Customer Relationship Marketing (CRM) Case Study
Case Study that summarizes an incredibly effective technique for increasing customer revenues through increased Customer Satisfaction.
(PRWEB) February 18, 2004 --Memorial Hermann Healthcare System, a $3.5 billion healthcare system in Houston, Texas had grown through acquisition of several hospitals, becoming Texass largest not-for-profit healthcare system. They initiated significant brand advertising campaigns, resulting in increased consumer awareness but preferred customer volume was declining and customer satisfaction remained stagnant.
While Memorial Herman has the highest number of locations, market share and brand awareness, there was
1. Neither cohesive preferred customer" understanding nor alignment among departments with customer interactions resulted in inconsistent customer experiences:
- Customer information resided in several data bases resulting in information rich, knowledge poor" data sources;
- Customer response to marketing initiatives was not tracked since they were focused on brand message vs. brand delivery;
- There was little understanding about specific expectations preferred customers had for their hospital experience and relationship.
2. Little correlation between employee behavior and customer expectations, resulting in varied customer experiences and low satisfaction.
- Front-line employees had little information about preferred customer expectations and preferences;
- Customer Service Training was infrequent and not based on customer expectations;
- There was little Customer Service accountability as it was not tracked at the employee level.
3. Little organizational understanding or support for Customer Loyalty. Employees mindset was that of providing episodic care" vs. developing an ongoing relationship" with the customer.
- Customer communication efforts were fragmented with little communication before, during or after their hospital stay. In addition, employees missed opportunities to promote hospital products and services;
- The customer loyalty program was primarily focused on community service and did not promote hospital products and services;
- Employee interactions were based on speed of delivery instead of customer satisfaction.
Set Goals
Create a CRM Vision and execution plan to meet these challenges. Specifically:
1. Determine preferred customers and their relevant value;
2. Define an outstanding customer experience and set standards and measurements;
3. Deliver and maintain a proactive relationship by setting communication standards and measurements.
Program success was measured by:
- Increase Customer Satisfaction by at least 2 points, as measured by an independent Customer Survey company;
- A proven process for generating a positive financial impact to the organization.
In order to prove the results of the program, the initiates were trialed at two hospitals – one small and under-performing in customer satisfaction, the other large and best performing in the system. The other nine hospitals were measured as a control group".
1. Determine preferred customers and relevant value
This strategy delivered specific tools that integrated customer purchase" data, preferred customer expectations and standardized customer satisfaction measurements based on customer and employee feedback.
Specific deliverables included:
- A Master Customer Information Database compiled from five data sources;
- An marketing Campaign Tracking Tool that set success metrics;
- Preferred Customer expectations and preferences defined for improving front-line employee behavior;
- Preferred Customer Satisfaction Tracking Tools provided a dashboard for ongoing measurements;
2. Define an outstanding preferred customer experience and set standards and measurements
This strategy defined and communicated the Memorial Hermann Experience", from customer greeting through customer billing, to every front-line employee.
Specific deliverables included:
- Call Standards for on-the-phone customer interactions (with practical applications for greetings, wait times, transfers and close);
- Face-to-Face Customer Interactions Standards
3. Deliver and maintain a proactive relationship by setting communications standards and measurements
This strategy increased targeted communications at important stages of the customer lifecycle, to create a direct relationship with preferred customers.
Specific deliverables included:
- A 100-page Patient and Visitor Guide promoting the system, products and services, retail" promotional offers, an explanation of the billing process and critical information for the patient during their stay;
- Re-designed membership program that targets customers with relevant lifestyle offers (new mothers, 55+, age 40-55, and sports enthusiasts);
- New direct mail programs that tests retail" promotional relationships with preferred customers, such as offering 10,000 Continental OnePass Miles for an Executive Wellness Scan.
Solutions
1. Organizational Enhancements
- Actionable customer demographics, expectations and preferences;
- A CRM Vision and Strategy integrated throughout the organization;
- A defined Memorial Hermann Experience" for all customer encounters;
- Sustainable Customer Service" training and accountability for the call centers;
- A proven Project Management approach for all departments;
- Proven financial measurements and campaign tracking for all Marketing efforts.
2. Customer Data and Tracking
- Intranet-based tracking tools for marketing campaigns;
- Marketing opt-out" compliance for governmental and privacy mandates;
- Master Customer Information File that links hospital usage, marketing programs and subsidiary customer encounter data;
- A Direct Mail Test Matrix for tracking offers, lists, messaging, locations, etc.
3. Employee/Customer Interactions
- Proven face-to-face and on-the-phone customer standards for front-line employees;
- Proven employee training process with curriculum reinforcement.
4. Preferred Customer Retention & Acquisition
- A cohesive membership program – transformed from a community information" format to essentially a preferred customer acquisition tool" with operational, production, data and management efficiencies;
- Low-cost member benefits, based on customer feedback;
- Three-year Preferred Customer Acquisition Plan with defined targets;
Quantifiable Results
All program goals were exceeded or met, including:
Goal: Increase Customer Satisfaction scores by two points;
- Met the overall increase of two points. Improved customer satisfaction scores within many departments even more significantly, raising scores at one facility by 8.5 points – while the rest of the organization declined by 1.2 points.
Goal: Improve Employee Mystery Shopper results;
- Increased scores 22%, from 76% to 93% for on-the-phone and face-to-face encounters.
- Direct Mail generated a ROI of 3-to-1;
- Results have become the platform an ongoing Customer Lifecycle program.
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