The Key Word is Customer Relationship Management Presentation at Plenary Session

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The Key Word is Customer Relationship
Management Presentation at Plenary Session

• 3rd Nordic Marketing Conference, Helsinki,
  13.6.2005
• Susanne Hellman-Ketola, Statistics Finland

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Development of customer relationships -
Statistics Finlands strategic focus
areaCustomer relations management is a tool for
developingStatistics Finlands information
service activities to meet the strategic
challenges set by the agency
Strategic goals

• Satisfied customer
• Value to the customer from information and
  competence
• Development of the customer relationship by
  networking
• Shift from product orientation to service
  orientation - from statistics production
  processes to services
• Profitability

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Project on development of customer relationships

• Why?
• Better anticipation of customers information
  needs
• Increased interaction with customers
• Comprehensive recognition of customer
  relationships
• Value to the customer from information and
  competence
• Better knowledge of the operating environment
• Successful product development
• Discovery of new customer groups and growth in
  sales
• Management of customer processes and development
  of detected weaknesses
• A CRM model and practices meeting the quality
  standards and the quality award criteria
• Profitability

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Development analysis of customer satisfaction
Development of activity
Critical
Other
Strengths to be
development areas
development areas
maintained
Activity/sufficiency, acquisition of information
on novelties/changes, skills in sales, targeting
of measures Ability to understand our needs and
to offer a corresponding product/service, ability
to present different solutions and
possibilities Correspondence of contents with my
needs, sufficiency of communication Speed of
acquisition of information in relation to my
needs, possible problems or delays reported in
time Frequency and sufficiency of interaction and
co-operation
Work sufficiently accurate and
detailed Responsibility persons clearly
defined, contact persons easy to reach
Ordering easy in general, offers clear /
understandable Product or data easy to use and
free from errors Keeping to agreed delivery
schedules, supply in desired form Service
attitude, answer given to questions and
inquiries, co-operation skills and flexibility
Marketing and communication of services Ordering
and planning stage Implementation of work and
products Delivery Contact persons
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Existing CRM-tools made the project possible

• Decentralised system - shared customer data
• Helps to co-ordinate joint activities
• Monitoring of customer projects
• More focused direct marketing by means of
  versatile target group selection -tool
• Monitoring of customer processes considerably
  easier - possible to systematise activities
• Knowledge about previous actions with the
  customer helps to plan future actions

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Contents of the customer database - basis for
segmentation

• Own customer database
• About 15,200 accounts (principal customers)
• About 23,700 customers
• About 29,000 contact persons
• About 4,600 invoices (year 2004)
• Register of potential customers Salesleads
• 230,000 establishments
• 335,000 contact persons

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Key results of customer analysis

• 5 of the customers bring 60 of the income
• The most significant customers have several roles
  towards SF
• Customers have several contacts to Statistics
  Finlands different units

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New steps of CRM in 2003

• CRM one of the four key improvement areas at SF
• Holder of responsibility for the customer process
  appointed - Director of Marketing
• Segmentation of 14,400 principal customers by
  class and by value
• Customer relations management group appointed-
  members are holders of responsibility for main
  customer segments

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Customers by value segment
20-40
Value factorsReference value,Willingness to
co-operate,Interaction,Product development and
learning valueProfitability
200
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New steps of CRM in 2004

• 50 strategic and key customers were identified
• 40 key account managers were nominated by the
  Director General
• Work of segment groups was started (local
  government, central government, enterprises,
  educational institutions, research institutes)
• Holder of responsibility for the product
  development process appointed - Director of
  Information Services
• A 10-module personnel training programme was
  designed and launched
• Strategic Intelligence System, StatIntelligence
  was introduced also as a tool of CRM

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Customer relationship management at Statistics
Finland

• Key Account manager/Key account team
• Customer segment manager/team
• Customer relations management group
• Process owner - Director, Marketing
• Links

Follow-up/indicators
Development of customer relations
Managing ofcustomer relations
Follow-up/indicators
Development ofsegment programmes
Identification and selectionof customers
Follow-up/indicators
Practicesand follow-up
Customer processes
Strategy
Management
Service strategy
Information society
Communications strategy
Customer feedback
Distribution strategy
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New steps of CRM in 2005

• Key account managers work actively and in a
  target-oriented way with their customers
• Marketing and actions are brought into effect
  according to the plans of customer segments
• Revision of the web has sharpened according to
  segments
• theme pages, pages directed primarily to
  different customer segments
• Role of the contact persons (29,000) and
  information of customer relationship mapping has
  been taken into use
• Measurement of the CRM process has been designed

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Case Ministry of Education
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Case Ministry of Education and National Board
of Education

• Several roles (4) in relation to Statistics
  Finland
• STATISTICAL AUTHORITY
• Own statistics production databases on
  polytechnics and universities
• INTEREST GROUP ROLE
• Substance expert on statistics, administrative
  officials in the field - effect of administrative
  changes on statistics compiling
• Developer of statistics compiling - co-operation
  partner, e.g. information contents of data
  collections examined together with the Ministry
  of Education

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• Several roles contin.
• CUSTOMER ROLE
• Information service agreements - the paying
  partner
• Individual information requests, research data
• DEALER AND DISTRIBUTOR OF STATISTICS
• Intranet or Internet statistical services to
  their administrative branch
• For example Placement after education and
  occupational data for local governments

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STRATEGIES (2)

• COMMUNICATION STRATEGY
• Personal contacts, management level, customer
  responsibility person
• Interaction continuous
• CHANNEL STRATEGY
• Several channels such as the Internet
• PRICING STRATEGY
• Normal pricing, partner benefits, partly joint
  projects
• Towards very large agreements of purchases -
  general agreement

