Customer Relationship Management (CRM) and State Government Governor’s Office for Technology June 25, 2003 Doug Robinson Office of Policy & Customer Relations

In general, customer satisfaction is declining? Customer expectations are rising? Customers don’t know what they want? Customer Satisfaction ACS Index - Services Category: Public Administration/Government Rated at 68.7 (100 point scale) Up 6.3% from previous year Source: ACSI, University of Michigan Customer Satisfaction

“CRM defines how enterprises identify, attract, and retain valuable customers.” “CRM is a continual cycle of understanding the customer’s needs and then developing/changing/selecting products, services, and communication to meet those needs.” “Building an integrated and enterprise-wide view of the customer…one face to the customer. ” “A business imperative for the e-millennium.” What is CRM?

Your business model must be customer- centric, not just customer service focused. It not, don’t bother with CRM. It’s all about information technology solutions to improve customer service CRM is not understood, difficult to implement and expensive On the IT hype-o-meter, it’s near the top Not ready for prime time - the market solutions are immature CRM - Ready for Prime Time?

Understand customers’ needs and wants Understand customer behavior (purchase/usage patterns) Understand marketing requirements Understand competitors’ strengths and positioning Customer-Centric Relationship

CRM helps focus business practices to allow for constant relationship building with your customer  Aligns Business Processes  Refines Customer Interfaces  Optimizes Internal Resources Process improvement goals drive automation of customer transactions to lower costs and create internal efficiencies CRM and Business Processes

Define how we interact with our customers Value tomorrow's relationship over today's transaction Maximize the long-term value of the relationship The relationship manager represents the entire organization Don't sell products, develop solutions CRM Operating Principles

Develop strong internal relationships - the organizational structure does not matter to the customer Seek to add value before cutting price Never waste a client’s time - always provide value Pursue learning and knowledge as if your career depended on it (It does!) Value, recognize and reward customer loyalty CRM Operating Principles

CRM is receiving more attention today because of IT solutions and e-business requirements E-business is expanding because of e- customers. It is vitally important to adopt a strategy and implement solutions that maintain relationships with customers you may never see. Why the Emphasis on CRM?

In 1999, customer interaction via telephone was projected to decline for the first time in history. In 2000, customer contacts via will jump 62% and customer web interactions will increase by a whopping 840%. How will state government react to the service expectations set by the private sector? Source: IDC Impact of e-Business

Negative experiences are typically due to organizational and process problems Internet is changing how we interact with our customers Principle of e-government: citizens are consumers first. Conducting business with government is often inconvenient, burdensome, complex, and time- consuming. They continue to have low expectations of government because of their marketplace experiences. CRM and State Government

State Government Opportunities for CRM: Timely, more accurate services More citizen self-service Understanding citizen behavior and service utilization Program tracking and performance measurement Trend analysis, market segmentation and personalization CRM: Citizens as Customers

No formal, integrated processes in place Multiple (internal and external) customer segments Measuring customer satisfaction - continuously What CRM applications to choose and can we afford them? How and where does CRM fit in our e-government plans? Challenges for State Government

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