CRM for Nonprofits
Case study: Sacred Heart Community Service
What is CRM?
“Constituent Management Relationship”: the institutional memory about interactions with all constituents. You practice CRM today…
The problem is that typically it is:
Excel spreadsheets, filemaker databases, donor management systems, Outlook address books….these ARE your CRM. Fragmented Far from institutional (ED’s Outlook, Dev Director’s proprietary spreadsheet, and Vol Director’s pieces of paper) Incomplete – doesn’t cover ALL constituents Not strategic – not focused on growing relationship
State of NPO’s
Only 7% of respondents said that their systems share data easily with one another > 50% of organizations use slips of paper, Excel spreadsheets, and personal contact managers (i.e. Outlook) to manage organizational data. 51% manage over 4 repositories of data about the organization’s various constituents!
Source: 2006 dotOrganize survey of 400+ nonprofits
Why’s it important?
More cost effective building value of existing relationships than acquisition Data is the future
Information arbitrage Timing: Ability to react quickly (requests with news/events)
CRM is strategy & technology
Strategy about using data to build the value of relationships… Layered over the technology that contains the data
A few comments about “databases”
Every software application has one. Web donation tool, email blasting tool, online volunteer recruiting tool, etc.
Who’s doing it?
Amazon/Google at extreme
Builds profile on clicks, transactions, 3rd party data Uses AI to predict most likely next sale
Smarter nonprofits doing the same
Using predictive models to be more effective with direct mail campaigns, membership bundles, etc.
Analysis of Sacred Heart
Bravo, it’s in the plan (if only 2 small sections out of 26 pages)
•
Acknowledged need to merge volunteer and donor database
Acknowledged need to deal with FMP & new HMIS system + grant fundraising & reporting Other online systems (i.e. donations, volunteer sign-up, other CMS functions) Communications software Foundations, NPO partners (referral groups), alumni (staff & clients), media
Interesting: desire to automate volunteer sign-up through web
Missed other sources of data:
Missed other constituents
Recommendations
More comprehensive view of data Identify all constituent segments
Where’s data kept? What’s needed?
Map key processes with each segment
Acquisition/intake & interaction types
Map growth
How do you measure value of each segment today? How can you grow value of each segment each year?
Do not make any new technology selection without understanding how its data will interact with other systems and larger CRM strategy!! Caution: Don’t Over-collect
Collect “actionable data” Provide value in exchange for data
Thanks!!
Paul Hagen paul@hagen2020.com 415-203-6810
Paul Hagen is an independent consultant who helps companies and nonprofit organizations build capacity and scale through the effective use of technology. He provides technology planning, selection, change management, process re-engineering, and project management services for clients.