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The Fundamental Principles of Official Statistics – Basis for High Quality services

Building Relationships with Users as a Strategic Concept Experience from two NSOs: Albania and Finland. Presentation at the High-Level Forum on Strategic Planning in Statistics for Central Asian countries in Bishkek, Kyrgyzstan 17-19.5.2006

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The Fundamental Principles of Official Statistics – Basis for High Quality services

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  1. Building Relationships with Users as a Strategic ConceptExperience from two NSOs: Albania and Finland Presentation at the High-Level Forum on Strategic Planning in Statistics for Central Asian countries in Bishkek, Kyrgyzstan 17-19.5.2006 Petteri Baer, Regional Adviser, UNECESession 3, 18.5.2006

  2. The Fundamental Principles of Official Statistics – Basis for High Quality services • Principle 1: • Relevance • Impartiality • Obligation to Disseminate • Principle 2: Professional Independence • Principle 3: Transparency • Principle 4: Right to React • Principle 5: Data Collection Petteri Baer, UNECE Statistical Division

  3. The Fundamental Principles of Official Statistics – Basis for High Quality services • Principle 6: Statistical Confidentiality • Principle 7: Laws and Rules about Official Statistics • Principle 8: Co-ordination of National System • Principle 9: Use of International Standards • Principle 10: Participation in International Statistical Cooperation Petteri Baer, UNECE Statistical Division

  4. The benefits of providing both non-chargeable basic services and chargeable surplus services • Provide besides the non-chargeable basic services interesting, useful and attractive services that a growing number of customers willingly will make use of the chargeable surplus services • In this way both financial compensation for developed services and contact information about the paying customers and their need structures will be accumulated just as a normal part of delivery and invoicing practices Petteri Baer, UNECE Statistical Division

  5. Customer structure of Statistics Finland* Incomes from chargeable services in 2004 Petteri Baer, UNECE Statistical Division

  6. EUR 1,000 3,235 Special compilations 1,604 Publications 1,558 Interview surveys 1,192 Electronic products and services 546 Register services 39 Diskette products 194 Other income 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Services subject to charge in Statistics FinlandSales by product group in 2004 Petteri Baer, UNECE Statistical Division

  7. Dissemination of statistical information on the internet provides new service possibilities • Electronic information services, for instance press releases, can be delivered to potential customers’ e-mail as bonus services. In order to receive these services the customer will gladly inform the NSO about the delivery address, spheres of her/his interest etc. • And again - the NSO will receive detailed contact information for improving its services - just as a normal part of the delivery processes Petteri Baer, UNECE Statistical Division

  8. Developments in INSTAT under the influence of a Development project in 2004-2005 (1) • In the beginning of the project • Distribution of 300 copies of all INSTAT’s publications free of charge • Mainly to the public administration • User persons not identified • Annual Calendar of publication dates • Web site, ~ 1 500 monthly visitors • Some customers receive info by e-mail • A Service Guide and one service person • No Customer Database • The Law on Official Statistics provides possibilities to disseminate both on a chargeable and a non-chargeable basis Petteri Baer, UNECE Statistical Division

  9. Developments in INSTAT under the influence of the Development project in 2004-2005 (2) • In Autumn 2004 • A person to be in charge of dissemination questions nominated • A questionnaire made on • customer satisfaction and • identification of customer persons • Campaign materials for first chargeable dissemination campaign (“Albania in Figures” 2004) prepared • First discussions on • putting up a Customer Database and • INSTAT’s participation in trade fairs gain speed... Petteri Baer, UNECE Statistical Division

  10. The information market: Rapid growth • The information market is one of the sectors usually showing rapid and almost continuous growth figures in the last 20 years • Summer 2002: more than 200 000 internet hosts in the world • The information market is a sector of great possibilities • What is our response to these new structures of our environment? Petteri Baer, UNECE Statistical Division

  11. We can notice... • …a strong growth in the turnover of commercial dealers, brokers and consulting corporations in the information businesswhereas • National Statistical Institutes often find themselves in administrative clashes concerning cuts of budget funding Petteri Baer, UNECE Statistical Division

  12. In Statistics Finland an understanding of the need for Customer Relationship Management (CRM) emerged already in the mid 1990’ies • Both old and new challenges emphasised the need and importance of CRM • CRM not only as a technical tool… BUT • as a sophisticated system of CRM where customers and potential customers can be dealt with according to • their own customer behaviour • the NSO’s definition of customer levels and policies • the self expressed wishes of the customers Petteri Baer, UNECE Statistical Division

  13. Developments in INSTAT under the influence of the Development project in 2004-2005 (3) • Creation of an MS Access -based Customer Database begins • First Customer Satisfaction survey made, 53 replies received, analysed • A Working group on Marketing questions established • The Working group produces a detailed plan for dissemination activities in 2006-2007 • The use of the Business Register as a source of potential customers begins Petteri Baer, UNECE Statistical Division

  14. Developments in INSTAT under the influence of the Development project in 2004-2005 (4) • The need to disseminate statistical information is now clearly understood by the dissemination staff but perhaps not yet so much by other staff members • The need for internal training in 2006! • First orders on “Albania in Figures” received • based on a campaign to 375 enterprises • 75 orders from 30 enterprises obtained • Systematic use of the newly created Customer Database gives a good base for reports on dissemination activities Petteri Baer, UNECE Statistical Division

