CRM for Rookies Thursday, July 24 8:30 AM – 9:45 AM HOPE 1 Tim Copeland DemandEngine Keyword: copelandcrm 2014 CALEM, All Rights Reserved. 1
May 06, 2015
CRM for Rookies
Thursday, July 24
8:30 AM – 9:45 AM
HOPE 1
Tim Copeland
DemandEngine
Keyword: copelandcrm
2014 CALEM, All Rights Reserved.1
The Promise is Inspiring …
• “Engage customers in powerful new ways”• “Streamline the communication, application, and enrollment process
so you can engage with the right students at the right time through the right channels”
• “Get a 360-degree view of your students”• “Increase enrollment, reach best-fit students and meet strategic
goals, while better managing costs”• “Embrace the social web and use it to connect with customers and
prospects.”
The Reality is Something Else
• “Engage …” = send more stuff• “Streamline …” = replace the human element• “360 degree view …” = more logins and passwords• “Reach best-fit students …” = send larger e-blasts• “Embrace the social web …” = send multi-channel SPAM
What trips up CRM?
• Unreasonable expectations – “CRM” as a panacea• Lack of executive support – “checking out”• Creating a “single-view” through data• Failure to define the constituent/student insight to drive decision-
making and “next best action”• Immature business processes• Culture
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There isn’t a software in the world that will give you better
relationships. Planning, people, and process matter.
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Agenda
1. What is CRM?
2. What does the research say about CRM?
3. How do you “do” CRM right?
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Defining CRM
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ForresterForresterCRM is the business CRM is the business process and supporting process and supporting technologies that bolster technologies that bolster the key activities of the key activities of targeting, acquiring, targeting, acquiring, retaining, understanding, retaining, understanding, and collaborating with and collaborating with customerscustomers..
ForresterForresterCRM is the business CRM is the business process and supporting process and supporting technologies that bolster technologies that bolster the key activities of the key activities of targeting, acquiring, targeting, acquiring, retaining, understanding, retaining, understanding, and collaborating with and collaborating with customerscustomers..
Bain & CompanyBain & Company
CRM is a process that CRM is a process that
companies use to companies use to
understand their customer understand their customer
groups and respond quickly groups and respond quickly
– and, at times, instantly – – and, at times, instantly –
to shifting customer to shifting customer
desires.desires.
Bain & CompanyBain & Company
CRM is a process that CRM is a process that
companies use to companies use to
understand their customer understand their customer
groups and respond quickly groups and respond quickly
– and, at times, instantly – – and, at times, instantly –
to shifting customer to shifting customer
desires.desires.
GartnerGartner
CRM is a business strategy CRM is a business strategy
with outcomes that with outcomes that
optimize profitability, optimize profitability,
revenue, and satisfaction revenue, and satisfaction
by organizing around by organizing around
customer segments, customer segments,
fostering customer-fostering customer-
satisfying behaviors, and satisfying behaviors, and
implementing customer-implementing customer-
centric processes.centric processes.
GartnerGartner
CRM is a business strategy CRM is a business strategy
with outcomes that with outcomes that
optimize profitability, optimize profitability,
revenue, and satisfaction revenue, and satisfaction
by organizing around by organizing around
customer segments, customer segments,
fostering customer-fostering customer-
satisfying behaviors, and satisfying behaviors, and
implementing customer-implementing customer-
centric processes.centric processes.
DemandEngineDemandEngineAn institutional philosophy An institutional philosophy and strategy, supported by and strategy, supported by people, processes, and people, processes, and enabled by software, to enabled by software, to improve the student and improve the student and constituent experience in a constituent experience in a way that is effective and way that is effective and efficient.efficient.
DemandEngineDemandEngineAn institutional philosophy An institutional philosophy and strategy, supported by and strategy, supported by people, processes, and people, processes, and enabled by software, to enabled by software, to improve the student and improve the student and constituent experience in a constituent experience in a way that is effective and way that is effective and efficient.efficient.
The Evolution of CRM
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What does CRM software do?
• Screen shots
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Three things you need to know about CRM software
1. A database that allows organizations to commoditize marketing, sales, and service processes.– Manage contacts and organizations– Track opportunities– Track service cases– Manage communications
2. CRM software requires an underlying system of record.– Examples: Student information
system, advancement, financial aid, non-credit registration
3. CRM software requires an underlying marketing automation platform.
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CRM and Marketing Automation
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Agenda
1. What is CRM?
2. What does the research say about CRM?
3. How do you “do” CRM right?
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“Of the nearly 5,000 colleges, universities, and trade schools in the
United States, only about 40 or 50 could be considered CRM thought leaders. The rest are still trying to wrap their
hands around [CRM].”
