Is Customer Relationship Management (CRM) the answer? | andystew
National Center for Digital Government, Kennedy School of Government, Harvard University. Johann Wolfgang public management, TQM, CRM, electronic government. 1. CUSTOMER . Customer Relationship Management can be defined. CRM is a process of marketing by segmenting customers to better . frequency and consumption scale were defined as loyal customers in the target market and . A Customer Relationship Management (CRM) system is a tool for collecting and managing the information and interactions your business has.
This study is a correlation descriptive research. Study population was the nurses in selected hospitals of Isfahan and the sampling has been conducted using stratified random method. Data collection tool is a researcher-made questionnaire of CRM and its effects organizational productivity, customer loyalty, satisfaction and trust which its validity and reliability has been confirmed by researchers.
Structural equation method was used to determine the impact of variables. Among the dimensions of CRM, diversification had the highest impact 0. For the implementation of CRM, it is necessary that the studied hospitals improve strategies of acquiring information about new customers, attracting new customers and keeping them and communication with patients outside the hospital and improve the system of measuring patient satisfaction and loyalty.
Because of direct communication with the actions of an organization, clients are a valuable source for opportunities and threats related to respective industry.
In new business processes, a vital position is allocated for achieving customer satisfaction in organization goals and senior managers are well aware that their success in achieving the major goals of the organization depends on customer satisfaction. Many successful organizations emphasize on the note that maintaining stable relationships with the customers can hold them firm and progressive in competition stage. The research report of Healthcare Information and Management Systems Society has shown that the quality of care and customer satisfaction in the coming years will have a significant impact on health.
Furthermore, effective communication is often associated with improved physical health, more effective chronic disease management, and better health-related quality of life. On the other hand, failure in CRM affects the patient dissatisfaction and leads to a distrust of system, a sense of patient alienation in the hospital and endangering the survival of the business at the hospital. Therefore examining such valuable concept in hospitals, which their function is based on the patient customeris very necessary.
On the other hand, failure in CRM will affect the patient dissatisfaction, distrust towards systems, patient feels alienated in the hospital, and jeopardize business survivability in the future. Hence, the effect of CRM on the organization's productivity, customer satisfaction, trust and loyalty in the hospitals of Isfahan University of Medical Sciences was studied in this research.
The estimated sample size was nurses. The adequacy of sample size has been taken using Kaiser—Meyer—Olkin method.
Is Customer Relationship Management (CRM) the answer?
Particularly, this research showed that when a patient within the internal medicine department who did not have surgery stayed for more than Conclusions To discover a hospital's loyal patients and model their medical usage patterns, the application of data-mining has been suggested. Introduction According to recent changes of medical service from treatment focus to prevention focus, the dominant market of providing treatment services is being replaced by the market of consumers visiting hospitals to receive prevention services [ 1 ].
Also clients now select hospitals more freely by collecting information from various sources and therefore, hospitals have a higher threat to their business environment due to leaving patients [ 2 ]. So far, general companies and hospitals have put in much effort to attract new customers for management improvement. Awareness of existing customers was relatively small and as a result the hospitals are experiencing many leaving existing customers [ 134 ].
In this view, it appears that maintaining existing customers is favorable than creating new customers in terms of a strategic hospital management. As a result, rather than using a customer acquisition strategy towards unspecified individuals, now hospitals select loyal customers by analyzing accumulated information with those who have maintained a relationship for a long period of time and are introducing customer relationship management CRM marketing regarding them [ 78 ].
In other words, for management deterioration due to customers leaving and opportunity costs, CRM is becoming an important issue to the hospitals management.
CRM is a process of marketing by segmenting customers to better understand them and for the purpose of improving long-term relationships with valuable customers [ 8 ]. That is, a most distinct feature of CRM is not a traditional method of collecting the most number of customers but, CRM is a customer centered marketing which provides a service that meets individuals based on their characteristics and consuming patterns [ 6 ].
This technique of marketing arose from the segmentation, targeting, positioning STP strategy which can be seen as the core of marketing and STP separates a market of large-scale customers segmentation and selects the target market targeting and then positioning a service or product into their minds for recognition positioning.
Therefore, in order to perform CRM, it is extremely important to select targets that the hospitals can provide intensive services, discover high fidelity customers with an accurate understanding their characteristics, and further, predicting fidelity customers is necessary.
This study was performed to suggest a practical method of data-mining in CRM of hospitals. A detailed research aims are discovering loyal customers from a large scale database of discharged patients by combining data-mining with STP strategy and recency, frequency, monetary RFM model that are being used as marketing strategies among general companies.
RFM model is used for customer value analysis and applied for market segmentation. It is a behavior-based model to analyze the customers' purchasing patterns by using customers' information in large scale database. RFM model is composed of three measures, namely recency, frequency, and monetary [ 10 - 12 ].
Methods This study used a database of discharged patients from a university hospital in Seoul between January 1st and December 31st Among a total of 16, discharged patients, we excluded unsuitable patients for this study purpose younger than 19, foreigners, and patients who were participating clinical trialsand 14, patients were selected as final subjects.
Data Mining Application in Customer Relationship Management for Hospital Inpatients
In order to discover fidelity customers, segmentation and targeting was performed by applying a core marketing strategy, i. It is also being used as an extremely important method when commencing marketing activity or assessing customers' values [ 1011 ].
And more recently, this is being used as a classification method of fidelity customers to perform CRM in hospitals [ 12 ]. In this study, the variables representing consuming frequency was the number of admission and visiting out-patient department OPD prior to one year of index admission and the variables representing monetary were expenses for being discharged from the hospital and the expenses per visit for out-patient care.
Independent variables consisted of the factors associated with loyal customers revealed in previous study [ 112 ]. And it can be classified into three characteristics: Also, International Classification of Diseases ICD code of main diagnostic criteria at the time of discharge was used for disease group characteristics. The analyzing method for market segmentation and target market selection, k-means algorithm cluster analysis was performed by applying RFM variables and comparing the groups' differences through a t-test.