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Managing Your Revenue at Risk Verde Group Capabilities
VERDE  TEAM Who We Are Strategic Research Partners:
Pharma Stakeholder Research APPROACH  TO LOYALTY ,[object Object],Introduction of customer-centric service models  Moving sales team from product selling focus to coordinating value-add experiences Addressing the business needs of customers for mutual benefit ,[object Object],Continued use of traditional sales force effectiveness, general physician satisfaction metrics Typical studies do not identify specific experiences, frequency of experiences , how to create value added services from the customer’s perspective.  ,[object Object],Stakeholder experience is the strongest predictorof behavior
APPROACH  TO LOYALTY Dissatisfaction is not the Opposite of Satisfaction Drivers of satisfactionand loyalty ,[object Object]
Business Acumen
Creating Mutual BenefitSatisfaction Is  Not Sufficient  For Loyalty 	As a driver of loyalty, dissatisfaction represents a dimension of customer affect distinct from satisfaction. 	Dissatisfaction is a very powerful predictor of a customer’s future behavior. Drivers of dissatisfactionand defection ,[object Object]
Reimbursement Issues
Educational Materials,[object Object]
APPROACH  TO LOYALTY Customer Loyalty Evolves Over Time Customer Loyalty Is Not Binary ,[object Object]
A customer’s dissatisfaction thresholds are established in part by the attractiveness of competitive alternatives,[object Object]
Links market actions to financial impact
Delivers insights that are highly actionable due to the granular nature of the feedback.Our methodology is designed to move research findings “out of the binder” and into operations in an actionable, efficient and impactful manner.
OUR  PROCESS Revenue@Risk and Engagement@Risk Analysis Identify interactions and experiences customer has with the company Pinpoint actions with greatest impact to produce ROI Involve employees in identifying customer pain points and opportunity Obtain buy-in, commitment of leadership team
OUR PROCESS Project Steps  Project Planning • Facilitated Decision Making Meeting • Sets Up The Project Diagnosis • Qualitative Research with employees and customers • Customer experience measures developed from input  Our measurement program will provide actionable and robust results for every key stakeholder group Baseline Measurement • Quantitative Research • Measures Performance Against Expectations Action Planning • Facilitated Meeting • Uncovers Actions Needed To Drive Customer Behavior Continuous Tracking • Periodic Measurement • Tracks Improvement On Key Loyalty Drivers
Outputs From “Revenue At Risk” Study OUR  PROCESS 	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.
Problems & Service Recovery EXAMPLE CHARTS  Impact of Service Recovery on Loyalty and Word of Mouth For each Customer group the survey data will yield: (I) % with problems  (II) % who will/will not contact the company  (III) % with problem resolution  and  satisfaction with resolution:   (IV) Recommendations When problems are solved completely, customers with problems are as loyal as those without problems IV II III I Market Impact Service Recovery Contact Behavior Question/ Problem Experience Definitely  Recommend Pharma No Problem 46 Loyalty is four times greater when problems are resolved to a customer’s complete satisfaction % Experience % (52%) Completely Satisfied (28%) % 44 18 % (68%) Resolved (28%) Acceptable Customers 10 (41%) % Less than Acceptable (Base=2311) 17 % Contacted (50%) Not Resolved (32%) % Loyalty is lower for customers who do not have their problems resolved than for those who never call at all 8 Problem 25 (48%) Experience % Did Not 26 Contact (50%) %
8 Company’s products are not cost competitive Lack of business acumen 7 Inability to track marketplace trends 6 5 Patient education materials not up-to-date Customers At Risk 4 Unresponsive to requests 3 No coordination of resources to service us 2 1 0 0% 5% 10% 15% 20% 25% 30% 35% 40% 50% 60% Incidence EXAMPLE CHARTS Impact of Most Serious Problems  MOST SERIOUS PROBLEMS 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:  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.  Lack of problem solving skills
TOTAL PHYSICIANS KEY DRIVERS OF CUSTOMER LOYALTY EXAMPLE CHARTS Key Drivers of Customer Loyalty (.31) Ability of the Biologic Company to Get Patients Approved for Biologic Therapies (.30)  Sales Reps Customer  Centric Focus  Willingness to Recommend Biologic Company to other Physicians (.26) Collaborative Business Intelligence and Business Acumen Problem Solving Skills Provided to Office Staff (.21)
[CLIENT] REVENUE@RISK PROJECTION 1 2 8 9 10 11 3 4 5 6 7 SATISFACTION  Percent That  CORE  CARDHOLDERS CARDHOLDERS PROBLEM  PROBLEM  WITH PROBLEM  Cardholder Value Defect CARDHOLDERS  @RISK SAVED INCIDENCE RESOLUTION RESOLUTION CONTACT RATE $57.94  50% % Projected  Saved NLTR 45% Complete 74%  659,340  19%  125,275   62,637  3%  1,879   $108,876  Problem Resolved  Partial NLTR 23% 40%  1,465,200  Contact   336,996  33%  111,209   55,604  5%  2,780   $161,086   1,980,000  33% Not NLTR 32% Problem   468,864  70%  328,205   164,102  7%  11,487   $665,567  26%  4,950,000  NLTR Problem Not Resolved  68%  350,064   175,032  10%  17,503   $1,014,135   514,800  60% No Contact NLTR  15,000,000   2,970,000   460,350  31%  920,700  2%  9,207   $533,454  67% No Problem   10,050,000  TOTAL ANNUAL INCREMENTAL NET INCOME TOTAL CARDHOLDERS AT RISK  $2,483,117   1,835,452  Note: NLTR = "Not Likely To Recommend" NOTE: Cardholder Quantities Modified for Client Confidentiality EXAMPLE CHARTS  Revenue@Risk Economic Projection Credit Card Issuer Customers at Risk and Customers Saved Economic Impact Analysis
R@R Applications to common Business Objectives Physician/Customer Perception and Satisfaction  	 	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:  ,[object Object]

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Managing Revenue Risk Through Customer Experience Insights

  • 1. Managing Your Revenue at Risk Verde Group Capabilities
  • 2. VERDE TEAM Who We Are Strategic Research Partners:
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  • 11. Links market actions to financial impact
  • 12. Delivers insights that are highly actionable due to the granular nature of the feedback.Our methodology is designed to move research findings “out of the binder” and into operations in an actionable, efficient and impactful manner.