“Schools Need to Rethink Their Approaches to CRM”Joe Burkhart, Director of Higher Education Solutions.
CRM Failure
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What’s driving CRM investments today?
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67% Enroll more students
25% Improve service 19% Keep more students
65% Automate Communication
As if talking more is the key to building relationships …
Note: Question – What are your top three CRM goals? N = 63 institutionsSource: Deploying CRM for All the Wrong Reasons.
CRM Challenges?
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Note: Question – What are your biggest CRM challenges? N = 57 institutionsSource: Deploying CRM for All the Wrong Reasons.
40% Changing processes
46% Organizational cooperation 42% Creating single view
of data
37% Enough staff
31% defined high level goals
19% identified “shadow systems”
28% had a clear understanding of processes
16% defined a chart and governance
Students face an institutional swirl
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Processes
People
Policies
Technology
Processes
People
Policies
Technology Processes
People
Policies
Technology
Processes
People
Policies
Technology
Processes
People
Policies
Technology
Processes
People
Policies
Technology
Enrollment Marketing
Registrar
Financial Aid
Bursar
Academic Departments
Institutional Services
… due to your existing software portfolio
Student InformationBursar
Financial Aid
Enrollment Marketing
Academics
Financial Aid RecordApplicationCompliance
CommunicationsCase managementInteraction tracking
Communications recordMulti-channel mgt
Intake source Digital analytics
Academic recordLMS
AdvisementCommunications
Case managementInteraction tracking
Academic RecordApplication & registration
Course schedulingAdvisement
CommunicationsCase managementInteraction tracking
Recruitment recordPipeline mgt
Case managementInteraction tracking
Payment RecordCompliance
CommunicationsCase managementInteraction tracking
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“Other Services”Interaction trackingCase managementCommunications
Interaction tracking
“CRM” should provide a portal to your relationships
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Student InformationBursar
Financial Aid
Enrollment Marketing
Academics
Financial aid recordApplicationCompliance
CommunicationsCase managementInteraction tracking
Communications recordMulti-channel mgt
SourceAnalytics
Academic recordLMS
AdvisementCommunications
Case managementInteraction tracking
Academic recordApplication & registration
Course schedulingAdvisement
CommunicationsCase managementInteraction tracking
Recruitment recordPipeline mgt
Case managementInteraction tracking
Payment recordCompliance
CommunicationsCase managementInteraction tracking
CRM
“Other Services”Interaction trackingCase managementCommunications
Interaction tracking
Agenda
1. What is CRM?
2. What does the research say about CRM?
3. How do you “do” CRM right?
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75% of CRM is NOT software
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Your CRM Game Plan
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6. Develop RoadmapsPhased set of initiatives.
1. Understand the Drivers
Behavior, Competitive Landscape, & Technology
2. Articulate a Vision & Goals
How will you improve the student experience?
5. Establish metricsAssess and diagnose performance
3. Assess CRM Enablers
Current maturity: planning, people, processes, and
technology
4. Define “Should Be” State“What will be new and different for students and constituents?
1. Understand the drivers (the “why”)
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Higher education drivers
• Online has no service barriers• Shifting demographics• The absence of a unique brand promise• Student success, priorities and funding
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2. Articulate a vision and goals
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4. Assess the enablers of CRM
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Assess the journey
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4. Define “should be” through use cases
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A use case defines interactions between an actor and a system, in order to achieve a
goal.
CRM Use Cases
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Use Case: 360 Degree View
• 360 Degree View – CRM software can provide insight into the current information on student and constituent interactions, “relational history”, characteristics, preferences, and behaviors. CRM software may also serve as the institutional portal aggregating data through a warehouse and providing users a more intuitive interface than standard student information- and ERP-systems
• Examples:– View pertinent data from student information and
financial systems in one software.– View student or constituent service case history.– Enter “interaction” notes in one central system
rather than siloed ERP systems.
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Use Case: Present Offers
Marketers have long spoken of delivering the right message, at the right time, to the right person. CRM systems allow you to create campaign targets, design and launch follow-up communications and activities (e.g., email, phone call, visit, letter), and measure response to campaign goals. These campaigns may occur at different points of the year.
•“Campaign Examples”:– Membership drives for student organizations– Promotion of athletic events– Direct solicitations of gifts (e.g., annual fund,
faculty and staff giving)– Invitation to advising and support services for
at-risk students
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Use Case: Manage Service Cases
CRM software allows users to log and track service requests. This functionality is called a “case”. Cases typically have an Open Date, when the service instance was first recorded, a Case Name, Description, Person Responsible, Case Number, and a Close Date.
