crm for rookies

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.


Agenda

1. What is CRM?

2. What does the research say about CRM?

3. How do you “do” CRM right?


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

2014 CALEM, All Rights Reserved. 11

Agenda

1. What is CRM?




“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


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


Recruitment recordPipeline mgt


Payment RecordCompliance


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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


Academics

Financial aid recordApplicationCompliance


Communications recordMulti-channel mgt

SourceAnalytics

Academic recordLMS

AdvisementCommunications


Academic recordApplication & registration

Course schedulingAdvisement


Recruitment recordPipeline mgt


Payment recordCompliance


CRM

“Other Services”Interaction trackingCase managementCommunications

Interaction tracking

Agenda

1. What is CRM?




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”)


Higher education drivers

• Online has no service barriers• Shifting demographics• The absence of a unique brand promise• Student success, priorities and funding

2014 CALEM, All Rights Reserved. 24

2. Articulate a vision and goals


4. Assess the enablers of CRM


Assess the journey

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4. Define “should be” through use cases


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


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


• 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


• 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


Road map

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Keyword: copelandcrm


Tim CopelandCEO

[email protected], ext 725