to
HCPs through multiple digital channels.
4. Company achieved unique customer differentiation within a fragmented market. From 25,000
touch points in a single activity, we grew to 1,50,000 touch points through our multi-channel HCP
engagement model.
5. GSK paid incentives to MRs based on the way they interact with HCPs. Also, Veeva CRM has
several features that will help MRs in managing several activities.
6. GSK paid incentives to MRs based on the way they interact with HCPs. Also, Veeva CRM has
several features that will help MRs in managing several activities.
7. GSK uses Launchpad like navigation- Launchpad CRM delivers unbeatable features for the
Complex Sales environment not available in other leading CRM systems. Competitor analysis
[Launchpad CRM will automatically propose not only potential competitors but also the
products they will offer in competition against you], Customer influencers [Launchpad CRM will
automatically suggest who those influencers might be and present you with an annotated
customer organisation chart so you can target the individuals], Sales Process [automatically
calculates probability of win improvements] etc.

Furture of CRM

 GSK will use Veeva Network to provide a complete, authoritative view of accurate customer
data; Veeva Align to align the right resources to the right customers; and Veeva CRM Approved
Email for customer teams to extend their reach. Altogether, Veeva is delivering an integrated
commercial cloud solution to help GSK improve customer insight and multichannel planning and
execution around the world.
The Future of CRM Solutions (Prediction)

1. Veeva Nitro: Detailing an entirely new line of business, a next-generation data warehouse will
provide customers access to artificial intelligence (AI) and machine learning (ML). Drug companies
can store and analyze their prescription, sales, and claims data all in one place. The service is
called "Veeva Nitro."
- It will likely take Nitro longer than Vault to catch on with drug companies. That's because
many of the bigger industry players already have data warehouses installed, and Veeva will
be able to capture them only when they want to upgrade.
2. Artificial Intelligence based CRM:
Artificial Intelligence (AI) applies across a spectrum of technologies including machine learning,
predictive analytics, natural language processing, and robotics. CRM vendors have been investing,
acquiring, and building capabilities that leverage AI to optimize customer interactions. Use of AI
can be done in following areas:
i. Customer service: As AI chatbots are being deployed to handle more service requests,
information is now being captured and leveraged through CRM systems. For instance, let’s say
an auto insurance claim is initiated via a web chat. During its task handling, the chatbot collects
necessary data—such as customer name—and authenticates the customer and vehicle. Upon
collection, the data can be passed to a human associate to complete the insurance claim process.
Bots are trained and can learn from feedback based on the success of the interaction. The
feedback loop for a bot can lead to improvements after each interaction.
ii. Lead management: A sales teams can use AI to score a lead, increasing the likelihood of winning
a closed sale. First, AI analyzes the lead and based on interest or buying history, it can provide a
score and recommend what steps are needed to increase success. For example, a medical device
manufacturer may receive a lead from a hospital. In this case, AI would use sales history, data
about the hospital, close ratio of similar hospitals, and the interest level to provide a score. The
AI can then recommend different products and features to offer, such as a field service contract
for preventive maintenance, which would increase likelihood closing that individual account.
iii. Next best action: Using business rules and predictive models, AI embedded in CRM can
recommend steps to sales or service associates to assist with service requests or upsell
opportunities. As associates navigate through customer calls, AI analyzes the data they enter in
the service request in CRM. Based on certain criteria, the system suggests an offer to sell, an add-
on product, or service to the customer. The offers would not be generic but more in-line with
 the needs or circumstances of the individual customer. The idea here is that the associate does
not need to remember to make an upsell offer.
3. Process automation advances
Organizations have been using CRM to automate basic workflow, in which events will trigger an
action. If a service request had been previously opened and the status has changed to closed,
then a workflow rule might state that an email should be sent to the customer informing them
that their case has been closed.
i. Task automation: Defining work tasks and if they should be performed either by a machine or
human helps organizations enable their resources to better serve customers. Task automation
also provides the step-by-step instructions of what actions to perform. During an associate’s
interaction with a customer, the CRM system will direct or guide the associate as to what to say
and do to inform the customer. Task automation is structured and prescriptive for what steps to
perform based on input received, customer profile, or other business conditions.
ii. Work distribution: Task automation specifies process flow and tasks to perform and may identify
that certain tasks need to be performed by other resources based on the skilled employees’
availability. The ability to distribute or route tasks is another capability within Process Automation
trending in CRM platforms. CRM platforms for work distribution can include task routing, skill
prioritization, resource availability, and monitoring of events.
4. Data integration
CRM systems provide and consume massive amounts of data. Traditionally, CRM platforms have
integrated with corporate systems such as ERP, accounting, claims processing, and billing systems
that retrieve transactional data. The integration mechanisms have included an enterprise service
bus (ESB), application programming interfaces (APIs), file integration, computer telephony
integration (CTI), etc.
i. Third-party systems: The ability to plug in data from systems such as Google Maps, government
subscription services, mobile cellular services, SMS text messages, and so forth are based on the
internet and delivered through web services.
ii. Systems today—especially those in the cloud—provide communication protocols that enable
access to data using web services. This level of collaboration enables an organization to
communicate seamlessly with other sources and organizations, such as credit bureaus, to share
customer information and expedite the service requests rather than making phone calls or
sending emails. This level of integration will enable organizations of all sizes to increase their
efficiency in servicing customers.
iii. IoT: These IoT devices can send data about product issues, maintenance needs, improper usage,
to an organization’s CRM platform. CRM vendors are beginning to provide platform connections
to handle IoT feeds. Let’s say there are refrigeration units in a hospital that store vital medications.
If there is a detection that coolant is low or something critical to maintaining the temperature,
the refrigerator sends out a data message. The manufacturer of the refrigeration unit using an IoT
platform would receive the message and relay it to the hospital’s CRM/IoT system. The CRM
system would issue a case and workflow to notify hospital staff and assign tasks to move the
medications to another refrigeration unit.

5. Blockchain
A blockchain is an ongoing list of interlinked records called blocks. They create an open,
decentralized ledger that keeps track of transactions between parties that is absolutely verifiable.
i. Security: As CRM platforms are in the cloud, cloud security will be better, but it’s still based on a
centralized security system approach.
ii. Transparency: Blockchain is decentralized and requires no middleman to verify, such as a financial
institution, or other third-party broker to provide. This will increase the speed to securely and
transparently engage with customers.
iii. User control: Blockchain stores and encrypts personal data and verifies this access without
sharing any specifics, thus controlling what level of data is accessed. CRM systems will, in effect,
subscribe to customer data as permitted by each individual’s grant rights. Users will have the
control, as opposed to current CRM systems that provide unlimited access to personal data
without any user control.
iv. Clean data: Who is tired of how inaccurate your data is in other companies’ CRM databases?
Duplicates, wrong addresses, wrong emails, and other elements create frustration for customers.
Blockchain can store and encrypt personal data and confirm details upon inquiry (such as a mobile
phone company verifying your address or current employer) without truly sharing data with the
inquiring party.

Conclusion
Organizations using CRM capabilities that utilize trends, such as AI, Process automation, Data
integration and Blockchain, have the potential to immensely improve their customer experiences.
Thus, in future it is likely that CRM practices will include more of these trends.