Tim Copeland's Blog on College & University Marketing and Enrollment Management

New Higher Ed CRM Research - Deploying CRM for All The Wrong Reasons

Is your campus interested in CRM? You are not alone.

Many colleges and universities have (or are interested) in deploying CRM software for a myriad of reasons. To understand how institutions plan and deploy CRM projects, DemandEngine conducted a research study of institutions that deployed CRM software within the last couple of years. We looked at the reasons driving higher education CRM, deployment practices, and common barriers to success.

In the report's executive summary, I wrote:

The last five years have seen an explosion of interest in “CRM” by colleges and universities across the country. Driven by vendor claims of ”managing the student lifecycle” or “facilitating purposeful connections,” what higher education administrator wouldn’t be in interested in software magic, given an era of declining high school graduates, increasing competition, and the need to do more with less.

Unfortunately, higher education CRM has become code for “send more emails.”

Despite its newness in higher education, CRM has a well-marked path of global business successes and failures over the past twenty years. To understand how the higher education industry is applying (or not) these lessons learned, we surveyed to find institutions that recently deployed CRM software. What we found is the need for remedial education.

Higher education CRM investments are based upon the wrong premise and mostly default to the automation of marketing messages, as if talking more is the key to building better relationships. We found recent investments are less than strategic and fail to anticipate the level of organizational change necessary to improve the student or constituent experience.

Institutions seeking a CRM competitive advantage will pinpoint relationship pain points, identify requisite data needs, and define clear goals and business requirements before the first vendor steps on campus. Others will find that intelligent marketing automation is all that is required.

Higher education practioners can request a complimentary copy of the report at www.demandengine.com (registration required).

When CRM Goes Wrong and Calling the White House

I typically do not write about corporate marketing, sales, or service practices as part of this blog. As a result, it is not customary for you to read postings from me about the Facebook IPO, cool marketing tactics that Coca-Cola may be executing, or the latest on Google’s business strategy. However, CRM is a subject about which I consult, research, and write about frequently. In this vein, I am sharing a recent “CRM” experience that I had with a company as an illustrative point for colleges and universities.

Here is what can happen when your CRM approach – planning, people, processes, and technology - is woefully out of balance.

 

The CRM Triptych and Overcoming Higher Education CRM Hype

Have you ever heard of a “Triptych”?

I admit I had not until about 7:00 am yesterday morning. I was in my office early working on a project team kickoff call I had to lead later in the day. This is a DemandEngine project where we will be conducting an enterprise-wide CRM readiness assessment for a large research institution. This University is doing CRM-right: strong executive sponsorship, program charter and supporting project team, and a cross-functional approach across traditional institution silos.

So as I am working on my presentation and notes, I receive an email alert about a new post from one of my favorite bloggers, Peter Kim. I met Peter several years ago when he was an analyst at Forrester Research. Today he is a recognized thought leader and analyst on social business strategy.The blog post is entitled “sCRM: Stop me if you think you've heard this one before”. Here’s an excerpt:

“Customer Relationship Management (CRM) software suites have been around for decades, "social" or not. Although today's playing field may be shaking out into an intense competition among SAP, Oracle, Salesforce.com, and Microsoft, the problems of CRM 1.0 persist in the world of CRM 2.0 or "social" CRM. CRM is like a triptych - a work of art consisting of three sections. The ornate middle section has always been technology.”

“The other two equally important parts are process and culture. Tech vendors would have you focus only on the center, but your program needs all three parts completed.”

In a pre-kickoff prep call last week, the project managers asked me to lead the call with some thoughts on CRM best practices. What better current example to use as part of my call and with full credit to – and thank you - Peter Kim.

The promise of CRM

If you have heard me or any of our consultants speak on the topic, CRM has a long track record in the corporate world dating back to the late 1980’s/early 1990’s. The path is well-marked with lessons of failed CRM projects with grand visions and technology investments that didn’t deliver expected benefits. What factors limited CRM of the past? Planning, people, and the business processes, mostly.

