Verde Group

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Verde is a market research consultancy that has been in the industry for over 17 years, with strong experience in numerous therapeutic areas and a client base that includes numerous global pharma clients. Clients hire Verde to solve for specific business issues: Increasing market share, gaining insights into the marketplace for product launch, sales force effectiveness, etc. Our methodologies provide clients with a holistic and granular view of the relationships customer facing employees (reps, reimbursement specialists, etc.) have with key stakeholders, but also an understanding of competitors’ relationships with those same stakeholders so that competitive advantages can be realized.

www.verdegroup.com

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Verde Group

  1. 1. Managing Your Revenue at Risk<br />Verde Group Capabilities<br />
  2. 2. VERDE <br />TEAM<br />Who We Are<br />Strategic Research Partners:<br />
  3. 3. Pharma Stakeholder Research<br />APPROACH <br />TO LOYALTY<br /><ul><li>Trends:</li></ul>Introduction of customer-centric service models<br /> Moving sales team from product selling focus to coordinating value-add experiences<br />Addressing the business needs of customers for mutual benefit<br /><ul><li>Issues:</li></ul>Continued use of traditional sales force effectiveness, general physician satisfaction metrics<br />Typical studies do not identify specific experiences, frequency of experiences , how to create value added services from the customer’s perspective. <br /><ul><li>The Verde Group has developed 3 key premises around Pharma Stakeholder research that identify the attributes that make customers satisfied and loyal, but more importantly the experiences that create dissatisfaction and possible defection from the brand.</li></ul>Stakeholder experience is the strongest predictorof behavior<br />
  4. 4. APPROACH <br />TO LOYALTY<br />Dissatisfaction is not the Opposite of Satisfaction<br />Drivers of satisfactionand loyalty<br /><ul><li>Consultative Selling
  5. 5. Business Acumen
  6. 6. Creating Mutual Benefit</li></ul>Satisfaction Is <br />Not Sufficient <br />For Loyalty<br /> As a driver of loyalty, dissatisfaction represents a dimension of customer affect distinct from satisfaction.<br /> Dissatisfaction is a very powerful predictor of a customer’s future behavior.<br />Drivers of dissatisfactionand defection<br /><ul><li>No coordination of resources
  7. 7. Reimbursement Issues
  8. 8. Educational Materials</li></li></ul><li>APPROACH <br />TO LOYALTY<br />Experiences Drive Loyalty<br />The customer relationship is built with the experiences that customers have with a provider. These experiences lead to the formulation of attitudes and the attitudes drive customer behaviors (loyalty or defection.) The assessment must mirror the customer relationship process. <br />Satisfaction Does <br />Not Drive Loyalty<br />Satisfaction is an attitude associated with loyalty<br />Most customer loyalty research focuses on attitudinal measures. However attitudes are not actionable.<br /> What drives loyalty, brand equity and customer value is the Customer Experience<br />
  9. 9. APPROACH <br />TO LOYALTY<br />Customer Loyalty Evolves Over Time<br />Customer Loyalty Is Not Binary<br /><ul><li>Customer defection is a process of disengagement and not an event
  10. 10. A customer’s dissatisfaction thresholds are established in part by the attractiveness of competitive alternatives</li></li></ul><li>OUR <br />PROCESS<br />The Verde Research Process<br />Verde has developed a proprietary research process to measure customer and employee experiences and resulting attitudes and behaviors. The process:<br /><ul><li>Identifies the customer and employee experiences that are predictive of market action (recommend, prescribing behavior, value)
  11. 11. Links market actions to financial impact
  12. 12. Delivers insights that are highly actionable due to the granular nature of the feedback.</li></ul>Our methodology is designed to move research findings “out of the binder” and into operations in an actionable, efficient and impactful manner.<br />
  13. 13. OUR <br />PROCESS<br />Revenue@Risk and Engagement@Risk Analysis<br />Identify interactions and experiences customer has with the company<br />Pinpoint actions with greatest impact to produce ROI<br />Involve employees in identifying customer pain points and opportunity<br />Obtain buy-in, commitment of leadership team<br />
