Companies often think nonprofit organizations are less professionally run than their for-profit counterparts, but really each sector has areas of advantage. Companies would be smart to learn from the advanced constituent (or customer or client) relationship management systems of associations and other nonprofits.
According to AdAge, more companies are now realizing that relationships lead to results: More Marketers Want to Get to Know You: CRM Surges as Brands Demand Measurable Results.
Feel-good talk about leveraging CRM -- the art of using tools such as database maintenance and customer segmentation -- to boost understanding of consumers isn't anything new. Ask around, though, and industry folks will tell you 2008 is shaping up to be the year in which companies put their money where their mouths are -- with a looming recession making brands more sensitive than ever about the returns on their marketing investments. CRM-software-industry global revenue is projected to jump 14.2% this year to $8.9 billion, according to research house Gartner.
Nonprofits that cultivate relationships with their donors and volunteers can offer advice to companies:
- Your customers will help you - if you support them
- Share customer information with other divisions - you're all working toward the same goals
- Consider implementing CRM in stages rather than all at once - simple and used is better than complete and ignored
- Customers have different goals, so they respond best to different communications
- Invest time in managing the CRM - "it's just a tool and won't raise money on its own."
- Make sure your metrics tell you if customers' involvement with you increases over time
- Plan for your CRM to grow with your company
What else can nonprofits teach?
