ItIt’’s Not an Options Not an OptionCustomer Centricity is the FutureCustomer Centricity is the Future

Brian Jahns, Business Unit Director, Hematology, Roche Canada

Our Old Practices Just Don’t Cut It Anymore

• Pharma traditionally Brand focused

• Business model founded on reach & frequency

• Increasingly difficult to differentiate

• External pressures of:

– Access

– Increased competition

– Budget constraints

– Regulatory pressures

Focus on the Customer Satisfaction & Loyalty Provides a Competitive Advantage

Customer Value StrategyCustomer Value Strategy

Influence & AccessInfluence & Access

Customer LoyaltyCustomer Loyalty

Sustained Competitive AdvantageSustained Competitive Advantage

ProfitabilityProfitability

A Customer-Centric Pharma Organization Focuses on the Win-Win

• Deliver more than just drug products

• Unique, relevant & holistic solutions to unmet customer needs

• Create beneficial, sustainable relationships

• Become a member of the health delivery team

It Starts and Ends With the Customer

1) Know the Customer

• Interested in what customers think, believe and need

• Translate these insights into business decisions about service

2) Reach Customers

• Via their communication preferences

3) Deliver Customer Experience

• See through the eyes of the customer

• Act decisively

• Speak with one voice

Deliver the WOW Experience

• Customer feels great about their experience

• Their needs were uncovered & met or exceeded

• Proactively talk about the experience in a positive way

• Proactively refer someone

Move Customers Along the Continuum & Drive Loyalty

1%

2%

21%

76%

97% of executives agreed that customer experience is either very important or critical to their success.

Critical

Veryimportant

Somewhatimportant

Not veryimportant

The Bar Will Continue to Rise

Source: Forrester's Q4 2008 Customer Experience Peer Research Panel Survey

Why are they focusing on the Customer?

Source: Forrester's Q4 2008 Customer Experience Peer Research Panel Survey

2%

0%

4%

13%

72%

8%

Stay slightly behind themainstream in our industry

Stay in the mainstream in ourindustry

Keep from falling too far behindleaders in our industry

Maintain parity with other leadersin our industry

Differentiate ourselves fromcompetitors in our industry

Differentiate ourselves from allfirms across any industry

Select Metrics, and Live By Them

• Customer Satisfaction

– Voice of the Customer

– Completely/very satisfied

• Likelihood to recommend

• Preference to deal with

• Index integrating many of above

Select one or two that everyone buys into,

Integrate into day-to-day operations via a dashboard

Why do Voice of Customer Programs Fail?

1) Companies do not invest long-term.

2) Action plans are de-prioritized.

3) Rewards & Recognition programs not aligned.

4) Individual customers are lost in the aggregate.

5) Employees are not empowered to act.

Developing the Customer Strategy by Triangulation

Voice of the Voice of the Customer – Customer – Satisfaction Satisfaction

SurveysSurveys

Voice of the Voice of the EmployeeEmployee

Other/All Other/All Customer Customer

InteractionsInteractions

Develop Action Develop Action PlansPlans

Re-measureRe-measure

ImplementationImplementation

* Including Social Media

Link the Customer into the Companies Capabilities

• Recruitment

• Training & development

• Performance management, reward & recognition

• Integration into CRM system

• Enhance strategic planning

• Enhance individual customer planning

• Development & delivery of customer programs

Closing Thoughts

1) Look at your business through the eyes of the customer.

2) The road to success is to enable your customers to succeed.

3) You have to follow the customer. Do not expect the customer to follow you.

Becoming a customer-centric organization is a Becoming a customer-centric organization is a journey.journey.

• Active in 150 countries on all continents, around 81,500 employees

• Clear focus on research-driven healthcare

• Unique innovation model

• One of the best pipelines in the industry – pharmaceuticals & diagnostics

• Pharmaceuticals: no. 3 worldwide*; leading supplier of medicines for cancer and a

market leader in virology

• Leader in in vitro diagnostics (#1)

• World’s biggest biotech company*

* Source: Wood Mackenzie

Roche – global presence A leading healthcare company

Roche CanadaOur local presence

• Founded in 1931

• 885 employees across Canada

– 505 in Pharmaceuticals

– 380 in Diagnostics

• Pharmaceuticals Head Office – Mississauga, Ontario

– #1 Hospital sales company*

– 10th in total pharma sales*

• Diagnostics Head Office – Laval, Quebec

*IMS Health Canada, MAT Reports

Diagnostics

Pharmaceuticals

We Innovate Healthcare