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 Finland’s strategic focus area

Customer 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

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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 of activityCritical 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

Development analysis of customer satisfaction

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 dataHelps 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 databaseAbout 15,200 accounts (principal customers)About 23,700 customersAbout 29,000 contact personsAbout 4,600 invoices (year 2004)

Register of potential customers Salesleads230,000 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 Finland’s

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

Copyright InCircle Oy Jouni Pöl länen

Customer rentability

Strategic value

A1

A2

C

Strategic customers

KeyCustomers

Smallcustomers

DPotentials

Present customers Potential customers

A3,BBig and middle-size customers

Value factors:Reference value,Willingness to co-operate,Interaction,Product development and learning valueProfitability

20-40

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

Follow-up/indicators

Follow-up/indicators

Identification and selectionof customers

Practicesand follow-up

Customer processes

Development of customer relations

Managing ofcustomer relations

Development ofsegment programmes

Strategy

Management Service strategy

Distribution strategyCommunications strategy Customer feedback

Information society

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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 segmentstheme 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 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

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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 customer’s relations programme General features of a key customer relations programme

Appendix.

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Segment values:

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

- Large municipalities- Small municipalities- Employment and Economic Development Centres- Regional councils- Joint municipal boards

- 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 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

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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 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

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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

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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

General features of a strategic customer’s relations programme (1)

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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)

General features of a strategic customer’s relations programme (2)

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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

General features of a key customer’s relations programme