•Examples:– Service requests – needed information, policy
exceptions– Bill payment issues– Academic or advising issues– Recertification of student organizations
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Use Case: Create Organizations
CRM software allows you to create organizational records, tag contacts to those organizational records, and perform marketing, sales, and service activities to those organizations.
Organizations can be businesses, community groups, or student clubs (e.g., Debate club, Kappa Delta).
•Example process flow: create company record for Intel. Assign coding for the company record (e.g., industry SIC code). Assign contacts to the company (e.g., current students who intern, CPSLO alums, community influencers).
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Use Case: Capture Interactions
CRM software allows users to track and schedule interactions with contact records. An interaction may be an inbound email, an outbound call, or instances of messages delivered to the contact.
•Examples:– Inbound email asking for assistance– Notes of an outbound call– Follow-up of in-person visit
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Use Case: Track Opportunities
Similar to the “case” functionality, CRM software permits the modeling of “sales” pipelines.
An opportunity record will typically have an Open Date, Project Close Date, Name of Opportunity, Person Responsible, Stage, and a link to a contact or company record. Activities, campaigns, and interactions may be linked to the opportunity to demonstrate what actions have been taken to close the opportunity.
•Examples include:– Major gift solicitations– A group of at-risk students– Community sponsorships– Custom education or training– Research grants
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5. Establish metrics
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Service functionality & metricsExample service and support functional capabilities
Example benefits propositions Example metrics
• Phone agent support• Work flow management• Case management• Call center infrastructure• Agent collaboration tools• Email response management• Knowledge management• Customer self-service• Social customer service• Customer forums• Customer sentiment tracking• Mobile customer service• Customer service analytics• Appointment scheduling
• Shorter response time• Greater service flexibility• More efficient asset and resource management• Process automation and visibility• Complete life-cycle management
• Cases closed same day• Number of cases handled• Number of service calls• Average number of service requests by type• Average time to resolution• Average number of service calls per day• Percentage compliance with service-level agreement (SLA)• Percentage of service renewals• Customer satisfaction level• Complaint time-to-resolution• Propensity for customer defection
Example metric Improvement ranges
Reduce call abandonment 5% to 15%Increase post sale revenues 15% to 25%Improve customer retention 5% to 15%Improve complaint management 20% to 30%Reduce order errors 0% to 5%Increase customer information accuracy 50% to 60%Decrease service resolution time 10% to 25%Improve service call quality 10% to 20%
Marketing functionality & metrics
Example marketing automation functional capabilities
Example benefits propositions Example metrics
• Marketing planning and resource management• Marketing campaign design• Segmentation• Offer management• Marketing campaign execution and tracking• Real-time interaction management• Enquiry management• Loyalty marketing• Event management• Marketing analytics• Web experience management• Social channel management
• Maximise potential revenue byleveraging existing customerinformation• Campaigns are more targeted and personalized, maximizing opportunities for upselling and cross-selling.• Proactive campaigns that meet customer's specific needs• Increase success rate of marketing campaigns
• Number of campaigns• New student retention rates• Number of responses by campaign• Number of conversion by campaign• Enrolments generated by campaign• Cost per interaction by campaign• Number of new customers acquired by campaign• Customer retention rate• Number of new leads by product• Number of customer referrals• Labor cost to prepare campaign
Example metric Reported improvement ranges
Reduce marketing/campaign planning costs 5% to 15%Increase marketing campaign reach 30% to 50%Increase lead generation 15% to 25%Improve multichannel campaigns 20% to 30%Increase number of new customers 0% to 5%Reduce marketing costs 15% to 20%Reduce mailing failure rates 20% to 30%Reduce campaign execution time 20% to 30%
“Sales” functionality & metrics
Example sales force automation functional capabilities
Example benefits propositions Example metrics
• Enrolment planning and forecasting• Activity management• Opportunity management• Contact management• Organisational and territory management• Travel and expense management• Sales analytics
• Reduced time to carry out administrative tasks• Decrease of time-to-delivery of follow-up• Increase of customer loyalty• Increase in sales volume with core customers• Increase in cross-sales• Increase sales effectiveness of partners by collaboratively sharing own sales related information and tools
• Number of prospects• Number of new students• Number of retained students• Number of open opportunities• Hours spent on administration per week• Renewal registration rate• Number of calls• Amount of new revenue• Time to close by channel• Pipeline velocity• Competitor tracking
Example metric Reported improvement ranges
Increase enrollments by recruiter 3% to 5%Increase number of students 5% to 15%Increase studentretention 5% to 10%Increase yield rate 8% to 10%Increase cross-sell and upsell 10% to 20%Increase repurchase rate 30% to 50%Reduce cost to sell 10% to 15%Sell more profitable programs 10% to 20%
6. Define roadmaps
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Road map
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