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Local government blazes the trail in public sector CRM

Eugene Lacey ZDNet.co.uk

Published: 10 May 2002 11:32 BST

Several local authorities have installed CRM systems recently and are already achieving higher satisfaction ratings with council services as a result.

Epsom and Ewell implemented a CRM system in ten weeks and is already achieving its target of dealing with 80% of council enquiries in the first call to the call centre.

Two London authorities, Tower Hamlets and Haringey, have standardised on Siebel eGoverment Applications. In the East End and Canary Wharf, Tower Hamlets is using CRM to build one comprehensive source of user information.

This will "enable Tower Hamlets Council to maintain seamless, high quality communications with each and every citizen." said Eric Bohl, Tower Hamlets director of customer services.

Many of the challenges local authorities face with CRM are similar to business -- in terms of getting business processes to chime harmoniously with CRM systems. Haringey's director of support services, Tim Thorogood, told ZDNet UK that he believed CRM would act as a catalyst to hasten the adoption of more customer friendly practices from councils.

Bohl sees benefits at Tower Hamlets even if the business process cannot click in immediately behind the CRM system. Citing the example of the council's disposal service for old fridges and washing machines, residents can easily book the pick-up appointment even if the refuse department can't deal with the pick-up straight away.

The issue of cost -- a bone of contention in CRM for business -- seems to be less of an issue in local government. Haringey is benefiting from central government funding as a pilot CRM project and the Tower Hamlets scheme is largely self-financing through savings made by the system -- particularly in the issuing of parking tickets and fines. Haringey also expect its CRM system to save money in the long term -- though Thorogood admits this will not be the case in the short term.

Another local council benefiting from central government pilot funding is Warwick District Council. Warwick received £1m of 'Invest to Save' funding from central government.