CRM Article UK

8/8/2019 CRM Article UK

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The Benefits of CRM 0


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TABLE OF CONTENTS

1. Introduction to this Guide 2

2. What is CRM? 3

3. What is the CRM National Project? 4

4. Why should I be interested in CRM? 54.1 Delivery of cost reduction and efficiency savings 54.2 Service improvement & added value 74.3 Meeting e-Government targets 9

5. What is the scale of benefits for my authority? 10

6. What level of investment is likely to be required? 11

7. The CRM National Project can help delivery of CRM 11

8. What drives success? 12

9. Key Risks 13

10. How does CRM fit in with the other National Projects? 14

11. Where can I get further information? 14

Appendix 1: Detailed CRM Benefits and Metrics 15

Appendix 2: Detailed CRM National Project Product Listing 21

Capgemini was commissioned to quantify the benefits of six National Projects. Their findings are basedon the experiences of the local authorities engaged in implementing these solutions, providing a samplefor analysis from which reasoned conclusions have been drawn and validated with local authorities andtheir suppliers. See www.localegovnp.org.uk/benefits


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1. Introd uc tion to this Guide

Over half of English local authorities have already implemented or are planning to implement CRM -

demonstrating that CRM is high on the agenda of many local authorities. The primary driver for aCRM implementation tends to be not efficiency savings but improvement in customer service.However, when accompanied by cultural and process changes, CRM delivers both improvedcustomer service and transactional efficiency savings. Early indications from implementingauthorities suggest that, at a national level, some 100m of transaction savings are on offer. Inaddition, and depending on how and where CRM is implemented, 195-650m of added-valuebenefits can be derived.

This guide is one of a series describing the benefits of the e-Government National Projectsprogramme funded by the Office of the Deputy Prime Minister. The guides are aimed primarily atlocal authority staff needing a succinct summary of what each of the projects is about and whatbenefits local authorities can expect to gain from implementing different aspects of local e-

Government.

This initial report sets out how to identify the potential benefits from CRM and how to go aboutextracting the benefits that CRM solutions offer. Further data on benefits, reflecting the findings ofcontinuing in-depth studies with a range of local authorities by the CRM National Project, will bereleased in winter 2004/2005.

CRM can form a central backbone to an authoritys service improvement drive. It is only one of aportfolio of national eGovernment solutions supported by ODPM projects. Figure 1 shows the entireprogramme of National Projects. Authorities are recommended to assess which other projects mayadd further value to them, and access the appropriate collateral.

Figure 1: Local e-Government National Projects

e-Citizene-Benefitse-Benefits CRMCRMDigi-tv

FAME

NOMADLAWs

Information and

KnowledgeSharing

Processand

Content

Customerand

Channels

KM Valuebill

RYOGENSe-Standards Body

Smartcards Working With

Business

e-TradingStandards

e-Fire e-Pay

Encore

PARSOL

e-Procurement

Workflow

e-Democracy Schools Admissions

The ODPM e-Government National Projects Portfolio

e-Citizene-Benefitse-Benefits CRMCRMDigi-tv

FAME

NOMADLAWs

Information and

KnowledgeSharing

Processand

Content

Customerand

Channels

KM Valuebill

RYOGENSe-Standards Body

Smartcards Working With

Business

e-TradingStandards

e-Fire e-Pay

Encore

PARSOL

e-Procurement

Workflow

e-Democracy Schools Admissions

The ODPM e-Government National Projects Portfolio


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2. What is CRM?

CRM stands for Customer Relationship Management. The customer, in this case, can be a citizen,

business representative, intermediary or partner. CRM is the discipline of improving the waycustomers are managed through changes in business processes, people, organisation and technology.

The key drivers for a CRM programme within the public sector tend to be the improvement ofservices to citizens, together with some real expectation of improving the efficiency and theeffectiveness of the organisation. Other drivers could be to focus limited resources on those in mostneed or to maximise revenue from customer facing activities.

Improvements in customer service from CRM canrange from a more rapid and focused response toenquiries through to proactive contacts withcustomers to anticipate and manage potential

issues. CRM is a key enabler for customerswishing to access local government services,improving the efficiency of traditional channels i.e.phone, face to face, and mail and providinginnovative channels such as Internet, SMS andDigiTV.

The central component of a CRM solution isgenerally the creation of a single shared customerdatabase allowing information to be collectedonce but used many times. The sharing of thiscustomer data across the authority, in conjunction

with the functional tools provided by a CRMsolution, allows the authority to make gains in bothefficiency and effectiveness e.g. by improving theability of front line staff to resolve issues at firstcontact or dealing automatically with enquiries thatoriginate over the web. CRM is often seen as consisting of a number of layers, connecting customersthrough to front and back office and possibly third parties as shown in the diagram below:

Figure 2: Understanding the Components of CRM

High Peak District Council

High Peak implemented CRM to improveaccess to customers, provide more consistent

service and ensure value-for-money within thefront office. The implementation benefited fromstrong senior management sponsorship. Basedon findings from citizens panels, the initialfocus was on a call centre, including merging ofswitchboards. The scope of the servicescovered by CRM has been increased in astepped fashion over the last two years to 400service request processes, at each stagecarrying out a review to see how the efficiencyof the processes can be improved. Servicesassimilated include Environmental Health,Council Tax and Housing Benefits. Openinghours have been extended without taking onadditional staff. Integration to back office

systems is being achieved for EnvironmentalServices with associated process savings, andfurther services are being actively considered.

