CRM Trends that Transcend: Learning from For-Profit and Nonprofit Organizations PRESENTED BY DARIUS VASKELIS, CEO, SAKONENT

Agenda •  Introduction •  Nonprofit vs. For-Profit Organizations

•  Value Chain •  CRM

•  The Evolution of CRM •  The Birth of CRM •  How CRM Evolved

•  For-Profits and Nonprofits Learning from Each Other •  Nonprofit Stories •  Commercial Stories

•  Questions & Answers •  Keeping the Discussion Going

•  Thunderous Applause •  [Well, at least polite golf claps, right?]

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Hi, I’m Darius.

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Nonprofit vs. For-Profit Organizations

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“My Organization is Different” •  As a consultant for over 20 years, every client I’ve ever worked with

thinks they are a unique snowflake. •  “But my organization is different!” •  “We are so unique.”

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All Organizations Have a Lot in Common •  If every organization is unique,

why would they end up with similar structures?

•  Similar organizational structures: •  boards, executives, committees,

divisions, departments, managers, etc.

•  Similar titles: •  Executive Directors, Program

Managers, Financial Managers, Grant Writers, Fundraising/Development, Caseworkers, Office Managers, etc.

•  For-profit firms use the idea of a “value chain” to describe this commonality of structure.

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*Organization chart from website of Hurwit & Associates

The Value Chain: Representation of activities within a firm to show how value is produced*

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*Michael E. Porter, Competitive Advantage (The Free Press, 1985)

The Nonprofit Value Chain: Representation of activities within an organization to show how the mission is fulfilled*

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Inbound Service

Logistics (e.g.

Scheduling, Data

Collection)

Service & Program

Operations (e.g. Assembly,

Volunteer Management)

Outbound Service Delivery

(e.g. Storage, Report

Preparation, Public Policy)

Marketing & Fundraising (e.g. Community

Affairs, PR, Development,

Publicity, Planning, Website, Proposal Writing, Website,

Advertising)

Constituent Support & Cultivation (e.g. Complaint

Resolution, Member

Outreach, Events)

M i

s s

i

n

Primary Activities

Organization Infrastructure (e.g. Governance, Planning, Budgeting, IT, Facilities)

Procurement (e.g. Services, Ad Buying, Data)

Program & Content Development (e.g. Service Design, Scholarship, Content Design, Market Research)

Human Resource Management (e.g. Recruiting, Training, Compensation System)

Value =

What the community you serve receives as societal benefit

Support Activities

o

*Inspired by Michael E. Porter

The Nonprofit Value Chain: Representation of activities within an organization to show how the mission is fulfilled*

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*Inspired by Michael E. Porter

CRM Activities

CRM activities are those that interact, optimize and collaborate with constituents.

CRM in For-Profit and Nonprofits

Commercial CRM Nonprofit CRM Marketing, Campaigns Marketing, Campaigns, Advocacy

Lead Prospect

Sales Fundraising, Development

Opportunities (and Renewals) Pledges (and Recurring Pledges)

Customers, Partners Constituents, Donors

Orders Gifts

Contracts, Agreements Grants, Major & Planned Giving

Services, Provisioning Volunteers, Events

Forecasting (Sales, Revenue) Forecasting (Gifts, Revenue)

Customer Service Member Service

CRM concepts, rooted in CRM activities and managing processes, have some similarities across organizations. (think of your “tabs”)

Our nonprofit CRM has more in common with for-profit CRM than I first thought. @vaskelis @sakonent

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The Evolution of CRM

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The Birth of CRM Evolving from Data Processing, to MIS, to IT

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Transactional-based data computation, tabulation, and recording to assist with individual clerical tasks

PCs, relational databases, PBX, ACD, fax “Data Processing era” - PIM, Contact Databases, Database Marketing

Enforcement-based automation and

enhancement to assist specific departmental

activities

local area networks, laptops, CTI, IVR “MIS era” - SFA, Call Center, Campaign Management

Rules-based enterprise view of departmental business processes

and decisions across functions client/server, ERP, EAI, DSS, objects (DCOM, CORBA)

“IT - Client/Server era” - CRM

Using the Internet to deploy contractually-based business processes and decisions to entire enterprise

(self-service) and constituents, channels, and suppliers

web, mobile, XML, DW & BI, MDM, chat, analytics, web services

“eBusiness era” - “eCRM”

Socio-Economic Eras: Millennials/Gen Y Pushing Us into an Era of Transparency & Trust

•  Transparency & trust hurts relationships propelled by situational values •  Involve calculations about what is available in the here and now •  Ex: Great Firewall of China, “Why I Am Leaving Goldman Sachs”, etc.

•  Transparency & trust helps relationships propelled by sustainable values •  Connect us deeply as humans, such as integrity, humility, excellence, loyalty and

passion •  Ex: Facebook, Amazon reviews, Ralph’s doughnuts, etc.

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CRM has Evolved The Trend is Next-gen CRM

•  CRM has shifted to the next generation of CRM •  “Carrots and sticks” are giving way to purpose and reputation

•  Nonprofits have thought this way all along! •  For-profit organizations still struggling to figure this out

•  If you implement new technology in an old IT paradigm, you fail •  Underlying technology is just a start, how you implement has changed •  “big bang” vs. incremental, collaborative with users and constituents, etc.

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Trust-based transparent optimization of activities inside and outside the socially-connected enterprise in mutual market- and mission-

driven collaboration with constituents, channels, and suppliers

SaaS, PaaS, smartphones, social networking, blogs, wikis, Web 2.0+, HTML5, open source, cloud, SOA, tablets, mashups, “big data”, consumerization/BYOD, “BYO App”

“Post-PC era” – Next-gen CRM

Who knew sitting in a CRM history presentation could be so awesome?

@vaskelis @sakonent #bbcon

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For-Profits and Nonprofits Learning from Each Other

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Learning from Each Other Nonprofit Learned from For-Profit Organizations

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For-Profit Learned from Nonprofits

Evangelical Lutheran Church of America

Constituent Master (“Master Data Management” and “Customer Data Integration” project)

Hennepin Theatre Trust Integrated Donor/Volunteer/Grant Management (collaborative workflow process project)

Multiple Myeloma Research Foundation

External Contact and Donation Collaboration (leveraging an events vendor without losing control)

Evangel University Data-Driven Demographic Analysis for Recruiting (marketing segmentation analysis)

St. Laurence High School

Mobile Alumni Management (“BYOD” drives 100% user adoption)

Angie’s List Team-based enthusiasm-driven sales Hobsons Educational community collaboration over Internet

Even more awesome: for-profits can learn from nonprofit CRM! @vaskelis

@sakonent #bbcon

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Questions & Answers Potential Topics

•  CRM •  Consulting •  Strategy •  Organizational Change

Management •  Behaviors/Reputation •  Baseball •  Bourbon •  How cool would it be to live in

Charleston? •  Or Nashville? •  Why would someone put Chicago

where it gets so darn cold in the winter?

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Thunderous Applause or at least polite golf claps

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