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An introduction to preparing fro CRM for not-for-profit organisations
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© Michael Collins 2005-2011
The Blueprint for CRM
An Approach for NFP Organisations
© Michael Collins 2005-2011
What are the key concerns?• Research has shown that the most significant
concerns in introducing CRM in are: – Getting the specification right– Obtaining buy-in– Data quality– Achieving full implementation– Using data effectively– Cost
• There is also often uncertainty as to what CRM is and what it can mean to any specific organisation
© Michael Collins 2005-2011
What we cover in this presentation…• How a modern CRM differs from a legacy
membership system • How to determine if your organisation is ready for
CRM – Pre-requisites – Business culture
• Approach • The customer management framework • Promoting 'buy-in' • Creating the business plan
© Michael Collins 2005-2011
The Business ImperativesThe ability to know:• Which members or donors are
less likely to renew • How to withstand cutbacks • How to reverse the slowdown
in recruitment of new donors or members
• How to improve how members and supporters value their relationship with the organisation
• How to improve the cost effectiveness of marketing
© Michael Collins 2005-2011
The Business Imperatives• Member, sponsor and other important
stakeholder communication is essential to the success of membership organisations
• Move to individual conversations – 1 to 1 communications
• Staff will need to (appear to) have a good level of knowledge of the member to fully engage
• Need to capture, organise and disseminate information to/from touchpoints
© Michael Collins 2005-2011
Members have their own view of the relationship
SPECTRUM OF RELATIONSHIPSPECTRUM OF RELATIONSHIP
I need constant contact
I know where you are when I want something
Mail Email Phone Social Network
Ad hoc
Aloof Active
Committed
© Michael Collins 2005-2011
Members have their own view of the relationship
SPECTRUM OF RELATIONSHIPSPECTRUM OF RELATIONSHIP
I need constant contact
I know where you are when I want something
Mail Email Phone Social Network
Ad hoc
Aloof Active
Committed
Do you know where each member is on this scale?
© Michael Collins 2005-2011
If you don’t have the insight into your members, donors and supporters how
do you hope to manage the relationship?
© Michael Collins 2005-2011
How CRM differs from a legacy membership system
Legacy membership management systems • Tend to be business management systems, addressing:
– Orders and Fulfilment– Event management– Subscriptions and payments– Membership and renewals– Contact management
• Tend to co-exist with other applications created for specific jobs – Functions linked to specific areas of the organisation
• No real ability to address business process• Will work without a strategy of member management• Restricted reporting rather than analysis and intelligence• No-one sees the whole picture
© Michael Collins 2005-2011
Customer Relationship Management (CRM) • Business strategy, supported by a computer system that relies on
a universal member-focused culture • Single 360° view of the relationship based on activities from
across the organisation accessible by anyone in the organisation• Impacts every functional area, not only those that directly relate
to members• Everyone sees the same information, aware of the members’
various touchpoints with the organisation• Ability to implement business process and workflows to reflect
the organisation’s ethos• Access to analytics and KPI measurements
How CRM differs from a legacy membership system
© Michael Collins 2005-2011
Acquisition Reactivation
Customer RelationshipManagement
"Creatingthe CustomerRelationship"
"Reinventingthe
Relationship"
Retention & Growth
"Strengthening the Relationship"
Typical View of CRM
“Contact Cadence”
© Michael Collins 2005-2011
Strategic Cycle of CRM Analytical CRM
• Market analysis• Data services
• Cleaning and conditioning• Integrate different data sources• Integrate external data
• Customer profiles and segmentation• Behaviour analysis and Modelling
• Measurement and ROI
Operational CRM• Process management• Delivery of information to
touchpoints• Strategic communications
Interactive CRM • Direct mail• e-mail• Mobile• Web• Surveys• Social networks
Central Database
© Michael Collins 2005-2011
The Customer Management FrameworkCompetitive Intelligence
Analysis&
Planning
CommsStrategy
Operational Process
Human Resource and Structure
Information Technology
Member/Customer Experience
Market Intelligence
Impact& Effect
PropositionOfferChannelMedia
Operational & Interactive CRM
