United Nations Economic Commission for Europe Statistical Division

United Nations Economic Commission for Europe Statistical 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

Why is it so important for official statistics to build relationships? (1) v v 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” • 25. 11. 2009 Lauri Viita, Finnish author - UNECE Statistical Division Slide 2

Why is it so important for official statistics to build relationships? (2) v v 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 - UNECE Statistical Division Slide 3

Why is it so important for official statistics to build relationships? (3) v v 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 - UNECE Statistical Division Slide 4

How to find out customers’ needs? (1) v v v Previous purchases of statistical information Focus groups Personal contacts (seminars, visits etc. ) Interviews Comparing similar customers 25. 11. 2009 - UNECE Statistical Division Slide 5

How to find out customers’ needs? (2) v v Business Intelligence Media Annual reports of customers ==> Learning to understand core ideas of the value production of customers and the needs of statistical information connected with these core ideas 25. 11. 2009 - UNECE Statistical Division Slide 6

Tools assisting work for better satisfaction of user needs v v v Simple, but well structured MS Excel tables Use of MS Access structures Customer databases • v 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 • v Business Intelligence systems 25. 11. 2009 - UNECE Statistical Division Slide 7

What is CRM? (1) v v v Customer Relationship Management Not marketing in general Theoretical roots: Nordic School of Marketing Service marketing • One to one marketing • Relationship marketing • v Building relations to users • 25. 11. 2009 Bulgaria!! - UNECE Statistical Division Slide 8

Growth of customer loyalty and consolidation of the customer relationship Dialogue with customer and analysis of customer behaviour Willingness of both parties to invest both time and money A LEARNING and money in building the CUSTOMER RELATIONSHIP customer relationship More information about present and forthcoming needs of the customer More efficient marketing and service profile to customer The value of the customer More activities responding to relationship grows for real customer needs both parties More efficient customer contacting and a decline of contact built in vain 25. 11. 2009 - UNECE Statistical Division Slide 9

From product marketing to marketing activities based on customer interaction plans Customer’s needs Key and Partnership Customers Customer analysis Customer interaction plan Service providing and customer information Statistics Finland The NSO’s possibilities and goal settings 25. 11. 2009 - UNECE Statistical Division Slide 10

What is CRM? (2) v v v 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 - UNECE Statistical Division Slide 11

In Statistics Finland… v v 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 - UNECE Statistical Division Slide 12

CRM – A Technical Tool? v v 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 - UNECE Statistical Division Slide 13

Customer-oriented services and products by means of CRM v 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 - UNECE Statistical Division Slide 14

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 § v 25. 11. 2009 - UNECE Statistical Division Slide 15

Systematic contact building has given good results in Statistics Finland v v 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 - UNECE Statistical Division Slide 16

Development of Customer Relations Management (CRM) Customer Relationship Management Steps taken in 1992 -2002 Education Project 2001 -2002 Customer service standards from 2001 - Customer Database from 2000 Customer Feedback Channel on the Internet from 1999 Balance Scorecard Strategy Dissemination Strategy 1998 Customer core process analysis 1997 Customer Database definition work group 1996 Customer Surveys 1992. . 1997 25. 11. 2009 1998 1999 2000 2001 2002 2003 2004 2005. . - UNECE Statistical Division Slide 17

User needs are specific – not “general” 6 7 8 9 10 No errors in basic data v Delivery on time Delays are reported v Data supplied in desired form Comparability of data Customer is taken into consideration Friendly staff Finding the right persons Accessibility of staff v Data delivered with speed Data up-to-date Information about the data/service Data meets demand Tailored data value for money 25. 11. 2009 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 systematic way to keep track - UNECE Statistical Division Further processing of data sufficient 6 7 8 9 10 Slide 18

Wise Words of Dr. Samuel Johnson (1709 -1784) v v 25. 11. 2009 “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? - UNECE Statistical Division Slide 19

But – that’s once again another story v v Thank you for your attention Remember: • A learning Customer Relationship v v 25. 11. 2009 You cannot learn to swim if you don’t go into the water petteri. baer@ unece. org www. unece. org/stats - UNECE Statistical Division Slide 20

United Nations Economic Commission for Europe Statistical Division Attachment An example of the benefits of having both chargeable and non-chargeable statistical services Building Relationships with Users as a Strategic Concept

Systematic customer contact building has given good results in Statistics Finland v More than 100 000 individual internet users monthly (with a population of 5 Million) v v v 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 - UNECE Statistical Division Slide 22

Responsibilities of customer care 1. Central government in Statistics Finland 2. Local government Centralised: customer process customer database Responsibility 3. Corporations and enterprises 4. Research Institutions 5. Educational Institution 6. Others for c-database Resp. for customer portfolio Strategic customers - 15 organisations Key customers - 33 organisations 25. 11. 2009 Resp. for customer - UNECE Statistical Division Slide 23

Number of customers according to Segments in Statistics Finland, End of 2005 v Corporations and enterprises 13 466 v Educational Institutions 2 344 v Local Government Bodies 2 258 v Organisations 1 464 v Foreign customers 802 v Central Government 681 v Libraries 657 v Research Institutions 520 v Others 35 v Without segment value (in 1 433 2005) 25. 11. 2009 - UNECE Statistical Division Slide 24

Different users prefer different services 25. 11. 2009 - UNECE Statistical Division Slide 25

Customer Relationship Management Systems used in modern organizations are useful because… v The entire organisation benefits from the information the system provides v It helps to analyse the customer structures and developments v Direct- and telemarketing campaigns are much more effective v Helps to monitor the success (or non-success) of different relation building activities taken v Provides a good basis for customer surveys and customer relations 25. 11. 2009 - UNECE Statistical Division Slide 26

Main steps in organising CRM-work to define main customer groups 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 25. 11. 2009 - UNECE Statistical Division . . . to organise customer segment teams and nominate the people in charge of relations with customers Slide 27

Basic statistics an infrastructure of modern society v Basic statistical information is a tool for safeguarding democracy • v 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 - UNECE Statistical Division Slide 28

In a world with growing information overflow a tough question is: v Will Official Statistical Agencies in the future have the role of a key provider of • v 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? • 25. 11. 2009 - UNECE Statistical Division Slide 29