Current status and efficient improvement solutions of the customer service center at cuu long pharmaceutical joint stock company

Cohort 2016 – 2018 Master’s Thesis BY DUONG THI MINH NGUYET CURRENT STATUS AND EFFICIENT IMPROVEMENT SOLUTIONS OF THE CUSTOMER SERVICE CENTER AT CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY HANOI, AUGUST 2018 Cohort 2016 – 2018 Master’s Thesis BY DUONG THI MINH NGUYET CURRENT STATUS AND EFFICIENT IMPROVEMENT SOLUTIONS OF THE CUSTOMER SERVICE CENTER AT CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY Advisor: Dr Nguyen Trung Hien HANOI, AUGUST 2018 ii Acknowledgement First, I would like to send my sincere thanks to the lecturers, especially to my supervisor Dr Nguyen Trung Hien for his devoted attention, lessons and guidance, which have equipped me with key knowledge and essential skills throughout the course More importantly, everything I have learned here would undo ubtedly help me tremendously in my work in the future I would also like to thank International School - Vietnam National University, Hanoi and Nantes University for useful supports during studying and researching to complete this paper This course has equipped, improved, and added a lot of knowledge about the different areas In addition, the course also helps me to have a relationship, have the opportunity to share information and learn from other students in the program I also would like to thank my manager - General Director of Cuu Long pharmaceutical joint stock company as well as my colleagues for their enthusiastic support and creating favorable conditions for me to have more information that is useful to complete thesis My thesis will not avoid the limitations; I look forward to receiving comments from lectures and students so that I can add to complete this paper Sincere thanks Author Duong Thi Minh Nguyet iii ABSTRACT The study on curent status and efficient improvement solutions of the customer care central at Cuu Long pharmaceutical joint stock company (DCL) conducted with purpose of analyzing the status, strengths and weaknesses of customer care to develop a strategy for customer care in the five years 2018 - 2022 in line with DCL's strategic direction Based on the analysis results to provide the direction and strategy to enhance the effectiveness of the strengths and minimize the weakness, to create a perfect customer care service for DCL Building Customer care Hotline integrated with CRM system for the company with complete the processes (receiving calls process, calling process, collaboration process) to maximize the efficiency of customer care Building KPI (Key Performance Indicator) for staff and employee recruitment plan for the department will consider also In order to achieve these research objectives, an investigation conducted in customer conferences in 10 provinces in 2017 with a participation of nearly 1000 people A quantitative method was used with a questionnaire that was designed to collect customer feedback about factors including customer visiting frequency of sale staffs and sale leaders; customer evaluation on products and services of DCL; customer evaluation on the best pharmaceutical companies; customer evaluation on which pharmaceutical company’s the best antibiotics in Vietnam The results of analyse shows that customers highly appreciated DCL's policies of promotion and pricing; DCL’s sale staffs are professional, responsibility and enthusiastic DCL is the second best pharmaceutical companies evaluated by respondents It is also be ranked in the second position of the best antibiotic companies in Vietnam However, participant unsatisfied with customer care service of the company Base on these research results, the author provide some solutions to improve quality of DCL’s customer care services such as systematize customer data of the company; classify customer system; build up customer care programs periodically; measures the satisfaction of customers with products and services of the company She also builds a detail action plan for DCL’s customer care service in 2018 iv Table of content Acknowledgement iii ABSTRACT iv List of Figures and Tables viii Abbreviations .ix Chapter INTRODUCTION 1.1 The need of the subject 1.1.1 The importance of the pharmaceutical