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CRM and the Move to Constituent-Centric Government (Strategic Focus) - As governments look for ways to provide more personalized service, CRM offers opportunities to align services more closely to constituents' needs.
Product Code: dmtc2179
Publication Date: 06-Jun-2008
Overview
Introduction
As governments look for ways to provide more personalized public services, they are increasingly looking to Constituent Relationship Management (CRM) to align service delivery with constituent needs.
Scope
· Analysis of market drivers and inhibitors for CRM in government
· Overview of the of the impact on the customer and uses of CRM in government
· Categorization the competitive landscape of CRM vendors
· Recommendations for vendors and governments evaluating CRM solutions
Highlights
In today's commercially-oriented world, it has become a trend among public agencies to treat constituents as customers who expect top levels of service. As a result, governments have begun to implement Constituent Relationship Management (CRM) solutions in an effort to make public services more personal and proactive.
With constituents demanding new and better services from government, CRM has become widely accepted in the public sector, and is used in a number of ways to improve a variety of business process.
A key aspect to remember is that in the end, CRM is a strategy first and a technology second; no matter how much an agency rolls out the technology, without a citizen-centric approach, it is unlikely to reap any benefit from implementing a CRM solution.
Reasons to Purchase
· Understand the market forces affecting the adoption of CRM in government
· Gain insight into what features and functionality governments look for in a CRM solution
· View market size and growth for CRM over the next 5 years
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Overview |
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Catalyst |
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Summary |
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Key Messages |
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A convergence of trends has made government an appealing market for CRM vendors |
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Governments face a number of challenges when implementing CRM solutions |
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CRM is being adopted regardless of region, agency type, or level of government |
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CRM allows governments to enhance and personalize service delivery for constituents |
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Operational efficiency and decision-making abilities are significantly improved using CRM |
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CRM is a strategy which involves a combination of people, processes and technology |
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Table of Contents |
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Table of figures |
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Table of tables |
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MARKET OPPORTUNITY: CRM IN GOVERNMENT |
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A convergence of trends has made government an appealing market for CRM vendors |
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Governments are faced with resource challenges and the need to 'do more with less' |
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The private sector has raised the bar for citizens' expectations of what constitutes 'good customer service' |
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Governments around the world have implemented customer service and eGovernment initiatives |
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Governments face a number of challenges when implementing CRM solutions |
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Governments are often reluctant to make large capital investments in CRM solutions |
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Institutional regulations and the culture of government may inhibit CRM implementation |
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Government's structure and culture present challenges to successful CRM implementation |
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Privacy concerns and legislation prevent the complete sharing of information across government agencies |
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CRM is being adopted regardless of region, agency type or level of government |
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Government will be a key market for CRM, as agencies play 'catch-up' with the private sector |
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In the US, the government market for CRM is poised for steady growth in the coming years |
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Growth in the European CRM market will be particularly strong across all levels of government |
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Complex deployments and more hosted solutions will continue to drive the market for IT services in CRM |
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CUSTOMER IMPACT: REDEFINING THE BUSINESS OF GOVERNMENT WITH CRM |
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CRM allows governments to enhance and personalize service delivery for constituents |
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CRM is being used to support government contact centers such as 311 initiatives |
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Web-based self-service are supported by CRM solutions |
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Effective CRM solutions incorporate multichannel access for an increasingly mobile population |
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Traditional CRM functions have unique uses in government |
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Governments use CRM's service function to facilitate the provision of information to constituents |
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The sales function of CRM is used primarily by revenue-generating agencies |
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CRM marketing functions allow governments to inform constituents of relevant services and events |
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Operational efficiency and decision-making abilities are significantly improved using CRM |
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Automated workflows significantly improve work order management and accountability |
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CRM plays an important role for agencies with a strong case management component |
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CRM significantly enhances interagency cooperation |
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Analytics functions serve as an integral tool to evaluate resource allocation and performance measurement |
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Governments have unique technical requirements when implementing a CRM solution |
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CRM solutions must have a robust, searchable knowledge base of government information |
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Intelligent scripting is a key function which can significantly enhance operational efficiency |
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Integration and interoperability with other enterprise systems is an important factor to CRM |
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CRM solutions for government must be highly configurable and scalable |
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Hosted solutions deliver a lower total cost of ownership, but entail a trade-off in terms of control |
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COMPETITIVE LANDSCAPE: GOVERNMENT CRM VENDORS |
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Large software vendors offer CRM as part of a complete business suite for government |
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Horizontal vendors with CRM expertise offer robust solutions for government agencies |
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Telecom companies serve as important players in government CRM deployments |
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GO TO MARKET: SELLING CRM TO GOVERNMENTS |
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CRM is a strategy which involves a combination of people, processes and technology |
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Hosted solutions will see increased growth, as concerns about security diminish |
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The demand for sophisticated analytics will remain a key consideration for governments |
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Recommendations |
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Vendors must demonstrate the wide variety of business processes that CRM can support |
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Successful vendors will identify common needs across similar agencies and levels of government |
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A successful CRM implementation requires executive leadership to champion the process |
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Vendors should position their solutions as having tangible and measurable benefits for governments |
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APPENDIX |
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Definitions |
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Methodology |
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Further reading |
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Ask the analyst |
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Datamonitor consulting |
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Disclaimer |
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List of Tables |
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Table 1: Total CRM spending in US by level of government, 2008-2013 ($ Millions) |
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Table 2: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions) |
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Table 3: Total CRM spending in UK by level of government, 2008-2013 ($ Millions) |
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Table 4: Total CRM spending in France by level of government, 2008-2013 ($ Millions) |
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Table 5: Total US CRM spending by technology segment, 2008-2013 ($ Millions) |
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Table 6: Total European CRM spending by technology segment, 2008-2013 ($ Millions) |
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Table 7: Citizens with a great deal or fair amount of trust in government (US) |
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List of Figures |
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Figure 1: Governments cite efficiency as the most important reason to invest in IT |
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Figure 2: Constituent demands for better service are driving governments to adopt CRM |
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Figure 3: Total CRM spending in US by level of government, 2008-2013 ($ Millions) |
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Figure 4: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions) |
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Figure 5: Total CRM spending in UK by level of government, 2008-2013 ($ Millions) |
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Figure 6: Total CRM spending in France by level of government, 2008-2013 ($ Millions) |
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Figure 7: Total US CRM Spending by technology segment, 2008-2013 ($ Millions) |
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Figure 8: Total European CRM Spending by technology segment, 2008-2013 ($ Millions) |
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Figure 9: Supporting a contact center is the most important use for government CRM |
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Figure 10: CRM allows governments to meet its goal of improving stakeholder satisfaction |
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Figure 11: Government performance targets are a higher priority for North American agencies |
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Figure 12: CAGR for on-demand CRM by vertical industry, 2007-2012 |
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Figure 13: Agencies consider a wide variety of stakeholders as their constituents |
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