A New Vision for CRM
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Transcript of A New Vision for CRM
© Datamonitor
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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?
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
In-person
Internet
Future
Cellular Multi-channel
Y/NSTART
END
END
Strategy formulation
Strategy executionData analysis
Analysis
CRM analytics
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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)
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
© Datamonitor
13
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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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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
the home of Business IntelligenceGetting to the Good Stuff – A New Vision for CRM
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Key education technology analyst contacts
Nicole Engelbert
Lead Analyst
Datamonitor US
t: (212) 652-5301
Ben Madgett
Analyst
Datamonitor US
t: (212) 652-5324
Christine Chang
Associate Analyst
Datamonitor US
t: (212) 652-5343
Ruchi Mallya
Associate Analyst
Datamonitor US
t: (212) 652-5319
Justin Davidson
Associate Analyst
Datamonitor Europe
t: + 011 44 20 7675 7468