Book Image

Using CiviCRM

Book Image

Using CiviCRM

Overview of this book

CiviCRM is a web-based, open source CRM system, designed specifically to meet the needs of advocacy, non-profit and non-governmental organizations. Elected officials, professional/trade associations, political campaigns and parties, government agencies, and other similar organizations are among its growing number of enthusiastic users. This book shows you how to harness CiviCRM’s impressive array of possibilities as you develop and execute performance-critical CRM strategies. This book will help you become familiar with the structure and main functions of CiviCRM. It will guide you in developing and successfully implementing a CRM strategy for your organization using detailed explanations and practical examples. Using CiviCRM walks you through developing a CRM Implementation Plan that is suited to your organization's size, culture, and needs. Readers will take away many constituent relationship management best practices and the knowledge of how to implement them with CiviCRM. Benefits of Using CiviCRM will be felt across your organization, and help it better achieve its mission. Overall, your organization will interact with constituents more effectively and handle staff growth and transitions by tracking all contacts and interactions with them in a system shared across the organization. Gathering and analyzing data about your constituents and their interactions with your organization will better inform your decisions. If your organization fundraises, you’ll be able to raise more money and reduce costs by identifying qualified prospects for targeted fundraising initiatives. We show how to attract new prospects and convert them to donors using online, direct mail, telemarketing and direct contact channels Using CiviCRM. You’ll learn why and how to set up and then grow your monthly donor program, as well as improve the frequency, average donation amounts, and retention rates of your donor base. With this book you’ll be able to reduce the burden on administrative resources by providing online payments and self-service options for event registrations and membership renewals. You can increase the likelihood your existing subscribers will become more involved with your organization, ensure more of your members show up to volunteer, identify potential leaders and steward their volunteer activities Finally, you'll be making relevant information easily available that quantifies what a great job you've been doing, including the number of hours that volunteers gave to your organization last year, the number of cases managed, or the number of new viral signups from your latest urgent action e-mail.
Table of Contents (21 chapters)
Using CiviCRM
Credits
Foreword
About the Authors
About the Reviewers
www.PacktPub.com
Preface
Index

What is Constituent Relationship Management?


Constituent Relationship Management is the set of processes and supporting technologies used to initiate and improve relationships with constituents. It's important to realize that CRM is not just a technology that is brought into your organization. Managing relationships with constituents involves all of the workflows, processes, and reporting that your organization uses to get things done in order to achieve its mission, and then show how well it has achieved its mission.

Constituent Relationship Management is the non-profit equivalent of Customer Relationship Management in the business world. By comparing and contrasting these two concepts, we will understand the purpose and scope of this book better.

Customer Relationship Management versus Constituent Relationship Management

In the business world, Customer Relationship Management systems are used to optimize a company's sales by focusing its resources on those who are likely to buy. They are also used to improve customer satisfaction and lower costs by providing self-service options.

In order to do this properly, these systems track, automate, and personalize all aspects of client interactions across all communication channels, including website, phone, in-store, e-mail, and social media such as Twitter, forums, and blogs. Every time a customer touches the organization in whatever way, the interaction is logged. This information is used to better understand the relationship with the client, and ensure that all the interactions are designed, from one perspective, to maximize the long-term profitability of the client to the business. Typically, Customer Relationship Management systems focus on tracking and enhancing customer interactions in the marketing and sales funnel workflow for new and returning customers, and improving after-sales support. Depending on the industry and the company, CRM systems and techniques might also be used for tracking and enhancing relationships with other stakeholders, such as regulators, shareholders, or media.

The ideas developed for Customer Relationship Management systems in the business world have been adapted to the needs of the non-profit world in Constituent Relationship Management systems. While increased donations parallel higher business sales, there are slight but significant differences in terminology and processes. For example, good Constituent Relationship Management systems are designed to account for pledges, recurring donations, soft credit donations, and the portion of ticket prices eligible for political or charitable tax receipts. Relations with non-profit stakeholders including media, board members, and granting foundations may also be managed with Constituent Relationship Management systems.

Non-profit organizations have additional critical non-monetary measures of success beyond increased revenue and lower costs. These may include education, service, advocacy, or other outcomes relevant to non-profit missions. Nonprofit CRMs may need to track one or more non-monetary objectives along these lines. For example, in addition to wanting to increase donations as a means to support their mission, an advocacy organization might want their CRM to help them achieve their objective of influencing legislators or voters through means such as more letters to the editor, e-mails, visits to legislators, or forwards to friends. Similarly, a direct service non-profit organization might aim to improve the outcomes of its client cases with their CRM system's case management functionality, or a legislator might aim to assist more voters to access government resources.

Despite these differences, Constituent Relationship Management systems are similar to Customer Relationship Management systems in aiming to support the growth in numbers and depth of engagement of contacts with an organization.

In the business world, this is usually done by keeping existing customers happy in order to avoid high costs of client acquisition. Similar strategies and techniques apply in the non-profit world, given the generally higher cost of acquiring new donors, activists, volunteers, or members, as compared to retaining existing ones.

