Excerpted from Chapter 1: CRM Structure and ResourcesMaking
CRM the Central Marketing Strategy
The first solution to the “problem” of CRM structure may be to
eliminate entirely the issue of structure. This happens when CRM is not
a separate program but a central tenet of the entire marketing
organization.
At Company 6, the marketing function oversees the CRM program. The
company aims to fit all of its CRM activities into its brands’ relationship
marketing strategies. For brand teams and the broader marketing
organization, customer relationship management is not a discrete program
that simply covers data warehousing or add-ons such as direct mail
campaigns. Instead, comprehensive relationship management is the
dominant paradigm for all marketing teams.
By avoiding the disjointed, uncoordinated efforts, all elements of
customer management occur under the broader umbrella of customer
relationship management. Patients and physicians move through a process
that begins with education and awareness for relevant brands and
treatments. Individuals then move through customer acquisition to
adherence and, finally, advocacy. The steps are not new, but the
marketing organization views customers holistically by understanding
their position and progress on the CRM ladder.
Company 6’s brands oversee their own CRM. Ultimately, profit and loss
responsibility falls to the brand team, which owns all relationship
marketing and CRM activity for the brand. Brand heads report into
business unit leaders; in the US, each brand tends to fall under the
oversight of a vice president of marketing. Other groups that support
the brand and work with the CRM system might include marketers focused
on healthcare professionals, medical education, consumer marketing and
managed care teams.
…To read more, please see Chapter 1 of “Pharmaceutical Customer
Relationship Management”
Excerpted from Chapter 3: CRM Challenges and Opportunities
CRM Challenges
As Cutting Edge Information began exploring the topic of CRM, one
prevalent challenge emerged. The lack of education and ambiguous
definition of what customer relationship management is appeared to be
major challenges for many companies. CRM means different things to
different people and even to entire organizations. At some companies,
CRM is an all-encompassing system that includes all of a brand’s
marketing efforts, whereas at others, CRM is primarily understood to be
a database that gathers information on specific audiences. This great
variance in definition even among marketers themselves has left the
concept of CRM to the whims of personal interpretation. Unfortunately,
this lack of clarity makes it more difficult to achieve success per se,
since few boundaries or standards are available to benchmark efforts.
The first step to alleviate this challenge at a company is to
determine what CRM means to the organization – including parameters,
objectives, tactics and goals. Then it becomes a struggle with internal
education so that everyone understands what CRM means, at least from the
company’s point of view. This education must extend beyond the
boundaries of marketing because several other internal functions are
involved in the development, support and maintenance of CRM. For a CRM
initiative to be successful, cross-functional involvement and
cooperation are imperative.
An interviewee from a top pharmaceutical company noted that the inner
bureaucracy a team has to deal with to consistently maintain support of
the CRM project becomes even more troublesome because of a lack of
education. This problem is exacerbated by constant turnover of
employees. Oftentimes, new employees will have little knowledge about
what CRM is or they may simply not believe in it. This makes it all the
more challenging because these functions are responsible for providing
content and supporting the CRM program. So the inner-bureaucracy of a
company coupled with a lack of education about CRM, makes it an ongoing
challenge to maintain support of CRM.
Companies 6 and 9 both identified CRM’s lack of clarity as a major
obstacle. It is difficult to run a CRM program when CRM is not even
clearly defined. On top of that, how do CRM leaders win buy-in from
other functions when CRM remains a mystery?
…To read more, please see Chapter 3 of “Pharmaceutical Customer
Relationship Management”