By Darius Vaskelis

1. CRM Trends that Transcend:
Learning from For-Profit
and Nonprofit Organizations
PRESENTED BY
DARIUS VASKELIS, CEO, SAKONENT

2. Agenda
• Introduction
• Nonprofit vs. For-Profit Organizations
• Value Chain
• CRM
• The Evolution of CRM
• The Birth of CRM
• How CRM Evolved
• For-Profits and Nonprofits Learning from Each Other
• Nonprofit Stories
• Commercial Stories
• Questions & Answers
• Keeping the Discussion Going
• Thunderous Applause
• [Well, at least polite golf claps, right?]
2 #bbcon

3. Hi, I’m Darius.
3 #bbcon

4. Nonprofit vs. For-Profit Organizations
4 #bbcon

5. “My Organization is Different”
• As a consultant for over 20 years, every client I’ve ever worked with
thinks they are a unique snowflake.
• “But my organization is different!”
• “We are so unique.”
5 #bbcon

6. All Organizations Have a Lot in Common
• If every organization is unique,
why would they end up with similar
structures?
• Similar organizational structures:
• boards, executives, committees,
divisions, departments,
managers, etc.
• Similar titles:
• Executive Directors, Program
Managers, Financial Managers,
Grant Writers, Fundraising/
Development, Caseworkers,
Office Managers, etc.
• For-profit firms use the idea of a
“value chain” to describe this
commonality of structure.
6 #bbcon
*Organization chart from website of Hurwit & Associates

7. The Value Chain:
Representation of activities within a firm to show how value is produced*
7 #bbcon
*Michael E. Porter, Competitive Advantage (The Free Press, 1985)

8. The Nonprofit Value Chain:
Representation of activities within an organization to show how the mission is fulfilled*
Organization Infrastructure
(e.g. Governance, Planning, Budgeting, IT, Facilities)
Human Resource Management
(e.g. Recruiting, Training, Compensation System)
Program & Content Development
(e.g. Service Design, Scholarship, Content Design, Market Research)
Procurement
(e.g. Services, Ad Buying, Data)
8 #bbcon
Inbound
Service
Logistics
(e.g.
Scheduling,
Data
Collection)
Service &
Program
Operations
(e.g. Assembly,
Volunteer
Management)
Outbound
Service
Delivery
(e.g. Storage,
Report
Preparation,
Public Policy)
Marketing &
Fundraising
(e.g. Community
Affairs, PR,
Development,
Publicity, Planning,
Website, Proposal
Writing, Website,
Advertising)
Constituent
Support &
Cultivation
(e.g. Complaint
Resolution,
Member
Outreach,
Events)
M
i
s
i
n
s
Primary Activities
Value =
What the
community
you serve
receives
as societal
benefit
Support
Activities
o
*Inspired by Michael E. Porter

9. The Nonprofit Value Chain:
Representation of activities within an organization to show how the mission is fulfilled*
CRM activities are those that interact, optimize and collaborate with constituents.
9 #bbcon
CRM Activities
*Inspired by Michael E. Porter

10. CRM in For-Profit and Nonprofits
CRM concepts, rooted in CRM activities and managing processes,
have some similarities across organizations. (think of your “tabs”)
Commercial CRM Nonprofit CRM
Marketing, Campaigns Marketing, Campaigns, Advocacy
Lead Prospect
Sales Fundraising, Development
Opportunities (and Renewals) Pledges (and Recurring Pledges)
Customers, Partners Constituents, Donors
Orders Gifts
Contracts, Agreements Grants, Major & Planned Giving
Services, Provisioning Volunteers, Events
Forecasting (Sales, Revenue) Forecasting (Gifts, Revenue)
Customer Service Member Service

11. Our nonprofit CRM has more in
common with for-profit CRM than I
first thought. @vaskelis @sakonent
#bbcon
11 #bbcon
Tweet this now

