Finance

The key to CRM perfection

Third Sector May 30, 2017

2 min read

A Constituent Relationship Management (CRM) system could be rated as the top asset of a non-profit organisation.

CRM can either be software that stores all data and manages business practices, or a system in which various software packages are used to manage information and meet key business needs. In the NFP sector we talk about “constituent” relationship management whereas in a commercial context it is about customers.

CRM may be the single biggest investment for many NFPs, and if put together correctly, managed tightly and used uniformly, can propel an organisation to new heights. CRM can also help your organisation grow fiscally with fundraising and through cost savings because of more efficient business processes.

Does the perfect CRM set-up exist? It depends entirely on how an organisation does its research. Searching for a CRM system is both science and an art.

Firstly, the science stages of research will show whether there is a perfect CRM for your organisation…

Define requirements: Just as a scientist in a lab or a doctor in an emergency room try to make a discovery or a diagnosis, your organisation needs to gather information. What are your organisation’s requirements? What does it want to achieve? This is a vital step. After all, how can you know what you are looking for if you do not know what you need?

Research the market: Once you have your organisation’s detailed requirements, research the market to see what software is available in Australia to meet your these needs. This is not a one-size-fits-all scenario.

Request proposals: Develop a comprehensive request for proposals (RFP) and a requirements document to submit to invited suppliers.

Analyse proposals: Analyse the proposals received from the RFP process.

Next come the art stages, which are shared between your organisation and the chosen supplier.

Supplier demonstrations: The supplier needs to demonstrate their offering for your selection panel. These demonstrations are part performance and part product look, feel, usability and functionality. Evaluate the demonstrations. This stage may eliminate some suppliers.
Contract negotiations: Eventually you will request contracts and agreements from one or two suppliers. The art of negotiation comes into play at this stage.]

Supplier selection: Choose your preferred supplier. The art of naming the supplier, along with turning down others, entails skill and tact. Remember, the suppliers have invested as much time as your organisation (sometimes more) in the process. Be respectful to the supplier selected as well as to the suppliers declined.

Business plan: Writing a business plan for your senior leadership and your board is critical. This will offer a detailed overview of the process followed leading up to the selection. It will also give a detailed roadmap of where you intend to take the organisation during the CRM implementation. The plan will request an investment in the chosen CRM system and also detail expected returns on investment, such as revenue gained through increased fundraising, revenue gained through deeper penetration into your donor file via segmentation and other strategies, cost savings through reduced reliance on certain suppliers as more processes may be done in-house, costs saved through less time being spent on various business processes, and staffing reductions made possible through automated processes.

A CRM search takes time, patience and dedication, but if it is done correctly you will not only find the ideal CRM solution for your organisation, but you will also increase revenue, cut costs and benefit from multiple dividends for years to come.

This article originally appeared in the March print edition of Third Sector.

Stephen Mally, Director, Fundraising Force.