crm 4

SUCCESSFUL APPLICATION OF A CUSTOMER RELATIONSHIP MANAGEMENT PROGRAM IN A NON PROFIT ORGANISATION: 

SUCCESSFUL APPLICATION OF A CUSTOMER RELATIONSHIP MANAGEMENT PROGRAM IN A NON PROFIT ORGANISATION Presented by: Group no -4

INTRODUCTION: 

INTRODUCTION Customer relationship management is a customer – centered business strategy which is typically achieved by implementing CRM technological programs in functional areas of the organization. Success of CRM depends on strategy which consists of allocating scarce resources so that they can provide a competitive advantage with superior company performance. CRM model consist of three key dimensions of people, process and technology within the context of an enterprise , customer-driven ,technology Integrated with organizational strategy.

Plan Norway: 

Plan Norway British journalist John Langdon- davies and refugee worker Eric Muggeridge founded plan in 1937 One of the World’s largest developmental organisation working in 45 developing countries Investing about US$241 million in 2001 on health, education, livelihood , housing, water projects. Child sponsorship is the foundation of the organisaton which has about one million sponsors in 15 donors countries helping over 1.3 million children. Sponsors also receive regular progress reports from plan and plan magazine , which profiles the work done in many of the developing countries. Plan Norway decided to implement an integrated CRM process in the organization .

The vision and the strategy: 

The vision and the strategy Competitation with well- established non profit organizations ,which have a better known and reputed brand name. Plan’s services are difficult to evaluate in Norway because services are provided in places the sponsors have no control over Plan is assessed on what is visible in Norway The purpose of the project was to ensure to a more effective sponsor relationship management by reducing the percentage of the dropout.

Key success factor: 

Key success factor The CRM project is dependant on a through understanding of the sponsors The CRM project is dependent on available ncy internal resources to execute the CRM Suggesting new process for managing campaigns and sponsor relations Defining level of competence necessary to handle the new processes Making requirements for necessary organisational changes.

CUSTOMERS: 

CUSTOMERS Feedback system is important to encourage the communication with the customers. It is necessary to identify and extract all the information thought to be of future value and create demographic and psychographic profiles of the sponsors Need to identify what influences the customer satisfaction The customer satisfaction questionnaire developed from focus groups, measured satisfaction with six aspects of Plan on a 7 point likert scale The communication with the sponsored child is the single most important criteria for sponsor satisfaction

PowerPoint Presentation: 

The new sponsors were extremely interested in the people in the developing countries Old sponsors are more interested in the investment areas in the developing countries A whole new set of communication materail need to developed to match the different needs of the sponsor segments It is important that the customer information flow freely through the organisation

People: 

People Individual & team capacity for change: Extent to which current skills and knowledge were relevant to achieving the CRM vision . Culture: Alignment of the current organizational culture with the change process Leadership: Participants seemed to have a lot of confidence in the ability and the commitment of their leadership to drive through the change Communication: Participants suggested that communication within the department was average , more two- way channels were required

PowerPoint Presentation: 

Internal/external events: Participants agreed that other internal and external events would impact the CRM project , particularly the field program initiatives Business case for changing: Few employees truly understood the need for change and some employees wanted to see hard facts and this triggered the project group to start considering what benefits each department might gain. Vision for change: Due to many misconceptions about the program itself the vision for foster parent focus was quite weak across the organisation

Process: 

Process The final steps towards an integrated CRM strategy is to make one - to-one communication possible through the use of technology All personnel affected by the change process were involved in designing the process The project group carried out several workshops designing all new process by developing process maps They employed an IT manager and a network manager to ensure the bridging of technology and sponsorship management Then a sponsorship manager was employed to bridge the sponsorship and program issues

Technology: 

Technology CRM technology is an essential part of the CRM business strategy Technologies are a support of that strategy and should not be mistakenly likened to the strategy A database makes it possible to recognize sponsors as individuals and to group them into segments

Metrics: 

Metrics The project team came up with the following measurements of sponsor related process Sponsor satisfaction Length of the sponsorship relationship Overall dropout Dropout in correlation with number of complaints Dropout in correlation with change of address

PowerPoint Presentation: 

In 2001 they had around 65000 sponsors and an average drop out rate of 13% per year In 2004 they had more than 90000 sponsors and an average drop out rate of 6.5% CRM strategy also reduced the average time for a letter or gift to reach the sponsor The identification of sponsors needs and the successful differentiation of sponsors reduced the marketing costs The average length of the sponsor relationship increased as a result of the new CRM processes

Reason behind the success: 

Reason behind the success Plan Norway had a clear understanding of what they are regarded as CRM. The focus was on identifying current sponsors need , differentiating the sponsors , creating a relationship, developing the relationship The emphasis was very early in the process on creating a personal relationship between the child and the sponsor They decided to outsource the handling of letters and gifts to and from the sponsor They had a very clear understanding of the information technology only being a tool that made it possible to differentiate the sponsors and customize the marketing mix

Findings: 

Findings Many non –profit organization forgets that they operate in an environment that has multiple groups of customers and each of these groups are different from each other Plan worked hard to keep the information about the sponsor and the sponsor lifetime within plan and used this information to customizing the marketing mix and thus creating a successful relationship They have involved their employees in the process of creating a CRM strategy and the internal processes to support this strategy

Conclusion: 

Conclusion Any CRM initiative are dependent on Creating a strategy before implementing the CRM project Developing a corporate level strategy Understanding customers Not confounding the CRM technology with the strategy itself Plan viewed technology as a tool for identifying the critical retention points Feedback from the survey helped Plan in identifying the process changes necessary for the implementation of the CRM program.