Introduction
 
CRM technologies allow local governments to improve the delivery of constituent services and increase internal efficiency. This Datamonitor report provides insight into the market opportunities for CRM vendors in global local governments. This report also includes a survey of 110 US state and local government agencies.
 

 
Scope
 
Overview of the local government market for CRM globally.
 
Profiles of key vendors serving the local government CRM market.
 
Phone-based interviews with 110 state and local government agencies
 
Sample included a cross-section of agencies by level of government, type and size.
 
Highlights
 
Local governments are investing in CRM to improve the delivery of constituent services and to streamline processes.
 

 
While many local governments have implemented CRM applications on-site, Datamonitor believes that there will be greater adoption of the hosted model in the future. In addition, Datamonitor anticipated that voice-enabled software will become a larger component of CRM systems for local government but will never completely replace live agents.
 

 
Reasons to Purchase
 
Enhance your messaging and positioning with current, in-depth information on the local government market.
 
Tailor your CRM solutions strategy to address specific pain points facing local governments.
 
Benchmark your company relative to vendors already supplying CRM to local governments.

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
Introduction 3
 
Market context 3
 
Competitor dynamics 4
 
The future decoded 4
 
CHAPTER 2 INTRODUCTION 11
 
What is this report about? 11
 
Who is the target reader? 11
 
How to use this report 12
 
CHAPTER 3 MARKET CONTEXT 13
 
Introduction 13
 
Key findings 13
 
The need for IT in local government 15
 
Inefficiency 15
 
Limited personnel resources 16
 
Public safety concerns 16
 
Need for better communication networks 16
 
Legislative requirements 16
 
What CRM means for local government 17
 
Differences between private sector CRM and local government CRM 18
 
Constituent service 19
 
Marketing 20
 
Sales 20
 
Analytics 20
 
Drivers and trends 21
 
Constituent demands for better service 21
 
311 call centers 22
 
Central government requirements 24
 
Need to cut costs or increase revenue 24
 
Government inefficiency 24
 
Lack of accountability 25
 
Desire to differentiate between localities or candidates 25
 
Inhibitors 25
 
Costs 26
 
Resistance to cultural change 26
 
Silo mentality 26
 
Citizen privacy concerns 26
 
Local government CRM capabilities: interaction and workflow management 27
 
Interaction management 28
 
Workflow management 29
 
Issues involved in the local government CRM decision 30
 
Hosted solution vs. owned and operated 30
 
Live agent vs. voice automation 31
 
Examples of CRM in local government 31
 
New York City 311 Citizen Service Center 31
 
Dacorum Borough Council 32
 
Baltimore CitiStat 33
 
CHAPTER 4 COMPETITIVE DYNAMICS 34
 
Introduction 34
 
Key findings 34
 
Profiles of select CRM vendors in the local government market 35
 
Motorola 35
 
Onyx Software 36
 
Remedy 37
 
RightNow 38
 
Siebel 39
 
Talisma 40
 
CHAPTER 5 THE FUTURE DECODED 42
 
Introduction 42
 
Key findings 42
 
Greater use of hosted options 43
 
Voice-enabled software only to complement live agents 43
 
More sophisticated analytics 44
 
Limited integration with departmental databases 44
 
CHAPTER 6 APPENDIX 45
 
Supplementary data 45
 
Research methodology 45
 
Related readings 45
 
SPP writing team 46
 
How to contact experts in your industry 47
 

 

 
LIST OF FIGURES
 
Figure 1: Improving customer service is the top motivation for agencies to invest in IT 17
 
Figure 2: The main functions of CRM are sales, marketing, and constituent service 19
 
Figure 3: State and local government look for online and mobile functionalities 22
 
Figure 4: Agencies prefer constituents use electronic channels 23
 
Figure 5: Local governments are most interested in improving constituent interaction and problem solving 28