The Quality Improvements Customers Didnt Want

Case Analysis
4/7/2012 Indian Institute of Management Kozhikode Marketing of Services; Term IV

Submitted By:
Group 2
Anubhuti Gupta Angshuman Sarkar Meenal Maheshwari Parul Agarwal Prateek Upadhyaya Saurav Agarwal PGP/15/072 PGP/15/266 PGP/15/289 PGP/15/299 PGP/15/302 PGP/15/319

The Quality Improvements Customers Didnt Want 2012

Quality Care Quality Care is the number 3 player in health care, being next to HealthCare One which is ranked as the best followed by MediCenters. Currently they have under 3000 employees and 200,000 members. Quality Cares revenues are $450 millions and profit is $8.1 million (1.8%). Customer retention rates good and steady for the past 2 years. 86% of customers rated the service as satisfied or completely satisfied (score 4&5) They are considering introduction of computerized reception system. Process involved in the computerized reception system: The steps involved in the system are mentioned as below: Members enter Computer interface Slide identification card Questions about current medical condition Computers pulls members record & processes Member routed to the appropriate staff person for consultation

Marketing of Services

Page 2

The Quality Improvements Customers Didnt Want 2012

Investment needed: For the installation of the computerized reception system, investment would be needed on the following fronts: System development System installation Need for computer consultants Training of staff

An expected outflow of $ 350,000 was expected to occur in the process. Benefits of computerized reception system: The new computerized system is intended to provide the following benefits: Increased value to the customers and customer satisfaction. Benefit of new infrastructure is simplified procedures which will be less stressful and improved employee morale. It will also help in addressing the high employee attrition rate. More streamlined and reliable processing and handling will be achieved with the help of well defined user interface and robust computer software and systems. Evaluation parameters: Since the project involved huge investments, the benefits it will bring shall be carefully evaluated. The following parameters need to be studied:
Marketing of Services Page 3

The Quality Improvements Customers Didnt Want 2012

Will it reduce the number of service failures? Will it reduce cycle time? Will it enhance productivity? Will it increase customer satisfaction? Decision for installation: Since the health care sector has a competitive scenario, therefore we need to go for the installation of computerized reception system (in a gradual manner) because: Top two players have opted for the system Once competition installs the system, customer reference levels would get affected Shift in industry standards to occur Customer acceptability of the system would be higher as the system becomes ubiquitous Although there have been doubts regarding customer satisfaction. It was believed that installation of such system would remove the much needed human contact, replacing it with machine interaction thus having a negative impact. But we believe that this should not be considered as: The surveyed customers had no previous experience of computerized systems Skewed data due to unmonitored customer surveys Proposed pilot system to give us more information regarding customer perception and preference for the new system

Marketing of Services

Page 4

The Quality Improvements Customers Didnt Want 2012

So we recommend the implementation of a pilot system as illustrated in the figure below:

Receptionist acts as an intermediary between customer and the new computerized system To make the customer understand and get used to the new computerized system Gradually reduce the number of receptionist. Also we would maintain a priority reception desk for time conscious, technology adept customers for easy and direct access to new computerized system with faster service. Impact expected: Parameter Service failures Outcome Reduced Reasons A robust system would ensure timely and accurate service No crowded waiting rooms Speed up procedures at reception Reduced responsibilities hence workload on nurses Due to reduced cycle time Improved service operations Due to proficient service and accurate timely delivery Lesser waiting time
Page 5

Cycle time

Reduced

Productivity Customer Satisfaction

Enhanced Increased

Marketing of Services