Key Lesson: Implement CRM incrementally

FrontOffice

Contractors PoliceGovernment

Agencies

Consultees/

ExpertsExternal

Agencies

BackOffice

Third Parties(examples)

Self-Help: On-line

Workstation

One-Stop-Shop/Service Pt

CRM

Contact Centre (CC)

CRM

Workstation

FAXFAX

In personWhite Mail Telephone EmailFax SMS

Consistent service

Field-Based

PDA

Office-Based

Workstation

Web

Fax

Integration

Laptop

Channels OtherfuturechannelsSMS

Consistent service

Field-Based

PDA

Office-Based

Workstation

Web

Fax

Integration

Laptop

Channels Otherfuturechannels

Workstation

Web

Fax

Integration

Laptop

Channels Otherfuturechannels

CRM Overview


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CRM projects can vary considerably in their scaleand scope. A simple CRM implementation mayencompass a single Contact Centre or websitesupported by standardised forms and

documentation, with no integration to back officesystems. A more complex implementation caninclude a common customer database, a contentmanagement tool (to ensure consistentinformation is published through all channels),provision of new communications channels(PDAs, kiosks or even Digital TV), a documentmanagement system (to improve the speed andaccuracy of handling of paper applications) andintegration with, and redesign of, back officeprocesses and systems.

The CRM National Project has identified twocommon strategies for implementing CRM inlocal authorities wide and shallow, offering abroad range of services to customers through asingle point of contact, with (initially) little back-office integration, and narrow and deep, offeringa selected number of services but with full back-office integration.

CRM has been implemented through partnershipswith other local authorities, with private

companies and with other public bodies. Thereare several examples of county councils anddistrict councils working together to provide asingle point of contact for citizens for all councilissues.

3. What is the CRM Nationa l Projec t?

The CRM National Project was set up to bring clarity to the role of CRM within local authorities andto provide practical guidance. The CRM National Project has developed a portfolio of models,

frameworks and standards to assist local authorities in implementing CRM. These include: Guidelines for authorities through the entire transformational phase from developing the vision

by changing what we think about services to implementation and integration of a CRM system.

Business case models for estimating the benefits of the CRM.

Guidance on data sharing, IT integration, system specifications and user requirements (sinceCRM is underpinned by data sharing).

Legal compliance standards for ensuring that authorities comply with the relevant laws.

West Sussex Accessible ServicesPartnership

CRM is being introduced by West Sussex CountyCouncil in partnership with seven borough and districtcouncils. A goal is to support a single view ofcustomers across different authorities, through thecreation of a single logical database. There will beshared one-stop-shops (branded as Help Points). Inaddition the CRM system will support a call centre forWest Sussex County Council, providing the

opportunity for a shared telephone contact centre ifthere was agreement to do this at a later date.

Key Lesson: Think partnership potential

Surrey County Council

An important milestone in Surreys gradual journeytowards maturity of its customer service initiative wasthe development of a contact centre. The CustomerFirst team and frontline services jointly identified theappropriate role for the contact centre, ensuring thatthe customer facing processes were working well andassessed the costs and benefits associated with theservice. The Customer First approach has been lowtech, a pragmatic decision having been made toinvest in people rather than spend on technology. Allcycle times have been reduced by at least half.Improvements include a reduction in time from askingfor a Blue Badge to receiving it from 27 days to 1.80% of queries are now resolved on first contact andsatisfaction level of customers is about 96%.

Key Lesson: Invest in People not just Technology


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4. Why should I be interested in CRM?

You should be interested in CRM because it

1. Delivers cost reductions and efficiency savings2. Offers service improvements and added value3. Delivers strategic and intangible benefits e.g. helping authorities to meet e-Government targets

CRM delivers considerably more benefits than those simply associated with transactional savings andefficiency improvements. Substantial added value results from improvements to service. There areother areas where clear benefit potential can be seen but where it is not sensible to quantify savings.Benefits associated with CRM are summarised by type in the following diagram:

Figure 3: CRM Benefit Types

Note that although there will be some immediate benefits from the implementation of CRM, benefitswill increase over time, with full benefits likely to be realised after 3-5 years.

4.1 Delivery of cost reduction and efficiency savingsThe implementation of CRM solutions in localauthorities enables potential savings throughmore efficient use of resources for example:

Consolidation of contact centre/front-officeoperations

More productive time on customer facingactivities and more productive staff time.

Insights into the drivers of calls, and thereforeideas for call avoidance

The increase in productive time results fromreduced errors and rework due to consistentinformation and data capture, increased speed ofaccess of information and more effective one-and-done.

Efficiency savings alone are rarely sufficient tomake a really compelling case for CRM.Efficiency savings and service improvement arefrequently linked. For example, if you can migrate 10% of your calls to the web, you could reduceunit cost, but if a further 20% of calls were previously being abandoned, you may choose to servicethese calls. The result would be an improvement in service but a reduction in the efficiency saving.

Knowsley Metropolitan Borough Council

Knowsley has realised savings in excess of150,000 p.a. from its CRM implementation in thetwo impacted service areas Revenues andBenefits and Council-wide bookings. The savingshave arisen from the elimination, automation,improvement and combination of processes.

Knowsley adopted a structured approach toidentifying, documenting and agreeing businessprocess improvements and was able to prioritise

and phase CRM functionality based on realisationof identified benefits.

