United Nations Economic Commission for EuropeStatistical DivisionUnited Nations Economic Commission for EuropeStatistical Division
From simple user lists and Excel spreadsheets to a
sophisticated CRM System
User lists are of core value to Statistical Agencies
Training Workshop on Disseminating MDG Indicators and Statistical Information
Astana, Kazakhstan, 23-25 November 2009
Petteri Baer, Regional Adviser, UNECE
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 2
Why is it so important for official statistics to build relationships? (1) Impartial and reliable statistical data are widely
considered as a prerequisite for a democratic society and a necessary condition for the smooth running of a competitive market economy
“You will need more imagination to find truth than to get lost”• Lauri Viita, Finnish author
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 3
Why is it so important for official statistics to build relationships? (2)
Statistics are important for policy making in a modern society
Statistics are vital for monitoring the development and the effects of policies
Statistics are crucial for understanding the society around us
Comparable statistics across countries and regions are a necessity in a globalizing world
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 4
Why is it so important for official statistics to build relationships? (3) Evidence-based decision making needs
facts and not beliefs or prejudges Certainly not only in politics This is crystal clear especially in the world of
• Business• Research
But also: NGOs, Trade unions, Employers’ organizations, Lobbying, Local governments, Educational institutions – you name it!
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 5
How to find out customers’ needs? (1)
Previous purchases of statistical information Focus groups Personal contacts (seminars,
visits etc.) Interviews Comparing similar customers
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 6
How to find out customers’ needs? (2)
Business Intelligence Media Annual reports of customers ==> Learning to understand core ideas of
the value production of customers and the needs of statisticalinformation connected with these core ideas
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 7
Tools assisting work for better satisfaction of user needs
Simple, but well structured MS Excel tables Use of MS Access structures Customer databases
• Information on regular and heavy users Customer Relationship Management system
( CRM)• For good and systematic follow-up and planning of
interaction with regular and heavy users• Example NSI:s: Canada, Finland, Estonia
Business Intelligence systems
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 8
What is CRM? (1)
Customer Relationship Management Not marketing in general Theoretical roots: Nordic School of Marketing
• Service marketing• One to one marketing• Relationship marketing
Building relations to users• Bulgaria!!
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 9
Dialogue with customer and analysisof customer behaviour
More information about present and forthcoming needs of the customer
More efficient marketingand service profile to customer
The value of the customer relationship grows for both parties
Willingness of both partiesto invest both time and moneyand money in building thecustomer relationship
Growth of customer loyalty and consolidation of thecustomer relationship
More activities responding toreal customer needs
More efficient customer contacting and a decline of contact built in vain
A LEARNING CUSTOMER RELATIONSHIP
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 10
Customer analysis
Customerinteraction plan
Service providing andcustomer information
Key and Partnership CustomersKey and Partnership Customers
Statistics FinlandStatistics Finland
From product marketingto marketing activities based on
customer interaction plansCustomer’s needs
The NSO’s possibilities and goal settings
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 11
What is CRM? (2) CRM stands for SYSTEMATIC work with existing and
potential customers which are divided into different customer segments which are approached and interacted with in different ways because the need structures - and hence the service structures - for the customers in the different segments are different.
Part of CRM is the building up of and existence of a Customer Database into which all contact information and communication information is put with the aim of making it possible to build up the relations with the customers SYSTEMATICALLY.
This way of acting makes it possible to KNOW what has been done in building customer relations. It makes it possible to PLAN new interactions more effectively taking into account the accumulated experience.
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 12
In Statistics Finland…
Both old and new challenges emphasised in the 1990’ies the need and importance of Customer Relationship Management
In the mid 1990’ies an understanding of the need for CRM emerged• Not so much in the top management• But in the practical work heading for clear user
orientation• In developing and disseminating mproved
statistical products and services
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 13
CRM – A Technical Tool?
CRM is NOT only or mainly a technical tool… BUT
as a sophisticated system, where customers and potential customers can be dealt with according to • their own customer behaviour• the CSO’s own definitions of customer
relationship levels and -policies• the self-expressed wishes of customers
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 14
Customer-oriented services and products by means of CRM
The goal of CRM is to• Understand the needs of different user
groups• Segment customers into groups with
similar need structures• Keep the information on interaction with
customers in good shape and order
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 15
Customer-oriented services and products by means of CRM• Set goals for meeting customer
requirements advance the use of statistics develop profitable activities and public services encourage new product development ideas
and innovations create new co-operation modes or
partnerships with customers and stakeholders …and to do this work systematically
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 16
Systematic contact building has given good results in Statistics Finland
More than 100 000 individual internet users monthly on the web site
In the CRM system (end of 2005)• 15 000 principal customers,• 24 400 customers,• 29 000 contact persons
~ 50 customers were in 2004 nominated to be strategic or key customers of Statistics Finland
Many customers are in contact with the NSO in a number of different roles
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 17
Development of Customer Relations Management (CRM)Steps taken in 1992-2002
1997 19991998 2000 20022001200
3 2004 2005 ....
Customer core process analysis 1997 Customer Database definition work group 1996Customer Surveys 1992 -
Balance Scorecard Strategy Dissemination Strategy 1998
Customer Feedback Channel on the Internet from 1999 -
Customer Database from 2000 -
Customer service standards from 2001 -
Customer Relationship Management
Education Project 2001-2002
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 18
User needs are specific – not “general”
All user needs are specific
Their satisfaction should be developed in communication and cooperation with the users
When the number of contacts grows, you must create a syste-matic way to keep track
No errors in basic data
Delivery on time
Delays are reported
Data supplied in desired form
Comparability of data
Customer is taken into consideration
Friendly staff
Finding the right persons
Accessibility of staff
Data delivered with speed
Data up-to-date
Information about the data/service
Data meets demand
Tailored data value for money
Further processing of data sufficient
6 7 8 9 10
6 7 8 9 10
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 19
Wise Words of Dr. Samuel Johnson (1709-1784)
“Knowledge is of two kinds. We know a subject ourselves, or we know where we can find information upon it “
What does this mean in the world of today?
