Successful Application of a CRM Program in a Non-profit Organization

Presented by:- Group-3, PGPM-B

PLAN INTERNATIONAL

A Non profit organization: Child Sponsorship &

Development Market Oriented approach without being commercial Competitors: Red Cross, Save the Children

Implementing CRM
Key Factors : Strategy Customers People Technology Process

Strategy
Efficiency : Technical & Institutional Demand Technical Demand- ability to manage & best use of funds Institutional Demand- values & ethics of the Organization Plan is assessed on what is visible in Norway by its values, ideology, decisions & processes

Customers
Understanding customers expectations Feedback System in Place Demographic & Psychographic profiles of

sponsors

Survey Results : Reason For customer Dissatisfaction

Communication Gap with the sponsored Child Plans trustworthiness, Less visibility of the

Sponsors fund in Developing countries Community Development Projects to make the sponsor aware of the practical use of money

PEOPLE
challenge : designing the new market oriented organization. Thus the project team was established with plans Marketing manager as the project team leader.
The first step- conducted a survey by indepth interview and discussions to identify the level of ownership for each target audience and the organizations ability and

willingness to change. The survey concentrated around 10 dimensions .

 1.Individual and team capacity for change The participants felt that the employees had strong skills for serving sponsors. But lacking in some departments like Logistics. Some felt training and support provided is not appropriate. 2.Culture The survey shows that Plan did not have a clearly articulated set of values, thus personal values differs. The employees are loyal and proud of doing work at Plan. There was a need to convince that CRM implementation was the right way to achieve goals.

 3.leadership
Participants seemed to have a lot of confidence in the ability and commitment of their leadership. But still needed to increase visibility of commitment. It was found that earlier the top management was not actively involved in the process of change. 4. Communication Average communication among departments. Two way channel of communication is suggested in

decision making. Suggested appropriate training to managers.

 5. Organizational design
Organizational structure across Plan seemed moderately aligned to foster parent focus. Employees suggested for employee empowerment and flexible job description. Some depart mental barriers also prevent employees in operating. 6. Internal/External events Participants agreed on the internal and external events would impact the CRM project. But also agreed that much have been done to address this by the inter-relationship and synergies between initiatives.

 7. Business case for changing

few employees truly understood the need for change. Employees wished to gain clarity about why

implementing CRM. Participants suggested that there was a need for clear rational at both management and departmental level. 8.Vision for change Participants agreed the vision for foster parent focus was quite weak across organization. Misconception were there about program.

 9.HR policies , process and systems

HR policies , process and systems were area of weakness in relation to past change initiayives. Suggested for more recruitment ,training or performance management activities. 10.Change architecture Aligning role according to changes. Employees were largely unaware of who in their

Department was in charge.

Process
Efforts to improve in organization centered on

improving efficiency and reducing costs but more recent efforts have highlighted the importance of focusing on key processes that matters to customers. This aid in providing an enhanced value to the customer. The implementation of CRM process in plan triggered new thinking around the organization. So the IT manager, network manager,sponshership manager were employed. For this reason a loyalty manager was already placed.

Technology
CRM technology is an essential part of the

CRM business strategy Technologies are a support to the main strategy and should not be mistakenly likened to the strategy itself Technology also plays a vital role to execute one to one marketing but technology itself is not enough

METRICS
Any CRM strategy is not completed without

measuring and evaluating its performance. Sponsor satisfaction Length of sponsor relationship Overall dropout Dropout in correlation with number of complaints Dropout in correlation with change of address

RESULTS
In 2001 plan Norway has around 65000

sponsors and an average drop out rate of 13% per year In 2004 Sponsors increased to 90000 and an average dropout rate of 6.5% The plan organization did not succeed in measuring whether the improvement in dropout occurred because of better communication, better complaint handling.

 Decrease in dropout rate directly leads to

profitability CRM strategy not only contributed to increased income but the average time for a letter or gift to reach the sponsor was reduced

WHY PLAN SUCCEED

Plan Norway had a clear understanding of

what they regarded as CRM Plan made a promise to give children in poor countries a better life The key to success that plan followed relationship between the sponsor and the child

 The time span was too long to create a

successful relationship To avoid the bottleneck plans oslo office that employed too few people to manage the flow of letters and gifts, they started working on developing the relationship between sponsor and the child

 The tactics was not just to keep the more

profitable customers satisfied but also to prevent valuable resources being deflected towards the less profitable ones Generally non profit organization focus on their mission to aid people in need and not on the people who make it possible