A good general strategy in business is to aim to increase the volume of business it receives from its existing clients. For example, this may be done by identifying prospective buyers and communicating better with them on why they would want a more expensive product (up-selling), or why they would want additional related products (cross-selling). It may also be achieved by focusing on increasing repeated business from customers who return more frequently for the same product (for example, to watch movies more frequently).

Non-profit organizations benefit from this strategy, both in fundraising and in non-monetary appeals. Fundraisers aim to increase the recency (that is, how recently each donor has donated), frequency, and monetary value of gifts from their donors.

For non-monetary contributions, non-profit organizations benefit by focusing on increasing the number of actions taken by the existing activists, such as appeals sent, educational programs attended, or shut-ins voluntarily visited. They also benefit by getting them to undertake actions that require more co-operation from them and result in more impact, such as calling up a call-in show in addition to signing a petition, visiting their elected representative as well as sending him or her a letter, and so on.

Increasing the number and depth of interactions can often involve targeting clients with shared characteristics, such as those who have made several recent low-cost purchases or small donations for a special treatment such as an offer, a special ask, or other follow-up communication.

Another objective may be to ensure that those best suited for a product or service receive such a great experience interacting with a company, that they recommend it to others.

In the for-profit sector, this can involve sales personnel or systems responding more appropriately, given the purchase history of an individual or a company, by offering appropriate discounts, cross-selling or up-selling suggestions, and so on. For example, a long term customer might be offered a discount when he shows up at a website, a computer buyer might be offered small items at checkout time including games for a previously purchased game system, or a client who has made premium purchases might get a more expensive range of products. After-sales support personnel would be provided with the whole record of attempts an individual might have made to resolve a problem, as this often helps narrow down an issue and avoid irritating requests to repeat actions. A complete customer record might show that an individual with a tough problem is considering a major purchase, or that they have had a history of making unauthorized technical changes to the product that might have impaired its functionality and voided its warranty.

In the non-profit world, the parallels might be to encourage:

  • A regular attendee at events to come to an upcoming breakfast seminar with a discount

  • Users who sign petitions to make a donation

  • Those who volunteered more than twice in the past year to consider becoming a board member

Similarly, tech support has parallels in non-profit case management. Imagine how much a non-profit serving "at-risk" youth could benefit from being able to easily pull up the records of someone calling in about depression when those records reveal a caller has a history of suicide attempts.

In all of the preceding business and non-profit examples, a tiny organization with a single staff person serving a small clientele would be challenged to recognize the individual, remember the history of interactions with them, and act appropriately by providing a discount. More difficult challenges include calling up someone who had stopped coming in, going the extra distance for someone who needs it, or curtailing resources dedicated to a relationship not related to the mission of the organization. Technology helps to scale these appropriate behaviors to situations where many staff members and volunteers have been involved in the interactions with the client or customer. It can help in situations where some of the staff members or volunteers may not have the best memory, and may not have the best judgment as to how to respond in the situation.

Who are your constituents?

We've made an assumption so far that you have a clear concept of your constituents, but it is worth taking the time to define this clearly for your organization. A constituent is any person, household, or organization that has some relationship with your organization. Depending on your organization, it may include:

  • Donors

  • Funders

  • Elected officials you seek to engage, educate, or influence

  • Newsletter subscribers

  • eNewsletter and action alert subscribers

  • Members of your organization

  • Coalition members

  • Participants in your petition, e-mail, and letter writing campaigns

  • Participants in your face-to-face events

  • Volunteers

  • Clients

  • Website visitors

  • Board members

  • Staff

  • Organizations or individuals who are not staff members, but help you deliver programs and services (for example, lawyers volunteering for a pro bono legal services clinic)

  • Users or purchasers of your products or services

  • Media outlets and/or personnel your organization contacts

  • Advertisers or sponsors of your organization, its events, or publications

  • Government agencies who influence policies impacting your organization

In some cases, your relationship with one constituent may need to be through another. For example, a parent might be the constituent who signs up their child for a program, or a staff person might be the contact person for the organization they work for.

Which constituents your organization needs to focus on—individual donors, volunteers, granting agencies, newsletter subscribers—depends on your mission and situation. It's usually good to keep in mind that one person often has many hats and may fall into several categories of constituents.

It's often effective to gather information about a relationship when the constituent can understand why it is needed, and that providing it makes sense. For example, explaining that a mailing address is needed to provide a charitable tax receipt when a donation is being made, asking about food preferences only when someone is purchasing tickets for dinner, or requesting policy interests when signing up for a newsletter helps reduce the burden in any particular interaction, and makes for a more natural deepening of the relationship.

While designing your CRM strategy, you will need to balance the benefits of having information on relationships with your constituents with the costs of acquiring, maintaining, and using it. As you develop your strategy, you should ensure that it focuses on gathering data that will help your organization act effectively, and know that it is acting effectively, in the constituent relationships that are most important to achieving its mission. These are often the constituents with the most transactional encounters with your organization—donors, volunteers, members, event participants, and so on. However, sometimes, a small number of constituents can provide a breakout value—a game-changing, qualitative improvement. For example, investing in some research and wooing a few key media contacts, potential coalition partners, or swing legislators may help your organization realize its mission more than great gains in number and efficiency at other levels.