Fast forward to 2012, and CRM is now the “must-have software” in higher education. And why not? Consider some of the following messages I pulled from commercial and higher ed-specific vendors. What business, college or university wouldn’t want to:

•“Engage customers in powerful new ways”

•“Streamline the communication, application, and enrollment process so you can engage with the right students at the right time through the right channels”

•“Get a 360-degree view of your students” (I used this one a lot when I was with Sungard Higher Education)

•“Increase enrollment, reach best-fit students and meet strategic goals, while better managing costs”

•“Embrace the social web and use it to connect with customers and prospects.”

You are probably hearing a lot about social CRM, sCRM, or CRM 2.0. But what does that mean? (see "It's Time to Put the Relationship Back in Higher Ed CRM")

If you can post to Twitter and Facebook from your CRM software, are you now qualified as CRM-social? If your software can embed an inquiry form in Facebook, does that mean your college is engaging in CRM 2.0?

Technology alone can’t manage the student enrollment experience

We conduct secret shopping engagements for colleges and universities across the country, and more times than not, the presence of technology alone does not necessarily improve the enrollment experience. In many ways, communication automation, or what I call CRM-lite has put some institutions further away from their students.

As I had one client tell me recently after we presented our results from a secret shopping audit of his department, “our people think that because we have this CRM system, that email delivery platform, and another online application management system that we are recruiting students. In fact, the areas of opportunity have nothing to do with our software suite.”

The vision… and the reality

Unfortunately, the vendor-led vision and the on-the-ground campus reality is often something different. Technology vendors are not wrong in defining the capabilities of what is possible with their solutions. It’s the application of those solutions where the vision train derails off the tracks.

Let's compare the vision with what actually happens:

•“Engage customers in powerful new ways” = send more stuff

•“Streamline the communication, application  …” = replace the human element

•“360 degree view …” = more logins and passwords

•“Reach best-fit students and meet strategic goals …” = send larger e-blasts

•“Embrace the social web …” = send multi-channel SPAM

One vendor prominently features a customer quote who touts, "Our CRM allows us to effectively measure each mail sent." Wow. You don't need CRM software for that; try one of the $15 per month email blast providers on the market.

A communciation flow does not a CRM strategy make

CRM should be an institutional philosophy and strategy, to re-orient how colleges and universities engage with students, the community, and it’s constituents across departmental functions. A CRM program (planning, people, processes, and technology) should focus on improving the experience OF the relationship in a way that is mutually beneficial.

Resist the urge to only gaze at the ornate middle section (technology) and take in the equally important parts of people and culture for your own institution’s CRM triptych.

Datatel + SGHE Merger Update

Wild rumors, alarmist blog posts, and uncertainty is driving a lot of industry interest and online traffic about the Datatel + SGHE transaction. One blogger has even gone so far as posting information about how to track company changes (layoffs) through LinkedIn.

To get the latest updates, I had a chance last week to speak to former SunGard HIgher Education colleagues Michelle Reed, Senior Vice President & Chief Marketing Officer, and Laura Kvinge, Vice President Marketing about layoffs, company direction, and rebranding.

When the transaction close was announced in January there was an article on Philly.com that indicated that layoffs were on the table and then a clarification in the Washington Business Journal that came out shortly thereafter? Were your comments reflected in the way that you intended?

Kvinge: “What that story was about and what I was talking to the journalist about was the day that we closed the transaction, there was a rumor that we were laying off hundreds of people through a big massive layoff, which was absolutely incorrect. And at that time, that conversation was very much geared toward the common sense of aligning businesses, and that it will take time. And as of that day on that close, those reductions were fewer than 40 people.”

 

In the announcement back in August the company touted some 3,000 employees in some 40 countries worldwide. Given the fact that both companies compete in the same space and similar technology and service offerings, it it fair to say that you will have somewhat less than 3,000 employees with the same or expanded global coverage?

Reed: “So, one of the things that I will tell you is that while we announced in August, and we didn't get through the regulatory approval until early December. So, from that period, from August to December, I know people tend to think that we must have been doing so much work and so much planning together. We couldn't. The reality of it is there were a tremendous number of conversations that couldn't take place. And so, we got through the approval process. And frankly, getting a leadership team in place was the next stage that had to take, that had to occur for the business, and getting clarity of who is going to be in those leadership roles and who is going to be helping bring the business forward.”

 

So this is an important point, the combined company has been at this – rationalizing the organization, understanding the technology portfolio – for less than 60 days?

