CRM and the Move to Constituent-Centric Government (Strategic Focus)

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.

Report 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.
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Overview 1
Catalyst 1
Summary 1
Key Messages 2
A convergence of trends has made government an appealing market for CRM vendors 2
Governments face a number of challenges when implementing CRM solutions 2
CRM is being adopted regardless of region, agency type, or level of government 2
CRM allows governments to enhance and personalize service delivery for constituents 2
Operational efficiency and decision-making abilities are significantly improved using CRM 2
CRM is a strategy which involves a combination of people, processes and technology 2
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Table of figures 4
Table of tables 4
MARKET OPPORTUNITY: CRM IN GOVERNMENT 5
A convergence of trends has made government an appealing market for CRM vendors 5
Governments are faced with resource challenges and the need to 'do more with less' 5
The private sector has raised the bar for citizens' expectations of what constitutes 'good customer service' 6
Governments around the world have implemented customer service and eGovernment initiatives 7
Governments face a number of challenges when implementing CRM solutions 8
Governments are often reluctant to make large capital investments in CRM solutions 8
Institutional regulations and the culture of government may inhibit CRM implementation 8
Government's structure and culture present challenges to successful CRM implementation 9
Privacy concerns and legislation prevent the complete sharing of information across government agencies 9
CRM is being adopted regardless of region, agency type or level of government 9
Government will be a key market for CRM, as agencies play 'catch-up' with the private sector 10
In the US, the government market for CRM is poised for steady growth in the coming years 10
Growth in the European CRM market will be particularly strong across all levels of government 11
Complex deployments and more hosted solutions will continue to drive the market for IT services in CRM 14
CUSTOMER IMPACT: REDEFINING THE BUSINESS OF GOVERNMENT WITH CRM 17
CRM allows governments to enhance and personalize service delivery for constituents 17
CRM is being used to support government contact centers such as 311 initiatives 17
Web-based self-service are supported by CRM solutions 18
Effective CRM solutions incorporate multichannel access for an increasingly mobile population 19
Traditional CRM functions have unique uses in government 19
Governments use CRM's service function to facilitate the provision of information to constituents 20
The sales function of CRM is used primarily by revenue-generating agencies 20
CRM marketing functions allow governments to inform constituents of relevant services and events 20
Operational efficiency and decision-making abilities are significantly improved using CRM 20
Automated workflows significantly improve work order management and accountability 21
CRM plays an important role for agencies with a strong case management component 22
CRM significantly enhances interagency cooperation 22
Analytics functions serve as an integral tool to evaluate resource allocation and performance measurement 23
Governments have unique technical requirements when implementing a CRM solution 24
CRM solutions must have a robust, searchable knowledge base of government information 24
Intelligent scripting is a key function which can significantly enhance operational efficiency 25
Integration and interoperability with other enterprise systems is an important factor to CRM 25
CRM solutions for government must be highly configurable and scalable 26
Hosted solutions deliver a lower total cost of ownership, but entail a trade-off in terms of control 26
COMPETITIVE LANDSCAPE: GOVERNMENT CRM VENDORS 28
Large software vendors offer CRM as part of a complete business suite for government 28
Horizontal vendors with CRM expertise offer robust solutions for government agencies 29
Telecom companies serve as important players in government CRM deployments 29
GO TO MARKET: SELLING CRM TO GOVERNMENTS 30
CRM is a strategy which involves a combination of people, processes and technology 30
Hosted solutions will see increased growth, as concerns about security diminish 30
The demand for sophisticated analytics will remain a key consideration for governments 30
Recommendations 31
Vendors must demonstrate the wide variety of business processes that CRM can support 31
Successful vendors will identify common needs across similar agencies and levels of government 32
A successful CRM implementation requires executive leadership to champion the process 32
Vendors should position their solutions as having tangible and measurable benefits for governments 33
APPENDIX 34
Definitions 34
Methodology 35
Further reading 35
Ask the analyst 36
Datamonitor consulting 36
Disclaimer 36
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Table 1: Total CRM spending in US by level of government, 2008-2013 ($ Millions) 11
Table 2: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions) 12
Table 3: Total CRM spending in UK by level of government, 2008-2013 ($ Millions) 13
Table 4: Total CRM spending in France by level of government, 2008-2013 ($ Millions) 14
Table 5: Total US CRM spending by technology segment, 2008-2013 ($ Millions) 15
Table 6: Total European CRM spending by technology segment, 2008-2013 ($ Millions) 16
Table 7: Citizens with a great deal or fair amount of trust in government (US) 21
Figure 1: Governments cite efficiency as the most important reason to invest in IT 6
Figure 2: Constituent demands for better service are driving governments to adopt CRM 7
Figure 3: Total CRM spending in US by level of government, 2008-2013 ($ Millions) 11
Figure 4: Total CRM spending in Germany by level of government, 2008-2013 ($ Millions) 12
Figure 5: Total CRM spending in UK by level of government, 2008-2013 ($ Millions) 13
Figure 6: Total CRM spending in France by level of government, 2008-2013 ($ Millions) 14
Figure 7: Total US CRM Spending by technology segment, 2008-2013 ($ Millions) 15
Figure 8: Total European CRM Spending by technology segment, 2008-2013 ($ Millions) 16
Figure 9: Supporting a contact center is the most important use for government CRM 18
Figure 10: CRM allows governments to meet its goal of improving stakeholder satisfaction 22
Figure 11: Government performance targets are a higher priority for North American agencies 24
Figure 12: CAGR for on-demand CRM by vertical industry, 2007-2012 27
Figure 13: Agencies consider a wide variety of stakeholders as their constituents 32
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