Case Study (PDF) - Update Software AG

The subtle differences
CRM project at Actavis
Basically, manufacturers of generic drugs have a hard life differentiating
themselves from competitors through their products and prices.
Actavis has secured itself a lead in the Austrian and Swiss markets by
excellent customer retention. The CRM solution of the Vienna-based
branch specialist update software helps the pharmaceutical enterprise
to approach customers specifically and to submit individual offers. This
saves time and money.
A CRM solution, which is operational two months before the first out-of-office
staff member is sent out into the streets – quite impossible. Quite impossible
thought Stefan Langthaler, Head of Business Systems at Actavis, manufacturer of
generic drugs, and remembers his former employer update software: “I knew the
solution and I knew that it can do.” And, afterall, the Vienna-based CRM supplier
is specialised in the pharmaceutical branch, among others. “update’s list of
customers in this field is impressive”, says Stefan Langthaler. For this reason, the
decision in favour of Actavis was not especially difficult. They did not waste any
time and placed the order with the Vienna-based software house: “Of course, we
had a look at what other suppliers have to offer. But, update simply had the best
price-to-performance ratio. And as the handling is relatively easy, we can modify
www.update.com
Case Study | Quick Check
Field of application
Service | Marketing | Sales
Number of users
20
Installations
Austria, Switzerland
Start
2006
Solution
update.seven
„update’s list of customers in this field is
impressive“.
Stefan Langthaler, Head of Business Systems at Actavis
Result
» Fast implementation and thus fast RoI
» Address management
» Contact management
» Information management
» Calendar function
» Master data management (e.g. contract
situation, terms et cetera)
» Campaign management
Case Study | Actavis

eady, steady »gorelate«
the software ourselves to a great extent
and can adapt it to our needs.”
It was clear to the persons responsible for
the project that the introduction of CRM
had to be done quickly or not at all: “We
are active in a fast moving market. If the
implementation had taken six months
or even longer, the requirements most
probably would have been very different
already. The solution would have been
out-of-date before it would have been used
at all.” For this reason, the decision was taken
to proceed in small steps, i.e. starting with
basic functions and extending the solution
step by step. “I know that many companies
like to proceed according to the motto
bigger, more colourful and more complex
when implementing CRM projects. In my
opinion, however, only small steps lead
to success, which have to be planned and
implemented very accurately. “Overkill will
often lead to failure”, Stefan Langthaler
knows by experience.
No long preparations are required
The fact that the responsible person for
CRM got his calculations right is revealed
by the eight Austrian and six Swiss
satisfied out-of-office staff members, who
have been working with the software for
about six months: Visit planning is done
by mouse click more or less. Not only do
they have the latest customer data on the
screen, they also see how the customers
are connected to each other, which terms
have been agreed upon or which products
are purchased. Naturally the customers
can also be sorted into several segments,
such as specialist groups, turnover volume
or products and interests within seconds.
“With the information our staff members
are very well prepared for their visits
on-site. Long preparatory time or research
work of the out-of-office staff ahead of
the visit is no longer required”, says Stefan
Langthaler.
From experience he knows how
time-consuming the preparation for
a discussion with customers could be
previously and how much money so a
visit could cost: “Previously you visited
the customers relatively haphazardly, i.e.
you may have seen ten to twelve doctors,
hospitals or pharmacies, and at the end
of the day you had signed two contracts
at best”, recollects Stefan Langthaler
and continues: “With the CRM solution,
we no longer proceed according to the
watering-can principle. Six out-of-office
visits produce four hits on average because
we can select the customers carefully
beforehand.”
However, Actavis never went about
matters aimlessly. The pharmaceuticals
company with its headquarters in Iceland
is completely new in the Austrian and
Swiss market. Founded in Iceland in
1956, the groups has developed into a
global player in the generic drugs field
during the last seven years, and is now
operating successful in forty countries on
five continents. Now already, the company
belongs to the largest and most successful
suppliers of generic drugs world-wide.
Right from the beginning, the company
based on CRM support in Austria and
Switzerland: “Customer retention is a
pivotal point. After all, as a manufacturer
of generic drugs we have to deal with pure
cutthroat competition. Our prices and
products do not differ substantially from
those of our competitors after all. For this
“And as the handling is relatively easy, we can modify the software ourselves
to a great extent and can adapt it to our needs“
Case Study | Actavis
reason, it is our aim simply to be better and
faster”, says Stefan Langthalter. Listening
to the customer to find out what he really
needs is a basic principle in the corporate
philosophy of Actavis. “And because we
have this know-how, our staff-members
can go to the right customers specifically
when a product is launched. We do not
distribute specimen packs to doctors
haphazardly, for example, who do not
want to have them at all”, reports Stefan
Langthaler.
Information at the push of a button
In campaign management, the CRM
software also helps to prevent random
losses: Mailings are sent to the right
customers automatically straight from the
system. According to Stefan Langthaler
the selection is relatively easy: “By means
of the software, we can see to which
customer it is sensible to send advertisements
at all. Mail is sent to new customers
only, for example, or to those who have
reacted to the last mailing. Non-reactors
are not approached at all or by means
of other channels.” An agency sends the
advertising letters to those customers
in question and the returns are recorded
as well. These data are entered in the
CRM system and new mails are only sent
to those customers who have reacted.
“After all advertising letters cost a lot of
money. But in this way, they reach those
addressees who are really interested”,
notes Stefan Langthaler. And in this way
the system continues to grow.