  14. 14. OUR PROCESS<br />Project Steps <br />Project Planning<br />• Facilitated Decision Making Meeting<br />• Sets Up The Project<br />Diagnosis<br />• Qualitative Research with employees and customers<br />• Customer experience measures developed from input <br />Our measurement program will provide actionable and robust results for every key stakeholder group<br />Baseline Measurement<br />• Quantitative Research<br />• Measures Performance Against Expectations<br />Action Planning<br />• Facilitated Meeting<br />• Uncovers Actions Needed To Drive Customer Behavior<br />Continuous Tracking<br />• Periodic Measurement<br />• Tracks Improvement On Key Loyalty Drivers<br />
  15. 15. Outputs From “Revenue At Risk” Study<br />OUR <br />PROCESS<br /> Revenue@Riskprioritizes the economic impact of the problem experiences that degrade customer loyalty, and then creates detailed insight on the actions necessary to grow the value of the customer base through improved retention, product penetration, and word-of-mouth market.<br />
  16. 16. Problems & Service Recovery<br />EXAMPLE CHARTS<br /> Impact of Service Recovery on Loyalty and Word of Mouth<br />For each Customer group the survey data will yield:<br />(I) % with problems <br />(II) % who will/will not contact the company <br />(III) % with problem resolution and satisfaction with resolution: <br /> (IV) Recommendations<br />When problems are solved completely, customers with problems are as loyal as those without problems<br />IV<br />II<br />III<br />I<br />Market Impact<br />Service Recovery<br />Contact<br />Behavior<br />Question/<br />Problem<br />Experience<br />Definitely <br />Recommend<br />Pharma<br />No Problem<br />46<br />Loyalty is four times greater when problems are resolved to a customer’s complete satisfaction<br />%<br />Experience<br />%<br />(52%)<br />Completely Satisfied<br />(28%)<br />%<br />44<br />18<br />%<br />(68%)<br />Resolved<br />(28%)<br />Acceptable<br />Customers<br />10<br />(41%)<br />%<br />Less than Acceptable<br />(Base=2311)<br />17<br />%<br />Contacted<br />(50%)<br />Not Resolved<br />(32%)<br />%<br />Loyalty is lower for customers who do not have their problems resolved than for those who never call at all<br />8<br />Problem<br />25<br />(48%)<br />Experience<br />%<br />Did Not<br />26<br />Contact<br />(50%)<br />%<br />
  17. 17. 8<br />Company’s products are not cost competitive<br />Lack of business acumen<br />7<br />Inability to track marketplace trends<br />6<br />5<br />Patient education materials not up-to-date<br />Customers At Risk<br />4<br />Unresponsive to requests<br />3<br />No coordination of resources to service us<br />2<br />1<br />0<br />0%<br />5%<br />10%<br />15%<br />20%<br />25%<br />30%<br />35%<br />40%<br />50%<br />60%<br />Incidence<br />EXAMPLE CHARTS<br />Impact of Most Serious Problems <br />MOST SERIOUS PROBLEMS<br />Example Chart showing the impact of experiences on customer behavior by identifying the problems that are the most serious in terms of both incidence and defection risk: <br />This analysis provides an analysis of the most serious problem as well as the combination of problems on customer risk: negative word of mouth, decreased spend. <br />Lack of problem solving skills<br />
  18. 18. TOTAL PHYSICIANS<br />KEY DRIVERS OF CUSTOMER LOYALTY<br />EXAMPLE CHARTS<br />Key Drivers of Customer Loyalty<br />(.31)<br />Ability of the Biologic Company to Get Patients Approved for Biologic Therapies<br />(.30)<br /> Sales Reps Customer <br />Centric Focus <br />Willingness to Recommend Biologic Company to other Physicians<br />(.26)<br />Collaborative Business Intelligence and Business Acumen<br />Problem Solving Skills Provided to Office Staff<br />(.21)<br />
  19. 19. [CLIENT] REVENUE@RISK PROJECTION<br />1<br />2<br />8<br />9<br />10<br />11<br />3<br />4<br />5<br />6<br />7<br />SATISFACTION <br />Percent That <br />CORE <br />CARDHOLDERS<br />CARDHOLDERS<br />PROBLEM <br />PROBLEM <br />WITH PROBLEM <br />Cardholder Value<br />Defect<br />CARDHOLDERS <br />@RISK<br />SAVED<br />INCIDENCE<br />RESOLUTION<br />RESOLUTION<br />CONTACT RATE<br />$57.94 <br />50%<br />% Projected <br />Saved<br />NLTR<br />45%<br />Complete<br />74%<br /> 659,340 <br />19%<br /> 125,275 <br /> 62,637 <br />3%<br /> 1,879 <br /> $108,876 <br />Problem Resolved <br />Partial<br />NLTR<br />23%<br />40%<br /> 1,465,200 <br />Contact <br /> 336,996 <br />33%<br /> 111,209 <br /> 55,604 <br />5%<br /> 2,780 <br /> $161,086 <br /> 1,980,000 <br />33%<br />Not<br />NLTR<br />32%<br />Problem <br /> 468,864 <br />70%<br /> 328,205 <br /> 