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The Key Word is Customer Relationship Management Presentation at Plenary Session

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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The Key Word is Customer Relationship Management Presentation at Plenary Session

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  1. The Key Word is Customer Relationship ManagementPresentation at Plenary Session 3rd Nordic Marketing Conference, Helsinki, 13.6.2005 Susanne Hellman-Ketola, Statistics Finland

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

  3. Project on development of customer relationships • Why? • Better anticipation of customers’ information needs • Increased interaction withcustomers • 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

  4. 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

  5. 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 previousactions with the customer helps to plan future actions

  6. 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

  7. 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 Finland’s different units

  8. 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

  9. Customers by value segment 20-40 Value factors:Reference value,Willingness to co-operate,Interaction,Product development and learning valueProfitability 200

  10. 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

  11. Customer relationship management at Statistics Finland Development of customer relations Managing ofcustomer relations Follow-up/indicators Key Account manager/Key account team Customer segment manager/team Customer relations management group Process owner - Director, Marketing Links Development ofsegment programmes Follow-up/indicators Identification and selectionof customers Follow-up/indicators Practicesand follow-up Customer processes Strategy Management Service strategy Information society Communications strategy Customer feedback Distribution strategy

  12. 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

  13. Case: Ministry of Education

  14. 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

  15. 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

  16. 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

  17. 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

  18. Experiences of SF staff involved in the CRM-project • Deepening the knowledge of one’s segment • Improved planning for measures • Increasing one’s 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

  19. 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 customer’s relations programme • General features of a key customer relations programme

  20. Appendix.

  21. 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

  22. 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

  23. Roles of the contact person • Decision-maker • Influential person • Buyer • Statistics contact person • Co-operative partner • Billing contact person • IT person

  24. 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 organisation’s 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

  25. 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.

  26. The duties of the key account managers at SF • To attend to and monitor the customer’s 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

  27. The duties of the segment groups • To monitor the operating environment • To draft the segment’s customer strategy • To steer and monitor the segment’s 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 segment’s product development

  28. General features of a strategic customer’s 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

  29. General features of a strategic customer’s 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 partner’s financial interests are looked after (e.g. bulk discounts)

  30. General features of a key customer’s 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

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