eCRM Strategies and Tools for Nonprofits

Information overload abounds in the Internet age. Making sure that the right information gets to the right people can be a difficult task. Electronic customer relationship management ( eCRM) tools allow organizations to use focused Internet communications to maintain relationships with the people who matter most.

There are a variety of eCRM tools available, many of which are expensive and have specific commercial focuses. But others are affordable and useful to nonprofit organizations.

Maintaining Relationships Online

Anyone who has been in a meaningful relationship knows that they are not effortless. It takes time and commitment to keep a relationship healthy. We make this commitment with the hope that the relationship will offer support and encouragement when we need it.

Most nonprofit organizations must similarly value and nurture relationships -- be they with financial supporters, volunteers, or board members -- in order to succeed in their missions.

eCRM tools are designed to facilitate useful exchanges between two parties in order to build relationships. Such tools track exchanges of information and the reactions of the recipients. For example, when an organization sends an e-mail newsletter, an eCRM tool helps track how many recipients visit the organization's Web site for more information, and what each user is looking for. This helps the organization target its audience with useful, relevant information in future communications.

In a commercial environment, the exchanges between two parties are usually centered on a consumer receiving products and services in exchange for financial compensation. But often, these trade-offs take the form of lower-level product or service exchanges that are designed to acquire permission to provide more focused marketing that may lead to a sale of goods or services later.

Every time a company or organization delivers a micro-service (such as a monthly newsletter) or micro-product (such as a report), the consumer receives some benefit for little or no economic investment. What consumers do offer is more information about themselves (such as which products or newsletter items most interest them), allowing for more targeted marketing in the future.

This is where the real power of eCRM is noticeable; permission marketing, a phrase coined and expounded upon in a similarly titled book by Seth Godin, allows an organization to promote itself to individuals through a chain of engagements, educating consumers about the services it offers and slowly turning them into the perfect customers.

Nonprofit Parallels for Commercial eCRM Strategy

While many nonprofits offer goods and services in exchange for fees, even those that don't can benefit from a knowledge of eCRM tools. Replacing the word "customer" or "consumer" with "constituent" or "supporter" may make these theories more accessible in a nonprofit environment.

Start by considering the exchanges that occur between your organization and your supporters, whether they are donations in exchange for a newsletter subscription and a feeling of contributing to an important issue, or a volunteer opportunity in exchange for becoming more involved in the organization's work and receiving community recognition.

The power of eCRM really shines when you consider exchanges earlier in the relationship. In the nonprofit context, an organization may offer a more focused e-mail newsletter in exchange for information on a supporter's specific interests. Supporters benefit because they are more likely to receive information that is interesting to them, and the organization benefits because the supporters are more likely to become more involved in the organization.

Remember that the process of building relationships is most often a slow one that involves a number of stages. Consider the levels of engagement that an individual may go through and develop a strategy that encourages movement between stages. For example, many constituents may begin as members of the general public with an interest in issues your organization addresses. Once engaged, either online (through discovery of a Web site) or off-line (through personal contact at an event), they may become active members of your organization or volunteers.

Even if your organization doesn't have the resources to invest in a customized eCRM system (which can cost more than one thousand dollars per month), you can begin developing relationships online using some relatively simple tools. If you keep the more advanced tools and methodologies in mind, you should be able to reap some of the benefits of the more complex systems without an enormous investment in infrastructure.

Tools for eCRM

Following are descriptions of four levels of eCRM tools that can be adapted to the different needs and capabilities of an organization. For nonprofits, the core of many of these tools is e-mail newsletter publishing.

Self-maintained e-mail list

The most basic way to keep in touch and build relationships with a group of individuals online is to collect e-mail addresses and send e-mail to the group on a regular basis. This may be as simple as creating a BCC e-mail list (see TechSoup's article )of names in your e-mail software's address book (see ONE/Northwest's article Creating a Mail Merge to Email Using Outlook 2000 ), or storing contact information in a spreadsheet, such as Microsoft Excel and performing an e-mail merge.

By regularly sending e-mail to your organization's supporters, you maintain your relationship by reminding them that you exist and telling them about your latest accomplishments and programs.

Besides the options listed above, there are a number of tools that provide additional customization. Other options for self-maintained list tools include:

• Gammadyne Mailer
• M5 Mailer

Gammadyne Mailer and M5 Mailer are software package that run on your computer and allow you to send targeted customized e-mail messages. They let you link to a database that tracks information on contacts and bounced e-mail addresses. M5 offers a more intuitive interface at a slightly higher price.