industry to society 1.1.2 The role of customer care in the pharmaceutical industry 1.1.3 The need to set up the Customer care department at Cuu Long pharmaceutical joint stock company 1.1.4 Vision and mission of the Customer care department to the Cuu Long pharmaceutical joint stock company 1.2 The objectives of the study: 1.2.1 General objective: 1.2.2 Detail goals: 1.3 Research scope: 1.3.1 Scope of the study 1.3.2 Time 1.4 Research subjects: Chapter THEORETICAL FRAMEWORK AND METHODOLOGY 10 2.1 Theoretical basis 10 2.1.1 The importance of service marketing to business 10 2.1.1.1 Definition of services: 10 2.1.1.2 The development trend of the service sector in Vietnam: 10 2.1.1.3 Common characteristics of service 11 2.1.1.4 The importance of defining the service marketing strategy 12 2 Customer service concepts 12 2.1.3 The relationship between customer service and customer care 13 2.1.4 Customer Satisfaction Theory 14 2.1.5 CRM theory 15 2.2 Research methods 17 2.3 Data collection method: Questionnaire 18 2.4 Data analysis method 19 v Chapter COMPANY INTRODUCTION 20 3.1 The development history of Cuu Long Pharmaceutical JSC 20 3.1.1 General introduction 20 3.1.2 Infrastructure 20 3.1.3 Product 20 3.1.4 Distribution 20 3.2 Organizational structure 21 3.3 Business lines 22 3.3.1 Antibiotics factory 23 3.3.2 Non-antibiotics factory 23 3.3.3 Vikimco (Medical Instruments) 24 3.3.4 Capsule 24 3.4 Overview of production and business activities 24 3.4.1 Product segmentation 24 3.4.1.1 Pharmaceuticals: 24 3.4.1.2 Capsules: 25 3.4.1.3 Medical instruments: 26 3.4.2 Distribution network: 26 3.5 Development orientation: 26 3.6 The DCL’s growth in total assets, charter capital and turnover 27 Chapter 4: THE STATUS OF THE BUSINESS 28 4.1 SWOT analysis for enterprises 28 4.1.1 Strength 28 4.1.2 Weakness 28 4.1.3 Opportunity 28 4.1.4 Threat 29 4.1.5 Rival analysis 29 4.2 Survey and analyze customer's opinion on DCL's products and services 30 4.2.1 Questionnaire 30 4.2.2 Analyze customer feedback 31 4.2.2.1 DCL product quality 31 4.2.2.2 Price of product and customer satisfaction about the designing, packaging 31 4.2.2.4 Customers impression on DCL’s products 33 4.2.2.5 Customer evaluation for sale staffs 34 4.2.2.6 Customer assessment to visiting of area sale managers 34 4.2.2.7 Sales programs updating 35 vi 4.2 2.8 Delivery service 36 4.2.2.9 Customer care programs 36 4.2.2.10 Satisfaction of customer care service 37 4.2.2.11 Processes evaluating 38 4.2.2.12 Revenue of pharmacies 39 4.2.2.13 Evaluation of the best pharmaceutical companies in Vietnam 39 4.2.2.14 Evaluation of the best antibiotic companies in Vietnam 40 4.2.2.15 Comments of customer 41 4.3 The corporate strategy for the period 2018 – 2022 41 Chapter CONCLUSIONS AND RECOMMENDATIONS 43 5.1 Customer Care Strategy for the period 2018 – 2022 43 5.1.1 Systematize customer data of the company 43 5.1.2 Classification of customer system 43 5.1.3 Build up customer care programs periodically 43 5.1.4 Measures the satisfaction of customers with products and services of the company 44 5.1.5 Building special customer care quarterly or yearly to make an unique for Customer care system of DCL 44 5.2 Customer care plan for 2018 44 5.2.1 Objective 44 5.2.2 Plans 45 5.2.2.1 Set up specialized CRM system to professionalize customer care 45 5.2.2.2 Complete standard and professional customer database (Build a database structure with appropriate variables) 45 5.2.2.3 Help the sales department deliver the best care to customers 45 5.2.2.4 Set up professional procedures and stabilize the personnel of the department 45 5.3 Timeline for Customer care plan 2018 45 5.4 Technology investment roadmap to support customer care solutions 47 5.4.1 Functional description of the solution 48_Toc527889176 5.4.2 Survey appropriate software solution providers: 48 5.4.3 Choose the most suitable supplier 49 5.5 Set up the process system, KPI for Customer Care 51 5.5.1 Processes of receiving calls, calling and collaboration 51 5.5.2 Organization chart of Customer care department 55_Toc527889182 5.5.3 Customer Care Department KPIs: 56 References 59 APPENDIX Questionnaire 61 vii List of Figures and Tables Figure 1 Expenditure on drug per capita in Vietnam from 2005 and forecast to 2027 Figure