The value of institution-wide CRM - Pepperdine Universitycommunity.pepperdine.edu/crm/content/ovum... · CRM is a strategy first and a solution second At the end of the day, the best

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The value of institution-wide CRM

Nicole Engelbert

[email protected]

CYIT0667

June 5, 2013

© Copyright Ovum. All rights reserved. Ovum is an Informa business. 2

Agenda

!  Higher education’s storm surge brings CRM to the beach

!  Silencing the buzz, what is institution-wide CRM?

!  Where is higher education with CRM?

!  Best practice; laying your own track

!  The road ahead


CRM IS A POWERFUL PADDLE

A storm rages in higher education


!  Rapid, random, and radical change will force fundamental change

!  Fiscal: Higher education business model is no longer sustainable

!  Political: Public sector support and student/family tolerance is waning

!  Demographic: Massive shift towards non-traditional students

!  Geographic: Globalization and the rise of international universities, and enrollments

!  Consumerization: Higher education perceived as a service

!  Democratization: Content ownership models are breaking down rapidly

!  Technological: Ubiquitous connectivity is driving where consumption occurs…

A unique time in the higher education industry

!  Survival means institutions must reduce costs, increase agility, and improve service


Improved service & agility will already rule the day

!  Anytime, anywhere access to services and support

!  The institution never sleeps !  Availability of services when customers

need them most

!  Institutional structures and services match the student experience

!  Hyper-personalization in all communications, content & relationships

!  Beyond everybody knows your name… !  Proactive, timely and tailored

!  Collaboration, collaboration, collaboration

!  Tools, services and approaches that enable the enterprise to connect

!  The ability to change on a dime…


The most permanent relationship they’ll ever choose

!  Students choose their college or university

!  Often long before arriving on campus !  Based on logical and emotional factors

!  Four years is an eternity for most industries but not for higher education

!  Cradle to grave…

!  Once a diploma is granted is cannot be taken away

!  Life-long implications

!  One of the largest investments they will ever make

!  Fannie versus Sallie…

Is your institution as equally

committed to this relationship?

Failing to foster this relationship is a major strategic error


WHAT IS INSTITUTION-WIDE CRM?

Silencing the buzz


CRM is not broadly understood in higher education

CRM is a strategy, often supported by technology, for more effectively managing relationships with key constituency groups, such as prospective students, parents, faculty, staff, employers and/or alumni over, the lifetime of the relationship

KEY DEFINITION

!  Most institutions perceive CRM is a software application for managing departmental transactions – this is simply not true


CRM is a strategy first and a solution second

At the end of the day, the best CRM solution for your institution is the one that addresses its unique and changing needs

Strategy

Execution

Institutional goals What is your

institution’s vision for the Pepperdine

experience?

What does your institution intend to do in order to accomplish

its goals?

CRM in Higher

Education

What tools & resources does your institution need in order to accomplish its goals?

Only at the execution

phase should CRM become a

solution.

1 2

3


CRM improves the odds for relationship management

!  Empowers institutions to connect through a powerful set of communication channels

!  Captures constituent preferences so that interactions can be targeted and context specific and as a result, more effective

!  Reduces the likelihood of constituents ‘falling through the cracks’ as workflows can be mapped to ensure a high-quality and consistent experience

!  Enables the institution to make smart resourcing decisions about conducting and managing interactions

!  Creates a permanent and ever more detailed record of interactions – it is the 360-degree, LONGITUDINAL view of the constituent’s experience

Empowers an intentional approach to service delivery


The argument for institution-wide CRM

!  The institutional buying/investing decision occurs repeatedly over a student’s lifetime

!  The myth of the permanent student record

!  Programmatic, departmental, or institutional boundaries are meaningless

!  Relationship should strengthen over time

!  Chain is only as strong as its weakest link !  Experiences are not mutually exclusive !  Coherent and coordinated

!  Too often ‘bait and switch’ is the unintentional strategy

!  Strong recruitment, weak retention !  ‘Mind the gap’ after graduation !  Undermines long-term efforts

!  What is the unique Pepperdine University experience?