Reed: “That’s correct. Some people have been put in roles and are trying to work through this process. Now, we're still pretty early in the integration process. Right now, there are still lots for the business to think about and thinking about how we operate, how we best serve our customers, and how we communicate with our customers. From a marketing perspective that we're looking at. How do we communicate who we are? There are different methodologies for keeping customers informed about where we're going, what road maps look like, how we're investing because there's quite a bit that we need to work through, and the intention is not to... We don't want to break things. We don't want a bunch of broken glass all over.”

 

Are there any particular areas that the leadership team is focusing on?

Reed: "Each of us on the leadership team is focused on our areas, and we keep in pretty close contact across the functions. And we're looking at how do we optimize our own organizations, how do we work across the business to ultimately benefit customers. Being able to look at smart ways to leverage some of the things that we are doing across both of the businesses is really important to us."

 

Let’s talk CRM. Oracle purchased Right Now Technologies, a strong software-as-a-service platform, and in December Hobson’s bought Intelliworks. With Datatel’s success with the Microsoft Dynamics CRM platform (Recruiter), what is the future of Banner Relationship Management (BRM)?

Reed: "Really, what it comes down to is that they (Recruiter and BRM) are solutions that meet very different needs. Recruiter is very much focused on the early stage of recruiting and admissions, where BRM focuses more on the holistic life cycle."

 

What message do you have for customers who may be concerned about their past technology investments through either company?

Reed: “As we've talked about, this combination of bringing the businesses together, we've been very consistent in reinforcing just a handful of promises to the market. So, the first one is investing in the primary solutions our customers rely on. We understand that one size does not fit all.

Second, that we were going to find ways to bring together the global community to benefit all of its members. That's really important to us. So, a lot of the initiatives of the businesses are focused on sharing - taking advantage of and finding ways for the community itself to leverage the value. Very important in finding ways for that community to work for the greater good, and then, providing access to a broader portfolio solution. And providing options and choices to customers is very important, and then, finding ways to accelerate innovation.”

 

When can customers, and the industry in general, expect to see the rebrand?

Reed: “It’s  been quite eye-opening for all of us thinking about the complexity of branding a company in today's age. So, it's been a fascinating and wonderful, and very challenging learning exercise, I think, for those of us in the marketing team who's been part of the process because there's so many disconnected processes that we have to think about. There's the creative dimension of it, and coming up with a name that conveys the essence of who we want to be and become, making it sort of aspirational. There is the own-ability and protect-ability element of the brand as well.”

Kvinge: “It's really interesting to see the effects that a new brand has in energy and kind of motivation because people (inside the company) are excited about... Even though they don't know what's happening with the name, or what the company will be called.”

While Reed and Kvinge would not specifiy a timeline for the rebrand, it's possible that an announcement will be made at this week's Summit in Las Vegas.

It’s Time to Put the Relationship in Higher Education Customer Relationship Management (CRM)

Is CRM top-of-mind at your college or university?

Many institutions across the country are considering/investing in CRM software to better compete for students and build relationships across the enrollment lifecycle. At least that’s the vision

But higher education CRM projects often devolve into simple email communication automation rather than business initiatives that improve the student experience across recruitment, marketing, and service functions.

Are Your College or University CRM Efforts Really Social?

The inspiration for my post comes from a story pitch I received today from Jon Ferrara, CEO of Nimble and the former founder of GoldMine, an early sales contact management software. Jon shared his thoughts on the latest buzzword “Social CRM.”

According to Mr. Ferrara, “Salesforce.com, Microsoft CRM, and other traditional CRM systems fail at relationship management, and that’s why people don’t use them to engage the customer. You can’t just append the word “social” in front of legacy CRM platforms and expect it to make a difference.”

In our college secret shopping work at DemandEngine, we see institutions with Facebook profiles that don’t respond to inquiries in a timely fashion – if at all.

That’s not very social.

Improving the Student and Constituent Experience

There is no disputing the role of social media today. But rather than viewing social technologies such as Facebook and Twitter as additional channels to blast your “unique message”, how many colleges and universities are using these mediums as a focal point to clean up recruitment, marketing, and service processes?

In other words, improving the student or constituent experience.

Relationships are About Listening and Being Responsive

A Facebook page or a CRM software purchase will not decrease response times, improve service support, and be responsive to students. Fundamentally, this requires the alignment of planning and processes with the right people, training, and incentives.

