The paper "Customer Relationship Marketing in Non-Profit Setting" is an excellent example of a research paper on marketing. Customer Relationship Marketing is the process of covering all marketing activities which focus on establishing, developing and maintaining successful customer relationships. The aim is to develop long-term relationships, customer loyalty and customer retention which improve corporate performance. Profit-making organizations use CRM to gain customer loyalty as well as retain customers in order to make profits (Ronald & Scott 16). This is different from not-for-profit organizations because their aim is voluntary work and not profit-making.
The characteristics of the not-for-profit sector are resource attraction and resource allocation, non-profit motive, multiple constituencies and emphasis on tactical marketing (Francis Buttle, 1996, 180). Customers for not-for-profit organizations are constituted in groups: service users, resource generators, regulators, managers, and staff members. This means there is a need for not-for-profit-organizations to develop long-term relationships not only with resource providers but also with other customers. The overall goals for CRM in not-for-profit organizations are to find, attract and win new donors, cultivate and retain them, entice previous donors to come back with strong commitment, and reduce the cost of dealing with donors.
Fundraisers for charities are constantly looking for ways to develop long-term relationships with resource generators. They need to create, develop and maintain donors. Competition has been traditionally recognized as taking place in profit-making companies but this has also been experienced in the not-for-profit sector in terms of vying for donations from corporations or donors who are watching how every penny is used. Non-profit organizations more often consider the inappropriateness of marketing to their needs, which they may have a point considering the traditional purpose of CRM.
However, when these organizations focus on relationships rather than making a profit and having multiple markets, they are able to meet their needs. CRM in non-profit organizations benefits them in creating a central database that can serve members, communicate any information and available news without wasting time. This builds stronger relationships and a strong organization. An organization should provide value to its ‘ customers’ . CRM enables non-profit organizations to bridge the gap between donor needs and corporate needs to build and manage data of donors, treat donors differently and how they are comfortable as well as provide interaction rules. When non-profit organizations invest in Customer Relationship Marketing Systems, they find the most effective ways of capturing donor data and utilizing it.
CRM basically consists of the internet, software, procedures, and methodologies that help in organizing donor relationships.