164,102 <br />7%<br /> 11,487 <br /> $665,567 <br />26%<br /> 4,950,000 <br />NLTR<br />Problem Not Resolved <br />68%<br /> 350,064 <br /> 175,032 <br />10%<br /> 17,503 <br /> $1,014,135 <br /> 514,800 <br />60%<br />No Contact<br />NLTR<br /> 15,000,000 <br /> 2,970,000 <br /> 460,350 <br />31%<br /> 920,700 <br />2%<br /> 9,207 <br /> $533,454 <br />67%<br />No Problem <br /> 10,050,000 <br />TOTAL ANNUAL INCREMENTAL NET INCOME<br />TOTAL CARDHOLDERS AT RISK<br /> $2,483,117 <br /> 1,835,452 <br />Note: NLTR = "Not Likely To Recommend"<br />NOTE: Cardholder Quantities Modified for Client Confidentiality<br />EXAMPLE CHARTS<br /> Revenue@Risk Economic Projection<br />Credit Card Issuer Customers at Risk and Customers Saved<br />Economic Impact Analysis <br />
  20. 20. R@R Applications to common Business Objectives<br />Physician/Customer Perception and Satisfaction<br />  <br /> The business objectives we solve for in these types of projects include how experiences drive attitudes and, more importantly, market behavior. The specific research objectives include: <br /><ul><li>Which Physician/customer experiences (products, services and interactions) generate the highest levels of Physician/customer satisfaction and loyalty?
  21. 21. What are the drivers of dissatisfaction and key experiences that may be putting Physicians/customers at risk?
  22. 22. What actions can the company take to improve the overall experience and therefore, continue to achieve positive economic impact?</li></ul> Competitive Market Analysis<br />  <br /> The specific objectives to be accomplished with this research include developing an in-depth understanding and insight into the following:  <br /><ul><li>Which companies are considered Best-in-Class in terms of their ability to generate the highest customer satisfaction and loyalty, e.g., willingness to defend, share by word of mouth, brand preference, and willing to pay a price premium?
  23. 23. How does the company’s performance compare to key competitors on these key customer experiences?
  24. 24. What are the key sales rep competencies that are creating value-added experiences that meet Physician’s growing needs for information and support?</li></li></ul><li>R@R Applications to common Business Objectives<br />New Product Launch<br />  <br /> We conduct these projects ahead of launch, to help our clients gain an understanding of their target physicians' viewpoint on services and initiatives from competitors to enable them to differentiate beyond the product and create loyalty as quickly out of the gate as possible.<br /> ATU Research<br />Verde’s R@R approach provides much more in-depth insight into the experiences that shape attitudes and usage, and our approach isolates the effect of the brand loyalty from actual customer satisfaction to enable a company to fully understand the separate experiences and perceptions that drive attitude, usage and brand loyalty. <br /> Monitoring Patient Compliance <br /> Verde also conducts research with patients, mainly to track compliance. The goals of this research are to identify and understand the types of patients likely to be non-compliant. Our research includes the identification of issues with patient education materials, lack of understanding of medication regimens, possible literacy challenges, adverse side effects, impact of physician office visits. We use our R@R methodology to identify the specific issues associated with usage, frequency of problems and the most significant ones impacting compliance. <br />
  25. 25. R@R Pharma Case Studies<br />EXPERIENCE<br />Leading Biologic Company – Quest for Non-traditional Physician-Sales Rep Insights<br />Background: Company had a unique blockbuster drug – crossing multiple therapeutic uses. With a strong late stage pipeline, it had an opportunity to create a strong franchise in the disease states it managed. Yet with increasing competitive pressures, company recognized the need to fully explore and understand the relationship it had with its key customers. Traditional research studies focused on the Physician-sales representative relationship. Given new market dynamics, this wasn’t enough. Company felt it was important to move beyond the physician and explore other constituents that influence brand and company perceptions. <br />Objectives: Identify key drivers of dissatisfaction versus those of satisfaction and loyalty for each customer touch-point including: <br /><ul><li>What is the relative importance of each touch-point in maintaining current relationships and growing new ones?