Build relationships by listening, focusing on individual needs and wants, and being responsive. The tools only play a supportive role.

Top Enrollment Marketing Blog Posts of 2011

As 2011 winds down, here's a look back at my most trafficked blog posts of the year:

Over the past few years, it’s been difficult to attend a higher education enrollment management or marketing conference without at least one ‘expert’ spouting that [insert age group] doesn’t read/use email anymore - this despite actual research from my own company, DemandEngine, as well as Noel-Levitz demonstrating otherwise.

In Who Says Email is Irrelevant? Not Facebook, a January 2011 post, I wrote about Facebook's June 2010 'about-face' on the topic of email marketing and their announcement of facebook.com email addresses.

Marketing to adult learners has traditionally been a 'build it and they will come' proposition. Colleges and universities carve out institutional access by creating new enrollment pathways outside of the traditional day-student undergraduate model. Q&A: The New Enrollment Marketing Plan for Adult Learners posted in February 2011 is a question and answer transcript for a webinar I presented on behalf of the University Professional and Continuing Education Association (UPCEA).

In April 2011, I wrote about how associations across the country are reporting declines in renewals and new member growth. In Does Membership have Its Privileges? Raising the Bar for Today's Higher Education Association, I raise the question for colleges and universities considering their memberships and offer some ideas in a DemandEngine white paper.

Given the interest in higher education CRM, this next article was the most heavily-trafficked posting of the year. In Five Things Your Higher Education CRM Vendor Doesn't Want You to Know, I write about topics any college or university should consider if a purchase is under consideration including CRM's checkered past and how many higher education CRM vendors don't even use their own technology.

One of my personal favorite postings of the year comes courtesy of Craig Maslowsky, VP of Enrollment Management and Marketing at Excelsior College. In Social Shilling and the Temptation of the Higher Education Vendor, I wrote about Craig's posting in a LinkedIn group for references and recommendations on CRM technology and the aftermath that follows. Sorting through the ridiculous (example: Leads360-"We are the only enrollment management solution designed for schools that compete for students"), I contacted Craig along with Keith Hampson, the founder of the Linkedin Higher Education Management Group for their thoughts.

The year 2011 saw a wave of higher education vendor mergers and acquisitions ranging from Datatel-SunGard Higher Education, Oracle and RightNow Technologies, and most recently, Hobson's acquisition of Intelliworks. In August 2011, I reported on a 'tip' I received through web analytics prior to the Datatel-SunGard Higher Education merger announcement.

Finally, I believe that it's always instructive to watch how other industries tackle similar questions and challenges. In Social Skepticism? Research Note from the Nation's Retailer, I write about retail eCommerce trends and recent report from Forrester Research including an increased level of skepticism around the role of social networks in driving sales.

Thank you to the many loyal readers of my blog. If you are not a subscriber, I invite you to enter your email address in the top, right-hand corner of the screen to receive automatic updates of new postings.

Merry Christmas and have a safe and enjoyable New Year.

Hobsons Acquires Intelliworks

Higher education technology consolidation is in the air.

Today, Hobsons, a leading provider in recruitment, communication, and student success software for colleges and universities, announced its acquisition of Intelliworks, a leading provider of relationship management solutions for higher education.The acquisition adds Intelliworks' expertise in non-traditional higher education environments.  

Craig Heldman, chief executive officer of Hobsons, Inc., highlights, “This transaction will enable us to deliver more value to the clients of Hobsons and Intelliworks by blending the expertise and product knowledge of two proven industry leaders. The combination will benefit the higher education market and expand Hobsons’ ability to bring success to education through innovation, leadership and partnerships. It will also enhance our efforts in graduate, professional and continuing education and executive education, where Intelliworks has established a significant presence.”    

The combined entity, operating as Hobsons, will deliver a suite of integrated solutions for managing the entire student lifecycle.Hobsons and Intelliworks are committed to satisfying all existing client needs, delivering world-class service, and providing clear and easy upgrade paths to future solutions. As part of the transaction, Intelliworks’ Chief Executive Officer Todd Gibby will join Hobsons as managing director for higher education, responsible for leading the company’s higher education business.

