Using the balanced scorecard to manage customer relations in the Emfuleni Local Municipality
Abstract
This study concentrates on the field of customer relationship management (CRM) for enhancing customer satisfaction in local government affairs. The motivation behind this study results from the service delivery protests which brought tension and lack of trust among community members with regard to public services. These protests are unmanageable and disrupt the principles of a democratic government and for restoring citizen participation in local governance. The role of a customer in the public sector has received much attention in the democratic state of South Africa as it is practiced in the private sector, where “the customer is the king” when pursuing organisational goals.
This study aimed to analyse the link between the balanced scorecard (BSC) and the CRM in the municipal context. This study also emphasised the identification of the systems applied for managing customer relationships in the Emfuleni Local Municipality (ELM). The objectives were realised by means of literature reviews and interviews through participant observations. Two questionnaires were designed, which included Likert scaling, open-ended and closed-ended questions. The sample of this study comprised community members and the ELM. The Customer Care Manager represented the municipality. It was realised that the BSC has a dual advantage as it benefits the customer and the municipality. The study found that the BSC is crucial for ensuring that customer needs are incorporated into organisational goals. Motivations for citizen-centric approach stem from a variety of needs, such as the provision of more efficient customer service. Municipalities have also developed a streamlined approach to service delivery that results in cost savings. The BSC increases the ability to track service department performance and improve accountability. It also improves citizen access to municipal services and information during emergencies. In addition to the role of the balance scorecard, the CRM focuses on developing a comprehensive perspective on the customer’s or institution’s needs. CRM focuses on achieving the value of its customers. Through CRM, the community also has an opportunity to express their concerns through a centralised system. The ELM developed and established the forums in order to improve business efficiency and performance. The municipality has also developed a Revenue Improvement Customer Centricity Programme. This is to ensure that the CRM processes are not compromised and for continuous community engagement. The model is discussed in Chapter 4 of this study.
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