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 20
But – that’s once again another story
Thank you for your attention
Remember:• You cannot learn to
swim if you don’t go into the water
www.unece.org/stats
A learningCustomerRelationship
United Nations Economic Commission for EuropeStatistical DivisionUnited Nations Economic Commission for EuropeStatistical Division
Attachment An example of the benefits of having both chargeable and non-chargeable
statistical services
Building Relationships with Users as a Strategic Concept
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 22
Systematic customer contact building has given good results in Statistics Finland
More than 100 000 individual internet users monthly (with a population of 5 Million)
15 000 principal customers, 24 400 customers, 29 000 contact persons accumulated in the CRM system
1% customers bring 60% of the income ~ 50 customers were in 2004 nominated to be strategic
or key customers of Statistics Finland Customers have several ways of being in contact Many customers are in contact with the NSO in a
number of different roles
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 23
Responsibilityfor c-database
Resp. for cus-tomer portfolio
Resp. for customer
Responsibilities of customer carein Statistics Finland 1. Central government
2. Local government3. Corporations and enterprises4. Research Institutions 5. Educational Institutions6. Others
Strategic customers - 15 organisationsKey customers - 33 organisations
Centralised: customer process customer database
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 24
Number of customers according to Segments in Statistics Finland, End of 2005 Corporations and
enterprises Educational Institutions Local Government Bodies Organisations Foreign customers Central Government Libraries Research Institutions Others Without segment value (in
2005)
13 4662 3442 2581 464
802681657520
351 433
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 25
Different users prefer different services
Statistics Finland, Reporting of Sales in the years 2002-2005with a special focus on the year 2005
9.2.2006/Petteri BaerMost purchased product group
Purchases of Statistics Finland's chargeable products and services in 2005 Secondly most purchased product group
Thirdly most purchased product group
Central govern-Corporations Local Research NGOs & other Educational ForeignProduuct Group ment Administrationsand EnterprisesAdministrationInstitutions Organisations Libraries Institutions Customers Others TotalSpecial compilations 1,339,018 361,755 427,380 392,734 311,403 3,231 12,799 90,294 0 2,938,615Publications 186,282 567,916 266,499 64,085 173,986 156,861 95,961 19,636 4,788 1,536,014Interview services 603,870 93,150 15,200 488,500 106,582 25,228 0 13,000 0 1,345,530Network services 99,835 64,113 517,743 69,080 40,255 46,024 70,306 6,510 79 913,945Register services 38,692 404,707 107,529 58,147 28,319 0 16,306 3,471 0 657,171Other products and services 5,362 105,245 51,301 11,804 3,472 4,930 9,213 220 0 191,547Customer Training 31,966 32,849 16,992 7,847 12,972 1,173 8,065 0 0 111,863Miniserrvices 11,505 29,614 15,045 12,873 15,476 230 468 2,424 290 87,926Electronic publications 14,740 28,405 4,077 2,676 14,115 2,600 1,218 1,357 186 69,374Consultation services 3,298 4,036 14,100 0 7,000 0 0 8,275 0 36,709"Standard products" 2,078 19,643 6,825 2,651 1,987 477 140 759 0 34,560Commission services 616 5,048 2,562 0 268 112 8,094 0 0 16,700Other services 2,713 1,817 166 447 3,001 1,029 173 871 13 10,230Total 2,339,976 1,718,297 1,445,419 1,110,844 718,836 241,895 222,743 146,817 5,356 7,950,184
1. Notify the big differences in the most purchased product groups between the differnt Customer Segments!2. Observe the fact that "Special compilations" can range from the most complicated to the simpliest service, that doesn't fit in to the other definitions!3. Part of "Miniservices" include compilations, part of "Special compilations" include miniservices, part of Interview services include both4. The groups "Other products and services", "Standard products", "Network services" and "Electronic publications" are all mainly electronic services
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 26
Customer Relationship Management Systems used in modern organizations are useful because… The entire organisation benefits from the
information the system provides It helps to analyse the customer structures and
developments Direct- and telemarketing campaigns are much
more effective Helps to monitor the success (or non-success)
of different relation building activities taken Provides a good basis for customer surveys
and customer relations
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 27
Main steps in organising CRM-work
...to
organise
customer
segment
teams and
nominate
the people
in charge of
relations
with
customers
to list strategic and key customers
to analyse needs of strategic and key customers
to set goals for taking care of the customer relationships
to develop ways of measuring the results of interaction with customers
to define main customer groups
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 28
Basic statistics - an infrastructure of modern society
Basic statistical information is a tool for safeguarding democracy
• In order to participate in decisions of society, citizens should have access to basic information on structures, development
Statistics serves decision making• This infrastructural service of basic statistical information,
often generates demand for more sophisticated and customized statistical information on additional topics and phenomena
• More labour- and/or investment-intensive statistical services and service products are usually chargeable
25.11.2009 Petteri Baer - UNECE Statistical Division Slide 29
In a world with growing information overflow a tough question is: Will Official Statistical Agencies in the
future have the role of a key provider of • correct, objective, non-partial, non-biased,
understandable, comparable and easily accessible information, relevant to stakeholder and user needs?
Or will they degenerate into• under-funded producers of historical data, • having a limited role as a background source for
users mainly in public administration and in institutions of economic and social history?