“Combining Intelliworks’ and Hobsons’ resources and experience will enable us to deliver innovative, flexible, and scalable enrollment management solutions for every type of institution, including individual programs and departments within an institution,” added Gibby. “On behalf of the Intelliworks team, we are delighted to join Hobsons in serving academic institutions and helping to transform the way they engage with prospects, students, and all members of their communities.”

Financial terms of the deal were not released.

Datatel and Sungard Higher Education Announce Plans to Combine Companies in a $1.775 Billion Deal

It's interesting what you can learn when you "listen" to your web analytics.

I saw the following Google search a few days ago in my blog analytics: "datatel purchase sungard higher education"

Where there is smoke there is fire ...

Today, Datatel and Sungard Higher Education announced today that they have signed definitive agreements to combine businesses and operate as one company focused exclusively on serving education institutions. Billed as a strategic combination, this action brings together two of the dominant ERP technology and services providers in the higher education space.

“Combining the resources and talent of these two quality companies will enable us to be more responsive to the changing environment and challenges facing education,” said Datatel chief executive officer John Speer. “Together we will be able to better serve the global education community.” Speer will serve as the CEO of the combined company and will lead the day-to-day operations.

According to a joint press release, affiliates of private equity firm Hellman & Friedman LLC will acquire the SunGard Higher Education businesses from SunGard Data Systems Inc. for an aggregate cash purchase price of $1.775 billion and combine the acquired businesses under a new holding company with Datatel, an existing Hellman & Friedman portfolio company. 

The combined company will operate under a new name that will be announced by the parties at the closing of the transactions.

What Does This Acquisition Mean for SunGard Higher Education and Datatel Customers?

Datatel-SunGard Higher Education will continue to develop ERP-independent solutions that work with our administrative systems (SunGard Higher Education Banner and PowerCAMPUS; Datatel’s Colleague) as well as those from other vendors.The company will continue to deliver on the development plans committed to customers.

For more information, see the frequently-asked-questions document released by Datatel.

Social Shilling and the Temptation of the Higher Education Vendor

While conferences traditionally have been the primary means for education professionals to share war stories, ideas, and recommendations, social media outlets such as Facebook, LinkedIn, and Twitter provide new avenues for word-of-mouth.

How are higher education professionals using these spaces today, particularly when it comes to buying decisions? Secondly, how are vendors supporting those decisions?

In May, I noticed a query in the popular LinkedIn Higher Education Management Group from Craig Maslowsky. Craig was recently named as the new VP of Enrollment Management and Marketing at Excelsior College.

Recognizing the value of managing the student experience, Craig reached out to the industry group with the following post:

And Let the Hype Begin …

First up, a company called Leads360:

 

Don’t all colleges and universities compete for students? 

THE only enrollment management solution?

‘Solution’ can mean a lot of things however a few other higher education vendors - Datatel, Education Management, EMAS, Jenzabar, Oracle, Intelliworks, SunGard Higher Education – would strongly disagree with this claim.

Here’s an entry from Datatel:

Experience, product, and we meet your needs.

Here’s a perplexing post:

I have no idea what this guy is talking about.

Given that Craig is a VP of Enrollment Management and Marketing, he is interested in buying a system, not going into business.

Let’s call this one ShamWow!

Amazing! Phenominal (sic)! Honestly! Shameless Plug!

Give Michael credit for his hyperbole … and honesty.

To get reaction on Craig's post and the related posts it generated, I called Keith Hampson, the founder of the LinkedIn group, and I wrote to Craig Maslowsky for their thoughts.

Hampson - “Not a Platform for Promotion”

“I don’t see this as a great platform for promotion,” said Hampson. “Content is a big part of what group members are looking for, specifically thoughtful intelligent responses. Our members know the difference.”

In June 2010, Keith sent out a group announcement on guidelines for discussion groups:

Please note that the group discussion forum ("Discussions") cannot be used to distribute unsolicited commercial messages or information unrelated to higher education. Inappropriate messages will be deleted without advance notice. Thank you for your cooperation.

I asked Keith how he manages this. “I have no official policy on vendor participation because of the number of potential exceptions,” said Hampson. “I typically evaluate (vendor)comments to member posts when I see them and make a decision about their appropriateness.”

Maslowsky - “A Starting Point”

“Overall I felt the posts were helpful, “ wrote Maslowsky in a email message back to me.  Vendors weren't the only people to respond. A number of current practitioners shared their opinions - some with the prompting of their vendor.

