Building Relationships with Users as a Strategic Concept Experience from two NSOs: Albania and Finland Presentation at the High-Level Forum on Strategic Planning in Statistics for Central Asian countries in Bishkek, Kyrgyzstan Petteri Baer, Regional Adviser, UNECE Session 3,

Petteri Baer, UNECE Statistical Division2 The Fundamental Principles of Official Statistics – Basis for High Quality services Principle 1: –Relevance –Impartiality –Obligation to Disseminate Principle 2: Professional Independence Principle 3: Transparency Principle 4: Right to React Principle 5: Data Collection

Petteri Baer, UNECE Statistical Division3 The Fundamental Principles of Official Statistics – Basis for High Quality services Principle 6: Statistical Confidentiality Principle 7: Laws and Rules about Official Statistics Principle 8: Co-ordination of National System Principle 9: Use of International Standards Principle 10: Participation in International Statistical Cooperation

Petteri Baer, UNECE Statistical Division4 The benefits of providing both non- chargeable basic services and chargeable surplus services Provide besides the non-chargeable basic services interesting, useful and attractive services that a growing number of customers willingly will make use of the chargeable surplus services –In this way both financial compensation for developed services and contact information about the paying customers and their need structures will be accumulated just as a normal part of delivery and invoicing practices

Petteri Baer, UNECE Statistical Division5 Customer structure of Statistics Finland * Incomes from chargeable services in 2004

Petteri Baer, UNECE Statistical Division6 Services subject to charge in Statistics Finland Sales by product group in ,558 1,192 3,235 1, ,0001,5002,0002,5003,0003,5004,000 Special compilations Publications Interview surveys Electronic products and services Register services Diskette products Other income EUR 1,000

Petteri Baer, UNECE Statistical Division7 Dissemination of statistical information on the internet provides new service possibilities Electronic information services, for instance press releases, can be delivered to potential customers’ e- mail as bonus services. In order to receive these services the customer will gladly inform the NSO about the delivery address, spheres of her/his interest etc. –And again - the NSO will receive detailed contact information for improving its services - just as a normal part of the delivery processes

Petteri Baer, UNECE Statistical Division8 Developments in INSTAT under the influence of a Development project in (1) In the beginning of the project –Distribution of 300 copies of all INSTAT’s publications free of charge Mainly to the public administration User persons not identified –Annual Calendar of publication dates –Web site, ~ monthly visitors –Some customers receive info by –A Service Guide and one service person –No Customer Database The Law on Official Statistics provides possibilities to disseminate both on a chargeable and a non-chargeable basis

Petteri Baer, UNECE Statistical Division9 Developments in INSTAT under the influence of the Development project in (2) In Autumn 2004 –A person to be in charge of dissemination questions nominated –A questionnaire made on customer satisfaction and identification of customer persons –Campaign materials for first chargeable dissemination campaign (“Albania in Figures” 2004) prepared –First discussions on putting up a Customer Database and INSTAT’s participation in trade fairs gain speed...

Petteri Baer, UNECE Statistical Division10 The information market: Rapid growth The information market is one of the sectors usually showing rapid and almost continuous growth figures in the last 20 years Summer 2002: more than internet hosts in the world The information market is a sector of great possibilities What is our response to these new structures of our environment?

Petteri Baer, UNECE Statistical Division11 We can notice... …a strong growth in the turnover of commercial dealers, brokers and consulting corporations in the information business whereas National Statistical Institutes often find themselves in administrative clashes concerning cuts of budget funding

Petteri Baer, UNECE Statistical Division12 In Statistics Finland an understanding of the need for Customer Relationship Management (CRM) emerged already in the mid 1990’ies Both old and new challenges emphasised the need and importance of CRM CRM not only as a technical tool… BUT as a sophisticated system of CRM where customers and potential customers can be dealt with according to –their own customer behaviour –the NSO’s definition of customer levels and policies –the self expressed wishes of the customers

Petteri Baer, UNECE Statistical Division13 Developments in INSTAT under the influence of the Development project in (3) Creation of an MS Access -based Customer Database begins First Customer Satisfaction survey made, 53 replies received, analysed A Working group on Marketing questions established The Working group produces a detailed plan for dissemination activities in The use of the Business Register as a source of potential customers begins

Petteri Baer, UNECE Statistical Division14 Developments in INSTAT under the influence of the Development project in (4) The need to disseminate statistical information is now clearly understood by the dissemination staff but perhaps not yet so much by other staff members The need for internal training in 2006! First orders on “Albania in Figures” received based on a campaign to 375 enterprises 75 orders from 30 enterprises obtained Systematic use of the newly created Customer Database gives a good base for reports on dissemination activities