  26. 26. Which specific touch-point issues are impacting customer loyalty behaviors and associated outcomes – word of mouth, script writing, and retention – for company and for competitors?
  27. 27. How prevalent and important are these issues within each customer group? How do the issues differ by customer group?
  28. 28. How do experiences with company compare to other major biotech firms in this space?</li></ul>Insights gained and actions taken: <br /><ul><li>Develop and empower a single point of contact to own the customer issue from “cradle to grave”
  29. 29. Proactively explain roles and responsibilities of customer-facing/resourcing
  30. 30. Simplify and streamline the patient access process
  31. 31. Train and reward for “customer centricity”
  32. 32. Training around customer interactions </li></li></ul><li>R@R Pharma Case Studies<br />EXPERIENCE<br />Medical Device/Automation Company: Requirement to “change the game” in the hospital lab automation space<br /> Background: Company is a global leader in the area of pre-transfusion diagnostics. The company has set itself as the industry benchmark for delivering innovative, value-added products. Their success has been attributed to its unwavering focus and execution around several key principles including: excellent reputation among stakeholders and investment in quality improvement and customer satisfaction. But competition is fierce. In order to maintain and build customer intimacy, company needed a comprehensive customer and employee measurement system that assess and projects how experiences drive attitudes and physician behaviors. <br />Objectives: <br /><ul><li>What are the critical “moments of truth” for customers; the interactions that are most important for driving satisfaction and creating loyalty?
  33. 33. What specific problem experiences occur across the sales and service cycle that damage Company customer satisfaction and loyalty? How often do they occur?
  34. 34. What is the financial impact of these problems in terms of reorders, product penetration, share of wallet and customer retention? Which are most damaging for Company, and which represent the biggest opportunity for improvement?
  35. 35. How do problem experience, frequency and impact vary by customer position: Technician, Lab Manager or Director? What are the differences in satisfaction and loyalty to Company between each of these customer types and across Hospitals versus other types of customer sites?
  36. 36. Insights gained and actions taken</li></ul>Encourage Customers to Contact about Problems. <br />Improve Problem Resolution. <br />Provide Additional Training to Employees. <br />Correct Product Quality Problems. <br />Communicate Departmental Roles and Responsibilities to Employees. <br />
  37. 37. R@R Pharma Case Studies<br />EXPERIENCE<br />Leading Pharmaceutical Company – Losing Market Access in Key Regions<br /> Background: Ongoing cost pressures in managed care have resulted in the growing influence of the IDN. <br />Company had a need to better understand who these constituents are and, more importantly, their role and influence in the network (particularly non-prescribing constituents). Additionally, the needed to understand how other parties, outside the IDN, influence and affect other parts of the network. With this information, the company can then develop a more focused strategy aimed at accessing these stakeholders with relevance and value.<br />Objectives: <br /><ul><li>Who the key influencers/decision makers are across/outside the system and how decisions made within/outside the system affect other parts of the system.
  38. 38. What IDNs need/what are their challenges/what is most important to them in order to understand how a pharmaceutical or non-pharmaceutical partner may bring additional value?
  39. 39. The IDN’s perspective around what they believe is an effective relationship and why they think it was successful, with specific examples.
  40. 40. Future trends and how this differs by IDN, specifically knowledge of current business model and how their business model is evolving over time. What is making them evolve/change? </li></ul>Insights gained and actions taken<br />Establishment of focused IDN strategy and go-to-market organizational structure that supported third party solutions for value-driven outcomes and improved access in difficult markets. <br />
  41. 41. EXPERIENCE<br />Verde Experience: Overview<br />In the past decade, Verde has worked with many of leading Fortune 500 companies in a variety of industries. <br /><ul><li>Our efforts are focused primarily on loyalty, customer value and employee engagement research.
  42. 42. We have also conducted associated research/ consulting on various marketing and strategy issues directly pertinent to the loyalty challenges our clients faced at the time of engagement.</li></ul>CLIENTS<br />SPECIFIC CLIENT WORK<br /><ul><li>Revenue@Risk Customer Loyalty Tracking
  43. 43. Competitive Benchmarking
  44. 44. Customer Defection Research
  45. 45. Balanced Scorecard Development
  46. 46. Brand Loyalty
  47. 47. Loyalty rewards program development
  48. 48. Product Evaluation and Usage Studies
  49. 49. Segment Specific Positioning
  50. 50. Marketing Communications Strategy</li>

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