Of course, it is not only the out-of-office staff
that profits from CRM: “Our office workers
use the solution primarily for customer
identification”, says the responsible person
for the project. When a call comes in,
the staff members has to recognise in a
matter of second who is at the other end
of the line: Who is the customer’s contact
normally, which products does he buy,
which terms have been agreed with him
or which problems have there been in the
past ? Extra access to an ERP system is not
required. The information can be called
off with the CRM solution”, reports Stefan
Langthaler. Of course, the office workers
can supplement the data at any time,
which then can be accessed immediately
by all authorised staff members.
Actavis wanted more
In the CRM project, Actavis attached a
lot of value also to the integration of
the web pages. On the Internet platform
under the name of “I want more”, the
customers find innovative services, which
assist them specifically in their medical
and/or pharmaceutical activities. For
medical and pharmaceutical specialists,
there is a protected area which renders
available broad specialist knowledge to
these customers – the idea here is also to
collect addresses and information on the
interested parties.
Apart from synopses of congresses and
event in the pharmaceutical field, Actavis
has developed an Internet-based question-
and-answer platform in co-operation
with the “Paracelsus Private Medical
University”, for example. Registered users
can ask the research team of the university
their specialist questions by Internet. “In
addition, we help doctors or pharmacists
to develop and successfully implement
the suitable marketing concept for their
undertaking”, says Stefan Langthaler. The
changes in the health care system require
that their surgeries and pharmacies are
positioned on the market uniquely and
up-to-date.
Actavis attached great value to learning
about the views of the customers.
ready, steady »gorelate«
Customers are encouraged to send their
feedback, which is then evaluated by
Actavis. Stefan Langthaler knows: “It is
only through the input of our customers
that we can offer the services needed in
the future.”
The willingness to continue development
work, the courage to open up new routes
keeping the ear to market and close to the
customer permanently in the process is
a natural feature for the manufacturer of
generic drugs. For project manager Stefan
Langthaler it is a fact: “It is only by picking
up trends and development at an early
stage that we can be successful. With the
update solution this is no problem. We are
able at any time to offer our customers
a well-tried all-round service. It is only
important that we use the possibilities at
our hands.”
“We are able at any time to offer our customers a well-tried all-round servic“
Case Study | Actavis

Headquarters
update software AG
Operngasse 17-21 tel.: +43/1/878 55-0
A-1040 Vienna fax: +43/1/878 55-200
Austria mail: info@update.com
copyright 2008 | update software AG
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might be protected trademarks of the respective entities. All
information contained herein may be changed at any time
if required, without any prior notification and may not be
reproduced or circulated in any form without the prior written
approval of update software AG. In no event shall update
software AG be liable for the completeness of the information
contained in this document.
About Actavis
The Actavis Group with its headquarters in Reykjavik in Iceland belongs to the
world-wide key players in the development, manufacture and sales of generic drugs
(identical copies of the active substances of branded medicine after the patent
protection has expired). With six hundred and fifty products, the Actavis Group has a
portfolio which covers all important therapeutic fields. By acquisitions, the enterprise
was able to position itself amongst the five largest pharmaceutical suppliers in the field
of generic drugs. The manufacturer founded in Iceland in 1956 with its headquarters
in Reykjavik employs a staff of 10,000 in over thirty countries today. The growth of the
fast expanding company is geared to Central Europe, new EU member countries and
the US market.
www.actavis.com