Monday, March 4, 2013

BIG’s Blog: Trend No. 2: Social, CRM and Advertising Will Collide

Max Kalehoff is one of those people who is followed by many in the marketing tech world. He is currently VP of Product Marketing at Syncapse… one of those fairly unheard-of tech companies that is really changing things.

Max recently published a paper for the University of Pennsylvania’s Wharton School’s Future of Advertising 2020 Program. His paper entitled 11 Big Trends That Will Reshape Advertising In 2020 And Beyond has garnered a lot of attention. Over the next few blog posts, I will attempt to take each one of his eleven points and give it my interpretation from the nonprofit Development perspective. Let’s take a peek into the future together.

2. Social, CRM and Advertising Will Collide. Facebook has become the world’s largest social CRM database, with over one billion users. In fact, Facebook has become a richer, more elegant CRM database than those maintained by many of the largest marketers (who often have multiple CRM databases based on organizational silos, geographies and political fiefdoms). Facebook also is showing that it is possible to integrate techniques of one-to-one CRM marketing with mass media planning techniques like reach and frequency. And when you add social-endorsement to the mix, you begin to achieve something unprecedented. Smart marketers in the future will adopt a social-CRM-advertising model that embraces multiple social networks to create a master customer communications grid. In many cases, the social CRM database will become primary, while legacy internal databases become secondary.

Many professional fundraisers have used donor management “databases” to house and manage their donor files and create reports for direct mail campaigns.  Though most are familiar with the term Customer (or Constituent) Relationship Management (CRM), it has not been something they have incorporated into their Development organization process. As Development professionals see their current core supporters from the Depression and WWII generations decline in number rapidly and seek to engage Baby Boomers, they are finding the Boomers are quite different in their view of Philanthropy and support for organizations than their parents and grandparents.

Whereas our parents sent “gifts,” Boomers look at “investing”… “partnering” with nonprofit organizations both faith-based and secular. This is where CRM begins to play a crucial role.

When Mr. Kalehoff says Social, CRM and Advertising will collide… and then goes on to use Facebook as an example, he is saying (and rightly so) that your infrastructure of relationship management tools must integrate with the exploding social universe of varied platforms like Facebook, Twitter, Pinterest, etc. He is absolutely correct … and this should get you very excited as Development professionals when he says, “Facebook… is showing that it is possible to integrate techniques of one-to-one CRM…And when you add social-endorsement to the mix, you begin to achieve something unprecedented.”

Although he makes fairly definitive statements about legacy databases being secondary to primary social CRM databases, my take is that his opinion is just conjecture and really doesn’t focus on the important point. What really is the important point is that this new integration offers the ability to get a 360 degree view of a person through their social graph as well as their behavior information, which is housed on your internal CRM-equipped databases. This will give you the tools to develop relationships with Boomers as well as the younger generations.

Of course, the question is this: Will you be able to do this with your current model of fundraising? Not even close.


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