Customer Relationship Management Through Customer Profitability: A Case Study in Pharmaceutical Product Marketing Company

DOI

10.2991/assehr.k.210531.048How to use a DOI?

Keywords

Customer Relationship Management, Customer Profitability Analysis, Customer Lifetime Value, Customer Classification

Abstract

This study aims to analyze Customer Relationship Management (CRM) through customer classification in a pharmaceutical product marketing company. The tools used to analyze CRM are Customer Profitability Analysis (CPA) and Customer Lifetime Value (CLV) methods. Unit analysis of this study is a branch office in Lampung Province of PT X, a private pharmaceutical product marketing company in Indonesia. Data analyzed in this study are primary data obtained from the Accounting Unit and Sales Administration Unit of the branch office and secondary data obtained from online media of both government and private institutions. This study uses purposive sampling that applies Pareto Approach for the calculation of Customer Profitability (CP); that is, 20% of total customers and 20% of total brand products, amounting 193 customers and 348 products that contribute the highest revenue to the branch office in 2018. Furthermore we categorized customers into four categories: high-value customers, declining customers, growing customers, and low-value customers. The result shows that 13.99% of sample customer is classified as high-value customers, 9.85% is classified as declining customers, 8.29% is classified as growing customers and 67.88% is classified as low-value customers. We conclude that combining CPA and CLV in CRM would be better for the company instead of only using one method. Both methods could help company to identify and prioritize customers as well as reduce operational cost.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ammar Nashir
AU  - Dwi Hartanti
PY  - 2021
DA  - 2021/05/31
TI  - Customer Relationship Management Through Customer Profitability: A Case Study in Pharmaceutical Product Marketing Company
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 380
EP  - 387
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.048
DO  - 10.2991/assehr.k.210531.048
ID  - Nashir2021
ER  -