Customer Relationship

Management (CRM):Theory & Practice

J. Todd Bennett, Managing Partner decimal152 www.decimal152.com

Learn the basics of Customer Relationship Management (CRM)

Discover how to position your organization for effective CRM

Understand the role of technology in data collection and marketing

Obtain simple tools to begin measuring the results of your marketing efforts

Learning Objectives

The Basics of Customer Relationship

Management (CRM)

Have more choices than ever

Your customers… (students, alumni, members, grantees)

Expect immediate, high quality, personalized 24-7 service

At the same time, YOU…

Are expected

to do MORE…

with the same or FEWER

resources

Plan, program, market, sell and

serviceSMARTER

With faster, better, more personalized

service?

So how do you…

Good Information

Know

Using information wisely

DoMeasure

CRM is about…

finding customers collecting info about them along the way

using that info to enhance their experience and foster long-term relationships

Customer Relationship Management (CRM)

The CRM Pyramid

Marketing, Sales, Support

Technology

What are their needs?

Do you offer programs/products in response to their needs?

…or your organization’s convenience?

Focus on the customer

Paradigm Shift

Source: OSAT

Positioning Your Organization for CRM

Information flow

The traditional organization

Customer contact

Decision-making

Many organizations place customers in the hands of entry-level staff who are…

Poorly trained Poorly paid Lacking information to do their jobs

Customer Contact

No longer just a communication channel

Customers interacting with your site are interacting with your business

Are the people creating your website’s content poorly trained, poorly paid and lacking information?

Your website is your organization

How do we bridge the customer information and interactions being collected on the front lines with decision-making throughout the organization?

The information challenge

Information Centered Org.

The Role of Technology in CRM

CRM is a philosophy that issupported and enhanced by technology

Is CRM a technology?

Where is your information?

dotCMS has the power to bridge islands of

information

Before you worry about CRM, make sure your website:

Is easy and intuitive to navigate, with a focus on customers’ information and task needs

Provides up-to-date, well-written and accurate information

Website: start with the basics

Present your potential customers with a seamless website experience.

Avoid multiple, disconnected sites

Avoid duplication of effort by integrating info from other systems

Begin to bring everything you know about a customer together in one view

Begin to connect the pieces

Customer account preferences and personalization of content

Customer self-service

Event management and registration

E-communications tools

Use technology to help build the relationship

Customized catalogs and automated fulfillment

Planning and tracking marketing campaigns

Promotions and discounts

Analytics and measurement

Evaluation and follow-up

Let the technology do the work

CRM, Marketing Strategy and Measurement

The Customer Purchase Experience

AWARENESS

PURCHASE

SHOPPING

INFO SEEKING

What do they know about you?

Will you be on their short list?

Consider the 4 CsCustomer, cost, convenience, communication

How difficult do you make it?

Communicate Appropriately

Stranger

Friend

Shopper

Customer

Loyal Customer

Traditional Marketing Funnel

customers

shoppers

friends

strangers

Other funnels

Prospects

Inquiries

Applicants

Admits

Matriculants

Alumni

Alumni

Event Attendees

Volunteers

Leaders

Prospects

Visitors

Members

Conference Attendees

Contributors

Goal is to move people through the funnel

Success measured by conversion rate

# people at one stage/ # people at the prior◦ Conversion rates higher as you move down◦ May vary by segment, program, strategy,etc.

On avg 0.5% of strangers become customers

Marketing Strategies

Need to track over time to establish baseline. Technology can help here.

Start with educated guesses, refine with better data

Once you know your conversion rates, you can better target your marketing strategies

Conversion rates

You need 20 attendees for an upcoming seminar.

Goal: Convert strangers to friends (get them to visit your website

You plan to purchase a list and send postcards

Scenario

How many postcards do you need to send?◦ If you have tracked past conversion rates, this is

easy

Scenario continued

Convert the website visitors to shoppers

◦ Offer with registration? An incentive for them to create an account or log-in? This is your opportunity to build a customer’s profile.

Convert shoppers to customers

◦ Follow-up with an email or phone call to seal the deal

Scenario Continued

Conversion rate alone not the best measure of success

Cost Effectiveness

Cost Effectiveness Calculation

A consistent, positive measure to compare success

Starts with Market Research

◦What is your target market? Are there many?

◦What are people in each market segment looking for? (needs, preferences)

◦What do they know about you? How do they learn about you?

Strategic Market Planning

Identify market segments

Match your program offerings to markets

For each segment, develop specific strategies for each stage of the funnel

Implement strategies, collect data, measure results

Take what you learned and refine

Strategic Market Planning

Marketing plan is fluid

Programming/ products should meet the needs of the customers

Your past customers are your best future customers

Your organization, programs, technology and strategies should evolve

It never ends…