CRM or MRM – What’s the difference?
Always on the lookout for new ways to get and keep members, associations have been considering Customer Relationship Management software (CRM). CRM certainly seems a promising way to reduce costs, manage data, track interactions, and build member relationships but how well does it stack up against new kid on the block, MRM (Member Relationship Management)?
The difference mattersAlthough MRM is similar to CRM in that there is a core database of people and companies. The difference is that, where CRM is about enabling sales force automation and customer service, MRM is about personalizing subscriptions, events, education and communication; which is what associations do. So, as associations seek long-term growth and success they may find that this ability to personalize how they know, serve and engage members makes all the difference, right where it counts. It pays to understandBoth businesses and membership organizations are aiming for long-term growth and success. That's why some choose to invest in a CRM. Born from the idea that relationship management plays a key role in accomplishing profit and growth, CRM software packages promise to provide just the system to build those relationships through. Good CRM's help businesses gauge how well they are interacting and relating to their customers, and most importantly, help them quickly identify and respond to sales opportunities. But the question is, will the features, processes and data management that achieve strong customer relationships for businesses result in improved member relationships for associations? The answer seems to tilt toward no. Customer or member?First off, members and customers are different, a significant, yet often overlooked factor. In very general terms, a customer is someone who purchases; a member is someone who belongs. As a result, each requires a different type of exchange. Customer relationships tend to come in fairly short lived bursts. Product by product, purchase by purchase, the relationship between company and customer relies on the success (or failure) of the last transaction. Businesses invest in account managers, newsletters and other mediums to "keep in touch" in between. That's why the CRM promise to help foster ongoing loyalty is a big draw card for many companies. On the other hand members pay for a year long
interaction. From renewal to renewal the relationship
an association has with its members (all going well) is
in affect continually, and relies on
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Beyond Understanding.This leads to the second difference between CRM and MRM. To achieve growth and success a business invests in tools to build sales. But what an association needs is the means to become invaluable. "Knowing" a member is just the start to an invaluable relationship. Unless an association can flow this knowledge positively into their services and communications members probably won't get the benefit of a more personalized experience. Or put another way, with out the means to integrate collected data seamlessly into their website, portal, events management, member directories and other service mediums associations may find themselves left in possession of a great cache of knowledge but no improvement on member satisfaction. They can be complimentary systems We are finding larger organisations with inherent CRM needs are able to leave an existing CRM in place and seemlessly shift their people and companies from CRM to the MRM when they are no longer classed as "prospects" Click the image for a larger view
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MRM-CRM working if working together
One would have to say that keeping both systems "out of the box" is a recipe for cost effectiveness!
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