Corporate Culture
• ‘Textbook’ CRM restricted to operational and analytical elements
© Michael Collins 2005-2011
The Customer Management FrameworkCompetitive Intelligence
Analysis&
Planning
CommsStrategy
Operational Process
Human Resource and Structure
Information Technology
Member/Customer Experience
Market Intelligence
Impact& Effect
PropositionOfferChannelMedia
Operational & Interactive CRM
Corporate Culture
• This expanded model incorporates – Personalised up-sell/cross sell activity at the next customer touch point– Fusion of research to fine-tune insight– Measurement of the impact and effect of activity to provide learning– Corporate culture, business process, skills and resources
© Michael Collins 2005-2011
Applications and Data
Member/Customer Data
Prospect Data
An
alyt
ical
CR
M
Op
era
tiona
l CR
M
Co
llab
ora
tive
CR
M
Bill
ing
Sub
s, P
urch
ase
&
Tra
inin
g P
roce
ssin
g
Market Data F
ulfi
lmen
t
Se
rvic
es
Research Data
Sta
tuto
ry &
mas
s co
mm
s
Management SystemCRM
© Michael Collins 2005-2011
Are you ready for CRM?Ask yourself these questions:• Is operational data held in more than one repository?• Do contacts always only receive relevant communications?• Are some being bombarded while others get nothing?• Can we categorise or segment contacts easily and use that segmentation for
selections or react to previous activity?• Can we see a complete communication and response history for any contact? • Can we set and monitor KPIs?
– Do we know if we are meeting targets?– Do we know what marketing activity has worked and what hasn’t and why?
• Can we manage the relationship to the greater benefit to the organisation?• Can we address our supporters’/members’ requirements for
– more open relationships– the ability to participate how they want to and manage their own activities and learning– active empowerment, rather than passive recipients
© Michael Collins 2005-2011
The Business Case• The best way to support a business case is with
real examples of what could be achieved • Scope the value of pooled data in business
opportunity terms • Bring data from the various repositories into
one database and analyse to demonstrate quantified opportunities
• Provides the basis for return on investment and support for the business case for CRM
© Michael Collins 2005-2011
The Business Case
Example
© Michael Collins 2005-2011
The Business Case
Example
What is the achievable increase to lifetime value?
© Michael Collins 2005-2011
• Establish a project team to drive the specification process
Promoting Buy-In
Executive Sponsor
SteeringCommittee
CommercialTeam
Membership
Marketing
Finance
HR
BusinessAnalyst
DataIntegration
ProjectManagement
Delivery Team
• Create a steering committee with executive powers to drive from a strategic viewpoint
• Include:– Representatives from the
business – the Finance, Marketing and Membership users, (branch if appropriate)
– Representatives from HR – implications on working practices and business processes
– Representatives from the deliverers
– An executive sponsor who will subscribe whole-heartedly to the vision and find the time to work with the other team members and act as a conduit to the Board
© Michael Collins 2005-2011
Promoting Buy-In• Don’t take buy-in for granted - good planning is fundamental • Make sure everyone understands what CRM is for your organisation and
what can be achieved
• Aim for an understanding on – why you should proceed – what the challenges will be – what the return is likely to be
• Build a business case to demonstrate payback • Engage a specialist, experienced CRM consultant to facilitate the initial
stages of the process and help build the business case for the investment• Keep proceedings at this stage in business terms and in the context of the
organisation’s business plan, an approach the executive sponsor can align to
© Michael Collins 2005-2011
Many CRM initiatives have failed to achieve the expected levels of success
Too many organisations have failed to focus on the need for strategy, the business process requirements, the data, commercial and cultural aspects
A properly constructed CRM strategy that is based on a solid, defined business requirement that has been bought into by all stakeholders can deliver the ROI
Customer Relationship Management
© Michael Collins 2005-2011
DMC Can Help
• Specialist expert consultants and analysts are on hand to - Help you through the pitfalls of implementing CRM- Direct you through the management framework- Develop your communications strategy- Assist you with specifying your requirements- Deliver member insight - Help build your business case
© Michael Collins 2005-2011
www.dmcounsel.co.uk