Download - CRM Blueprint For NFPs

© Michael Collins 2005-2011

The Blueprint for CRM

An Approach for NFP Organisations


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


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


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


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


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


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?


If you don’t have the insight into your members, donors and supporters how

do you hope to manage the relationship?


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


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


Acquisition Reactivation

Customer RelationshipManagement

"Creatingthe CustomerRelationship"

"Reinventingthe

Relationship"

Retention & Growth

"Strengthening the Relationship"

Typical View of CRM

“Contact Cadence”


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


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


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


Applications and Data

Member/Customer Data

Prospect Data

An

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CR

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CR

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Bill

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Sub

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Tra

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Market Data F

ulfi

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Research Data

Sta

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Management SystemCRM


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


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


The Business Case

Example


The Business Case

Example

What is the achievable increase to lifetime value?


• 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


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


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


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


www.dmcounsel.co.uk

Download - CRM Blueprint For NFPs

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