“The responses varied from general messages from vendors mentioning their product with minimal information to support the fit with my needs, to those providing specific reasons why they may be a match.”

By culling through the posts in combination with his own research, he was able to identify top options for Excelsior. “I identified certain options that I wasn't previously aware of, which was helpful too,” wrote Maslowsky.

The responses from peers who had used some of the products vendors posted about proved particularly useful. “(These posts) resulted in individual interaction that served useful in gaining a testimonial of use and answers to my specific questions related to certain products.”

Craig commented that he found his post a a great way to take a first step in the direction of identifying a product for his college.  He did point out that this social ‘word-of-mouth’ “… was only a first step …additional research and meetings with vendors will further determine which product we decide to implement.”

How should vendors interact in higher education social spaces?

1. Focus on Goals … Theirs, Not Yours

Focus on goals … the people in the community, not yours. In his post, Craig was interested in learning about CRM options, not signing an immediate contract to make the vendor’s quarterly sales goal.

2. Focus on Content

A number of the vendors listed above have produced reports and other thought leadership that could have been helpful. Why not direct “Craigs” to your company resource page?

3. Be Prepared to Back Up Vendor 'Puffery'

It takes a few minutes to determine the size, scope, and mission to profile Excelsior College. Think of the impression it would make to respond with the names of similar institutions to demonstrate your 'experience.'

Your thoughts are welcomed.

Does Your College Need a CRM System?

Confused reader: “Do colleges need CRM systems? Wait a minute. What happened to Tim Copeland? Aren’t you the guy who writes about CRM for higher education?”

Tim Copeland: Yes, that’s me, one in the same.

Confused reader: Then, aren’t you contradicting yourself.

Tim Copeland: No, not at all. Let me explain.

Okay, enough with the out of body experience.

Most of what I blog about is inspired by experiences and conversations with, higher education professionals. Recently, I received a call from a Midwest-based administrator inquiring about CRM. His college was anxious to overcome the limitations of their current student information system.

I asked him why he felt he needed CRM.

Let's start with what he DID NOT say:

• Build a sufficient inquiry pool to meet his institution’s growth or class shaping goals? No
• Improve the student enrollment experience? No
• Provide more relevant information and offers to respond to prospective students? No.
• Implement a business tool to support his admissions team? No.
• Measure the performance of enrollment marketing strategies? No.
• Increase institutional engagement with prospective students? No.
• Increase the performance of the recruitment team? No.
• Analyze recruitment activity by admission counselor? No.
• Decrease response time to student queries? No.
• Improve current enrollment processes and workflows? No.
• Share information across enrollment touchpoints? No.
• Quantify and analyze interactions with prospective students and their influencers? No.
• Improve service? No.

Why did this institution need CRM?

He responded, “To be able to send more letters and emails efficiently.” I replied, “It sounds like you need an email platform and a good print vendor.” He then said he wanted the ability to measure metrics like email opens and clickthroughs. Their current system didn’t have this capability.

My response (see video below):

  

What Higher Education CRM Should Be

Many colleges and universities that are investing in CRM software today are simply looking to automate communication.

Yes, that’s exactly what students are clamoring for … more marketing communication volume and velocity from your college or university.

While there are many powerful higher education CRM technologies on the market, most simply end up acting as email delivery systems. And as I have written before, email delivery is not a core competency of most CRM technologies.

What are the drivers for this limited application of CRM technology?

• No focus on overarching goals (why)
• An inability to identify and convey your educational opportunities to the right students (who)
• A failure to understand the implications on people and processes (how)
• No proof of concept for a re-envisioned enrollment process (what)
• A failure to consider touchpoints across the institution (where)

A CRM is nothing but a tool. Applying a tool over existing methods and processes only increases organizational complexity. I’ve seen more than one college or university buy a CRM technology and take a year plus to actually use it, if at all.

Managing relationships effectively is a philosophy and a strategy first.

Does your college need a CRM system? Maybe. But if your motivation is simply to automate more communication, reconsider the solution.

Does your college need to manage relationships more efficiently and effectively? Absolutely. By starting with this viewpoint and answers to the who, what, where, why, and how questions, CRM technology then becomes an integral supporting business tool.