The pharmaceutical industry is undergoing an enormous transformation process. The rising costs and increased complexity of the pharmaceutical network combined with the emergence of new business models on the Internet are putting the healthcare sector under enormous pressure. Pharmaceutical companies are growing at an extremely high pace today. The expansions have made way for futuristic technologies to become inherent to hospitals, medicine labs, and clinics. Here are some statistics that state the current status of this industry. The global pharmaceutical industry is expected to be worth more than $1 trillion in 2017, marking the compound annual growth rate at 5%. Global pharmaceutical sales are expected to grow at a compound annual growth rate (CAGR) of 3-6% during 2012-17, despite the impending loss in revenue expected from the expiry of patents. In this paper we will outline how the customer relationship management (CRM) concept can be used to achieve better customer centricity in the pharmaceutical industry.
We believe that CRM is not only a strategic concept, but is built on a clear understanding of the underlying processes and information systems. The pharmaceutical industry has undergone a need for revolution in recent times; with many uncontrollable changes affecting the dynamics of how each organization operates. In India the pharmaceutical sector has come a long way, being almost non-existent before 1970 to a prominent provider of healthcare products, meeting almost 95 per cent of the country’s pharmaceuticals needs. The Indian pharmaceutical sector is fragmented with more than 20,000 registered units with severe price competition and government price control. It has expanded drastically in the last two decades. The total Indian production in pharmaceutical sector constitutes about 13 per cent of the world market in value terms and, 8 per cent in volume terms. Now a day’s India is getting recognition as a strong, and fast growing economy. Thus the industry is attracting many global entrants.
Increasing purchasing power of the growing middle class population, high orientation towards health consciousness, quality and price driven mindset have reshaped the market structure of pharmaceutical business. The behavior and bargaining power of different interest groups like patients, healthcare providers and regulatory authorities forced them to adopt the effective CRM policies. CRM is a business field that purely relays on the ideology that is “customer is king”, i.e. Customer is core component for any business (Boris, 2012).
CRM is a key component of marketing that helps in improving the relationship with customer by understanding them and their needs and keep them by delivering quality based products, attract new customers by offering good deals, increase profits and decrease customer maintenance costs. The complete study and formal constructive approach of CRM leads to win the market competition (Rajesh & Manivannan: 2013). CRM is a way of collecting, processing, analyzing, storing and managing data about business customers through business policies, strategies and rules.Customer Relationship Management is also a concept of identifying customer needs; understanding and influencing customer behavior through ongoing communications strategies and an effort to acquire, retain and satisfy the customer.
Customer Relationship Management is more than simply managing customers and monitoring their behavior or attitude. It has the potential to change a customer’s relationship with a company and increase revenues in the bargain. It also helps to know the customers well enough to decide whom to choose and whom to lose. The objective of CRM is to recognize and treat each and every customer as an individual.Now a day’s every phase of life is highly based on competitive environment.
In the time of nation awareness, progress of information and tools compulsory for all business to concrete on consumers who have extra knowledge of his requirements, wishes, demands, and precedence (Ngambi 2015). CRM has been learning by marketing sector and is very basic for achieving any long term organizational advantage. To catch, satisfy and keep on going with customers, organizations like pharmaceutical industries are using new tools, using new methods and systems, processes and methodologies on the base on technology. CRM is a boon for industries which are largely dependent on the sales and marketing cycle.
And the pharmaceutical industry is one such area, with sales and marketing at the core of its foundation. With considerable investment and competition in the pharma industry, one needs a unique approach to get the leading edge. Depending on medical representatives for networking is passé. To keep a pharmaceutical business ahead of competition, it is prescribed a responsive CRM system. Today, CRM helps do away with most of the paper work on marketing, and gives marketers ample time to invest for connecting and selling to their customers. Rigby et al. (2002) further identify some of the key business processes that should be aligned to a customer strategy, namely; job descriptions, performance measures, compensation systems and training programs, to support a customer focus.This clarification of the process of CRM, advanced by Rigby et al.
as a result of failure analysis, suggests that CRM remains in an evolutionary phase. As previously noted, Harker (1999) proposes that CRM as a paradigm will remain undeveloped until its key conceptualizations have been identified and understood. In his paper, he lists 26 different definitions of CRM suggesting that the differing opinions relate to variances in the backgrounds of the contributors and also to the short lifetime of this marketing concept.Law et al.
(2003), in an analysis of three perspectives on CRM, explore the fundamental perceptions conveyed by each word in the term. They propose that the word ‘customer provides the direction, ‘relationship’ confers the focus and ‘management’ represents the approach. This paper also emphasizes that the relationship is not limited to the relationship with the customer but also involves internal relationships and other linkages both within and external to the company. Their management. approach relates to the establishment of a co-creative environment for further relationship development between customers and companies. This approach implies interaction between the customer and the