Building Relationships with Users Systematically A big Strategic Challenge for Statistical Agencies Consultation Mission on Promoting the activity and Creating a positive image of the Ukrainian State Statistical bodies Kiev, Ukraine 9 – 12 December 2014 Petteri Baer, Marketing Manager, Statistics Finland Courtesy to Ms Minna Purja-Roman

Kiev 9-12 December 2014 Why a CRM-System? (1) History: Dozens of separate customer lists and small databases were in use in different departments and divisions of Statistics Finland with no connection between them =>No means for centralised updating of data Efficiency of marketing and communication campaigns were fairly low due to abundant quantities of erroneous contact information We had a clear need to centralize the whole organization’s customer data into one location 2Petteri Baer

Kiev 9-12 December 2014 Why a CRM-System? (2) Introduction of the CRM System was a way to bring in a more systematic approach to the customer service and marketing work of the NSO Means to improve Statistics Finland’s inter-unit co-operation Target group selection, reporting, analyses, customer feedback, project management CRM assisted in strengthening the corporate image of the NSO 3Petteri Baer

Kiev 9-12 December 2014 Why a CRM-System? (3) There was also a clear need for a modern Invoicing System in connection with the Customer Relationship Management System A separate Invoicing System (“Intime”) was earlier in use Desirability to develop and implement the new system to be in interaction with the already existing other systems of accounting and follow-up 4Petteri Baer

Kiev 9-12 December 2014 Why a CRM-System? (4) There was usually very little knowledge about the different customers’ previous activities with other units in Statistics Finland => Every time when the customer was contacting Statistics Finland’s different units, a “new” customer relationship was created =>Confusion as a result of this Duplications of the same customer in abundant quantities in the different small excel tables and customer files 5Petteri Baer

Kiev 9-12 December 2014 Expected benefits Improved customer satisfaction Way to strengthen customer relationships A systematic, uniform and clear customer process Clear monitoring and planning through the system Efficiency and better productivity 6Petteri Baer

Kiev 9-12 December 2014 Development process (1) The CRM-project started in the year 1996 Project led by Petteri Baer Interviews with management and staff, creating overview of needs and expectations, definition of need structures After 1½ years: A challenging work and implementation plan Excursions to companies having a CRM system Meetings with CRM system suppliers 7Petteri Baer

Kiev 9-12 December 2014 Development process (2) Decision on purchasing the Applix software in 1999 – so it took quite a long time... Start of the building of the customer database Initial data converted from the Invoicing system Intime, crosschecked with Statistics Finland’s Business Register The system was customized for the operational environment of the NSO Instalment and testing of the new system 32 pilot users first tested the pros and cons of different software 8Petteri Baer

Kiev 9-12 December 2014 System launch and introduction process Launched in the year 2000 Information meetings for staff members introducing CRM and the benefits of the new tool Telephone and -support Personal guidance at user’s workstations Written instructions for use Training events organised in computer classrooms 9Petteri Baer

Kiev 9-12 December 2014 Obstacles on the path of the introduction of the new system (1) The system is a tool for the whole of Statistics Finland, not just for individual units => Active user groups could be larger External customer registers are not automatically updated into the system (both benefit and obstacle) 10Petteri Baer

Kiev 9-12 December 2014 Obstacles on the path of the introduction of the new system (2) Technical problems Users may not care enough about the maintenance of the customer information Users may not have enough time for learning to use the system and for using it continuously 11Petteri Baer

Kiev 9-12 December 2014 Project management and invoicing Project -> Offer -> Agreement -> Invoice Easy to follow every stage of the project Campaign management and target group selection Selected customers can be searched by means of customer database variables for targeting marketing campaigns Functions of the CRM System in Statistics Finland (1)

Kiev 9-12 December 2014 Campaign management and target group selection (continued) Helps to divide campaigns into different stages and makes monitoring of each stage easier Functions of the CRM System in Statistics Finland (2)

Kiev 9-12 December 2014 Functions of the CRM System in Statistics Finland (3) Reporting Large amount of different reports Reports can be formed easily by Statistics Finland Several individual important functions Sales diary Queries User lists

Kiev 9-12 December 2014 Three-dimensional account concept 15Petteri Baer

Kiev 9-12 December 2014 Three dimensional account concept, Contents of information Account (principal customer) Principal branch, account category, VAT-number…etc. Gathers customer information together Customer Address information, purchase history, projects, offers, agreements, segment …etc. Contact person Name, title, role, phone, mobile, fax, , sales diary entries, purchase history…etc. 16Petteri Baer

Kiev 9-12 December Petteri Baer

Kiev 9-12 December Petteri Baer

Kiev 9-12 December Petteri Baer

Kiev 9-12 December 2014 Connections and updates of the CRM-system in Statistics Finland STOJ v.10 “Blue book” Ade- Eko Operational Guidance and Planning System 1/ per day Financial Administration System Saleslead register of potential customer 2 / per year v.10 publication purchase history 1/ per day Account category 1 / per month Customer category 1 / per day 20Petteri Baer

Kiev 9-12 December 2014 Gained benefits by the introduction of a developed CRM System Centralised system Helps to co-ordinate joint activities Easier to avoid double entries More focused direct marketing by means of versatile target group selection Monitoring of customer processes considerably easier - possible to systematise activities Knowledge about previous actions with the customer helps plan future actions 21Petteri Baer

Kiev 9-12 December 2014 Number and share of users of the CRM System in Statistics Finland In Statistics Finland the amount of staff amounts to approximately 850 persons The CRM System has ~150 users, around 30 of whom are active users – It could be more... The object of further work on the system is to integrate more daily routines into its work practices Invoicing and project management functions are used particularly actively All this provides the NSO with abundant information on customer relations, both their situation and development 22Petteri Baer

Kiev 9-12 December 2014 Development made possible by the CRM-System (1) Compilation of uniform practices and programmes for selected customer groups More effective sales activities - e.g. cross selling between different products and different units Profitability and efficiency can be attained by more accurate targeting of activities and campaigns Not only for chargeable, But also for non-chargeable services! 23Petteri Baer

Kiev 9-12 December 2014 Development made possible by the CRM-System (2) Continuous development of the system by collecting information on different user’s and user group’s needs Improved integration into new and existing administrative systems of the NSO 24Petteri Baer

Kiev 9-12 December 2014 Segmentation of customers A more detailed segmentation of the customer database was undertaken in Executed with SQL-programming by means of different database variables e.g. business book- keeping accounts, branches and partial name searches. Also manual updating was partly needed By segmenting our customer database we are successful in achievement of deeper and more meaningful understanding of how customers interact with the NSO 25Petteri Baer

Kiev 9-12 December 2014 Number of customers according to Segments (End of 2005) Corporations and enterprises Educational Institutions Local Government Bodies Organisations Foreign customers Central Government Libraries Research Institutions Others No segmentation work done Petteri Baer

Kiev 9-12 December 2014 The CRM-System is useful because… The entire organisation benefits from the information the system provides Helps to analyse the customer structures and developments Direct- and telemarketing campaigns are 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 27Petteri Baer

Kiev 9-12 December 2014 Conclusion You cannot learn to swim if you don’t go into the water! Thank you for your attention!