5 Steps to CRM Success

Transcription

1 Using Customer/Member Relationship Management for More Effective Sales, Marketing, and Membership Retention Andrew Steggles Risk and Insurance Management Society Wes Trochlil Effective Database Management, LLC Jay Younger McKinley Marketing, Inc.

2 Quick Poll Trade / Professional Centralized Database Staff / Budget / Membership size

3 Assumptions Profit is good Data drives decision making New communications paradigm CRM is most effective with a centralized system Someone needs to own this

4 Defining CRM A business strategy to select and manage the most valuable customer relationships. CRM requires a customer- centric business philosophy and culture to support effective marketing, sales, and service processes. --crmguru.com

5 Defining CRM 1. CRM is a business strategy that commits the organization to being driven by the customer or otherwise being customer centric. 2. Technology is used as an enabler to deliver profitable value to customers through h the understanding and anticipation of their needs. --Glen S. Petersen, CRM2day

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7 CRM should help you resolve THE DATA YOU HAVE C C R M WHAT YOU DO WITH IT

8 Our Definition for Associations CRM/MRM is a member-centric business strategy to create long-term, profitable relationships. CRM/MRM means truly listening to the needs and concerns of members, while exceeding their expectations on a continuous basis. CRM/MRM IS NOT a software package. (note: associations can have customers too)

9 Some stats Companies are investing more than $1.5 billion per quarter on CRM-related applications. Fewer than 20% of enterprises will use more than 50% of the customer data they collect. Only 2% of businesses have an integrated, t comprehensive view of their customer data. More than 50% of CRM implementations considered failures from customer's point of view. Sources: SAS, Gartner Group, Forrester Research, AMR Research

10 Why CRM? Many associations still don't have a real understanding of: who their members are which ones are the most profitable how to project their lifetime value, or where to focus marketing activities Why?

11 Call Center Education Meeting Registratio n Web Surveys DATA Vendor Reports Staff Produc t Sales Renewa l Forms

12 Two Types of CRM Operational CRM What has happened? Provide efficiency, improve service aka Segmentation Analytical l CRM What will happen? Analyze data to predict future behavior Event based communications

13 What can CRM do? Help make sense of all the data to: ID most valuable relationships Those who are are truly profitable ID most valuable products and services Are you selling what they want to buy? ID and meet member needs Determine if you ve got what they want Help you give it to them

14 What else can CRM do? Improve member service (as defined d by THEM) Eliminate repetition Save members time Build intimacy Make them feel good Strengthen your brand Uniformity in communications

15 Step 1: Getting started Get buy-in Set goals DON T buy the software!

16 Step 2: Centralize your Data Identify all of the databases outside of your central system. Identify what data needs to be in the central system. Figure out how to get all of that data into Figure out how to get all of that data into one place

17 Step 3: Analyze & Evaluate Organizational goals & priorities Research findings Areas of strength Areas of opportunity Member metrics (LTV, ancillary a sales) Cross-selling opportunities

18 Step 4: Strategies & Tactics A Relationship Strategy answers these questions: Who are we targeting? What do they want? Do we have it? Why will they listen? How do they prefer to hear from us? Who has responsibility? When do actions take place? How will we measure success?

19 Step 5: Leverage technology Identify existing technology Gap analysis Deploy new technology in phases

20 The Problem After the analysis has been done, there is no business benefit until the results change the organization s behavior. -- Gartner Group

21 Steps 6 -? Use your findings to change behavior by asking and answering tough questions: Have we truly become customer-centric? ti How are we marketing differently today? What is that saving / making us? Do members feel more connected? How do we know that? What is the ROI on our CRM initiatives?

22 Advamed Their Process Background Set objectives ID key segments through data mining Developed CRM strategy to keep those members happy

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26 GWSAE Background Use technology to gather interests on members Market to their interests

27 Because their constituents can tell them what they are interested t in, and how much

28 they now market based on those interest levels.

29 CRM Myths Software will solve your problems All members should be treated equally CRM is a panacea You buy CRM from a vendor CRM projects are managed by IT

30 CRM Realities CRM evolves from a business strategy t CRM is only as effective as those managing it Ultimately, CRM is an enterprise-wide activity CRM can tell you what you need to be doing, but can t always do it for you Return on investment must be measured

31 Pitfalls CRM can be overwhelming to consider on an enterprise-wide basis. Fundamental shift in how business gets done. Organizations fail to invest in training Organizations fail to invest in training and development.

32 Solutions Involve senior staff Set goals Review processes Implement your strategy Train your staff Pilot test Measure and evaluate results

33 Database aaba Consistency through Centralization 83 Chapters Average of 200 additional contacts in each chapter database Average of 500 additional contacts in the RIMS.org database for each chapter Collective Total of approx new Collective Total of approx. 58,000 new prospects

34 Benefits to a centralized system Whose info is more current? More efficient records management On-demand data mining

35 How to avoid over ing your members Common Problems: Junk Senders List No Out option for members Members starting to demand to have their taken off the database

36 Association Message Center Similar to Chase Mail or Citibank Mail Leave messages on website Allow multi-directional l communication Matrix of fcommunications Direction Member to Member One to One StafftoMembers to One to Many Chapter to Members One to Many

37 How does it work?

38 Other ways of reducing over e- mailing Avoid sending surveys to the entire membership. Send to sample and don t send the next survey to the same sample Target s based on various criteria

39 Example 1

40 Example 2

41 Brand Management of your chapters Common Problems Chapters bastardizing the brand Colorizing Animating Re-sizing Context positioning

42 Chapter Websites Branded d Templates

43 Alaska Chapter

44 New York Chapter

45 Quebec Chapter

46 Return on Investment and Problems New revenues New members Members only sections adding value to membership at the chapter level Some chapters still bastardize the brand

47 Example of a chapter bastardizing the brand

48 Measuring Results evolving models How associations are measuring results and understand the potentially new, more relevant communication model that is evolving.? Membership Activityit Number of Chapters

49 Trends of most associations Decline in Membership Decline in Chapter Activity

50 New ways of measuring results Examples: Online Membership Directory E-Groups/Listserve Activity Web Activity

51 Risk and Insurance Management Society, Inc. (RIMS) Actual Results Year Number Average Average Total Total number of Chapters Number of Meetings number of people Member to Member Interactions ti of participating volunteers ,600 4, ,000 4,000 Q Is this association becoming less or more Q. Is this association becoming less or more successful?

52 Alternative Metrics Year Total Number Total number Total of Listserve Messages contributor s number of s generated , , , million

53 Conclusion Primary reasons for joining associations are changing Associations have an opportunity to be more relevant Online tools are a cost effective solution to increased demands

54 CRM Sources com