From simple user lists and Excel spreadsheets to a sophisticated CRM System User lists are of core value to Statistical Agencies Consultation Mission on Promoting the activity and Creating a positive image of the Ukrainian State Statistical bodies Kiev, Ukraine 9 – 12 December 2014 Petteri Baer, Marketing Manager, Statistics Finland

Kiev 9-12 December 2014 Why is it so important for official statistics to build relationships? (1) Impartial and reliable statistical data are widely considered as a prerequisite for a democratic society and a necessary condition for the smooth running of a competitive market economy “You will need more imagination to find truth than to get lost” Lauri Viita, Finnish author 2Petteri Baer

Kiev 9-12 December 2014 Why is it so important for official statistics to build relationships? (2) Statistics are important for policy making in a modern society Statistics are vital for monitoring the development and the effects of policies Statistics are crucial for understanding the society around us Comparable statistics across countries and regions are a necessity in a globalizing world 3Petteri Baer

Kiev 9-12 December 2014 Why is it so important for official statistics to build relationships? (3) Evidence-based decision making needs facts and not beliefs or prejudges Certainly not only in politics This is crystal clear especially in the world of Business Research But also: NGOs, Trade unions, Employers’ organizations, Lobbying, Local governments, Educational institutions – you name it! 4Petteri Baer

Kiev 9-12 December 2014 How to find out customers’ needs? (1) Previous purchases and use of statistical information Focus groups Personal contacts (seminars, visits, customer training etc.) Interviews Comparing similar customers 5Petteri Baer

Kiev 9-12 December 2014 How to find out customers’ needs? (2) Business Intelligence Media Annual reports of customers ==> Learning to understand core ideas of the value production of customers and the needs of statistical information connected with these core ideas 6Petteri Baer

Kiev 9-12 December 2014 Tools assisting work for better satisfaction of user needs Simple, but well structured MS Excel tables Use of MS Access structures Customer databases Information on regular and heavy users Customer Relationship Management system （ CRM ） For good and systematic follow-up and planning of interaction with regular and heavy users Example NSI:s: Canada, Finland, Estonia Additionally: Business Intelligence systems 7Petteri Baer

Kiev 9-12 December 2014 What is CRM? (1) Customer Relationship Management Not marketing in general Theoretical roots: The Nordic School of Marketing Service marketing One to one marketing Relationship marketing Building relations with users Internet and interaction New ways of communication, W2, Social media... 8Petteri Baer

Kiev 9-12 December 2014 Dialogue with customer and analysis of customer behaviour More information about present and forthcoming needs of the customer More efficient marketing and service profile to customer The value of the customer relationship grows for both parties Willingness of both parties to invest both time and money and money in building the customer relationship Growth of customer loyalty and consolidation of the customer relationship More activities responding to real customer needs More efficient customer contacting and a decline of contact built in vain A LEARNING CUSTOMER RELATIONSHIP 9Petteri Baer

Kiev 9-12 December 2014 Customer analysis Customer interaction plan Service providing and customer information Key and Partnership Customers Statistics Finland From product marketing to marketing activities based on customer interaction plans Customer’s needs The NSO’s possibilities and goal settings 10Petteri Baer

Kiev 9-12 December 2014 What is CRM? (2) CRM stands for SYSTEMATIC work with existing and potential customers which are divided into different customer segments which are approached and interacted with in different ways because the need structures - and hence the service structures - for the customers in the different segments are different. Part of CRM is the building up of and existence of a Customer Database into which all contact information and communication information is put with the aim of making it possible to build up the relations with the customers SYSTEMATICALLY. This way of acting makes it possible to KNOW what has been done in building customer relations. It makes it possible to PLAN new interactions more effectively taking into account the accumulated experience. 11Petteri Baer

Kiev 9-12 December 2014 In Statistics Finland… Both old and new challenges emphasised in the 1990’ies the need and importance of Customer Relationship Management In the mid 1990’ies an understanding of the need for CRM emerged Not so much in the top management But in the practical work heading for clear user orientation In developing and disseminating improved statistical products and services 12Petteri Baer

Kiev 9-12 December 2014 CRM – A Technical Tool? CRM is NOT only or mainly a technical tool… BUT as a sophisticated system, where customers and potential customers can be dealt with according to their own customer behaviour the CSO’s own definitions of customer relationship levels and -policies the self-expressed wishes of customers 13Petteri Baer

