The Benefits of CRM .uk
The Benefits of CRM
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TABLE OF CONTENTS
1. Introduction to this Guide
2
2. What is CRM?
3
3. What is the CRM National Project?
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4. Why should I be interested in CRM?
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4.1 Delivery of cost reduction and efficiency savings
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4.2 Service improvement & added value
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4.3 Meeting e-Government targets
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5. What is the scale of benefits for my authority?
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6. What level of investment is likely to be required?
11
7. The CRM National Project can help delivery of CRM
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8. What drives success?
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9. Key Risks
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10. How does CRM fit in with the other National Projects?
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11. Where can I get further information?
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Appendix 1: Detailed CRM Benefits and Metrics
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Appendix 2: Detailed CRM National Project Product Listing
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Capgemini was commissioned to quantify the benefits of six National Projects. Their findings are based on the experiences of the local authorities engaged in implementing these solutions, providing a sample for analysis from which reasoned conclusions have been drawn and validated with local authorities and their suppliers. See .uk/benefits
The Benefits of CRM
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1. Introduction to this Guide
Over half of English local authorities have already implemented or are planning to implement CRM demonstrating that CRM is high on the agenda of many local authorities. The primary driver for a CRM implementation tends to be not efficiency savings but improvement in customer service. However, when accompanied by cultural and process changes, CRM delivers both improved customer service and transactional efficiency savings. Early indications from implementing authorities suggest that, at a national level, some ?100m of transaction savings are on offer. In addition, and depending on how and where CRM is implemented, ?195-650m of added-value benefits can be derived.
This guide is one of a series describing the benefits of the e-Government National Projects programme funded by the Office of the Deputy Prime Minister. The guides are aimed primarily at local authority staff needing a succinct summary of what each of the projects is about and what benefits local authorities can expect to gain from implementing different aspects of local eGovernment.
This initial report sets out how to identify the potential benefits from CRM and how to go about extracting the benefits that CRM solutions offer. Further data on benefits, reflecting the findings of continuing in-depth studies with a range of local authorities by the CRM National Project, will be released in winter 2004/2005.
CRM can form a central backbone to an authority's service improvement drive. It is only one of a portfolio of national eGovernment solutions supported by ODPM projects. Figure 1 shows the entire programme of National Projects. Authorities are recommended to assess which other projects may add further value to them, and access the appropriate collateral.
Figure 1: Local e-Government National Projects
The ODPM e-Government National Projects Portfolio
Information and Knowledge
e- Trading
KM
Standards
Sharing
e-Standards Body
FAME
RYOGENS
Valuebill
Customer and Channels
ee--BBeenneefiftists
e-Citizen
Digi-t v
CRM
LAWs
NOMAD
Smartcards
Working With Business
Process and Content
e- Democracy
e- Fire
Encore
e-Pay
e-Procurement
PARSOL Schools Admissions
Workflow
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2. What is CRM?
CRM stands for Customer Relationship Management. The customer, in this case, can be a citizen, business representative, intermediary or partner. CRM is the discipline of improving the way customers are managed through changes in business processes, people, organisation and technology.
The key drivers for a CRM programme within the public sector tend to be the improvement of services to citizens, together with some real expectation of improving the efficiency and the effectiveness of the organisation. Other drivers could be to focus limited resources on those in most need or to maximise revenue from customer facing activities.
Improvements in customer service from CRM can range from a more rapid and focused response to High Peak District Council
enquiries through to proactive contacts with High Peak implemented CRM to improve
customers to anticipate and manage potential issues. CRM is a key enabler for customers wishing to access local government services, improving the efficiency of traditional channels i.e.
access to customers, provide more consistent service and ensure value-for-money within the front office. The implementation benefited from strong senior management sponsorship. Based on findings from citizens' panels, the initial
phone, face to face, and mail and providing focus was on a call centre, including merging of
innovative channels such as Internet, SMS and DigiTV.