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• CO-OPERATIONAL MODES
• Management level meetings once a year
• Director General, customer responsibility person,
  persons from different units (Culture, Science
  Technology, Education, Local government financial
  statistics, etc.)
• Development and co-operational groups
• For example, statistics on remedial teaching in
  comprehensive schools, cf. development phase and
  production phase (possible budget transfer)
• Ad hoc groups
• For example, projects on cost-efficiency
  financing of secondary level vocational education
• Agreement negotiations and monitoring
• Customer event for interest groups and key
  customers once a year

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Experiences of SF staff involved in the
CRM-project

• Deepening the knowledge of ones segment
• Improved planning for measures
• Increasing ones knowledge of Statistics Finland
• Developing the monitoring of the operating
  environment
• Enhancing customer satisfaction
• More attention to the customer perspective
• Systematisation of customer contacting
• Networking
• Blurring the boundary between paid and
  budget-based activities
• Increasing demand for information service
• Problems with time resources and prioritisation

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Further information in the Appendices

• Segment values
• Classification of customers by value
• Roles
• The duties of the customer process owner
• The duties of the customer relations management
  group
• The duties of the key account managers at SF
• The duties of the segment groups
• General features of a strategic customers
  relations programme
• General features of a key customer relations
  programme

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Appendix.
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Segment values
- Large municipalities - Small municipalities -
Employment and Economic Development Centres -
Regional councils - Joint municipal boards

• Central government
• Local government
• Educational institutions
• Research institutes
• Enterprises
• Libraries
• Organisations
• Foreign customers
• Others
• Without segment value
• Citizens

- Comprehensive schools - Upper secondary
schools - Vocational schools and colleges -
Polytechnics
- End-users - Resellers - Suppliers
other values available in the Customer Database
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Classification of customers by value segment and
size of the segment

• Strategic customers
• Key customers
• Big customer (measured by sales per 24 months)
• Middle size customer (--)
• Small customer A (--)
• Small customer (--)
• Non-active
• Others
• Prospective

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Roles of the contact person

• Decision-maker
• Influential person
• Buyer
• Statistics contact person
• Co-operative partner
• Billing contact person
• IT person

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The duties of the customer process owner

• To direct, develop and co-ordinate the customer
  relation process
• To act as chair of the customer relations
  management group
• To steer the work of customer responsibility
  teams, persons and customer segment
  responsibility persons
• To attend to the sufficiency of the resources
  also for development needs
• To help make the customer benefit visible in the
  organisations processes and decision-making
• To budget and monitor the progress of the project
• To communicate about the project to the rest of
  the personnel and to report to the Director
  General and the Management Group

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The duties of the customer relations management
group

• To bear the responsibility for the planning of
  development measures for customer relations,
  setting of customer relation targets, indicators
  and their development and monitoring
• To participate in the management of customer
  responsibilities of key customers
• To follow the management of selected customer
  relations and the development of customer
  relationships
• To advance the development of main tools used in
  customer relations management at Statistics
  Finland
• To take part in appointing key account managers
  and in definition of their duties and in
  selection of strategic and key customers by
  making draft decisions for the Director General
  and for the Management Group
• To monitor and steer the development of
  competence related to customer relationships and
  support systems (e.g. customer management system)
• Handle other matters related to customer
  relationships as needed.

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The duties of the key account managers at SF

• To attend to and monitor the customers needs and
  development
• If needed, to form a team to attend better to the
  customer
• To ensure that essential customer data are saved
  in the Customer Database
• To perform a customer needs analysis
• To produce a customer development plan on a
  yearly basis
• To develop the customer relationship towards more
  long-term agreements and broader usage of
  statistical data
• To keep informed on customer meetings and
  marketing actions
• To monitor customer feedback
• To represent the customer within SF
• To communicate with other key account managers
  and teams
• To report to the customer segment manager and
  team

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The duties of the segment groups

• To monitor the operating environment
• To draft the segments customer strategy
• To steer and monitor the segments customer
  responsibility persons
• To maintain and develop customers segmentation
• To outline and co-ordinate annual marketing and
  operating plans
• To monitor the activity by means of selected
  indicators
• To plan the product and service training needed
  for attaining expert service and to organise its
  implementation
• To prepare outlines for the segments product
  development

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General features of a strategic customers
relations programme (1)

• The strategic customer is known and the customer
  relationship is handled on the personal level
• Significance of mutual competence and product
  development is central
• The strategic customer has a responsibility
  person
• Annual meetings arranged on the director general
  level
• The whole organisation recognises the status of
  the strategic customer
• Customer information is stored in the Customer
  Management System
• Information is always given about customer
  co-operation to the person or team responsible
  for the customer

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General features of a strategic customers
relations programme (2)

• Customer-specific customer care plan is prepared
  for co-operation
• Development plan for customer relationship is
  made jointly with the customer
• Development of the customer relationship is
  monitored
• General measures Christmas cards, customer
  magazine, customer events
• Feedback from the customer satisfaction survey is
  collected personally
• The partners financial interests are looked
  after (e.g. bulk discounts)

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General features of a key customers relations
programme

• The customer relationship is handled on the
  personal level
• The key customer has a responsibility person
• Annual meetings are arranged, director level
  participation desirable
• The whole organisation recognises the status of
  the key customer
• A customer-specific customer care plan is made
  for key customers and development of the
  relationship is followed
• Information is always given about customer
  co-operation to the person or team responsible
  for the customer
• Customer satisfaction of key customers is
  surveyed and feedback is requested, suggestions
  for product development essential
• Key customers receive the customer magazine,
  invitations to fairs and customer events,
  Christmas cards
• Customer information is stored in the Customer
  Database