Kiev 9-12 December 2014 Customer-oriented services and products by means of CRM The goal of CRM is to Understand the needs of different user groups Segment customers into groups with similar need structures Keep the information on interaction with customers in good shape and order 14Petteri Baer

Kiev 9-12 December 2014 Customer-oriented services and products by means of CRM Set goals for meeting customer requirements  advance the use of statistics  develop profitable activities and public services  encourage new product development ideas and innovations  create new co-operation modes or partnerships with customers and stakeholders …and to do this work systematically 15Petteri Baer

Kiev 9-12 December 2014 Systematic contact building has given good results in Statistics Finland More than individual internet users monthly on the web site I n the CRM system there were (end of 2005) principal customers, customers, contact persons Ten years ago ~ 50 customers were nominated to be strategic or key customers of Statistics Finland Many customers are in contact with the NSO in a number of different roles 16Petteri Baer

Kiev 9-12 December 2014 Development of Customer Relations Management (CRM) Steps taken in Customer core process analysis 1997 Customer Database definition work group 1996 Customer Surveys Balance Scorecard Strategy Dissemination Strategy 1998 Customer Feedback Channel on the Internet from Customer Database from Customer service standards from Customer Relationship Management Education Project Petteri Baer

Kiev 9-12 December 2014 User needs are specific – not “general” All user needs are specific Their satisfaction should be developed in communication and cooperation with the users When the number of contacts grows, you must create a systematic way to keep track No errors in basic data Delivery on time Delays are reported Data supplied in desired form Comparability of data Customer is taken into consideration Friendly staff Finding the right persons Accessibility of staff Data delivered with speed Data up-to-date Information about the data/service Data meets demand Tailored data value for money Further processing of data sufficient

Kiev 9-12 December 2014 Wise Words of Dr. Samuel Johnson ( ) “Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information upon it “ What does this mean in the world of today? 19Petteri Baer

Kiev 9-12 December 2014 But – that’s once again another story Thank you for your attention Remember: You cannot learn to swim if you don’t go into the water stat.fi A learning Customer Relationship

Attachment An example of the benefits of having both chargeable and non-chargeable statistical services Building Relationships with Users as a Strategic Concept

Kiev 9-12 December 2014 Systematic customer contact building has given good results in Statistics Finland More than individual internet users monthly (with a population of 5 Million) principal customers, customers, contact persons accumulated in the CRM system 1% customers bring 60% of the income ~ 50 customers were in 2004 nominated to be strategic or key customers of Statistics Finland Customers have several ways of being in contact Many customers are in contact with the NSO in a number of different roles 22Petteri Baer

Kiev 9-12 December 2014 Number of customers according to Segments in Statistics Finland End of 2005 Corporations and enterprises Educational Institutions Local Government Bodies Organisations Foreign customers Central Government Libraries Research Institutions Others Without segment value (in 2005) Petteri Baer

Kiev 9-12 December 2014 Different users prefer different services 24Petteri Baer

Kiev 9-12 December 2014 Customer Relationship Management Systems used in modern organizations are useful because… The entire organisation benefits from the information the system provides It helps to analyse the customer structures and developments Direct- and telemarketing campaigns are much more effective Helps to monitor the success (or non-success) of different relation building activities taken Provides a good basis for customer surveys and customer relations 25Petteri Baer

Kiev 9-12 December 2014 Main steps in organising CRM-work...to organise customer segment teams and nominate the people in charge of relations with customers to list strategic and key customers to analyse needs of strategic and key customers to set goals for taking care of the customer relationships to develop ways of measuring the results of interaction with customers to define main customer groups 26Petteri Baer

Kiev 9-12 December 2014 Basic statistics - an infrastructure of modern society Basic statistical information is a tool for safeguarding democracy In order to participate in decisions of society, citizens should have access to basic information on structures, development Statistics in the service of decision making This infrastructural service of basic statistical information, often generates demand for more sophisticated and customized statistical information on additional topics and phenomena More labour- and/or investment-intensive statistical services and service products are usually chargeable 27Petteri Baer

Kiev 9-12 December 2014 In a world with growing information overflow a tough question is: Will Official Statistical Agencies in the future have the role of a key provider of correct, objective, non-partial, non-biased, understandable, comparable and easily accessible information, relevant to stakeholder and user needs? Or will they degenerate into under-funded producers of historical data, having a limited role as a background source for users mainly in public administration and in institutions of economic and social history? 28Petteri Baer