A New Vision for CRM

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Getting to the Good Stuff – A New Vision for CRM

Nicole Engelbert, Lead Analyst

the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM

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2

Agenda

• The deck is stacked for CRM in higher education

• The stars are aligning for significant & rapid change

• It’s all about the individual in relationship management

• Don’t be a fool with a tool – the importance of having a plan

• Next generation CRM requires specific features & functionality

• “It’s not just what you say, but how you say it…”

• The road ahead for CRM in higher education


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The deck is stacked for CRM in higher education

• The number of secondary school graduates will start to decline in 2010

• Other English speaking countries are actively enrolling more international students

• Online programs are creating a more broad and attractive set of options for students

• Looming recession will put higher education in greater competition with other public services

• An expectation for personalized relationships comes ‘standard’ with the millennial student

• Doing a whole lot more with a whole lot less may be a permanent reality for higher education

Number of Secondary School Graduates (000s)

3,050

3,100

3,150

3,200

3,250

3,300

3,350

2006 2007 2008 2009 2010 2011 2012 2013 2014Source – National Center for Education Statistics


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The stars are aligning for significant & rapid change

Business objectives for IT investment

3.3

3.1

2.82.7

2.4

2.1

1

2

3

4

Increasecustomer

satisfaction

Raiseeff iciency

Regulatorycompliance

Cut costs Improvesupplier

relationships

Increaserevenues

Ave

rag

e ra

tin

g(1

=no

t an

ob

ject

ive

to 4

=hig

hes

t p

rio

rity

)

n=179

Institutional orientation towards purchasing a CRM solution

34.1

40.8

54.2

0

10

20

30

40

50

60

Currently uses Purchase in 6 months Purchase in 6-24months

Per

cen

t o

f re

spo

nd

ents


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Having CRM will no longer be a key differentiator

Uptake of CRM by higher education institutions

34.1

40.8

54.2

22.3

15.6

0

10

20

30

40

50

60

Have now Have in 6 months Have in 6-24months

Invest within 6months

Invest within 6-24months

% o

f in

stit

uti

on

s


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New and expanded installations are driving rapid spending growth

Spending by US higher education institutions on CRM

$78.

7

$84.

6

$96.

1

$108

.0

$123

.5

$142

.4

$164

.9$59.

0

$64.

2

$66.

1

$72.

0 $79.

9 $89.

4 $100

.5

$0

$50

$100

$150

$200

$250

$300

2006 2007 2008 2009 2010 2011 2012

US

$ in

mill

ion

s

Software

Services


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It’s all about the individual in relationship management

• The ‘Millennial’ generation expects institutional interactions to be relevant and in real-time

– The “permanent record” meets Facebook while on an iPhone

• Relationships are no longer just role-based, but time and context-dependent as well

– Managing the funnel has gotten a lot more difficult

• CRM touches a far more diverse set of end users than most enterprise applications

– Fighting for real estate on a crowded desktop


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Strategy

Execution

Institutional goals

The most effective CRM implementations are strategies first

What does your institution need to

accomplish in order to realize its mission?

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?


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Next generation CRM requires specific features & functionality

FUNCTIONALITY VALUE TO HIGHER EDUCATION

Offering maturity Reduce the risks associated with investing in a new solution

Strategy & execution Create and maintain an effective relationship management strategy

Offering breadth & depth Support relationships across the entire student lifecycle

Offering scalability Enable relationship management across departments & colleges

Interoperability & integration Leverage valuable data collected by other mission-critical applications

Multi-channel capabilities Empower interactions to occur in multiple locations

Analytics & reporting Turn data into actionable insight

Workflows & management tools Realize attractive productivity gains and improvements in customer service

End-user interface Improve end-user acceptance and relevance

Configurability Enable the creation of a more personalized end-user experience


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A few functionality areas are particularly important

• Using analytics to improve instructional effectiveness

• Reaching students where they live through multi-channel capabilities

• Improving productivity and student service through automated workflows

SMS

Voice

email

Mail

In-person

Internet

Future

Cellular Multi-channel

Y/NSTART

END

END

Strategy formulation

Strategy executionData analysis

Analysis

CRM analytics


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Key functionality, continued

• Configurability enables institutions to

provide a truly personalized

experience.

• Role-based views of the application

will contribute to more robust end-user

uptake.

• Deep integration is paramount to

creating a 360˚ view of the student

experience.

Institution 1 Institution 2 Institution 3

CRM solution

Ad

mis

sio

ns

Stu

den

t se

rvic

es

Alu

mn

i aff

airs

Directors

Administrators

Support staff

CRM

Student Information System

Enterprise Resource Planning Solution

Learning Management

Solution

Business Intelligence

Solution


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“It’s not just what you say, but how you say it…”

• Institutions have surpassed the ‘upper

limit’ when it comes to maintaining

software applications

• As student expectations for institutional

interactions change rapidly (and

constantly), CRM is uniquely suited to

an on-demand delivery model

Features & functionality are crucial to

executing a CRM strategy, but the

solution’s delivery also has profound

implications!

Major Strategic Goals for 2008

2.8

2.8

2.5

2.3

1.7

1.5

1 2 3 4

Standardization

Consolidation

Moving towards shared services

Business transformationprojects

Business process outsourcing

Moving business processesoffshore

Average Score(1=not influential to 4=highly influential)

Major Strategic Goals for 2008

2.8

2.8

2.5

2.3

1.7

1.5

1 2 3 4

Standardization

Consolidation

Moving towards shared services

Business transformationprojects

Business process outsourcing

Moving business processesoffshore

Average Score(1=not influential to 4=highly influential)


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Higher education is changing its opinion of on-demand

Institutional Orientation to Outsourcing

5.37.1

9

12.1

15.2

9.110.5

12.1

8.87.1

11.8

7.18.8 8.1

2.7

1.1

1.3

3.3

5.5

4.32.8

5.6

2.6

3.24.3

2.7 4.3

8 7.62.6

5.5

2.7

5.4

8.5

6.8

3.97.5 4.1

7.7

5.45.4

0

5

10

15

20

25

30

2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007

Business Intelligence

Content Management

Desktop Management

Enterprise Applications

IT Systems Management

Mobility Security

Per

ce

nt

of

Re

sp

on

de

nts

Within 6-24 monthsWithin 6 monthsCurrently outsources


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The road ahead for CRM in higher education

• Advanced functionality, such as multi-channel capabilities, automated workflows and

analytics, will become widely adopted

• CRM will move out of the admissions office and expand across the entire student

lifecycle to include retention and development

• Institution-wide implementations of CRM will become increasingly pervasive

• The boundaries between CRM and other mission-critical applications will fade


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Key education technology analyst contacts

Nicole Engelbert

Lead Analyst

Datamonitor US

t: (212) 652-5301

[email protected]

Ben Madgett

Analyst

Datamonitor US

t: (212) 652-5324

[email protected]

Christine Chang

Associate Analyst

Datamonitor US

t: (212) 652-5343

[email protected]

Ruchi Mallya

Associate Analyst

Datamonitor US

t: (212) 652-5319

[email protected]

Justin Davidson

Associate Analyst

Datamonitor Europe

t: + 011 44 20 7675 7468

[email protected]

A New Vision for CRM

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