by Dr Peter Flory

Director – Athena Consultants Limited

Visiting Research Fellow – Brunel University

Customer Relationship Management

What is CRM? You have all heard the following:

“The customer is always right”

“Keep the customer satisfied”

“Customers are our business, without them we have no business”

“Your best future customers are your current customers”

“Look after your customers and the £££s will look after themselves”

That is CRM. It is not rocket science, it is common sense!

2 December 2014 CharityComms 3

A simple definition of traditional CRM:

2 December 2014 CharityComms 4

CRM was originally developed in the commercial / business / private / “for profit” sector, consequently:

“CRM is the process of making more money by keeping existing customers, attracting new ones, being nice to them and giving them what they want!”

So, who is the traditional CRM customer?

2 December 2014 CharityComms 5

If we extend the definition of “customer” to include other stakeholders in Private sector organisations then we get:

- Customers- Prospective customers- Shareholders- Partners- Suppliers- Lenders- Press- Agencies

CRM in the NfP sector CRM is all about making money, so that means:

Fundraising, Membership, Sales

Plus; non-monetary items:

GIKs , services, time, awareness, influence

Plus; the importance of MISSION

Money is a means to an end

More customers to be nice to

Plus; the multi-role customer

Therefore; far more complexity

2 December 2014 CharityComms 6

NfP/Third Sector “customers”

2 December 2014 CharityComms 7

So, to simplify things Our customers are every person and every organisation we

come into contact with plus more nebulous things such as Projects

“Customers” = Contacts and Contact Points, therefore …

Remember the 8 different stakeholder groups in the Private sector? Well, in the NfP sector we have ……

2 December 2014 CharityComms 8

NfP sector stakeholders (“customers”)?

2 December 2014 CharityComms 9Can you think of more?

Academics Eventers Project Workers

Agencies Families Prospects

Alumni Funders Religious Establishments

Areas/Branches/Regions Government Departments Service Units

Associates Health Establishments Service Users

Beneficiaries Health Professionals Special Interest Groups

Celebrities Individuals Sponsors

Clients Influencers Staff

Collectors Legators Students

Committee Members Lenders Subsidiaries

Community Organisations Media Suppliers

Companies Members Supporters

Customers Opt Outs Support Groups

Detractors Organisations Teams

Departments Politicians Trusts

Donors Partners Trustees

Educational Establishments Projects Volunteers

A simple definition of NfP CRM:

2 December 2014 CharityComms 10

“Third Sector CRM is the process of doing good by attracting and keeping customers (funders, service users, volunteers and suppliers alike), being nice to them and giving them what they want! (Money comes into it but only as a means to an end).”

The 8 Principles of CRM

2 December 2014 CharityComms 11

Visibility

Integration

Relationships

Quality

Knowledge

Planning

Analysis

- record every customer interaction

- make the interactions available to all staff

- link all systems; computer and procedural

- mutually beneficial customer dialogue

- highest quality products and services

- customer information, opinions, likes, etc

- analyse information to predict behaviour

- campaign planning, customer journeys

Inclusiveness

So whose responsibility is it? The Chief Executive

CRM is organisation wide

It is not just an IT thing

If delegated then Communications/Marketing are ideally placed

Overview of the whole organisation

Relationship people

Problem - Do they/you have the authority to make organisation-wide decisions?

2 December 2014 CharityComms 12

You need a CRM strategy because… CRM is a complete organisational philosophy

PeopleCRM involves you and everyone you come into contact with

Processes CRM encompasses everything you do

TechnologyCRM needs tools to be effective (…and the database is just one tool!)

2 December 2014 CharityComms 14

What is a strategy?

2 December 2014 CharityComms 15

"A strategy is an integrated set of plans in order to achieve a stated objective."

Common theme

Where are we now?Where do we want to be?What is happening in the marketplace?What are our options?How do we get there?

… and strategy objectives must be:

Clear and conciseConsistent with the missionConsistent within themselvesAcceptable by everyoneA basis for actionAchievable MeasurableFlexible

Lots for you to think about!

So what is your CRM strategy? Start with something simple

Who are your customers?

How do you currently serve them?

How can you serve them better?

Then consider:

Understanding your customers

Touch points

Customer experience

Customer journeys

How to measure success?

2 December 2014 CharityComms 16

… and remember the 50+ different types of customer, each one has different needs!

Some useful strategy questions What are you going to do to:

Acquire new customers?

Retain existing customers?

Find out more about them?

Keep them happy?

Provide them with what they want?

Get them to buy/give/interact more?

Treat them like individuals?

Maintain/improve the quality of your products and services?

2 December 2014 CharityComms 17

CRM strategy challenges Understanding what CRM really is (we’ve done that bit)

Adopting the principles of CRM

Practical, nuts and bolts issues

Implementation issues (and it’s just as much about working practices as it is about CRM computer systems)

People

Processes

and finally, technology

2 December 2014 CharityComms 19

CharityComms 20

Principle challengesThis means dramatic cultural change

This means high skill levels

This means being nice to people2 December 2014

Practical challenges

2 December 2014 CharityComms 21

Functionality

Security

Compliance

Confidentiality

Configuration

Reporting

Data

- What do you want CRM to do for you?

- Who can see what, who can do what?

- Legal obligations and codes of practice

- Data Protection Act

- What should your system/s look like?

- What data do you keep and why? Silos!

- What do you want to know?

Implementation challenges (CRM implementations are PAINFUL)

2 December 2014 CharityComms 22

Politics

Arrogance

Incompetence

Nearsightedness

Fear

Lethargy

Unfamiliarity

- in-fighting, status, “my customers”

- I know best, you can’t teach me anything

- there is a lot to learn, you may need help

- inability to see the “big” picture

- results in “too busy” or non-cooperation

- it’s all new and it causes the fear above

- inclination to do as little as possible

Firstly, get the right people doing the right job

Project Sponsor

Project Manager

Project Team

External support

Organisational inertia

People fear and resist change

Vision, enthusiasm, involvement, manage expectations

Avoid boredom and disillusionment

Communicate, communicate, communicate

CharityComms 23

The biggest Problem – People!

2 December 2014

Process review

Always, always, always do a review of current processes

Work with system supplier/s to map them onto the new system/s in the most effective manner

Be prepared to change!

Document, document, document

Change management

New systems ALWAYS mean new and changed processes

This is a whole subject in itself and it must be handled sensitively

Encouragement, enthusiasm, support and training

CharityComms 24

Processes

2 December 2014

Get the requirements right, priorities, detail, detail, detail

Get the selection right, don’t just buy the cheapest

Make infrastructure changes if required

Effective project management

Testing, testing, testing

Training, training, training

Proper change control procedures

Manage your supplier – don’t let them manage you!

CharityComms 25

Technology

Supplier?You?2 December 2014

Review your strategy constantly

Remember the 8 principles of CRM

Get the details right

People are your biggest challenge

Processes will change

Technology rarely fails

GOOD LUCK!

CharityComms 26

And finally….

2 December 2014

Comments and Questions

2 December 2014 CharityComms 27

Peter Flory e-Mail: peter@athena.org.uk

Tel: 0118 986 6623

Mob: 07860 451 830

2 December 2014 CharityComms 28

Visit the CharityComms website to view

slides from past events, see what

events we have coming up and to

check out what else we do.

www.charitycomms.org.uk

CRM for charity

communicators:developing excellent customer

experience

Conference

2 December 2014

London

#charityCRM