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Pharmaceutical, Health Care Products and Services Industries Must Remedy The Online Customer Experience they Provide, According to The Customer Respect Group's Spring 2003 Sector Study

05/06/03
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Copyright 2003 Business Wire, Inc. Business Wire

May 5, 2003, Monday

DISTRIBUTION: Business Editors/Health/Medical Writers

LENGTH: 2249 words

HEADLINE: Pharmaceutical, Health Care Products and Services Industries Must Remedy The Online Customer Experience they Provide, According to The Customer Respect Group's Spring 2003 Sector Study

DATELINE: BELLEVUE, Wash., May 5, 2003

BODY: More Than One-half of Pharmaceutical, Health Care and Health Care Wholesale Firms Don't Respond to Web Site Inquiries; But 80 Percent of Medical Products and Equipment Firms Do The Customer Respect Group, an international research and consulting firm that focuses on how corporations treat their customers online, today released the results of its 300-page Spring 2003 Online Customer Respect Study of the country's largest pharmaceutical, health care products and services firms. Among the results, according to the report, is that almost two-thirds of pharmaceutical companies don't respond to inquiries sent via Web sites. Nor do more than one-half of health care and health care wholesale firms. The exception is the medical products and equipment sector, where 80 percent of surveyed firms do respond. This sector also scored highest overall in Customer Respect among the four. In fact, the two highest scorers in overall Customer Respect among all surveyed firms come from this group: Dade Behring Holdings and St. Jude Medical. The highest scoring firm in pharmaceuticals was Wyeth; the health care leader was Express Scripts; and the top scoring healthcare wholesaler was Henry Schein.

The study is the only to bring objective measure to the analysis of corporate performance from an online customer's perspective. It assigns a Customer Respect Index (CRI(TM)) to each company. The Customer Respect Index is a qualitative and quantitative in-depth analysis and independent measure of a customer's online experience when interacting with companies via the Internet.

By looking at more than 1000 Web sites across a spectrum of industries in detail, The Customer Respect Group has determined 25 different attributes that combine to create the entire online customer experience. These attributes have been grouped together and measured as indicators of Privacy (respects customer privacy), Principles (values and respects customer data), Attitude (customer-focus of a site), Transparency (open and honest policies), Simplicity (ease of navigation), and Responsiveness (quick and thorough responses to inquiries). Combined they measure a company's overall Customer Respect. "It's difficult to conceive why, outside of medical products and equipment, more than half of surveyed pharmaceutical and health care related firms don't respond to online inquiries put to them," said Donal Daly, The Customer Respect Group CEO. "Given the myriad of controversial issues they face, one would think that these firms would be quick to answer questions and improve their overall communications with the public, potential customers and suppliers as well as business partners."

A recent study, sponsored in part by the American Accreditation HealthCare Commission (URAC), has shown that about 77 million Americans, 66% of those with Internet access, have used the Web to get medical or health information online.

Pharmaceuticals
The highest ranked organization within the sector was Wyeth at 8.1 (out of 10), while the lowest was Ivax Corporation at 2.7. The sector's average was 5.9. Beyond these scores, the report conveys in great detail improvement opportunities for each company. The sector's Spring 2003 ranking is as follows:


Company Name                                                   Overall
----------------------------------------------------------------------
Wyeth                                                             8.1
Forest Laboratories, Inc.                                         7.9
Abbott Laboratories                                               7.5
Allergan. Inc.                                                    6.8
Merck & Co., Inc.                                                 6.8
Amgen                                                             6.6
Barr Laboratories, Inc.                                           6.5
Biogen, Inc.                                                      6.4
Johnson & Johnson                                                 6.1
Schering-Plough Corporation                                       6.0
Genzyme Corporation                                               5.6
Bristol-Myers Squibb Company                                      5.5
Watson Pharmaceuticals, Inc.                                      5.4
King Pharmaceuticals, Inc.                                        5.3
Chiron Corporation                                                5.1
Pfizer Inc.                                                       4.2
Eli Lilly and Company                                             4.1
Ivax Corporation                                                  2.7
Industry Average                                                  5.9

Note: Due to its recent acquisition by Pfizer, Pharmacia was not included in this study.