Ongoing work includes improving the CRMinfrastructure, optimising system performance,enhancing electronic forms, providing additionaltraining and back office integration and expandingthe CRM footprint to other service areas such asSocial Services.

Key Lesson: Take the opportunity to rethinkprocesses

Service Improvement / Added ValueCost Reduction and EfficiencySavings

Increased RevenueAll figures are m

* = no quantitative evidence

Improved publicperception andawareness ofservices

More effective productionand use of managementinformation

Improved customersatisfaction and responsetime

More costeffective useof channels

Reduced costper resolvedtransactions

CRM

Other Cost

Reduction

Transactional /

Process

Service Improvement

Strategic / IntangibleBenefits

Service Improvement / Added ValueCost Reduction and EfficiencySavings

Increased RevenueAll figures are m

* = no quantitative evidence

Improved publicperception andawareness ofservices

More effective productionand use of managementinformation

Improved customersatisfaction and responsetime

More costeffective useof channels

Reduced costper resolvedtransactions

CRM

Other Cost

Reduction

Transactional /

Process

Service Improvement

Strategic / IntangibleBenefits

49146*

195-650

SIGNIFICANT MODESTHIGH


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Anecdotally, it is common for the number of transactions to increase after the implementation ofCRM by as much as 30%. This is because of latent demand - customers are now receiving a betterservice and hence are more willing to contact the authority.

The following table summarises indicative cost reduction and efficiency savings for an individualauthority and for all English authorities. When planning implemention of a CRM solution, benefitswill need to be validated through a specific business case for an authority.

National Annual Cost Reduction & Efficiency Savings1

Low

(m)

Average

(m)

High

(m)

National Total: All Authorities 49 97 146

Per Local Authority Annual Cost Reduction & Efficiency Savings

Low

(k)

Average

(k)

High

(k)

County 82 163 245

Unitary 228 457 685

District 83 166 249

Prior to implementing a CRM solution, it is essential for a local authority to establish a baselineagainst which financial and non-financial benefits can be measured. Otherwise it is extremelydifficult to monitor the level of benefits that are derived over time. Figure 4 provides an example ofa model that can be used to consider financial benefits. The CRM National Project is also

developing a CRM Benefits Calculator.

Figure 4: Benefits Logic for CRM

1

The financial efficiency savings were calculated using CIPFA data, which provides cost of handling transactions in different service areas

in a sample of local authorities. Average transaction costs were calculated separately for county, unitary and district councils and an

average saving of 20% assumed. Estimated savings were cross-checked against a range of typical CRM solution implementations in thepublic and private sector.

Number and typeof Back office

Staff

Cost of currentContract Staff

% Reduction inProcessing Time

% Reduction in

Follow-up Calls

Release of StaffTime

% IncreaseIntegrated

Transactions

% Take-up ofAdditionalServices

Cost of currentBack office Staff

Average Cost ofBack office Staff

Number and typeof Contact Staff

Drivers ofCost

QuantificationTypes ofFinancialSaving

Where do the Benefitsapply?

More ProductiveTime on Cust

Facing Activities

Earlier CashCollection

Better Targeting ofBenefits and

Services

RevenueGeneration

Use of CheaperChannels

More ProductiveStaff

ReducedTransaction time

(Admin)

Reduced No ofTransactions

(Admin)

EducationEducation

Environmental HealthEnvironmental Health

HighwaysHighways

LeisureLeisure

Social ServicesSocial Services

LibraryLibrary

Waste MgmtWaste Mgmt

Housing CostsHousing

Council TaxCouncil Tax

PlanningPlanning

Drivers of Cost(examples)

QuantificationTypes ofFinancialSaving

Where do theBenefits apply?

Housing Benefit

payment enquiries

More ProductiveTime on Cust

Facing Activities

Earlier CashCollection

Better Targeting ofBenefits and

Services

RevenueGeneration

Use of CheaperChannels

More ProductiveStaff

ReducedTransaction time

(Admin)

Reduced No ofTransactions

(Admin)

Council taxpayment change of

standing order

Request forinformation from

Trading Standards

Citizen service

delivery complaint

Average Cost ofContract Staff

CRM Benefits Assessment Model


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4.2 Service improvement & added value

CRM delivers a wide range of soft and hardbenefits in addition to the financial savings

described above. These are shown in figure 5(and in Appendix 1).

A key enabler provided by CRM is theeffective, real-time generation of informationabout local authority customer requirements,behaviours and usage of service. This allows alocal authority to provide better targetted andmore efficient services to its community.

Figure 5: Categorisation of CRM Benefits

Clear and powerful evidence of quantifiable, non-financial benefits achieved and documented by localauthorities that have already implemented CRM solutions

2is shown below:

2Sourced from two London local authorities.

London Borough of Newham

The Newham CRM project, having started in1996, has developed 8 local service centres. Atelephone service supports housing repairs,environmental services, social services andeducation (awards and admissions). The projectis currently developing a still broader servicebase, whilst also pushing deeper into back-officefunctionality. 1.5m transactions are handled p.a.

The underpinning common customer-trackingdatabase has enabled decisions to be madebased on newly available managementinformation. For example information on usage oflate night and Saturday openings allowedNewham to reduce out of hours staffing.