Evaluate

Buy Use

Recruitment

Academics

Advisement

Student activities

Residence life

Athletics

Career services

Alumni affairs

Development

Continuing education

Financial aid

IT helpdesk


CRM IN HIGHER EDUCATION

State of the Union


Differentiator or mission-critical application?

Source: Ovum’s Technology Trends CIO Survey

37.4%

59.3%

72.5%

0%

20%

40%

60%

80%

100%

Have now Have in 6 mos Have in 6-24 mos

Perc

enta

ge o

f res

pond

ents

Current and planned usage of CRM in higher education (2012)


CRM adoption is patchy across the institution

PROSPECTIVE MATRICULATED ALUMNI/FUNDRAISING INSTITUTIONAL

Undergraduate IT helpdesk Donor programs* Employer development

Graduate – Professional Academic advisement Alumni relations Events/conference

Graduate – Other Career services Faculty/staff recruitment

Continuing education Financial aid Summer/external programs

Physical plant

Residence life

Instruction

Very little adoption Early adopters Growing Strong Well-established adoption

Little coherent or coordinated management of institution’s

highest value services

Episodic problem solving rather than delivering an intentional, life-long experience


Deployment models are largely departmental

!  Individual departments often own installations

!  Admissions & alumni affairs !  SaaS & reduced need for central IT

!  ‘Rogue IT’ !  Re-inventing the wheel

!  Unconnected to communications’ plan

!  Not PR plan, but constituent communications

!  Widespread institutional email epidemic

!  SIS integration is limited !  Deep-integration CRM solutions have not

seen significant uptake !  Banner Enrollment Management !  PeopleSoft CRM for Higher Education

!  Interactional data rarely persists past application and still less after enrollment

!  Alumni affairs and buying data


CRM BEST PRACTICE

Overcoming short-term hurdles for long-term gain


The end of the balance beam is institution-wide CRM

!  Regardless of deployment model, the end goal should be a high-quality and consistent constituent experience for students at every stage of the student lifecycle

!  While recruitment is shortest period of time, it receives far more attention from institutions

!  Whereas retention, which is the most impactful period of time and part of the delivery of core services, often receives little or not attention to CRM

!  Which leads to the need for development staff to reinvigorate or even re-create relationships with constituents

Recruitment Retention Development

Prospect Applicant Admitted Enroll 1st year Senior Recent graduate

Declared major

Deposit paid

5-year reunion

10-year reunion

Major gifts

HIGHER EDUCATION STUDENT LIFECYCLE



Declared major

Deposit paid

5-year reunion

10-year reunion

Major gifts




Declared major

Deposit paid

5-year reunion

10-year reunion

Major gifts




Declared major

Deposit paid

5-year reunion

10-year reunion

Major gifts




Declared major

Deposit paid

5-year reunion

10-year reunion

Major gifts



CRM deployment models exist on a continuum

MODEL APPROACH

Low

Autonomous independent

Individual departments envision a constituent experience strategy and select a solution independently

•  Addresses political hurdles, but short-term strategy

High

Coordinated independent

Individual departments coordinate with the university or other, similar departments, often within pre-determined parameters

•  Cost savings but not service improvement decision

High

Centralized

University creates a comprehensive vision for constituent experience & relationship management, with single solution deployment

•  Short-term difficulties, but long-term reward through reduced costs & higher satisfaction Low

Long

-term

inst

itutio

nal v

alue

Ease of im

plementation


+ -Institutions must weigh the pros & cons

MODEL POSITIVE NEGATIVE

Autonomous independent

! Start small and build on early successes ! Encourages field innovation ! Captures unique needs

! Costly to maintain – admin & licensing ! Re-inventing the wheel ! Inability to leverage data ! Coherent messaging is difficult ! May need to start over as interest grows

Coordinated independent

! Not starting from a ‘blank canvass’ ! Captures unique needs but avoids chaos

! Inability to leverage data ! Coherent messaging is difficult ! Less so, but still costly to maintain ! May need to start over as interest grows

Centralized

! Coherent institutional vision ! Creation of best practice & expertise ! 360-degree view of constituent experience ! Life-long relationship management ! Economies of scale for licensing & administration

