1. 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

2. Petteri Baer - UNECE Statistical Division Slide 225.11.2009 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

3. Petteri Baer - UNECE Statistical Division Slide 325.11.2009 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

4. Petteri Baer - UNECE Statistical Division Slide 425.11.2009 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!

5. Petteri Baer - UNECE Statistical Division Slide 525.11.2009 How to find out customers’ needs? (1)  Previous purchases of statistical information  Focus groups  Personal contacts (seminars, visits etc.)  Interviews  Comparing similar customers

6. Petteri Baer - UNECE Statistical Division Slide 625.11.2009 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 statistical information connected with these core ideas

7. Petteri Baer - UNECE Statistical Division Slide 725.11.2009 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

8. Petteri Baer - UNECE Statistical Division Slide 825.11.2009 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!!

9. Petteri Baer - UNECE Statistical Division Slide 925.11.2009 Dialogue with customer and analysis of customer behaviour More information about present and forthcoming needs of the customer More efficient marketing and service profile to customer The value of the customer relationship grows for both parties Willingness of both parties to invest both time and money and money in building the customer relationship Growth of customer loyalty and consolidation of the customer relationship More activities responding to real customer needs More efficient customer contacting and a decline of contact built in vain A LEARNING CUSTOMER RELATIONSHIP

10. Petteri Baer - UNECE Statistical Division Slide 1025.11.2009 Customer analysis Customer interaction plan Service providing and customer information Key and Partnership Customers Statistics Finland From product marketing to marketing activities based on customer interaction plans Customer’s needs The NSO’s possibilities and goal settings

11. Petteri Baer - UNECE Statistical Division Slide 1125.11.2009 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.

12. Petteri Baer - UNECE Statistical Division Slide 1225.11.2009 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

13. Petteri Baer - UNECE Statistical Division Slide 1325.11.2009 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

14. Petteri Baer - UNECE Statistical Division Slide 1425.11.2009 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

15. Petteri Baer - UNECE Statistical Division Slide 1525.11.2009 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

16. Petteri Baer - UNECE Statistical Division Slide 1625.11.2009 Systematic contact building has given good results in Statistics Finland  More than 100 000 individual internet users monthly on the web site  I n 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

17. Petteri Baer - UNECE Statistical Division Slide 1725.11.2009 Development of Customer Relations Management (CRM) Steps taken in 1992-2002 199719991998200020022001 2003 20042005.... Customer core process analysis 1997 Customer Database definition work group 1996 Customer 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

18. Petteri Baer - UNECE Statistical Division Slide 1825.11.2009 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 678910 6789

19. Petteri Baer - UNECE Statistical Division Slide 1925.11.2009 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?

20. Petteri Baer - UNECE Statistical Division Slide 2025.11.2009 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  petteri.baer@ unece.org  www.unece.org/stats A learning Customer Relationship

21. 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

22. Petteri Baer - UNECE Statistical Division Slide 2225.11.2009 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

23. Petteri Baer - UNECE Statistical Division Slide 2325.11.2009 Responsibility for c-database Resp. for cus- tomer portfolio Resp. for customer Responsibilities of customer care in Statistics Finland 1. Central government 2. Local government 3. Corporations and enterprises 4. Research Institutions 5. Educational Institutions 6. Others Strategic customers - 15 organisations Key customers - 33 organisations Centralised: customer process customer database

24. Petteri Baer - UNECE Statistical Division Slide 2425.11.2009 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) 13 466 2 344 2 258 1 464 802 681 657 520 35 1 433

25. Petteri Baer - UNECE Statistical Division Slide 2525.11.2009 Different users prefer different services

26. Petteri Baer - UNECE Statistical Division Slide 2625.11.2009 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

27. Petteri Baer - UNECE Statistical Division Slide 2725.11.2009 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

28. Petteri Baer - UNECE Statistical Division Slide 2825.11.2009 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

29. Petteri Baer - UNECE Statistical Division Slide 2925.11.2009 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?