Key Lesson: Management informationrovides a ke lever for im rovement

Quantifiable

Financial

Yes

Yes

No

No

Service Improvement/ Added Value

Improved customer satisfaction

Improved customer response

Use of new, more effective channels

Improved BVPI

Strategic & Intangible Benefits

Improved public perception

Increased awareness of quality of local services

Improved information about citizens and authoritycustomers

Catalyst for organisational change

Service Improvement/ Added Value

Services delivered more effectively across theorganisation

Development of re-usable skills

Enterprise-wide processing of information

More efficient production and effective use of MI

Use of MI for predictive management ofservices

Earlier cash collection

Cost Reduction & Efficiency Savings

Increase in number of queries resolved first time

Reduction in repeat calls

More cost-effective use of channels

Queries quickly directed to subject matter experts(improved use of resources)

Single team of customer facing council staff(greater efficiency across entire council)

CRM Benefits Matrix


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Service Improvement Performance Measure Impact of CRM

Improved customer

satisfaction

Monthly Customer

Satisfaction Survey statistics3

Increased to more than 96%

over a higher volume ofincreased contacts

Improved BVPI 157 BVPI 157 Increased from 46% - 50%

Calls answered within 15seconds

Increased from 60% to 89%

Number of Abandoned Calls A decrease from 5% to 2%

Improved customer responseto incoming contact centrecalls

4

Average call waiting time Decreased from 20 seconds to5 seconds

Increased call volume through

contact centre

An increase from 950,000 calls

to 1,500,000 calls p.a. (approx66%)

Increase in email enquiries An increase of 4,000 to 6,000p.a. (approx 66%)

Change in peoples behaviour

increased use of newtechnology channels

Voicemail An increase of 20,000 to30,000 p.a. (approx 80%)

Change in peoples behaviour decreased use of old channels

Visitors to Local ServiceCentres

Decreased by 10%

Whereas transaction efficiencies can be

estimated based on statistical evidencefrom publicly available data, the valueadded by service improvement is bestaddressed by developing scenarios. Thefollowing table summarises indicativevalue added for all English authorities andincludes values associated with customersatisfaction, back-office integration, use ofnew channels, lost calls and customerwaiting time. There will also be additionalsignificant value resulting from associatedbusiness change activities.

National Annual Value Added Through Service Improvement

Low

(m)

Average

(m)

High

(m)

National Total: All Authorities 195 425 650

3Independently validated by MORI.

4Figures extracted from CRM Shareware application and monitored since the implementation of CRM

Uses of Management Information

Management information generated by a CRM systemcan be used for example for:

Performance management (e.g. calls per day/hour)

Resource planning (e.g. best opening times byoffice/centre)

Cross service charging and interactions (e.g.allocating costs within a multi-agency operation,based on number of enquires; and looking at thecomplete service to the citizen rather than aindividuals who claim Housing Benefit or payCouncil Tax)

Forecasting and Prediction (e.g. establishing whichare the busy periods of the year and why; andestablishing links between patterns of enquiries toprovide portfolio solutions)

Incident Hotspot Detection (e.g. bogus/duplicate

claims and abandoned vehicles)


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4.3 Meeting e-Government targets

CRM can play a major role in enabling a local authority to meet strategic objectives and e-

Government targets:

Comprehensive PerformanceAssessment (CPA): CRM, with its focuson delivering services to customers at atime and place of their choice, can enablethe authorities to achieve high CPAratings.

Priority Service Outcomes (PSOs):CRM makes it easier for customers to dobusiness with the local authority aspecific priority service area. In addition,

components of CRM, e.g. customerdatabase, customer tracking and sharedcall centre, are identified by IDeA ascontributing to PSOs in the remainingpriority service areas.

National Strategy (and ODPM NationalStrategy for local e-Governmentpriority areas): CRM plays a major rolein transforming services and improvinglocal authority efficiency. It alsocontributes to the other priority serviceareas.

Efficiency Review: The efficiency review produced by Sir Peter Gershon in July 2004 is focusedon releasing resources to the front line by integrating back office and improving transactionalservices both areas encompassed by CRM.

Government targets require each local authority to deliver 100% of its services, which can be e-enabled legally, through electronic media by 2005. Implementation of CRM involves integration ofback office with the front office, a requirement for e-enablement of transactional services.

Figure 6: CRM in Support of Performance Improvement and Meeting Government Targets

Westminster - On Track for Deadlines

Westminster City Council covers just 8.5 square miles,but it is home to 230,000 people including royalty,government and diplomats. Its area includes 110,000properties, among them many famous Londonlandmarks, theatres and shops and leisure facilities.

The council aims to achieve 100% electronic servicedelivery by the end of 2004/5 a year ahead of thegovernment deadline. It has a 200-seat contact centreand three one-stop shops.

Westminsters CRM solution is transforminginteractions between the community and the council.

Within the first 6 months of CRM in Westminsterscontact centre, Westminster has achieved someimpressive results. The contact centre front line staffare able to deal with queries relating to 66 differentservices. 94% of callers are answered on their firstattempt by the contact centre, with 80% of queriesresolved in one telephone call. 90% of callers say thatthey are satisfied with the service.

