Constituent Relationship Management Systems: A Primer for Public Managers.

• Author: Kavanagh, Shayne

The author would like to thank the following individuals for their assistance with this article: JOSE GARCIA, Public Sector Vice President, Oracle Corp; CARI PEABODY, CRM-Solutions Specialist, Oracle Corp.; KENNETH MUNSON, Director, Public Sector Industry Strategy, PeopleSoft; BEVERLY GIDSON, General Manager of Siebel ePublic Sector; CHRISTINE VIERA, Manager, Industry Solutions, Siebel Public Sector.

This article focuses on Constituent Relationship Management (CRM) technology for public sector. It is based on interviews wtih leading vendors in the CRM field.

Constituent Relationship Management, (CRM, also known as Customer Relationship Management) is a class of software designed to provide governments with the ability to manage their constituent relationships consistently, effectively, and through a variety of channels. As with most technologies, CRM traces its genesis to the private sector where it was designed to both streamline interactions with the less frequent, lower-volume customers and realize even greater revenues from core customers. This technology is now being adapted to the public sector by leading ERP (Enterprise Resource Planning) and best-of-breed vendors.

The Makings of a CRM System

The first concept critical to an understanding of a CRM system is the underlying model. Basically, constituents are able to contact the government via a variety of channels, contact information is logged and analyzed and an effective response is generated. The CRM system is integrated with back-office systems so that the information recorded through the CRM system can be integrated into other business processes. For instance, an individual might contact the government with an inquiry regarding a position opening. This information could interact with human resources (HR) systems to log potential applicants, gauge effective mediums for advertising, and determine commonly asked questions. This model is illustrated in Exhibit 1.

As Exhibit 1 demonstrates, constituents can contact the government via a variety of means, or channels. This information is recorded and analyzed. This analysis is not limited to post-contact analysis, but can provide the government's agents with current information on the constituent and the constituent's prior contacts with the government as the current contact is in progress.

Features of Typical CRM Systems

CRM systems contain the following basic features or applications. These applications and features may be developed to differing degrees among the different CRM vendors.

Internet Integration. CRM takes government use of the Internet beyond simple broadcasting of information or even routine interactions and transactions. CRM attempts to integrate the Internet with the government's key business processes to make the Internet a totally viable means for the constituent to transact all business.

* Full Service. The CRM system receives incoming e-mail and directs it accordingly. Also, the system keeps constituents informed of developments with their request. CRM systems are increasingly making use of Internet portals: Internet interfaces where the government's Web site is effectively customized to meet the constituent's specific needs.

* Campaign Management and Outreach. The system can take a more proactive approach to informing constituents of relevant information via customized Web or e-mail communications. This also could be effective for fundraising campaigns.

* Transactions. CRM systems promise to integrate on-line purchases with back-office functions. This, coupled with the self-service aspect of CRM (the constituent manages their own account) helps to streamline government e-business significantly. Fee-for-service programs that are faced with some degree of substitutability from private-sector goods, such as recreational programs, can especially benefit from CRM through more effective signing-up of participants and tracking of preferences.

Call Center. CRM provides a centralized collection point for all constituent contacts that occur, providing accurate, timely, and consistent service.

* Multiple Channels of Interaction. Citizens can contact the government through a variety of means including phone, Web/email, field personnel, and walk-ins.

* Knowledge Base. A central repository of information needed to resolve constituent contacts is kept by the system, allowing government representatives to answer a wide variety of questions in an expedient and accurate manner.

* Case Management. Government representatives are kept informed of prior contacts with the constituent, outstanding issues, accounts, and other relevant information, all live during...