Competition, rising student expectations, and constrained budgets are just a few of the many reasons colleges and universities are considering Constituent Relationship Management (CRM) technology. And why not? The list of potential benefits from CRM vendors is compelling:
- Increase enrollment? Check
- Retaining students? Check
- Developing stronger relationships? Check
- Providing a 360-degree view of students? Check
- Automating workflows? Check
- Providing the right message at the right time? Check
- Increasing organizational efficiency? Check
- Measuring enrollment marketing return-on-investment? Check
Where do we sign … right?
CRM technology can enable management of the front-end processes of enrollment marketing (recruitment + marketing) as well as the long ignored service management capability for current students of the institution. CRM technology helps systematize marketing, recruitment, and service processes that are often managed in an ad-hoc fashion.
Easy enough … right?
Not so fast. CRM’s track record – some 20 years - in the corporate world includes unmet expectations, project delays, and underwhelming technology investment returns. And for some colleges and universities, history is repeating itself. At one large comprehensive university, a departmental, undergraduate admissions CRM initiative was delayed for over two years due to overpromises by the vendor and organizational challenges. Another institutional department serving adult learners paid for software licensing for one year and a half while employees flatly refused to use the technology.
Many are pursuing CRM technology as a panacea ... a technology that - in and of itself - will solve undisciplined efforts to enrollment marketing and retention. Institutions that take this approach often utilize the technology simply to send automated emails rather than the organizational business tool it is intended to be.
Five Things Your Higher Education CRM Vendor Won’t Tell You
I completed my first CRM project some 12 years ago in the corporate world. Over the last 5 years I have researched and written about higher education CRM and consulted with institutions across the country. With this in mind, I offer the following five things that your current or potential CRM vendor doesn’t want you to know.
1. The Track Record for CRM Technology is Not Good
While relatively new to higher education, CRM has a track record in corporate America where many companies have taken their financial lumps. Over its history, CRM failure rates have been reported to be as high as 70%, as companies are disappointed by their actual business results and the resulting poor return on investment (ROI) for their CRM initiatives

2. Why? Technology is only 1/4 of the CRM Success Equation
What leads to such abject failure? It starts with a technology-first approach with little consideration for the requisite planning, people, and process considerations that organizations run into. Resistance to change, internal ownership difficulties with customer definition and data ownership, difficulty with application integration, and underestimating the effects on people and underlying work processes are common problems.
CRM as a technology is not a magic potion. CRM is in fact a discipline – a philosophy and strategy that is enabled by people, processes, and technology – to improve the student experience in a way that is effective, efficient, and supports your business goals (mission, student success, or net revenue).
Then why do so many CRM vendors only want to talk about the technology and its possibilities? Delivering the software whether it is installed or cloud-based is a much easier path to start collecting licensing and maintenance fees rather than addressing the organizational change issues that are inherent with CRM.
3. CRM Research Provides a Roadmap to Success
With 75% of the CRM success equation lying outside of technology, where do you start? Consider the following comments:
Management buy-in
Many times the difference between a successful CRM implementation and a waste of money is a manager who realizes the value of the product, understands the problems it's going to solve, and dedicates time and energy to making it happen. "Many will give you lip service," says Izzy Franco, CRM leader for North America at Cap Gemini. "They'll sign the procurement orders, spend the money, and attend the meeting once a month, but that's simply not enough. They need to be hands-on and involved directly. It's incredibly important." DestinationCRM
Strategy-first
“Simply adopting a (CRM) solution, … is unlikely to provide institutions with CRM’s full benefit. Managing student relationships more effectively often requires making difficult decisions and re-orienting institutional processes towards the provision of high-quality service. For most institutions, this change will be sufficiently difficult without the addition of installing sophisticated software. Datamonitor, therefore, recommends developing a CRM strategy first and then selecting a vendor that is best able to support that strategy’s execution." Datamonitor
Organization
"Most large companies have implemented some form of CRM, and many have followed their early disappointments with full-scale CRM remediation efforts. The core of the problem now is that too few companies are paying enough attention to the organizational challenges inherent in any CRM initiative." McKinsey Quarterly
Lack of value
"CRM initiatives have degenerated into technology-centric projects aimed at basic process automation. While automation projects may well lead to cost savings, the sheer complexity and size of these initiatives has led to a blurring of the target value. … The potential of CRM lies not in technology itself, but in the process of using technology alongside an in-depth understanding of the customer to drive unique, valuable customer interactions." Forrester Research
4. Most CRM Systems are Dependent Upon Email Communication … Yet Most are Email-Challenged
Forrester Research estimates that corporations spend some $11 billion dollars annually on CRM … and $2.1 billion dollars on email marketing. In many of these corporations that have enterprise-wide CRM technologies, they also use email delivery platforms to manage promotional email. Why? While CRM technologies have the capability to manage transactional emails, many underperform the robust capabilities found within email delivery systems. CRM technologies have not kept pace with the changing world of email marketing. In fact, one well-known, cloud-based, corporate CRM vendor tells customers not to use their built-in email platform.
What are the common missing email capabilities? Throttling large email message sends, sender authentication, robust design capabilities, automating messages based on the recipient's behavior, connecting email behavior to web analytics, and web form management ... to name a few.
What about higher education specific-CRM vendors and their email capabilities? In my experience, same issue and in many cases, their email capabilities are a notch below.
5. Your Higher Education CRM Vendor Doesn’t Use Their Own CRM Technology
Here's a dirty little secret. The vendor coming to campus to pitch their CRM/Enrollment Management 'Solution' is most likely not using their own technology.
Seems like a no-brainer, however you would be surprised how many well-known, higher education CRM technology vendors that don’t use their own technology to manage their own marketing, sales, and service. If the vendor’s technology is not flexible and scalable enough for their business, that should tell you something.
Technology Can Be a Powerful Enabler ... of Your CRM Strategy
Before you agree to a vendor ‘dog and pony show’ demonstration, consider the following:
1) Do you have a CRM strategy? If not, proceed with caution. History is not on your side.
2) Will the vendor provide a scenario-based demonstration based on YOUR CRM strategy using your goals, objectives, and processes? Demonstrations are intended to show the best features and functions of the software. It’s easy to get lost in the ‘wow’ factor and then fail to consider whether or not the technology will enable what you want to accomplish.
3) Does the vendor use their own technology? Consider whether it is worth your time to listen to their pitch.
CRM – as a philosophy and strategy - can drive significant, real value if the focus moves beyond technology to the underlying planning, processes, and people which create value. Technology is then a powerful enabler of your strategy.