Key Lesson: CRM comprehensively supportsdelivery of Government targets

CPA Framework Priority Service Outcomes Efficiency Programme National Strategy

Corporate Assessment

Ambition

Prioritisation

Capacity

Performance Management

Achievement and Investment

Safer & StrongerCommunities

SustainableCommunities andtransport

Healthier Communities

(not districts)

Children and YoungPeople (not districts)

Use of Resources

Schools

Community Information

Democratic Renewal

Local Environment

E-Procurement

Payments

Libraries, Sports & Leisure

Transport

Benefits

Support for Vulnerable People

Supporting New Ways of

Working

Accessibility of Services

High Take-up of Web-basedTransactional Services

Making it Easy to do Businesswith the Council

Transactions

Corporate Services

Procurement

Policy Funding andRegulation

Productive Time

Transforming Services

Renewing Local Democracy

Promoting Economic Vitality

Bridging the Digital Divide e-Inclusion

Efficiency

Liveability/ EnvironmentalQuality

BVPI 157

High Benefit Medium Benefit

Lower Benefit N/A

Key

CRM in Support of Meeting Government Targets

CPA Framework Priority Service Outcomes Efficiency Programme National Strategy

Corporate Assessment

Ambition

Prioritisation

Capacity

Performance Management

Achievement and Investment

Safer & StrongerCommunities

SustainableCommunities andtransport

Healthier Communities

(not districts)

Children and YoungPeople (not districts)

Use of Resources

Schools

Community Information

Democratic Renewal

Local Environment

E-Procurement

Payments

Libraries, Sports & Leisure

Transport

Benefits

Support for Vulnerable People

Supporting New Ways of

Working

Accessibility of Services

High Take-up of Web-basedTransactional Services

Making it Easy to do Businesswith the Council

Transactions

Corporate Services

Procurement

Policy Funding andRegulation

Productive Time

Transforming Services

Renewing Local Democracy

Promoting Economic Vitality

Bridging the Digital Divide e-Inclusion

Efficiency

Liveability/ EnvironmentalQuality

BVPI 157


Lower Benefit N/A

Key


Lower Benefit N/A

Key

CRM in Support of Meeting Government Targets


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5. What is the scale of benefits for my authority?

The size of financial benefits attained by an individual authority will be determined by a number ofcharacteristics. Authorities are recommended to review the characteristics in the following table toassess if and how they can maximise benefits from adopting CRM.

Characteristic Level of Benefit Opportunity

High Low

Size of local

authority anddemographicprofile

Large authority with better off population - large

volumes of simple transactions provide a goodopportunity for leveraging consolidation.

Small rural communities benefit delivered will be

primarily better customer experience through easier andgreater accessibility to the authority, rather than financialsavings for the local authority.

TechnologyCapability

Capability to implement new technology is high orevolving. Indicators will include:

Well defined and evidence-based business case forproposed CRM solution

Good technical and business knowledge of CRMsolutions and vendors

Visibility and understanding of the currentperformance of technology solution and

Management Information across the local authority

Capability to implement new technology is low.

Indicators will include: Insufficient budget to design, build, test, implement

and support.

Insufficiently skilled IT resources Insufficient understanding of current IT infrastructure

and existing applications

Organisational andChangeManagementCapability

The right resources and capability to bring aboutnecessary organisational change management.Indicators will include:

Visible support from key stakeholders, with openand proactive communication across the authority

Dedicated and empowered project team(s) with clearroles and responsibilities

Clear understanding of the benefits of change andability to communicate to staff and customers One political agenda

Little capability to implement CRM solutions and bringabout organisational change. Indicators will include:

Minimal or no stakeholder buy-in across all services Inability to identify and appoint appropriate change

managers

Inability to appoint dedicated appropriately skilledproject management team to support change

programme Barriers to providing sufficient budget for change

programme

Unworkable bureaucratic processes

Change Readiness Acceptance of move to new ways of working andtechnology. Indicators will include:

Citizen feedback indicating a requirement forchange and contact methods

Acceptance by staff that new technology andprocesses will enable a better and more efficientprovision of service

Reluctance to move to new ways of workin g andtechnology by

Local communityLocal authority staff

Well-integratedfront office

services

The right resources and capability to bring aboutnecessary organisational change management.

Indicators will include:

Visible support from key stakeholders, with open

and proactive communication across the authority Dedicated and empowered project team(s) with clear

roles and responsibilities

Clear understanding of the benefits of change andability to communicate to staff and customers

One political agenda

Little capability to implement CRM solutions and bringabout organisational change. Indicators will include:

Minimal or no stakeholder buy-in across all services Inability to identify and appoint appropriate change

managers Inability to appoint dedicated appropriately skilled

project management team to support changeprogramme

Barriers to providing sufficient budget to changeprogramme

Unworkable bureaucratic processes

Well-developed

back officeprocesses

Front office offers a poorly integrated service.


Many siloed points of contact e.g. multiple phonenumbers, several contact centres

High levels of customer dissatisfaction Long queues and waiting times (either physically or

virtually)

High abandon rates

Front office offers an est ablished well-integrated service.


Single access point of contact e.g. one telephonenumber

Front office offers access to multiple servicesseamlessly

Satellite sites are integrated with central service

centres


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6. What level of investment is likely to be required?

The cost of implementing a CRM solution will vary widely, depending on scope, scale andcomplexity. A recent report stated that costs could vary from 600 to in excess of 8,000 per seat

5.

However costs are reducing as the market matures and technology develops.

Some typical cost drivers for a CRM solution are:

Scope of the solution in terms of functionality and Departments covered

Number of seats

Level software costs, networks and communications

Number of locations/sites

Number of different service areas

Level of business process re-engineering required

Extent of required systems configuration

Extent of integration with legacy systems

New hardware requirements

Change management requirements, including training, recruitment and communications

Number of required skilled staff

The quality of existing data

Additionally there will be costs associated with implementation activities e.g. testing and datatransfer.

