To drive customer loyalty, pharmaceutical companies need to move from a product-centric approach to a customer-centric approach. Gilbert Grima, a partner with Bain’s Healthcare practice, shares three main areas leading pharma companies that use the Net Promoter System® focus on to gain an advantage in a competitive environment.
Read the transcript below.
GILBERT GRIMA: This is about a paradigm shift for pharma, moving from a product-centric to a customer-centric model. In an environment that is more and more competitive, where it's harder and harder to stand out of the crowd and differentiate, you cannot use the same old model in engaging your customers. Indeed, pharma is considered one of the least customer-friendly industries, with ever decreasing scores over the last 15 years. That's good news though for pharma, because pharma companies can address this negative image and be successful in driving customer loyalty and advocacy.
Bain research shows that NPS leaders in pharma outperform laggards on multiple dimensions. They grow faster, they have a higher market share, and they're 2.5 times more successful in the adoption of their new products. Leading companies who use the Net Promoter System focus on three main areas. Number one, they understand what do the customers value beyond the product and allocate the resources accordingly.
Number two, they quickly react to changing customer needs, and last, but not least, they build a customer-focused organization. The NPS system uses feedback loops to generate valuable insights that can then be translated into impactful actions. Indeed, almost 60% of the drivers of loyalty are actionable in the short term. In an ever more competitive environment, driving customer loyalty and advocacy is becoming more and more a critical success factor for pharma companies.