1. United Nations Economic Commission for Europe Statistical Division From simple user lists and Excel spreadsheets to a sophisticated CRM System User lists are of core value to Statistical Agencies Presentation in the Central Bureau of Statistics of the Republic of Croatia Zagreb, Croatia, 4 - 5 November 2008 Petteri Baer, Regional Adviser, UNECE

2. Petteri Baer - UNECE Statistical Division Slide 24-5.11.2008 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

3. Petteri Baer - UNECE Statistical Division Slide 34-5.11.2008 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

4. Petteri Baer - UNECE Statistical Division Slide 44-5.11.2008 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!

5. Petteri Baer - UNECE Statistical Division Slide 54-5.11.2008 How to find out customers’ needs? (1)  Previous purchases of statistical information  Focus groups  Personal contacts (seminars, visits etc.)  Interviews  Comparing similar customers

6. Petteri Baer - UNECE Statistical Division Slide 64-5.11.2008 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

7. Petteri Baer - UNECE Statistical Division Slide 74-5.11.2008 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 systenmatic follow-up and planning of interaction with regular and heavy users Example NSO:s: Canada, Finland, Estonia  Business Intelligence systems

8. Petteri Baer - UNECE Statistical Division Slide 84-5.11.2008 What is CRM? (1)  Customer Relationship Management  Not marketing in general  Theoretical roots: Nordic School of Marketing Service marketing One to one marketing Relationship marketing  Building relations to users Bulgaria!!

9. Petteri Baer - UNECE Statistical Division Slide 94-5.11.2008 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

10. Petteri Baer - UNECE Statistical Division Slide 104-5.11.2008 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

11. Petteri Baer - UNECE Statistical Division Slide 114-5.11.2008 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.

12. Petteri Baer - UNECE Statistical Division Slide 124-5.11.2008 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 mproved statistical products and services

13. Petteri Baer - UNECE Statistical Division Slide 134-5.11.2008 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

14. Petteri Baer - UNECE Statistical Division Slide 144-5.11.2008 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

15. Petteri Baer - UNECE Statistical Division Slide 154-5.11.2008 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

16. Petteri Baer - UNECE Statistical Division Slide 164-5.11.2008 Systematic contact building has given good results in Statistics Finland  More than 100 000 individual internet users monthly on the web site  I n the CRM system (end of 2005) 15 000 principal customers, 24 400 customers, 29 000 contact persons  ~ 50 customers were in 2004 nominated to be strategic or key customers of Statistics Finland  Many customers are in contact with the NSO in a number of different roles

17. Petteri Baer - UNECE Statistical Division Slide 174-5.11.2008 Development of Customer Relations Management (CRM) Steps taken in 1992-2002 199719991998200020022001 2003 20042005.... Customer core process analysis 1997 Customer Database definition work group 1996 Customer Surveys 1992 - Balance Scorecard Strategy Dissemination Strategy 1998 Customer Feedback Channel on the Internet from 1999 - Customer Database from 2000 - Customer service standards from 2001 - Customer Relationship Management Education Project 2001-2002

18. Petteri Baer - UNECE Statistical Division Slide 184-5.11.2008 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 syste- matic 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 678910 6789

19. Petteri Baer - UNECE Statistical Division Slide 194-5.11.2008 Wise Words of Dr. Samuel Johnson (1709-1784)  “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?

20. Petteri Baer - UNECE Statistical Division Slide 204-5.11.2008 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  petteri.baer@ unece.org  www.unece.org/stats A learning Customer Relationship