The table below provides a simplified example of the indicative costs involved in the implementationof a local authority contact centre and CRM application of varying size.

CRM Programme Component Indicative Costs (k)

Front Office CRM implementation &contact centre 6

20 seats 60 seats 120 seats

Implementation cost per centre 800 1,500 2,400

The costs could be two to three times the figures above for a more complex CRM implementation(see figures 2 and 8) including for example a content management tool, workflow, provision of new

communications channels, a document management system, redesign of back office processes andintegration to back office systems. The benefits could be expected to increase proportionately.

7. The CRM Nationa l Projec t can help delivery of CRM

The CRM National Project has developed and published a range of toolkits and guidelines to supportlocal authorities through the stages of a CRM implementation from visioning, through development

5Making a compelling business case for CRM, Hewson Consulting Group

6Example is based on costs provided by an average size county council. The contact centre deals with transactions

covering 7 core services and 230 business processes. In a small 20-seat contact centre, it is assumed that a CRMcustomer database would not be implemented, as the implementation costs could not be justified. It is assumed that

implementation costs are over 1 year only. No estimates have been included for recruitment or ongoing

maintenance.


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of the business case and technology approach, to implementation and benefits realisation. A highlevel view of these products is shown below.

Figure 7:High Level View of Products Published by the CRM National Project to Assist Delivery

Piloting authorities have found both these products and experience sharing of great value.

Further details of how the products map against the expanded CRM lifecycle are given in Appendix2. The products are available to download via the CRM National Projects website:http://www.crmacademy.org

8. What d rives success?

When planning the implementation of a CRMsolution, the CRM Programme Managershould consider both critical success factorsand key risks.

The following questions will help to establishwhether the critical success factors are inplace. This list is not exhaustive:

Is there a genuine customer focus withinthe authority? Is customer service seen asa key element of what the local authoritydoes?

Is there a coherent, cross-authority visionfor CRM which engages department headsand customer-facing staff?

What is the strategy and roadmap forachieving that vision? How long is thejourney? What are the key milestones?

Is there an evidence-based understanding of how customers want to interact with the local

authority? What channels are required (Internet, text messaging, DigiTV) and what services docustomers wish to access?

Salford City Council

The development of the customer services function inSalford has been about building a culture of customerservice professionalism. The council made a strategicdecision to create a separate Customer ServicesDivision and develop an in-house CRM package,Citizen. The division adopted an incrementalapproach, adding one service at a time. Each time a

service was added, the division took over both thefront-office functionality and staff from the associatedservice directorate. The service was then subjected toprocess re-engineering, thus delivering better front-end services in conjunction with more efficient back-office processes. An important point of principle is thatemployees volunteer to leave their old organisationalunit and join Customer Services. The success of CRMin Salford is reflected in a satisfaction level amongcustomers and staff o f more than 90%.

Key Lesson: Focus on change and people

Introduction to CRM

CRM Vision

CRM Roadmap

CRM Scan Reports

E-Survey Report

Maturity Self-Help Tool

CRM Business Case

CRM Business

Specification

CRM User Requirements Specification

CRM System Functional Specification

CRM Support and Operation Guidelines

Contact Centre Guide

Legacy Transaction Matrix

CRM Integration Guide

CRM Application Integration Adapters

Implementation Strategies and Routes

Supplier Details Database

Integration Management SummaryGuide

E-Gov Data Model

Integration Assessment Toolkit

Channel Design

Change Management

Toolkit

CRM Benefits

Realisation & ROI

Vision Business Case ImplementationBenefits

Realisation

CRM Products mapped against the Project Life-cycle


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How will the organisation and individual job roles change? Is there a formal change managementplan?

Is there a current performance baseline against which changes and improvements can bemeasured? If not, do you understand what is needed to build one?

9. Key Risks

All projects which involve organisational, people and technology change face a number of well-documented risks, which must be identified, monitored and mitigated, throughout the life of theproject.

However, a CRM implementation project is subject to specific risks due to its complex nature. Someof the key risks that need to be considered are:

Insufficient Stakeholder Management. The implementation of CRM requires the involvement

and buy-in across the organisation to ensure success. There is rarely one single sponsor of CRM.Ownership is typically shared by several Departmental Directors, who each have their ownfinancial and non-financial targets.

Failure to Recognise the Degree of Change Involved. The implementation of CRM requiressubstantial process and skill change to deliver benefit. Cultural change is also likely to berequired.

Lack of Measurement of Benefits . Delivered benefits need to be measured over the duration ofthe project. It will be essential to demonstrate some quick wins to ensure that all stakeholdersremain committed and engaged. It is also necessary to report on and adhere to one or two triedand tested metrics that can demonstrate the service is improving, once accurate baselinemeasuremements have been established. It is important to note that, following many CRM

implementations, service levels often deteriorate temporarily while the technology and processesare bedding in.

Scope Creep. CRM projects are often the casualty of an ever-creeping scope, because theorganisation is tempted to add on nice to have requirements to keep improving the customerexperience. Improvement to customer experience must be done in a controlled, focussed andplanned way to avoid scope creep and overstretching of limited resources.


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10. How does CRM fit in with the other Nationa l Projec ts?

The CRM National Project is related to a number of other National Projects. It is important to take

these interdependencies into account to optimise costs and benefits over time. Figure 8 illustratesthese linkages, presented in the context of an overall reference Services (technology) Architecture. Itis recommended that authorities implementing CRM should familiarise themselves with the scopeand products of related National Projects.

