IT SOLUTIONS
CRM: adjusting an innovation to fit with the needs of the situation
David McElhinney C Tony Proctor
ustomer relationship management involves managing interactions
with customers. In a local government context the interface with customer can be very complex and there may be other stakeholder interests to take account of as well.
It involves dealing with queries, complaints and specifi c requests and demands accurate information to be transmitted and received speedily. How well delivery of customer service is organised within local government directly affects levels of accessibility, inclusion, involvement and general care that can be offered to its citizens. As well as meeting high standards in these respects, local government needs to get jobs done quickly and economically. Its citizens, too, want immediate attention to their requests and for them to be dealt with as quickly and easily as possible.
In the private sector in recent years ICT has been harnessed to assist in the process of producing an effective and effi cient CRM interface with service users. Purveyors of custom made systems to suit all needs have come into being to meet the bourgeoning demand.
However, not all innovations can always claim to be successful or rather to meet with the user’s expectations in the fi rst instance. In the case of CRM, problems can occur with its implementation in a local government context. The complexity of the customer interface in local government is exacerbated by attempts to provide services across several delivery channels (face to face, telephone, internet websites, texting, emails, wireless email,
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one-stop shops, call-centres and kiosks, etc). Many of these delivery channels are relatively new innovations and place substantial demands on the effective management of CRM in local government.
CRM, in a local government environment, aims to enable councils to recognise customers who have already contacted them and to be able to locate information relating to the customer’s enquiry.
It is also intended to help in the communication of information about the customers and services internally throughout the organisation. Councils can employ CRM to build a better picture of why customers contact them and to look for ways in which they can improve the services they provide.
CRM and associated technologies capture and process information relating to customers and make this available to staff so that an improved service provision can be developed. The technology gives councils the opportunity to review the way they conduct business and to move from a departmental structured organisation to a customer centred one.
CRM is intended to facilitate the provision of quality services in a joined up and customer focused manner. In the public sector there is a drive towards social inclusion and a wish to provide an equitable level of service to everyone.
However, traditional CRM tends to be very costly and complex. Perhaps not surprisingly local government has struggled to identify a robust business case and to establish any substantial
return on investment from its endeavours through the provision of CRM systems. However it is important to note that the foundations of traditional CRM are sound. Nevertheless, having the correct form of customer relationship management system in place is important for local government and facilitates the effi cient and effective provision of services.
CRM needs to enable local government to have a complete view of their customers and the many and various interactions people have with their local authority. The wide variety of access channels introduced in recent years has extended the reach of local government organisations. This has provided mechanisms for direct and effi cient service provision to those whose needs may be the greatest but who have traditionally found it most diffi cult to get those needs attended to.
Tailoring CRM to meet the needs of local government, however, is not without its problems. Experience and market knowledge has demonstrated that the concept of a single view of the customer across a council is extremely complex, unnecessary and costly. A more pragmatic and customer-centric approach is to create a single view of the customer within particular customer groups and / or segments. This approach is referred to as CRM clustering.
CRM clustering has been developed and delivered within Liverpool Direct Limited. The strategy is to cluster customers by activity (e.g. benefi ts, street scene or physical assets, children, and revenues);
Sep/Oct 10
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