Factors impact on customer satisfaction 15 Figure DCL’s organization structure 21 Figure The annual production volume of antibiotics 23 Figure 3 Annual production volume of non-antibiotics factory 23 Figure The annual production volume of Vikimco medical instruments factory 24 Figure The annual production volume of capsule factory 24 Figure Pharmaceutical products 25 Figure Empty capsule with various sizes 25 Figure Syringes, Infusion wires, Others equipment 26 Figure DCL’s development orientation 27 Chart DCL product quality 31 Chart DCL product price 32 Chart Customer evaluation for DCL sale policies 33 Chart 4 Customer evaluation about designing and packaging products 32 Chart Customer impression on DCL’s products 33 Chart Visiting frequency to customers and saleman attitude 34 Chart Customer visiting frequency of area sale managers 35 Chart Sale programs updating 35 Chart Customer evaluation about DCL’s delivery service 36 Chart 10 DCL’s customer care programs 36 Chart 11 Customer satisfaction with customer care service 37 Chart 12 Customer evaluate DCL’s processes 38 Chart 13 Revenue of pharmacies 39 Chart 14 The best pharmaceutical companies in Vietnam 39 Chart 15 The best antibiotic companies in Vietnam 40 Chart 16 Comments of customers 41 Table A timeline of customer care strategy in 2018 46 Table Fuctional description of system 48 Table Price comparision among vendors 50 Table Collaboration process 54 Table 5 KPIs stafff 56 Flow chart Receiving calls process 52 Flow chart Calling process 53 Flow chart The organization of customer care department from 2018-2019 55 Flow chart The organization of customer care department from 2020 55 viii Abbreviations BMI Business Monitor International DCL Cuu Long pharmaceutical joint stock company OGSM Objective; Goal; Strategy; Measure CRM Customer relationship management OTC Over The Counter ETC Ethical drugs, prescription drugs ASM Area Sales Manager RSM Regional Sales Manager JD Job Description KPI Key Performance Indicator SOE State-Owned Enterprise CCC Customer Care Center DHG Hau Giang pharmaceutical joint stock company ix Chapter INTRODUCTION 1.1 The need of the subject 1.1.1 The importance of the pharmaceutical industry to society According to the report on Top 10 Pharmaceutical Company Vietnam prestige 2017 by Vietnam Report: - Vietnam's pharmaceutical market is on a positively growth momentum In 2017, domestic sale is estimated at $ 5.2 billion, increase about 10% compare to the previous year and is expected to continue to grow over the next five years - As the population increases rapidly, the per capita income rises, people's knowledge is improved, the demand for medicines of the people will grow The per capita spending on medicines in Vietnam has increased from $ 9.85 in 2005 to $ 22.25 in 2010 and nearly doubled in 2015 ($37.97) The average annual growth in drug spending is 14.6% between 2010 and 2015, and is expected to remain at an annual growth rate of at least 14% per year by 2025; per capita expenditure on drugs in Vietnam is expected to double to US $ 85 in 2020 and US $ 163 in 2025 Above-mentioned statements prove that the demand for pharmaceuticals in Vietnam is increasing In addition to the demand for therapeutic drugs, the demand for functional foods also increases significantly This can easily be explained by the fact that, with such a high level of income, people's needs are not just essential needs; they are more and more interested in health and beauty because they are more advanced needs, helping their lives to be happier Figure 1 Expenditure on drug per capita in Vietnam from 2005 and forecast to 2027 (Unit: USD/person) Source: Report of Vietnam Assessment Report Joint Stock Company (2017) Flow chart Calling process CCC Sorry, I dialed a wrong number Call out to customer: Hello, May I ask you are (customer’s name)? Recall by customer’s appointment Introduce: I’m ( Staff name) – I’m calling from CCC of Cuu Long pharmaceutical company Can you give me some minutes please? Agree Disagree Thank you I call you to inform/introduce … When I can recall you? Customer expectation: I hope this information is useful to you Do you need any more support? Thanks customer: Thank you If you need any more information please call to hotline 