Figure 8: CRM linkages with other National Projects

11. Where c an I get further information?

Following the substantial demand for its products, the CRM National Project launched the CRM

Academy in March 2004 to provide toolkits, models and standards for planning and implementingCRM in local authorities. These are available for from the CRM Academy websitehttp://www.crmacademy.org.

In addition the CRM Project team can be contacted for further information at +44 (0)20 8430 2111 [email protected]

A website providing information about all the National Projects is available at:http://www.localegovnp.org.uk

Supporting Services

Utility Services

Data Services

Channels

User Services

Schools

Admissions/

Pan London

PARSOL

Valuebill

RYOGENS

e-Fire e-Democracy

e-Benefits

e-Trading

Standards

Working

With

Business

Knowledge

ManagementFAMEe-Pay e-Citizen

ERPGIS

RDMS

e-

Procurement

ENCORE

Content

Managemente.Mail Workflow

Security

Governance

SmartCards

DigiTV

LAWs

NOMAD

e-Standards

CRMCRM

Key:

Major link with other National Project

Minor link with other National Project

CRM and Inter-dependencies with other National Projects

Diagram based on Services Reference Architecture Model


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Appendix 1: Detailed CRM Benefits and Metrics

The following table includes a detailed list of suggested benefits (and associated metrics) for CRM components. They are listed by ODPM national strategy for e-Government priority area. They include the cost reduction and efficiency savings and service improvements built into the indicative savings and value addedfigures within the body of the guide, together with strategic and intangible benefits.

Benefit Category Benefits Metrics

1. Consistent quality of service and improvedcustomer experience over time, through anychannel

Regular eliciting of feedback from service users. Service satisfactionsurvey broken down by channel

Monitoring of service metrics over time: targets for response time,complaints, number of first-time service request resolutions

2. More frequent meeting of citizen and businessexpectations

Reduction in number of complaints from citizens and business

Survey of customer satisfaction indicating an increase in satisfactionlevel

Tracking of regular feedback from specific customer segments (citizens,business and sub-segments thereof)

3. Improvement in satisfying 'access choices' on thepart of clients

Number of multi-channel engagements satisfied and enabled by CRMimplementation (e.g. access by phone requesting letter response fulfilled)

Scenario testing - for example by life event

4. Enablement of the provision of service from any

public access point e.g. library

Number of services available through each channel and each physicallocation

% of service requests / interactions resolved first time; reduction inservice redirects (e.g. County to District)

Service quality

Quick/easy/joined upservice

Personalized servicesmeeting expectations of

citizens

Accessible service

5. Capturing of feedback from customers, enablingthe authority to track and improve servicequality, for example by proactively targeting

services at appropriate customers, based oninsights gained from service history

Evidence of data capture, analysis and subsequent action/change inservice design: continuous improvement. Evidence of proactive targetingof services to segments and individuals.


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6. Enablement of the provision of service from the

channel, location and time chosen by thecustomer: rationalized service access

Scenario testing based on a basket of services in CRM and non-CRMenabled locations. Number of (transactional) services available througheach channel.

1. Simplified access to and understanding ofregulatory requirement; reduced bureaucraticburden for business (compliance time / resourcesrequired)

Comparative analysis of time spent obtaining licences and permissions

Business perception tracking of authority effectiveness

Cycle time from the application to issuance of: permissions / licences /advice

2. Development of re-usable information literacystaff skills

Increase in usage of e-enabled CRM systems by staff, and attendance attraining courses such as European Computer Driving License

Staff attrition / turnover

3. Inward investment activities tailored to sectors

based on profiling and market understanding Number of new businesses opened

4. Effective targeting of regulatory, licensing andsupport services, reducing rework and overall

compliance burden

Satisfaction rate of business customers with the council's regulatory,licensing and support services

Economic vitality

Infrastructuredevelopment

Employment generation

Skills development

Simplifying regulatoryregime

Promoting tourism andinward investment

5. Maximises productive time for business byreducing service access and cycle time

Process comparison / analysis in CRM and non-CRM-enabledenvironments

1. Development of demographic profiling:identifying the groups of citizens who are

'disengaged'. Profiling citizens helps the councilto engage groups in the democratic process bytargeting and inviting people to engage based ontheir interests

Evidence of the demographic profiling and targeting activities:segmentation and tailoring of outreach activities to segment preferences

Democratic engagement/inclusion

Participation in localgovernance

Dialogue across andwithin communities

2. Improved collection and analysis of opinions Evidence of survey/collection of data on an issue


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3. Provision of more accessible routes customers

(citizens and local organisations) to have theirsay

Increase in number of proposals and suggestions received from thecitizens and businesses

Number of completed survey responses as a percentage of invitedparticipants

4. Improved integration and communication withother agencies

Volume of CRM enabled interactions between agents in civil society

5. Better access / outreach to all specific targetdemographic groups e.g. older people, children

Evidence of targeted outreach engagements enabled / resulting fromCRM based data capture

Involvement in decision-making between elections

6. Increased engagement of citizens through

provision of feedback and ongoing dialogue Number of communications made to the citizens/businesses compared

with number of suggestions: feedback monitoring.