12. The Evolution of CRM
12 #bbcon

13. The Birth of CRM
Evolving from Data Processing, to MIS, to IT
13 #bbcon
Transactional-based data computation, tabulation,
and recording to assist with individual clerical tasks
“Data Processing era” -PCs, relational databases, PBX, ACD, fax
PIM, Contact Databases, Database Marketing
Enforcement-based
automation and
enhancement to assist
specific departmental
activities
“MIS era” - SFA, Call Center, local area networks, laptops, CTI, IVR
Campaign Management
Rules-based enterprise view of
departmental business processes
and decisions across functions
client/server, ERP, EAI, DSS,
objects (DCOM, CORBA)
“IT - Client/Server era” -
CRM
Using the Internet to deploy contractually-based
business processes and decisions to entire enterprise
(self-service) and constituents, channels, and suppliers
web, mobile, XML, DW & BI,
MDM, chat, analytics, web
services
“eBusiness era” -
“eCRM”

14. Socio-Economic Eras:
Millennials/Gen Y Pushing Us into an Era of Transparency & Trust
• Transparency & trust hurts relationships propelled by situational values
• Involve calculations about what is available in the here and now
• Ex: Great Firewall of China, “Why I Am Leaving Goldman Sachs”, etc.
• Transparency & trust helps relationships propelled by sustainable values
• Connect us deeply as humans, such as integrity, humility, excellence, loyalty and
passion
• Ex: Facebook, Amazon reviews, Ralph’s doughnuts, etc.
14 #bbcon

15. CRM has Evolved
The Trend is Next-gen CRM
Trust-based transparent optimization of activities inside and outside
the socially-connected enterprise in mutual market- and mission-driven
collaboration with constituents, channels, and suppliers
• CRM has shifted to the next generation of CRM
• “Carrots and sticks” are giving way to purpose and reputation
• Nonprofits have thought this way all along!
• For-profit organizations still struggling to figure this out
• If you implement new technology in an old IT paradigm, you fail
• Underlying technology is just a start, how you implement has changed
• “big bang” vs. incremental, collaborative with users and constituents, etc.
15 #bbcon
SaaS, PaaS, smartphones, social
networking, blogs, wikis, Web 2.0+,
HTML5, open source, cloud, SOA,
tablets, mashups, “big data”,
consumerization/BYOD, “BYO App”
“Post-PC era” –
Next-gen CRM

16. Who knew sitting in a CRM history
presentation could be so awesome?
@vaskelis @sakonent #bbcon
16 #bbcon
Tweet this now

17. For-Profits and Nonprofits Learning
from Each Other
17 #bbcon

18. Learning from Each Other
Nonprofit Learned from For-Profit Organizations
For-Profit Learned from Nonprofits
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Evangelical Lutheran
Church of America
Constituent Master (“Master Data Management” and
“Customer Data Integration” project)
Hennepin Theatre Trust Integrated Donor/Volunteer/Grant Management
(collaborative workflow process project)
Multiple Myeloma
Research Foundation
External Contact and Donation Collaboration
(leveraging an events vendor without losing control)
Evangel University Data-Driven Demographic Analysis for Recruiting
(marketing segmentation analysis)
St. Laurence High
School
Mobile Alumni Management (“BYOD” drives 100%
user adoption)
Angie’s List Team-based enthusiasm-driven sales
Hobsons Educational community collaboration over Internet

19. Even more awesome: for-profits can
learn from nonprofit CRM! @vaskelis
@sakonent #bbcon
19 #bbcon
Tweet this now

20. Questions & Answers
Potential Topics
• CRM
• Consulting
• Strategy
• Organizational Change
Management
• Behaviors/Reputation
• Baseball
• Bourbon
• How cool would it be to live in
Charleston?
• Or Nashville?
• Why would someone put Chicago
where it gets so darn cold in the
winter?
20 #bbcon

21. Thunderous Applause
or at least polite golf claps
21 #bbcon

22. Did this session give you the jolt you needed?
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