Hosted e-mail list

Often referred to as listservs (one of the more popular list hosting packages is called Listserv), hosted e-mail lists offer a straightforward means for maintaining and sending e-mail to a large group. This method offers the same benefits as the self-maintained lists -- with lower administrative overhead and less flexibility. Many of these tools offer additional services that can help foster relationships, including Web-based calendars and file sharing. Options for hosted e-mail lists include:

• NPOGroups.org
• YahooGroups
• Topica

These services offer a Web interface for maintaining your hosted list, allowing individuals to easily subscribe or unsubscribe to the list. All of these tools offer some Web-based tools such as list archive access, which allows subscribers to search through past messages, a shared Web calendar (available with YahooGroups and NPOGroups) and, in the case of YahooGroups, simple online databases, polls, and photo galleries. YahooGroups and Topica's services are offered for free, but include advertising on the Web site and within messages. NPOGroups is a list hosting service specifically developed for nonprofit organizations. It has a nominal fee and no advertising.

Web-based e-mail newsletter publishing tools

Some tools allow you to do more than send information to a large group of individuals en masse. These tools allow you track the popularity of links in your messages and carefully filter and sort the recipients of each message. Options for e-mail newsletter publishing tools include:

• Constant Contact
• Groundspring EmailNow

Constant Contact and Groundspring's EmailNow service are Web-based e-mail newsletter tools that offer easy-to-use interfaces for maintaining your e-mail lists, creating templates, sending newsletters, and tracking results -- such as how many recipients opened the newsletter and how many "clicked through" to read more in-depth information.

While Constant Contact is marketed to a general commercial audience, Groundspring's EmailNow service has a nonprofit focus. Groundspring also offers additional services (online surveys, Web content management, online advocacy tools). If services such as these are of interest to your organization, then EmailNow may be useful. Groundspring's service is often cheaper than Constant Contact and similar tools. In addition, Groundspring plans to launch a hosted Web-based version of its ebase donor development database in early 2005, tentatively called ebase enterprise. This service will tie together Groundspring's other online services, creating a set of integrated CRM tools.

Integrated eCRM tools

A number of packages provide an integrated set of tools that allow you to integrate your e-mail newsletter into a larger online communication and relationship management strategy, including online fundraising, Web site content management, polls and surveys, and online forums. Options for integrated eCRM solutions include:

• Convio
• Kintera
• Salesforce

These tools offer more than the ability to send formatted e-mail messages and track responses. They also include additional functionalities such as Web site content management, online advocacy, online fundraising, membership management, event management, and online surveys. The integration of these tools is very valuable. Whether you are sending out an e-mail newsletter, soliciting a donation or membership, sending out a survey, you can track information about individuals in your database throughout all of these interactions.

Convio and Kintera offer a modular set of functionalities, meaning that you can mix and match the ones you need and pay a corresponding monthly fee. Both of these services are nonprofit-focused. Salesforce offers a comprehensive set of CRM functionalities aimed at the commercial sector, but it is an appropriate option for nonprofits that generate revenue.

There is a wealth of additional information on the effective use of e-mail and e-mail newsletters in the Using the Internet section of TechSoup. Additionally, Summit Collaborative has developed an extensive list ofEmail Newsletters and Electronic Mailing Liststools with the assistance of the nonprofit technology assistance provider community.

Who Should Be Involved in eCRM Strategy Development?

Of course, before you can use any tools, you must have a strategy in place. This strategy should draw on the expertise of a number of individuals in your organization. The executive staff should be involved in the process to provide input on ways that eCRM can help the organization achieve its mission and vision. Development and marketing staff should be involved, because eCRM is, at its core, a relationship-building tool that should primarily be owned by the development or marketing department. Management and general staff should also be involved in the discussion to provide input on their day-to-day work and interaction with your organization's supporters and how the existing modes of communication can be augmented with eCRM tools.

Getting Started

The best way to start planning an eCRM strategy is to look at who your organization currently communicates with and how. Next, look for holes in your communications strategy, whether it is a lack of communication with a particular audience or an inability to effectively engage your constituency to action. Your eCRM strategy should enhance your existing communications and address your current communications deficiencies.

Unfortunatly, it is not easy to develop a strategy and choose the right tools for an eCRM plan. Whether planning a simple e-mail newsletter or a complex eCRM campaign, most organizations would benefit from the skills of a consultant. A great place to start in your search is the consultant directory at idealist.org and TechFinder on TechSoup.org. Here you will find consultants that specialize in working with nonprofits in many areas, including technology and marketing.

The staff of your organization knows best what you are trying to accomplish and what has worked in the past. Hiring a consultant will ensure that your organizational knowledge is applied most effectively to utilize these new tools, building on your organization's past successes to plan for the future.

Recommended Reading

• "Permission Marketing," By: Seth Godin (ISBN 0684856360)
• "CRM at the Speed of Light," By, Paul Greenberg (ISBN 0072224169)