Building Relationships with Users as a Strategic Concept Part three: Introduction of a customer database to a NSO Presentation at the Strategic Management Seminar on Dissemination and Communication of Official Statistics Neum, Bosnia and Herzegovina 29.6 – 1.7.2006 Petteri Baer, Regional Adviser, UNECE Courtesy to Minna Purja, Statistics Finland

Petteri Baer, UNECE Statistical Division Why a CRM-System? (1) History: Need for centralising customer data to one location Dozens of separate registers at Statistics Finland with no connections between them =>No means for centralised updating of data Efficiency of marketing campaigns impaired because of erroneous contact information Way to systematise customer service and marketing Means to improve Statistics Finland’s inter-unit co-operation Target group selection, reporting, analyses, customer feedback, project management 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division Why a CRM-System? (2) History: Need for a modern invoicing and customer management system Intime-invoicing system was in use Possible to develop and work in interaction with the existing systems Little knowledge of the customer’s previous activities with Statistics Finland’s other units => The customer forms a new customer relationship when contacting Statistics Finland’s different units 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division Expected benefits Improved customer satisfaction Way to strengthen customer relationships A systematic, uniform and clear customer process Clear monitoring and planning through the system Efficiency and better productivity 29.6.2006 Petteri Baer, UNECE Statistical Division

Development process (1) CRM-project started in the year 1996 Interviews with management and staff, creating overview of needs and expectations, definition of need structures Frame of reference, workplan Excursions to companies having a CRM system Meetings with CRM system suppliers 29.6.2006 Petteri Baer, UNECE Statistical Division

Development process (2) Decision on purchasing the Applix software in 1999 Start of database building Initial data converted from the invoicing system Intime, crosschecked with Statistics Finland’s Business Register System customized for SF’s environment System instalment and testing 32 pilot users tested the pros and cons of different software 29.6.2006 Petteri Baer, UNECE Statistical Division

System launch and introduction process Launched in the year 2000 Information meetings for staff members introducing CRM and the benefits of the new tool Telephone and e-mail-support Personal guidance at user’s workstations Written instructions for use Training events organised in computer classes 29.6.2006 Petteri Baer, UNECE Statistical Division

Obstacles on the path of the introduction of the new system The system is a tool for the whole of Statistics Finland, not just for individual units => Active user groups could be larger External customer registers are not automatically updated into the system (both benefit and obstacle) Technical problems Users do not care enough about the maintenance of the customer information Users do not have enough time for learning to use the system and for using it continuously 29.6.2006 Petteri Baer, UNECE Statistical Division

Functions of the Applix CRM System (1) Project management and invoicing Project -> Offer -> Agreement -> Invoice Easy to follow every stage of the project Campaign management and target group selection Selected customers can be searched by means of customer database variables for targeting marketing campaigns Helps to divide campaigns into different stages and makes monitoring of each stage easier 29.6.2006 Petteri Baer, UNECE Statistical Division

Functions of the Applix CRM System (2) Reporting Large amount of different reports Reports can be formed easily by Statistics Finland Several individual important functions Sales diary Queries User lists 29.6.2006 Petteri Baer, UNECE Statistical Division

Three-dimensional account concept 29.6.2006 Petteri Baer, UNECE Statistical Division

Three dimensional account concept, Contents of information Account (principal customer) Principal branch, account category, VAT-number…etc. Gathers customer information together Customer Address information, purchase history, projects, offers, agreements, segment …etc. Contact person Name, title, role, phone, mobile, fax, e-mail, sales diary entries, purchase history…etc. 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division 29.6.2006 Petteri Baer, UNECE Statistical Division

Connections and updates of the CRM-system Intime STOJ Intime publication purchase history 1/ per day Operational Guidance and Planning System 1/ per day Blue book Saleslead register of potential customer 2 / per year AdeEko Financial Administration System Account category 1 / per month Customer category 1 / per day 29.6.2006 Petteri Baer, UNECE Statistical Division

Gained benefits by the introduction of a developed CRM System Centralised system Helps to co-ordinate joint activities Easier to avoid double entries More focused direct marketing by means of versatile target group selection Monitoring of customer processes considerably easier - possible to systematise activities Knowledge about previous actions with the customer helps plan future actions 29.6.2006 Petteri Baer, UNECE Statistical Division

Number and share of users of the CRM System In Statistics Finland the amount of staff amounts to approximately 1 000 persons The CRM System has at the moment 250 users, around 100 of whom are active users The object of further work is to integrate more daily routines into the system Invoicing and project management functions are used particularly actively This provides abundant information on customer relations 29.6.2006 Petteri Baer, UNECE Statistical Division

Development made possible by the CRM-System Compilation of uniform practices and programmes for selected customer groups More effective sales activities - e.g. cross selling between different products and different units Profitability and efficiency can be attained by more accurate targeting of activities and campaigns Continuous development of the system by collecting information on different user and user group’s needs Integration into new and existing administrative systems 29.6.2006 Petteri Baer, UNECE Statistical Division

Segmentation of customers A more detailed segmentation of the customer database is underway in 2005-2006 Executed with SQL-programming by means of different database variables e.g. business bookkeeping accounts, branches and partial name searches. Also manual updating needed By segmenting our customer database we are successful in archievement of deeper and more meaningful understanding of how customers interact with the NSO 29.6.2006 Petteri Baer, UNECE Statistical Division

Number of customers according to Segments, End of 2005 Central Government Local Government Bodies Educational Institutes Research Institutes Enterprises Libraries Organisations Foreign customers Others Without segment value, so far 681 2 258 2 344 520 13 466 657 1 464 802 35 1 433 29.6.2006 Petteri Baer, UNECE Statistical Division

The CRM-System is useful because The entire organisation benefits from the information the system provides Helps to analyse the customer structures and developments Direct- and telemarketing campaigns are 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 29.6.2006 Petteri Baer, UNECE Statistical Division

Petteri Baer, UNECE Statistical Division Conclusion You cannot learn to swim if you don’t go into the water! Thank you for your attention! petteri.baer@unece.org 29.6.2006 Petteri Baer, UNECE Statistical Division