  15. Why segment customers?Shouldn’t we serve everybody equally? (1) • Different customer segments have different need structures of statistical information. • Everybody benefits from developing the services and the service ability according to these need structures! • Media • Government bodies • Local administration bodies • Corporations and enterprises • Research institutions • Educational institutions • NGOs • Others Petteri Baer, UNECE Statistical Division

  16. Why segment customers?Shouldn’t we serve everybody equally? (2) • Let’s develop a dialogue on need structures and service form wishes,first with a limited number of pilot customers • Be proactive • Visit different customer organisations • Invite them for discussions and presentations • Establish focus groups • Make deep interviews • Develop new service concepts according to what you find out • Listen, Listen and Listen • Let’s make improvements in our interaction skills and corporate / institutional service culture! Petteri Baer, UNECE Statistical Division

  17. Dialogue with customer and analysisof customer behaviour Growth of customer loyalty More information about and consolidation of the present and forthcoming customer relationship needs of the customer Willingness of both parties ALEARNING CUSTOMER RELATIONSHIP to invest both time and money More efficient marketing and money in building the and service profile to customer customer relationship 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 Petteri Baer, UNECE Statistical Division

  18. From product marketingto marketing activities based oncustomer interaction plans Customer’s needs Key and Partnership Customers Customerinteraction plan Service providing andcustomer information Customer analysis Statistics Finland The NSO’s possibilities and goal settings Petteri Baer, UNECE Statistical Division

  19. Developments in INSTAT under the influence of the Development project in 2004-2005 (5) • 11 Customer groups identified in the Marketing and Dissemination Strategy of INSTAT • Big enterprises • Small and medium enterprises • Banks and insurance companies • Foreign companies (abroad) • Chambers of commerce and other business oriented organisations • Media • Educational institutions • Research institutions • Non-governmental organisations (NGOs) • Regional agencies, Municipalities, Local agencies • State (Public Administration), Ministries, Central Institutions Petteri Baer, UNECE Statistical Division

  20. Developments in INSTAT under the influence of the Development project in 2004-2005 (6) • Tasks to be done in 2006-2007, mentioned in the Marketing and Dissemination Strategy • INSTAT will organise special customer responsibility groups • One customer responsibility group for every segment of customers listed above • Customer days for different groups in the course of 2006-2007 • Development of service concepts for different groups Petteri Baer, UNECE Statistical Division

  21. Systematic customer contact building has given good results in Statistics Finland • More than 100 000 individual internet users monthly • 15 000 principal customers, 24 400 customers, 29 000 contact persons accumulated in the Customer Database • 1% customers bring 60% of the income • ~ 50 customers have been nominated in 2004 to be strategicor 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 Petteri Baer, UNECE Statistical Division

  22. Through the chargeable services Statistics Finland has a broad contact network • The Customer Database Applix contains • 15 000 principal customers • 24 400 customers • 29 000 customer persons • On all these there is • contact information • purchase history information • segmentation information Petteri Baer, UNECE Statistical Division

  23. Customer Database Functions Information providers Information users Customerservice Customers Developmentprojects Customerintelligence Contactintelligence Lead intelligence Mana-gement Customer database Campaignintelligence Product development Informationretrievals Project intelligence Quoteintelligence Adminis-tration Marketing Project groups Sales Petteri Baer, UNECE Statistical Division

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

  25. Customer-oriented services and products by means of CRM • The goal of CRM (Customer Relations Management) is to: • Understand the needs of different user groups • Segment customers into groups with similar need structures • 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 Petteri Baer, UNECE Statistical Division

  26. 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 Main steps in organising CRM-work ...to organise customer segment teams and nominate the people in charge of relations with customers Petteri Baer, UNECE Statistical Division

  27. How to find out customers’ needs? • Previous purchases of statistical information • Focus groups • Personal contacts (seminars, visits etc.) • Interviews • Comparing similar customers • Business Intelligence • Media • Annual reports of customers • ==> Learning to understand core ideas of the value production of customers and the needs of statisticalinformation connected with it Petteri Baer, UNECE Statistical Division

  28. Developments in INSTAT under the influence of the Development project in 2004-2005 (7) • The Marketing and Dissemination Strategy identifies the main beneficiaries of INSTAT’s developing activities (1) • The general public - better knowledge of the developments in society and of information sources • The different identified customer groups - better opportunities to fin statistical information • The public administration - better basis for planning activities and decision making, better efficiency in the use of resources • The business sector - up-to-date and reliable information • The international community - better access to information on Albania Petteri Baer, UNECE Statistical Division

  29. Developments in INSTAT under the influence of the Development project in 2004-2005 (8) • The Marketing and Dissemination Strategy identifies the main beneficiaries of INSTAT’s developing activities (2) • …and last but not least • INSTAT itself • enhanced publicity • enhanced confidence in statistics • enhanced importance in the Albanian society • better understanding of respondents • better ability to develop the quality of the statistical information it provides Petteri Baer, UNECE Statistical Division

  30. As the world is going more and more electronic -Build up and participate in information portals! • It may be wise for NSOs to establish different internet portals for different main categories of users of statistical information • And also to participate with a reasonably differentiated contents structure in professional portals established by other organisations than ourselves • Too often we are content with just a simple link to our general homepage! Petteri Baer, UNECE Statistical Division

  31. Conclusion • You cannot learn to swim if you don’t go into the water! • Thank you for your attention! • petteri.baer@unece.org Petteri Baer, UNECE Statistical Division

  32. Notes and comments Petteri Baer, UNECE Statistical Division

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