Customer Sensing and why it's NOT a good fit for Government IT

"Customer sensing" is a marketing concept that refers to the process of actively gathering and analysing data and feedback from cu...

"Customer sensing" is a marketing concept that refers to the process of actively gathering and analysing data and feedback from customers to gain insights into their needs, preferences, and behaviours. This information helps organisations understand their customers better, make data-driven decisions, and enhance their products or services to meet customer expectations.

While the concept of sensing and responding to the needs of "customers" can be applicable in various contexts, including some of the more corporate-aligned government services, the term is more commonly associated with private sector businesses and with good reason.

Here are a few reasons why customer sensing are not necessarily a good fit for a government IT division:

Differences in Stakeholder Relationships:

In the private sector, customers are typically external entities who have a choice in selecting products or services. In a government context, the "customers" could be the public or other government agencies, and the relationship is often more complex. Citizens may not have the same level of choice available for a myriad of reasons.  For example, when it comes to essential services such as policing, healthcare, or public education, citizens typically don't have the option to choose an alternative provider.  A Government's primary responsibility is also to serve the public interest, whether this be efficient spending of public funds and effective service provision internally.  For Government IT that has to navigate an extremely tight line between service provision, policy and security this does not necessarily extend well to a consumer style customer satisfaction wish list.

Public Service vs. Profit Motive:

Private businesses are profit-driven and their customer satisfaction is directly linked to revenue and success. In contrast, Government IT divisions are primarily focused on delivering public services and may not operate with the same profit motive. The goals and success metrics are often different, emphasising efficiency, transparency, and accountability over customer satisfaction in a traditional sense. For example, a Government IT department may need to prioritise security features over user interface preferences in an online portal to protect citizens' sensitive information, even if some users express a desire for a more user-friendly interface.

Regulatory and Legal Considerations:

Governments operate within a framework of laws, regulations, and policies that may limit their ability to respond to customer needs in the same way a private business might. There are often strict rules regarding procurement, data privacy, and fair treatment that must be adhered to, which can impact the agility of government processes.

Budget and Resource Constraints:

Government IT departments often face budget constraints and are subject to a lengthy procurement process. This can limit their ability to quickly adopt new technologies or respond rapidly to changing customer needs, unlike agile private sector businesses.

The Political Nature of Decision-Making:

Government decision-making is often influenced by political considerations, and priorities may shift based on changes in leadership or policy. This can introduce additional complexity and make it challenging to maintain a consistent focus on customer-centric initiatives.

While admittedly the principles of understanding and responding to user needs are applicable in almost any reasonably situation, the concept of "Customer Sensing" and the data that will generate will not necessarily capture the unique challenges and considerations faced by government entities and especially IT divisions in that context. Within the public sector, the concept of "stakeholder feedback" is more appropriate to emphasise the broader nature of relationships between the government and their clients, whether public or internal.

The primary objective of government ICT services is to support the operational efficiency and service delivery of government agencies, rather than profit maximization or market competition.  The customer sensing concept, rooted in understanding and predicting customer behaviour to drive sales or engagement, has limited applicability in a context where the focus is on internal efficiency and statutory service delivery rather than external customer engagement.