Abstract
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
Table of Contents
- Overview
- Catalyst
- Summary
- Key Messages
- A convergence of trends has made government an appealingmarket for CRM vendors
- Governments face a number of challenges when implementingCRM solutions
- CRM is being adopted regardless of region, agency type, orlevel of government
- CRM allows governments to enhance and personalize servicedelivery for constituents
- Operational efficiency and decision-making abilities aresignificantly improved using CRM
- CRM is a strategy which involves a combination of people,processes and technology
- Table of Contents
- Table of figures
- Table of tables
- MARKET OPPORTUNITY: CRM IN GOVERNMENT
- A convergence of trends has made government an appealingmarket for CRM
vendors
- Governments are faced with resource challenges and theneed to ' do more with less'
- The private sector has raised the bar for citizens' expectations of what constitutes ' good customer service'
- Governments around the world have implemented customerservice and eGovernment initiatives
- Governments face a number of challenges when implementingCRM solutions
- Governments are often reluctant to make large capitalinvestments in CRM solutions
- Institutional regulations and the culture of governmentmay inhibit CRM
implementation
- Government' s structure and culture present challenges tosuccessful CRM implementation
- Privacy concerns and legislation prevent the completesharing of information across government agencies
- CRM is being adopted regardless of region, agency type orlevel of
government
- Government will be a key market for CRM, as agencies play' catch-up' with the private sector
- In the US, the government market for CRM is poised forsteady growth in the coming years
- Growth in the European CRM market will be particularlystrong across all levels of government
- Complex deployments and more hosted solutions willcontinue to drive the market for IT services in CRM
- A convergence of trends has made government an appealingmarket for CRM
vendors
- CUSTOMER IMPACT: REDEFINING THE BUSINESS OF GOVERNMENTWITH CRM
- CRM allows governments to enhance and personalize servicedelivery for
constituents
- CRM is being used to support government contact centerssuch as 311 initiatives
- Web-based self-service are supported by CRM solutions
- Effective CRM solutions incorporate multichannel accessfor an increasingly mobile population
- Traditional CRM functions have unique uses in government
- Governments use CRM' s service function to facilitate theprovision of information to constituents
- The sales function of CRM is used primarily byrevenue-generating agencies
- CRM marketing functions allow governments to informconstituents of relevant services and events
- Operational efficiency and decision-making abilities aresignificantly
improved using CRM
- Automated workflows significantly improve work ordermanagement and accountability
- CRM plays an important role for agencies with a strongcase management component
- CRM significantly enhances interagency cooperation
- Analytics functions serve as an integral tool to evaluateresource allocation and performance measurement
- Governments have unique technical requirements whenimplementing a CRM
solution
- CRM solutions must have a robust, searchable knowledgebase of government information
- Intelligent scripting is a key function which cansignificantly enhance operational efficiency
- Integration and interoperability with other enterprisesystems is an important factor to CRM
- CRM solutions for government must be highly configurableand scalable
- Hosted solutions deliver a lower total cost of ownership,but entail a trade-off in terms of control
- CRM allows governments to enhance and personalize servicedelivery for
constituents
- COMPETITIVE LANDSCAPE: GOVERNMENT CRM VENDORS
- Large software vendors offer CRM as part of a completebusiness suite for government
- Horizontal vendors with CRM expertise offer robustsolutions for government agencies
- Telecom companies serve as important players in governmentCRM deployments
- GO TO MARKET: SELLING CRM TO GOVERNMENTS
- CRM is a strategy which involves a combination of people,processes and technology
- Hosted solutions will see increased growth, as concernsabout security diminish
- The demand for sophisticated analytics will remain a keyconsideration for governments
- Recommendations
- Vendors must demonstrate the wide variety of businessprocesses that CRM can support
- Successful vendors will identify common needs acrosssimilar agencies and levels of government
- A successful CRM implementation requires executiveleadership to champion the process
- Vendors should position their solutions as having tangibleand measurable benefits for governments
- APPENDIX
- Definitions
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: Total CRM spending in US by level ofgovernment, 2008-2013 ($ Millions)
- Table 2: Total CRM spending in Germany by level ofgovernment, 2008-2013 ($ Millions)
- Table 3: Total CRM spending in UK by level ofgovernment, 2008-2013 ($ Millions)
- Table 4: Total CRM spending in France by level ofgovernment, 2008-2013 ($ Millions)
- Table 5: Total US CRM spending by technology segment,2008-2013 ($ Millions)
- Table 6: Total European CRM spending by technologysegment, 2008-2013 ($ Millions)
- Table 7: Citizens with a great deal or fair amount oftrust in government (US)
- List of Figures
- Figure 1: Governments cite efficiency as the mostimportant reason to invest in IT
- Figure 2: Constituent demands for better service aredriving governments to adopt CRM
- Figure 3: Total CRM spending in US by level ofgovernment, 2008-2013 ($ Millions)
- Figure 4: Total CRM spending in Germany by level ofgovernment, 2008-2013 ($ Millions)
- Figure 5: Total CRM spending in UK by level ofgovernment, 2008-2013 ($ Millions)
- Figure 6: Total CRM spending in France by level ofgovernment, 2008-2013 ($ Millions)
- Figure 7: Total US CRM Spending by technology segment,2008-2013 ($ Millions)
- Figure 8: Total European CRM Spending by technologysegment, 2008-2013 ($ Millions)
- Figure 9: Supporting a contact center is the mostimportant use for government CRM
- Figure 10: CRM allows governments to meet its goal ofimproving stakeholder satisfaction
- Figure 11: Government performance targets are a higherpriority for North American agencies
- Figure 12: CAGR for on-demand CRM by vertical industry,2007-2012
- Figure 13: Agencies consider a wide variety ofstakeholders as their constituents