! May stifle short-term innovation ! Unique requirements more difficult to support ! More upfront investment for initial deployment – higher risk ! Fewer solution options


Single department to institution-wide deployment

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Graduate admissions

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Alumni affairs Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

IT helpdesk

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Undergraduate retention

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Campus events

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Other

Funnel mgmt Comms

Events

Campaign mgmt

Prospects

Undergraduate admissions

And staff in 3 departments told

their colleagues in 3 other

departments…


Multi-channel is fundamental to institution-wide CRM

!  Realizing the true value of CRM requires re-envisioning the student experience

!  Dynamic, personal

!  Multi-channel communications is standard in the consumer market

!  Social, voice, text, self-service, mail, in-person, etc.

!  Channel selection is based on the interplay between content, context, and student preferences

!  Yet, higher education relies too heavily on an outdated communications model

!  Postal mail, email and in-person rule the day

!  Strategy is based on precedent and institutional preferences

Multi-channel

SMS

email

Post

Telephone In-person

Self-service

Social


Best practice is emergent

Develop a vision & strategy • Relationship management

• Service delivery • Brand

Construct a communications plan • Consistent information

• Cross-departmental • Context, context, preferences

• To interact or not to interact…

Educate stakeholders • Loosening control • Not knowing doesn’t mean it is not happening

• Expected outcomes

Garner sufficient resources • Integrated tools • Access to information & data

• Training • Available staff • Time horizons


Who is owns institution-wide CRM?

!  It is not IT !  Mantra: CRM is a strategy first, solution

second !  CRM is not a commodity, but a point of

differentiation !  ORCL, MSFT, SFDC should not determine

Pepperdine’s unique service experience

!  It is neither admissions nor alumni affairs !  Yes, clear ROI and immediate need !  But, they are pitching Pepperdine’s

service experience

!  It is cross-departmental & cross-constituent

!  C-level leadership !  Mission, vision, and strategic plan !  3-5 year plan to avoid disjointed

incrementalism !  CRM craft practice at DePaul University


The road ahead

!  Develop the strategy first !  What is the unique Pepperdine

experience? !  Fools with tools… !  Context, content, preferences !  Don’t underestimate cultural challenges

!  Start small, but plan to scale quickly !  CRM is not a part-time activity !  Consistency, consistency, consistency !  Manage the brand with social

!  Invest in the right tools & solution providers

!  Social is a rapidly evolving technology !  Vendors need sufficient resources to

keep pace !  Flexibility & agility are crucial


APPENDIX

Bio and contact information


Nicole Engelbert

!  Nicole Engelbert is the Global Practice Leader for Ovum’s Industry Technologies team which produces research and analysis on the usage of technology in the education, government, health sciences, financial services, energy & sustainability and telecoms industries.

!  Nicole’s individual research work focuses on how education institutions use mission-critical applications such as student information systems (SIS), constituent relationship management (CRM) solutions, learning management solutions (LMS) and other vertical-specific technologies to garner efficiencies and improve institutional services. In recently published reports, Nicole has presented a framework for evaluating institutional performance management solutions, conducted a comparative analysis of leading CRM solutions, and offered guidance on the future of software-as-a-service in the higher education industry. Recognized for her work in these areas, Nicole is quoted regularly in publications such as Campus Technology, DestinationCRM, University Business, The Chronicle of Higher Education, EdWeek, T.H.E. Journal, The New York Times, Government VAR, Dow Jones and TechNewsWorld.

!  Prior to joining Ovum, Nicole was the Vice President of Educational Services at TestU, where she worked with secondary schools to develop programs that used technology and assessment to improve student achievement, as well as led the development of its client reporting systems. Nicole also has experience in higher education, having held leadership positions in admissions and career services.

!  Nicole holds an MEd from Columbia University and a BA from Union College, where she graduated magna cum laude.

!  [email protected]

!  http://ovum.com/authors/nicole-engelbert/

Documents

The value of institution-wide CRM - Pepperdine Universitycommunity.pepperdine.edu/crm/content/ovum... · CRM is a strategy first and a solution second At the end of the day, the best