Other findings for pharmaceutical firms include the following:

  • Sector firms receive the best overall rating (CRI: 7.5) for Privacy and the worst (CRI 3.7) for Responsiveness.
  • Nearly two-thirds (64 percent) don't respond to online inquiries. Of the 36 percent that do respond, 80 percent respond within 48 hours and 20 percent respond within 72 hours.
  • Only 36 percent of these sector firms use Autoresponder technology, in which emails are automatically sent back to users to confirm the receipt of their inquiry and let them know when they should expect a response. Of these, 20 percent did not follow-up with a full response.
  • Some 53 percent of companies provide email forms for online inquiries.
  • 26 percent provide email addresses.
  • 21 percent only provide offline contact information
  • Some 68 percent provide a keyword search function on their site.
  • Fully 89 percent of sector firms have privacy policies on their sites explaining how customers' personal data is being used.

Health Care
The highest ranked organization within the sector was Express Scripts at 8.6 (out of 10), while the lowest was Universal Health Services at 1.6. The sector's average was 5.3. Beyond these scores, the report conveys in great detail improvement opportunities for each company. The sector's Spring 2003 ranking is as follows:


Company Name                                                   Overall
----------------------------------------------------------------------
Express Scripts, Inc.                                             8.6
Quest Diagnostics Incorporated                                    8.3
Tenet Healthcare Corporation                                      7.9
ApriaHealthcare Group Inc.                                        7.9
Humana Inc.                                                       7.9
Beverly Enterprises, Inc.                                         7.8
Mid Atlantic Medical Services,Inc.                                7.4
Aetna                                                             7.3
UnitedHealth Group, Inc.                                          7.0
Medical Mutual of Ohio                                            7.0
HEALTHSOUTH Corporation                                           6.5
CIGNA Corporation                                                 6.2
Anthem,Inc.                                                       5.9
Sun Healthcare Group,Inc.                                         5.7
Health Net Inc.                                                   5.6
WellPoint Health Networks Inc.                                    5.6
Amerigroup Corporation                                            5.5
Sierra Health Services, Inc.                                      5.2
Omnicare, Inc.                                                    5.2
Genesis Health Ventures, Inc.                                     5.1
PacifiCare Health Systems Inc.                                    5.0
HCA, Inc                                                          5.0
Mariner Health Care, Inc.                                         4.9
Triad Hospitals, Inc.                                             4.9
WellChoice Inc.                                                   4.8
DaVita                                                            4.3
Coventry Health Care Inc.                                         4.1
Kindred Healthcare, Inc.                                          4.1
Laboratory Corp. of America Holdings                              4.0
AdvancePCS, Inc.                                                  3.8
Oxford Health Plans, Inc.                                         3.7
Manor Care, Inc.                                                  3.6
Magellan Health Services, Inc.                                    3.5
Caremark Rx, Inc.                                                 3.2
Community Health Systems, Inc.                                    3.0
Cobalt Corporation                                                2.8
Health Management Associates, Inc.                                2.1
Universal Health Services, Inc.                                   1.6
Industry Average                                                  5.3

Other findings for health care firms include the following:

  • Sector firms receive the best overall rating (CRI: 6.8) for Simplicity and the worst (CRI: 3.9) for Responsiveness.
  • More than half (57 percent) of sector firms don't respond to online inquiries. Of those that do, 80 percent respond with 48 hours, 7 percent do so within 72 hours and 13 percent respond in four days or more.
  • Only 20 percent of these sector firms use Autoresponder technology, in which emails are automatically sent back to users to confirm the receipt of their inquiry and let them know when they should expect a response. Of these, 14 percent don't follow-up with a full response.
  • Some 63 percent of companies provide email forms for online inquiries.
  • 29 percent provide email addresses.
  • 8 percent only provide offline contact information.
  • Only 29 percent provide a keyword search function on their site.
  • Some 61 percent of sector firms have privacy policies on their sites explaining how customers' personal data is being used.

Medical Products and Equipment
The highest ranked organizations within the sector were Dade Behring Holdings and St. Jude Medical, each at 8.9 (out of 10), while the lowest was Dentsply International, Inc. at 2.8. The sector's average was 6.7. Beyond these scores, the report conveys in great detail improvement opportunities for each company.
The sector's Winter 2003 ranking is as follows:


Company Name                                                   Overall
----------------------------------------------------------------------
Dade Behring Holdings, Inc.                                       8.9
St. Jude Medical, Inc.                                            8.9
Medtronic, Inc.                                                   8.4
Guidant Corporation                                               8.3
Baxter International Inc.                                         8.2
Hillenbrand Industries                                            8.1
Beckman Coulter Inc.                                              8.1
Bausch & Lomb Incorporated                                        7.9
Zimmer Holdings, Inc.                                             7.6
Boston Scientific Corporation                                     7.4
Stryker Corporation                                               5.2
C.R. Bard, Inc.                                                   4.8
Becton, Dickinson and Company                                     4.8
Biomet, Inc.                                                      4.8
Applera Corporation                                               3.4
Dentsply International, Inc.                                      2.8
Industry Average                                                  6.7

Other findings for medical products and equipment firms include the following:

  • Sector firms receive the best overall rating (CRI: 7.5) for Simplicity and the worst (CRI: 6.1) for Attitude.
  • Some 80 percent of companies respond to online inquiries. Of those that do, 75 percent respond within 48 hours and 25 percent do so within 72 hours.
  • Only 40 percent of these sector firms use Autoresponder technology, in which emails are automatically sent back to users to confirm the receipt of their inquiry and let them know when they should expect a response. Of these, all followed up with a full response.
  • Some 69 percent of companies provide email forms for online inquiries.
  • 25 percent provide email addresses.
  • 6 percent only provide offline contact information.
  • Fully 75 percent provide a keyword search function on their site.
  • Some 69 percent of sector firms have privacy policies on their sites explaining how customers' personal data is being used.

Health Care Wholesalers
The highest ranked organization within the sector was Henry Schein at 8.5 (out of 10), while the lowest was PSS World Medical at 3.1. The sector's average was 5.8. Beyond these scores, the report conveys in great detail improvement opportunities for each company. The sector's Spring 2003 ranking is as follows:


Company Name                                                   Overall
----------------------------------------------------------------------
Henry Schein Inc.                                                 8.5
Patterson Dental Company                                          7.0
AmerisourceBergen Corp.                                           6.9
Cardinal Health, Inc.                                             6.1
D & K Healthcare Resources, Inc.                                  5.8
Priority Healthcare Corporation                                   4.9
Owens & Minor, Inc.                                               4.9
McKesson Corporation                                              4.8
PSS World Medical, Inc.                                           3.1
Industry Average                                                  5.8

Other findings for health care wholesalers include the following:

  • Sector firms receive the best overall rating (CRI: 7.4) for Simplicity and the worst (CRI: 3.5) for Responsiveness.
  • More than half (56 percent) of companies don't respond to online inquiries. Of those that do, 25 percent respond within 48 hours, 50 percent do so within 72 hours and 25 percent respond after four days or more.
  • Only 11 percent of these sector firms use Autoresponder technology, in which emails are automatically sent back to users to confirm the receipt of their inquiry and let them know when they should expect a response. Of these, all followed up with a full response.
  • Some 78 percent of companies provide email forms for online inquiries.
  • 22 percent provide email addresses.
  • Only 33 percent provide a keyword search function on their site.
  • Some 89 percent of sector firms have privacy policies on their sites explaining how customers' personal data is being used.

How to Order
The Online Customer Respect Annual Subscription offers actionable data for each company covered and ranks them relative to their competitors. It includes twice-annual Industry Sector Customer Respect Reports for all companies in the sector, twice-annual company confidential reports, best practices updates, and the 2003 Online Customer Respect Study of the largest 100 U.S. companies. The reports include key research findings for a sector, a score card on each company in the study, a comprehensive description of the scientific research methodology, data analysis, individual scores, index reports on the industry and a variety of color charts and graphs to illustrate individual and industry performance. The Online Customer Respect Annual Subscription is available for $12,000/year. Individual sector reports are available for $4,750. Interested parties may visit the Web site (www.CustomerRespect.com), call 425-454-4151 or email info@customerrespect.com for more information.

About The Customer Respect Group
The Customer Respect Group is an international research and consulting firm that uses its Customer Respect Index methodology to help companies improve how they treat their customers online. The Customer Respect Index (CRI(TM)) and iWitness(TM) methodology provide companies with actionable and measurable data to enhance their customers' online experiences. The Customer Respect Group is headquartered in Bellevue, WA. For additional information, visit www.customerrespect.com. All companies and products listed herein are trademarks or registered trademarks of their respective holders.

Note to Editors: Graphics files for key findings are available from george@gccpr.com or at www.CustomerRespect.com. A comprehensive report summary is available from george@gccpr.com.

CONTACT: George Cohen Communications
George Cohen, 617/325-0011
george@gccpr.com
URL: http://www.businesswire.com LOAD-DATE: May 6, 2003