Petteri Baer, UNECE Statistical Division15 Why segment customers? Shouldn’t we serve everybody equally? (1) Different customer segments have different need structures of statistical information. Everybody benefits from developing the services and the service ability according to these need structures! –Media –Government bodies –Local administration bodies –Corporations and enterprises –Research institutions –Educational institutions –NGOs –Others

Petteri Baer, UNECE Statistical Division16 Why segment customers? Shouldn’t we serve everybody equally? (2) Let’s develop a dialogue on need structures and service form wishes,first with a limited number of pilot customers –Be proactive –Visit different customer organisations –Invite them for discussions and presentations –Establish focus groups –Make deep interviews –Develop new service concepts according to what you find out Listen, Listen and Listen Let’s make improvements in our interaction skills and corporate / institutional service culture!

Petteri Baer, UNECE Statistical Division17 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

Petteri Baer, UNECE Statistical Division18 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

Petteri Baer, UNECE Statistical Division19 Developments in INSTAT under the influence of the Development project in (5) 11 Customer groups identified in the Marketing and Dissemination Strategy of INSTAT –Big enterprises –Small and medium enterprises –Banks and insurance companies –Foreign companies (abroad) –Chambers of commerce and other business oriented organisations –Media –Educational institutions –Research institutions –Non-governmental organisations (NGOs) –Regional agencies, Municipalities, Local agencies –State (Public Administration), Ministries, Central Institutions

Petteri Baer, UNECE Statistical Division20 Developments in INSTAT under the influence of the Development project in (6) Tasks to be done in , mentioned in the Marketing and Dissemination Strategy –INSTAT will organise special customer responsibility groups One customer responsibility group for every segment of customers listed above –Customer days for different groups in the course of –Development of service concepts for different groups

Petteri Baer, UNECE Statistical Division21 Systematic customer contact building has given good results in Statistics Finland More than individual internet users monthly principal customers, customers, contact persons accumulated in the Customer Database 1% customers bring 60% of the income ~ 50 customers have been nominated in 2004 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

Petteri Baer, UNECE Statistical Division22 Through the chargeable services Statistics Finland has a broad contact network The Customer Database Applix contains – principal customers – customers – customer persons On all these there is – contact information – purchase history information – segmentation information

Petteri Baer, UNECE Statistical Division23 Marketing Customers Mana- gement Adminis- tration Sales Product development Development projects Customer intelligenc e Project intelligence Contact intelligence Lead intelligence Informatio n retrievals Quote intelligence Campaign intelligence Customer Database Customer service Functions Information providers Information users Project groups

Petteri Baer, UNECE Statistical Division24 Responsibility for c-database Resp. for cus- tomer portfolio Resp. for customer Responsibilities of customer care in Statistics Finland 1. Central government 2. Local government 3. Corporations and enterprises 4. Research Institutions 5. Educational Institutions 6. Others Strategic customers - 15 organisations Key customers - 33 organisations Centralised: customer process customer database

Petteri Baer, UNECE Statistical Division25 Customer-oriented services and products by means of CRM The goal of CRM (Customer Relations Management) is to: Understand the needs of different user groups Segment customers into groups with similar need structures 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

Petteri Baer, UNECE Statistical Division26 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

Petteri Baer, UNECE Statistical Division27 How to find out customers’ needs? Previous purchases of statistical information Focus groups Personal contacts (seminars, visits etc.) Interviews Comparing similar customers 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 it

Petteri Baer, UNECE Statistical Division28 Developments in INSTAT under the influence of the Development project in (7) The Marketing and Dissemination Strategy identifies the main beneficiaries of INSTAT’s developing activities (1) –The general public - better knowledge of the developments in society and of information sources –The different identified customer groups - better opportunities to fin statistical information –The public administration - better basis for planning activities and decision making, better efficiency in the use of resources –The business sector - up-to-date and reliable information –The international community - better access to information on Albania

Petteri Baer, UNECE Statistical Division29 Developments in INSTAT under the influence of the Development project in (8) The Marketing and Dissemination Strategy identifies the main beneficiaries of INSTAT’s developing activities (2) …and last but not least –INSTAT itself enhanced publicity enhanced confidence in statistics enhanced importance in the Albanian society better understanding of respondents better ability to develop the quality of the statistical information it provides

Petteri Baer, UNECE Statistical Division30 As the world is going more and more electronic -Build up and participate in information portals! It may be wise for NSOs to establish different internet portals for different main categories of users of statistical information And also to participate with a reasonably differentiated contents structure in professional portals established by other organisations than ourselves Too often we are content with just a simple link to our general homepage!

Petteri Baer, UNECE Statistical Division31 Conclusion You cannot learn to swim if you don’t go into the water ! Thank you for your attention!

Petteri Baer, UNECE Statistical Division32 Notes and comments