1900636805, CCC will behappy to support you Goodbye Call in process Wait hang up and end the call Source: Author 53 Table Collaboration process Content Sale Depart Marketing Depart  Update sale and promotion program periodically Transmission  Inform CCC customer conferences, special information customer care programs  Inform, guide CCC about new products  Inform CCC events: launching new products, customer conferences IT Depart R&D Depart Connect information from website to CCC email Support training new products Update information in DAY approval Update within day via text/email from department’s leader (assigned by head of depart.) Collaboration process with CCC Check the reasonableness and consistency of information Unreasonable Reasonable Receive customer feedback, suggestion under CCC ‘s process of Call in/Call out Complain Without complain Finish process Deal with feedback Relevant departs receive feedback and confirm time required for deal with Consider and provide explain customer complains Adjust program, policies etc more reasonable (if necessary) Source: Author 54 Deal with in workdays maximum 5.5.2 Organization chart of Customer care department In the early time of establishment, the Customer care department needs to focus on building a process system, supporting technology system and gradually reaching the whole customer system of company Therefore, the number of employees does not need much Hence, for the period from year 2018 to year 2019 the organization chart of the Customer care department will be as follows: Flow chart The organization of customer care department from 2018-2019 Manager of Customer care department Staff Staff Staff Staff Operator Operator Operator Operator Caring customer by SMS Customer care email job Direct visit customer for survey purpose Admin tasks However, with the big customer data of DCL (about 15,000 customers), when the customer care center operates stable, customer data is updated more fully and accurately, and the customer know more about DCL customer service center, the number of employees must be increased Increasing of customer care employees will ensure:  Do not miss the opportunity to help customers over the phone as customer interaction with the customer care center increases  High specialization for each job position  Can easily support, back up work between employees in order not to interrupt the work of the department  Advantages in regional management Then the organizational chart of the Customer care department is expected to be as follows: Flow chart The organization of customer care department from 2020 55 Manager of Customer care department Supervisor Supervisor Supervisor In charge of the North In charge of the Middle In charge of the South Staff Staff Staff Staff Staff Staff Staff Staff Staff Operator Operator Operator Operator Operator Operator Operator Operator Operator SMS Email Survey directly SMS Email Survey directly SMS Email Survey directly 5.5.3 Customer Care Department KPIs: A KPI assessment table for CCC staffs is designed in which  Criterion in part A are assigned jobs according to department’s strategy in a year which accounts for 80% of monthly score  Criterion in part B are additional jobs in a month that accounts for 10% of month score  Criterion in part C are assessment about attitude and compliance regulations of company that accounts for 10% of month score Category of KPI scores as follow:  < 70%: poor  70% - < 80%: average  80% - < 90%: fair  90% - 30 million VND ☐ 17 Your suggestion to improve DCL’s customer care and support service? ………………………………………………………………………………………… ……………………………………………………………………………………… THANKS FOR YOUR COOPERATION 66 ... ABSTRACT The study on curent status and efficient improvement solutions of the customer care central at Cuu Long pharmaceutical joint stock company (DCL) conducted with purpose of analyzing the status, ... 2016 – 2018 Master’s Thesis BY DUONG THI MINH NGUYET CURRENT STATUS AND EFFICIENT IMPROVEMENT SOLUTIONS OF THE CUSTOMER SERVICE CENTER AT CUU LONG PHARMACEUTICAL JOINT STOCK COMPANY Advisor: Dr... set up the Customer care department at Cuu Long pharmaceutical joint stock company 1.1.4 Vision and mission of the Customer care department to the Cuu Long pharmaceutical joint stock company