Survey of citizen groups on perceptions of local authorities

1. Facilitation of back office integration -improving processes and resource efficiency

Reduction in facilities, overhead and transaction costs

Reduction in average time in delivery of a basket of service requiringinformation from 2 or more back offices

2. Improved resource planning and scheduling,based on accurate data collected over time(service trends, for example)

Reduced overall cost of staffing: change in balance of staffing, workingpatterns and increase in bespoke, flexible contracting for staff

3. Front line service staff capable of delivering awider range of services - reducing handoffs and

multiple staff interventions

Number of services staff members who can deliver autonomously

Process comparison / analysis in CRM and non-CRM-enabledenvironments: tracking workflow, handovers, dropped calls (in CRMsupported call centres), and number of staff involved in delivery ofindividual services and service clusters

Efficiency

Same for less

Reduction in waste

Value for money

Effective staff time

4. More effective / efficient balance between frontand back office staff

Change in balance of front to back office staff and reduction in overalladministration and staffing costs

The decrease in average administration spend on cluster of services, andin total


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5. Reduction of staff 'level' required to perform

end-to-end processes: effective time forspecialist and non-specialist staff

Comparative work activity analysis of staff, staff survey

Reduction in staff cost for support operations

6. Increased efficiency in the front office: reduction

in staff absenteeism and turnover Absenteeism and turnover rates. Staff satisfaction survey

7. Improves the capacity of the staff to deliver

services independently (e.g. with fewer referralsto management)

Number of services deliverable by staff

The reduction in average time per staff member required to deliver abasket of services

7

8. Quicker access to information (and ability to

work with information in general) for serviceproviders: hence improved responsiveness toclients

Systems: screen load time and routing; Percentage of time spent in wrapup activities; work activity breakdown

9. Integration of information databases leading tomore effective (more accurate and quicker)revenue collection

Increase in revenue collected - e.g. taxes, parking and other penalties

10.Collection and analysis of information supportsbetter channel management: e.g. migration ofappropriate customer segments to more efficient

access and delivery channels

Analysis of demand and access patterns by service and over time;reduction in overall cost of maintaining access strategy and serviceprovision

11.Enables self-service for citizens and business

(via web forms, for example)

Change in balance of channel choice by citizens and business and

comparison cost of self-serve versus mediated or direct service byauthority staff

12.Simplification of access in two tier areas:Counties and Districts

Reduction in service access denials - i.e. citizens going to DC for a CCservice and vice versa

7Basket of services is similar to a basket of goods in economic sense. The services include the standard services, which are used the most by the citizens and businesses


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13.Reduced transaction costs (e.g. Improved flow of

information reducing process cycle time) Comparative analysis of CRM enabled and non CRM-enabled locations

(e.g. e-transactions cost on average 1/8th of the cost of papertransactions)

14. Implementing CRM and DMS and integrationwith other systems will help improve dataintegrity and reduce costs attached to returnedpost (wrong addresses); cost to chase citizens

Cost of postage and rework; number of and time spent on repeatoutbound calls

15. Removal of double (or multiple) data entry Tracking of data entry patterns and processes (and comparison of CRMand non-CRM areas)

1. Consistent access quality through whicheverchannel is chosen

The percentage of services used by customers who do not have access tothe internet at home

Evidence of mediated service access enabled by CRM

2. Enablement of better targeting of outreachservices

Evidence of profiling and targeting activities and active invitations by thecouncil to particular groups

Bridging the digital divide

e-Inclusion

e-Access for everyone whoneeds the service

3. Tailored service delivery based on client'spreferred choice of channel

Evidence of channel preferences logged and acted upon

Percentage increase in the number of citizens choosing internet access


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1. Enablement of the identification and analysis of

hot spots of crime, environmental and otherissues based on accurate data (based on customercomplaints and service requests (e.g. abandonedcars), and effective targeting of resources

Evidence of resource allocation on the basis of analysis of theidentification of hot spots: evidence based policy making and resourceallocation

2. Improvement in speed and responsiveness ofenvironmental services

Decrease in time for removal of abandoned vehicles and otherenvironmental services (cycle / response time) (e.g. Newcastle

EnviroCall service centre)

Decrease in overall resource required and time spend fixingpotholes/Street lights, where the number of fixes remains constant.

"Liveability"/environmentalquality

Greener/safer /cleanerand nicer place to live

Sustainable development

3. Facilitation of self-service - allowing speedyresolution of environmental or livabilityproblems

Number of services available and accessed through self service


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Appendix 2: Detailed CRM National Projec t Produc t Listing

The table below shows the complete list of products produced by the CRM National Project, mappedagainst 10 stages in the CRM implementation lifecycle.


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Loc al e -Go vernm ent CRM Nationa l Projec t

Lead Authority

London Borough of Newham (London Borough of Tower Hamletsuntil July 2004)

CRM Project Management by:

Mark Bassham

Guide to the Benefits of CRM

Input to this guide gratefully received from:

London Borough of Newham Knowsley Metropolitan Borough Council

London Borough of Hillingdon London Borough of Brent

West Sussex County Council Salford City Council

High Peak District Council Surrey County Council

South Northamptonshire District Council Westminster City Council

Research and Findings by:

Capgemini

Nationa l CRM Land scap e

In England a total of 181 local authorities have CRM implementations that are live or in progress.They are split between types of authority as follows:

Type of Authority Live In Progress

County 7 9

Unitary (including Metropolitan & City Councils and LondonBoroughs)

56 22

District 48 39

Further information on CRM implementations within local authorities is available fromhttp://www.crmacademy.org

Documents

CRM Article UK