ABSTRACT
Customer relationship management (CRM) is a comprehensive business model for
increasing revenues and profits by focusing on customers. More specifically, CRM refers
to any application or initiative designed to help firms optimize interactions with
customers, suppliers, or prospects via one or more touch points – such as a call center,
salesperson, distributor, store, branch office, web, or e-mail – for the purpose of
acquiring, retaining, or cross-selling customers. However, many pharmaceutical firms in
Nigeria are struggling with their CRM initiatives probably because they have bought the
sophisticated software, but do not have the culture, structure, leadership, or internal
technical expertise to make the initiative successfully. Therefore, this study was
undertaken to investigate the impact of a salesforce motivation on effective
implementation of a CRM strategy in the pharmaceutical and healthcare industry in
Nigeria. The aim was to find the right elements in motivation mix for designing an
integrated compensation and incentive program that can be used by managers to
influence and direct a salesperson’s behaviour for effective implementation of a
company’s strategic CRM plan.
Both primary and secondary sources of data were used. Questionnaire was the principal
source of the primary data, while interview was complimentary. Taro Yamane formula
was used to determine the sample size of 244 out of the population of 624. Data from the
study was analyzed using descriptive and inferential approaches. Simple descriptive
tables, charts and table of means were employed as descriptive tools. For hypothesis
testing, t-test and correlation analysis were used to judge the significance of the obtained
result.
Regression analysis was used to formulate necessary mathematical model that
depicted the relationship among the research variable that predicted the values of
dependent variables. SPSS for windows (SPSS WIN Version 15) was used to analyse and
process the data generated. Factor analysis was employed in analyzing the data in order
to isolate principal components that account for motivation of a salesperson.
The analysis of the study indicated that a close relationship exists between a company’s
strategic CRM implementation and its salesforce motivation plan. This meant that the
salesforce motivation plan has a direct bearing on the successful implementation of a
company’s strategic CRM plan. Out of twenty-name (29) components analysed, the result
revealed that six principal components account for 85.75% of the data. This suggests that
salary compensation, commission incentive, bonus payment, fringe benefits, recognition
of awards for outstanding performance, opportunity for promotion and advancement were
the major factors that account for salespersons motivation. These components were
further used as independent variables to regress customer relationship index, the result
showed statistical significant effect of independent variables of the CRM at P ≤ 0.05 level
of significant, and a correspondence value of F = 129.925. It suggests that to get its
salespeople to aid in successful implementation of its strategic CRM plan, management
needs to coordinate its salesforce motivation plans with the company’s strategic CRM
plans. It is recommended that sales people should be involved in the CRM planning
process from day one to ensure their interests are fully integrated into the system. Sales
managers must make sure that each sales person understands what is expected in a CRM
strategy implementation. Management should design a reward structure in which greater
