**London**: A Forrester report reveals nearly 70% of organisations are set to enhance their CRM investments in the coming year. Key trends include cloud migration, purpose-built systems, data security, extensible platforms, and AI integration, crucial for improving efficiency and customer experience.
According to a recent report from Forrester, nearly 70% of organisations are planning to either maintain or increase their investments in Customer Relationship Management (CRM) technology over the next year. This insight was highlighted by Kate Leggett, Vice President and Principal Analyst at Forrester, during a webinar hosted by Blackbaud. Leggett, a respected authority in the field of CRM strategy and best practices, emphasised the growing importance of CRM platforms in enhancing operational efficiencies and team productivity.
CRM technologies, particularly those that incorporate automation and artificial intelligence (AI), are increasingly recognised as vital tools that enable teams to concentrate on high-impact activities. Leggett noted, “With automation and AI, a CRM focuses teams on activities that matter, allowing you to increase innovation and gain a competitive advantage.” Furthermore, her research indicates a direct link between mature CRM systems and improved customer experiences, which in turn can positively affect revenue streams and growth initiatives.
Among the significant topics addressed in the webinar are five key CRM technology trends that organisations involved in enterprise fundraising should monitor in the coming year. Emphasising strategic evaluation and implementation, these trends are expected to shape the future landscape of CRM applications in the sector.
1. Migrating to a Cloud-Based CRM
An increasing number of organisations are shifting towards cloud-based CRM platforms, with Forrester reporting that only a quarter of current deployments remain on-premise. Cloud CRMs, or Software-as-a-Service (SaaS) solutions, are poised to lower costs, enhance accessibility, and facilitate better collaboration. Dwight Dozier, CIO of Georgia Tech Foundation, noted that the transition has allowed his team to focus on improving user experiences rather than merely maintaining infrastructure. He stated, “It’s been something of a comfort to know I don’t have to focus on that anymore. I can focus on the business at hand.”
2. Upgrading to a Purpose-Built CRM
Leggett outlined a trend towards CRMs specifically designed for the needs of particular industries, such as fundraising. These purpose-built systems offer more advanced data models and end-to-end workflows tailored to the everyday tasks of fundraisers. This shift is seen as advantageous for integrating various data sources smoothly and providing immediate value without consuming extensive IT resources. Dozier acknowledged the limitations he identified when considering a standard CRM for Georgia Tech, remarking, “I only knew what my internal stakeholders knew, which was dangerous.”
3. Prioritising CRM Data Trust and Security
As CRMs accumulate diverse types of data, from customer preferences to transactional histories, ensuring data security becomes paramount. Leggett stressed that modern CRMs must incorporate layers of protection, including authentication and threat detection, to secure sensitive information. Dozier affirmed that prioritising security at Georgia Tech is essential to maintaining the institution’s reputation, noting, “When security is not there, the lack of trust happens even internally.”
4. Leveraging the Benefits of an Extensible Platform
An effective CRM system should support comprehensive data import capabilities and allow for customisation based on an organisation’s specific needs. Such extensibility not only enables seamless integrations with other platforms but also helps in creating a cohesive user experience across disparate internal systems. In Georgia Tech’s case, Dozier highlighted the robustness of their CRM’s integrations, which encompass a range of applications to provide a thorough picture of their constituents.
5. Enhancing Productivity with AI
Lastly, the integration of AI tools within CRM systems is gaining momentum. According to Leggett, sourcing modern CRM solutions that incorporate AI capabilities is critical for enhancing outcomes related to efficiency and customer experience. She detailed three categories of AI in use, including predictive AI, which improves decision-making for fundraisers. The Georgia Tech Foundation’s experience with AI, particularly in collaboration with Blackbaud and Microsoft, has contributed to remarkable fundraising success, particularly noted during peak periods of activity.
Leggett concluded by advocating for a measured approach to CRM innovation, advising organisations to ensure foundational elements are solid before pursuing advanced technologies. “Don’t just pursue the shiny objects out there. Go back to basics,” she stated, underscoring the importance of good data practices as a foundational requirement for CRM success.
As organisations navigate these emerging trends, the emphasis on investing in solid CRM systems, ensuring data integrity, and adapting to technological advancements will be central to their future strategies.
Source: Noah Wire Services
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