How to Get the Most Out of Your Nonprofit CRM

Data has become that much more important for nonprofits. Thanks to increased competition and the wider reach digital media has to offer, nonprofits must squeeze the most out of their donor data to fund their organizations. A good CRM system goes a long way towards meeting this challenge.

However, installing a CRM system and leveraging it to boost donations are two different things. Most nonprofits fail to back their CRMs with the right processes, and this leads to missed opportunities.

Here are a few ways nonprofits can ensure they’re getting the most out of their CRM systems.

Outline goals and issues before adoption

When choosing a CRM for nonprofits, organizations must first understand the true value a CRM can offer them. To get the most out of a CRM partner, nonprofits must first outline what issues they face and how data can solve them. For instance, are donors failing to reconnect after a few interactions? A CRM system will give the nonprofit interaction data and records, giving the situation more context.

Similarly, a nonprofit might find it challenging to identify its top donors. For example, many organizations rank their top donors on a spreadsheet based on dollars donated, but this approach lacks insights that could lead to long-term success. What an organization needs is highly engaged donors and a way to identify the frequency of their donations and interactions – data a CRM can present.

Listing common issues and tying them to goals will justify the need to install a CRM. Mapping out causes also helps secure buy-in, if the nonprofit is a large organization.

Focus on processes first

Some nonprofits become too enamored with their CRM and forget it isn’t a cure-all. Rather, a CRM is a tool, and the organization must use it well to realize all the benefits it offers. The best way to use this tool is to install processes that everyone in the organization can lean on.

For instance, how do employees enter prospect data into the system? Which data do they enter and collect? How do they plan on using it? Many nonprofits have no answers to these questions, and that’s a problem.

Nonprofits must begin by defining what data they need from donors and prospects. It’s best to collect the bare minimum needed to make an impact. For instance, asking a prospect for their full name, age, email, and phone number is overkill.

The next step is defining how the organization will keep these people engaged. Donors have interacted with the organization previously and need a different approach compared to prospects. Spamming prospects with upcoming fundraising drives instead of sending them information about the impact an organization has made is a bad move.

The types of content a nonprofit sends is also critical. It’s best to experiment with different types of content and measure engagement (data the CRM will offer) before deciding on the ideal type of content to send.

Organizations must examine each step of their workflows and create repeatable processes for all of them. This way, a CRM will augment them with its data, boosting results for the nonprofit.

Marketing Technology News: MarTech Interview with Rachel Dillon, EVP Sales and Marketing at Strategus

Drive acceptance

Many CRMs fail in nonprofits due to a simple reason: Inertia. Nonprofits that are bootstrapped tend to suffer the most since employees become used to executing processes in a certain way. The problem is that the processes that worked when the organization was small will fail when it becomes large.

This is why the nonprofit needs a CRM, after all. The organization’s leaders must plan acceptance drives by offering employees the chance to play around with the tool before upgrading it. They must seek feedback from employees and ask how the tool helps them execute daily tasks.

Leaders must also communicate why the organization needs the tool. Many employees view technology with distrust since they see it as a threat to their jobs. Transparent communication is critical in such situations. It reduces attrition and places tech adoption in the right context.

Organizations must outline a communication plan well before they adopt the CRM, giving employees enough time to adjust to the tool. A phased adoption is also a good idea if the organization is large or the tool is complex.

Invest in training

One of the worst things nonprofits do when adopting CRMs is assume their employees will automatically become proficient at using the tool. CRMs are complicated software and have a learning curve. Even the simplest CRMs can pose challenges to technically-minded employees, let alone non-technical people.

The best approach here is to invest in training. Most CRM software providers offer helpful tools to onboard employees. Whether through video or in-person training workshops, organizations can onboard their employees onto the software in phases, boosting acceptance.

Training also prevents errors in CRM-related processes. For instance, all CRMs need clean data to function well. Unfortunately, CRMs cannot clean or reformat source data themselves. Organizations need to clean and format data themselves, something employees need training with. Which formats are acceptable, and how to upload large datasets, etc?

As with software acceptance, an organization’s leaders must create a plan to train their people and budget for the resources needed accordingly.

Marketing Technology News: The Rise of “Zoomers”: How Digital Engagement Platforms Have Changed The Business World

Data is the way forward

CRMs unlock the world of data analysis for nonprofits. To take advantage of these tools though, nonprofits must plan well in advance and follow the best practices listed in this article. They must remember that a software’s output is only as good as the data it is fed.

Thus, investing in training and creating the right processes go a long way toward ensuring CRMs work well for nonprofits.