Tags
Administration
Benefits
Communication
Communication Programs
Compensation
Conflict & Dispute Resolution
Developing & Coaching Others
Employee Satisfaction/Engagement
Executive Coaching
HR Metrics & Measurement
HR Outsourcing
HRIS/ERP
Human Resources Management
Internal Corporate Communications
Labor Relations
Labor Trends
Leadership
Leadership Training & Development
Leading Others
Legal
Management
Motivating
Motivation
Organizational Development
Pay Strategies
Performance Management
Present Trends
Recognition
Retention
Staffing
Staffing and Recruitment
Structure & Organization
Talent
The HR Practitioner
Training
Training and Development
Trends
U.S. Based Legal Issues
Vision, Values & Mission
Work-Life Programs & Employee Assistance Programs - EAP
Workforce Acquisition
Workforce Management
Workforce Planning
Workplace Regulations
corporate learning
employee engagement
interpersonal communications
leadership competencies
leadership development
legislation
News
Onboarding Best Practices
Good Guy = Bad Manager :: Bad Guy = Good Manager. Is it a Myth?
Five Interview Tips for Winning Your First $100K+ Job
Base Pay Increases Remain Steady in 2007, Mercer Survey Finds
Online Overload: The Perfect Candidates Are Out There - If You Can Find Them
Cartus Global Survey Shows Trend to Shorter-Term International Relocation Assignments
New Survey Indicates Majority Plan to Postpone Retirement
What do You Mean My Company’s A Stepping Stone?
Rewards, Vacation and Perks Are Passé; Canadians Care Most About Cash
Do’s and Don’ts of Offshoring
Error: No such template "/hrDesign/network_profileHeader"!
Blogs / Send feedback
Help us to understand what's happening?
Reason
It's a fake news story
It's misleading, offensive or inappropriate
It should not be published here
It is spam
Your comment
More information
Security Code
Voice of the Customer: Lessons Learned from Mylan’s EpiPen Struggles – A Cautionary Tale for CEOs from Graziano Associates
Created by
Press Releases
Content
A company that underestimates the power, reach and impact of outraged consumers via social media can find itself in a crisis, as did Mylan. Graziano Associates highlights ways to avoid similar situations.
FAIRFIELD, CT (PRWEB) AUGUST 31, 2016
In the span of a week since the company planned to double its cost to consumers for a vital allergy drug, the company suffered financial losses, continuing poor publicity, and announced a replacement product. "Regardless of which side of the Mylan Pharmaceutical EpiPen situation you agree with, the fact is, the company underestimated the impact, reach and power of the customer," says Denise Graziano of Graziano Associates . Graziano offers 4 Best Practices for companies to avoid situations which could prompt customer outrage.
For companies that underestimate Voice of the Customer (VoC), take note.
The whirlwind timeline recap:
.Concerned parents shared their outrage about the doubled cost over social media, which went viral instantaneously.
.Resulting media spotlights on the topic compelled the CEO to simply defend Mylan’s position as a for-profit company, in an industry where there are other agencies influencing rising costs.
.As a gesture of good will, they offered coupons to offset the increase to those without insurance coverage.
This was not enough to calm the dissatisfied customers, however. Continued media scrutiny over the executives’ rising salaries and product costs to customers over a period of years, along with news stories with compelling end-user stories about how much they rely on the allergy drug, forced Mylan to take rapid actions. The company announced it would roll out a never previously available generic version of their drug at the lesser cost...within a week.
Today’s society loves to “share” their lives in real time. "Social media and technology empower consumers of all types with unprecedented power and reach. This means virtually no company is immune from the impact of the Voice of the Customer," says Graziano. Graziano Associates offers 4 business best practices: for how this corporate debacle could have been avoided.
1. Know your customer & market. Having a strong understanding of customers and a relationship with them across your various channels is essential to know what increases are feasible and tolerable. [For Mylan, if they were capable of a generic all along, they should have created it sooner].
2. Communicate early and often. If tough changes are coming, make clients aware well in advance, perhaps with cogent explanations. Roll out such changes incrementally when possible. [vs. a doubling of costs in this case].
3. Customer Centricity and Profitability are not mutually exclusive. Leaders in Customer Experience consistently outperform companies that do not focus on the customer (Forrester Research).
4. Respect VoC. Do not assume that even the “captive audience” of a life-saving drug will sit idly by when sweeping or unsatisfactory changes occur. [Mylan experienced negative publicity and increased costs to swiftly roll out a new product].
"Authentic communication is essential to a company introducing difficult changes," says Graziano. Any CEO that is planning unexpected changes to their clients should carefully consider the potential ramifications that can come from an outraged customer base with global reach.
Denise Graziano is a leading authority in helping mid-market and larger companies to improve customer and employee experience. A strategic thinker and leader with 30 years of business experience, Denise is a speaker and author of numerous articles and resources on customer experience, employee experience, client retention, sales, and trade show practices. She is President and CEO of Graziano Associates, which helps fast-growing companies in the business-to-business market capitalize on customer and employee interactions — to deepen loyalty, improve engagement, and support sustainable growth.
Copyright © 1999-2025 by
HR.com - Maximizing Human Potential
. All rights reserved.