  • 13. OUR PROCESS Revenue@Risk and Engagement@Risk Analysis Identify interactions and experiences customer has with the company Pinpoint actions with greatest impact to produce ROI Involve employees in identifying customer pain points and opportunity Obtain buy-in, commitment of leadership team
  • 14. OUR PROCESS Project Steps Project Planning • Facilitated Decision Making Meeting • Sets Up The Project Diagnosis • Qualitative Research with employees and customers • Customer experience measures developed from input Our measurement program will provide actionable and robust results for every key stakeholder group Baseline Measurement • Quantitative Research • Measures Performance Against Expectations Action Planning • Facilitated Meeting • Uncovers Actions Needed To Drive Customer Behavior Continuous Tracking • Periodic Measurement • Tracks Improvement On Key Loyalty Drivers
  • 15. Outputs From “Revenue At Risk” Study OUR PROCESS 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.
  • 16. Problems & Service Recovery EXAMPLE CHARTS Impact of Service Recovery on Loyalty and Word of Mouth For each Customer group the survey data will yield: (I) % with problems (II) % who will/will not contact the company (III) % with problem resolution and satisfaction with resolution: (IV) Recommendations When problems are solved completely, customers with problems are as loyal as those without problems IV II III I Market Impact Service Recovery Contact Behavior Question/ Problem Experience Definitely Recommend Pharma No Problem 46 Loyalty is four times greater when problems are resolved to a customer’s complete satisfaction % Experience % (52%) Completely Satisfied (28%) % 44 18 % (68%) Resolved (28%) Acceptable Customers 10 (41%) % Less than Acceptable (Base=2311) 17 % Contacted (50%) Not Resolved (32%) % Loyalty is lower for customers who do not have their problems resolved than for those who never call at all 8 Problem 25 (48%) Experience % Did Not 26 Contact (50%) %
  • 17. 8 Company’s products are not cost competitive Lack of business acumen 7 Inability to track marketplace trends 6 5 Patient education materials not up-to-date Customers At Risk 4 Unresponsive to requests 3 No coordination of resources to service us 2 1 0 0% 5% 10% 15% 20% 25% 30% 35% 40% 50% 60% Incidence EXAMPLE CHARTS Impact of Most Serious Problems MOST SERIOUS PROBLEMS 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: 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. Lack of problem solving skills
  • 18. TOTAL PHYSICIANS KEY DRIVERS OF CUSTOMER LOYALTY EXAMPLE CHARTS Key Drivers of Customer Loyalty (.31) Ability of the Biologic Company to Get Patients Approved for Biologic Therapies (.30) Sales Reps Customer Centric Focus Willingness to Recommend Biologic Company to other Physicians (.26) Collaborative Business Intelligence and Business Acumen Problem Solving Skills Provided to Office Staff (.21)
  • 19. [CLIENT] REVENUE@RISK PROJECTION 1 2 8 9 10 11 3 4 5 6 7 SATISFACTION Percent That CORE CARDHOLDERS CARDHOLDERS PROBLEM PROBLEM WITH PROBLEM Cardholder Value Defect CARDHOLDERS @RISK SAVED INCIDENCE RESOLUTION RESOLUTION CONTACT RATE $57.94 50% % Projected Saved NLTR 45% Complete 74% 659,340 19% 125,275 62,637 3% 1,879 $108,876 Problem Resolved Partial NLTR 23% 40% 1,465,200 Contact 336,996 33% 111,209 55,604 5% 2,780 $161,086 1,980,000 33% Not NLTR 32% Problem 468,864 70% 328,205 164,102 7% 11,487 $665,567 26% 4,950,000 NLTR Problem Not Resolved 68% 350,064 175,032 10% 17,503 $1,014,135 514,800 60% No Contact NLTR 15,000,000 2,970,000 460,350 31% 920,700 2% 9,207 $533,454 67% No Problem 10,050,000 TOTAL ANNUAL INCREMENTAL NET INCOME TOTAL CARDHOLDERS AT RISK $2,483,117 1,835,452 Note: NLTR = "Not Likely To Recommend" NOTE: Cardholder Quantities Modified for Client Confidentiality EXAMPLE CHARTS Revenue@Risk Economic Projection Credit Card Issuer Customers at Risk and Customers Saved Economic Impact Analysis
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  • 21. What are the drivers of dissatisfaction and key experiences that may be putting Physicians/customers at risk?
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  • 23. How does the company’s performance compare to key competitors on these key customer experiences?
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  • 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. How prevalent and important are these issues within each customer group? How do the issues differ by customer group?
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  • 29. Proactively explain roles and responsibilities of customer-facing/resourcing
  • 30. Simplify and streamline the patient access process
  • 31. Train and reward for “customer centricity”
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  • 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. 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. 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. Insights gained and actions takenEncourage Customers to Contact about Problems. Improve Problem Resolution. Provide Additional Training to Employees. Correct Product Quality Problems. Communicate Departmental Roles and Responsibilities to Employees.
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  • 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. The IDN’s perspective around what they believe is an effective relationship and why they think it was successful, with specific examples.
  • 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? Insights gained and actions taken 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.
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  • 48. Product Evaluation and Usage Studies