switchboards. The scope of the services covered by CRM has been increased in a stepped fashion over the last two years to 400
service request processes, at each stage
The central component of a CRM solution is carrying out a review to see how the efficiency
generally the creation of a single shared customer database ? allowing information to be collected once but used many times. The sharing of this customer data across the authority, in conjunction
of the processes can be improved. Services assimilated include Environmental Health, Council Tax and Housing Benefits. Opening hours have been extended without taking on additional staff. Integration to back office
with the functional tools provided by a CRM systems is being achieved for Environmental
solution, allows the authority to make gains in both Services with associated process savings, and efficiency and effectiveness e.g. by improving the further services are being actively considered.
ability of front line staff to resolve issues at first Key Lesson: Implement CRM incrementally
contact or dealing automatically with enquiries that
originate over the web. CRM is often seen as consisting of a number of layers, connecting customers
through to front and back office and possibly third parties as shown in the diagram below:
Figure 2: Understanding the Components of CRM
CRM Overview
Channels
Fax
White Mail
Fax
Telephone SMS In person Email
Consistent service
CRM FAX
Front Office
Workstation
Contact Centre (CC)
CRM
Workstation
One-Stop-Shop/Service Pt
Integration
Web
Other
future channels
Self -Help: On-line
Back Office
Workstation
Office -Based
Field- Based
PDA Laptop
Third Parties
(examples)
Government Contractors Agencies
Police
Consultees/ Experts
External Agencies
The Benefits of CRM
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CRM projects can vary considerably in their scale and scope. A simple CRM implementation may encompass a single Contact Centre or website supported by standardised forms and documentation, with no integration to back office systems. A more complex implementation can include a common customer database, a content management tool (to ensure consistent information is published through all channels), provision of new communications channels (PDAs, kiosks or even Digital TV), a document management system (to improve the speed and accuracy of handling of paper applications) and integration with, and redesign of, back office processes and systems.
The CRM National Project has identified two common strategies for implementing CRM in local authorities ? wide and shallow, offering a broad range of services to customers through a single point of contact, with (initially) little backoffice integration, and narrow and deep, offering a selected number of services but with full backoffice integration.
CRM has been implemented through partnerships with other local authorities, with private companies and with other public bodies. There are several examples of county councils and district councils working together to provide a single point of contact for citizens for all council issues.
Surrey County Council
An important milestone in Surrey's gradual journey towards maturity of its customer service initiative was the development of a contact centre. The Customer First team and frontline services jointly identified the appropriate role for the contact centre, ensuring that the customer facing processes were working well and assessed the costs and benefits associated with the service. The Customer First approach has been `low tech', a pragmatic decision having been made to invest in people rather than spend on technology. All cycle times have been reduced by at least half. Improvements include a reduction in time from asking for a Blue Badge to receiving it from 27 days to 1. 80% of queries are now resolved on first contact and satisfaction level of customers is about 96%.
Key Lesson: Invest in People not just Technology
West Sussex Accessible Services Partnership
CRM is being introduced by West Sussex County Council in partnership with seven borough and district councils. A goal is to support a single view of customers across different authorities, through the creation of a single logical database. There will be shared one-stop-shops (branded as Help Points). In addition the CRM system will support a call centre for West Sussex County Council, providing the opportunity for a shared telephone contact centre if there was agreement to do this at a later date.
Key Lesson: Think partnership potential
3. What is the CRM National Project?
The CRM National Project was set up to bring clarity to the role of CRM within local authorities and to provide practical guidance. The CRM National Project has developed a portfolio of models, frameworks and standards to assist local authorities in implementing CRM. These include:
? Guidelines for authorities through the entire transformational phase from developing the vision "by changing what we think about services" to implementation and integration of a CRM system.
? Business case models for estimating the benefits of the CRM.
? Guidance on data sharing, IT integration, system specifications and user requirements (since CRM is underpinned by data sharing).
? Legal compliance standards for ensuring that authorities comply with the relevant laws.
The Benefits of CRM
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