How A CRM Can Revolutionise Your Third Sector Organisation
Scotland’s third-sector plays an important role in addressing social, economic and environmental challenges throughout our communities. Encompassing everything from thriving social enterprises in cities, to community-owned businesses in rural areas, one of the true strengths of the sector is its diversity. Yet, this diversity also brings with it a unique set of challenges.
No matter the size or type of enterprise you work in, you’re likely facing similar hurdles in your day-to-day operations. Challenges that, if left unaddressed, can (or perhaps do) hinder your organisation’s ability to create meaningful change.
In this blog, we’ll look at three challenges that are common in third-sector organisations. We’ll also discuss innovative solutions that can help your organisation not just survive, but succeed in today’s complex, ever-shifting environment.
Key Challenges in Third Sector Operations
- Managing Data and Reducing Admin
Data drives every single aspect of our world, and all third-sector organisations (in fact, all organisations in general) are swimming in a sea of data. How that data is organised and used can be tricky; from funding details to volunteer records, project outcomes to financial projections, the volume of data generated daily can be overwhelming. Do you recognise any of these common issues in your organisation?
- Data Silos: you likely see this every single day – different departments using separate systems or spreadsheets, leading to isolated pockets of information. The separation of this means that it can be difficult for people to get a holistic view of their organisation’s operations, impact and sometimes clients.
- Manual Processes: many third-sector organisations still rely on time-consuming manual data entry or even paper-based systems. This not only increases the risk of errors, but it can also divert time and attention away from critical activities.
- Inconsistent Data: due to the lack of centralised systems, data and data capture become inconsistent across different departments. This can often lead to confusion, duplication of effort and difficulty in obtaining accurate reports.
- Compliance Risks: With data protection regulations like GDPR, managing sensitive information across multiple unsecured systems poses significant compliance risks.
These issues can lead to:
- Reduced productivity as staff spend too much time on administrative tasks
- Increased operational costs and resource waste
- Missed opportunities due to lack of clear data overview
- Stakeholder frustration from slow or inconsistent responses
This inefficient management of data can quickly lead to administrative overload.
- Difficulty In Tracking and Demonstrating Social Impact
Demonstrating tangible impact is essential for third sector organisations for a number of reasons: it ensures that mission stays front and centre of their work, and it is often also a required in reports to funders. Yet it remains a significant challenge. It’s a challenge which is made more complex by the inefficient capture and usage of data.
As outlined above, there’s a lot of data captured by organisations. If it’s stuck in data silos, with different departments or teams tracking key metrics in different ways, it can be very difficult to get a comprehensive overview of your organisation’s impact. The key issues with this include:
- Data Fragmentation: Information spread across departments makes compiling a comprehensive impact overview difficult.
- Lack of Standardisation: Inconsistent metrics across funders and stakeholders complicate measurement.
- Qualitative vs Quantitative Data: Social impact often involves qualitative outcomes that are harder to measure objectively.
- Attribution Issues: Difficulty in linking long-term social changes to specific involvement.
- Resource Constraints: Comprehensive impact measurement can strain limited organisational resources.
Ineffective impact measurement can present:
- Challenges in securing funding or winning contracts
- Difficulty improving programmes due to lack of accurate feedback
- Missed opportunities to build on successes
- Hindered strategic decision-making without clear evidence
Addressing these challenges can improve funding prospects, enhance organisational effectiveness, and allow organisations to ensure their work is making a difference.
- Managing Relationships with Stakeholders, Clients or Customers
All third-sector organisations manage multiple relationships with multiple parties. Regardless of whether you’re delivering services or selling products, there are a diverse group of people you engage with.
From funders, partners and staff members, to trustees, clients and customers, a different approach is needed for each group. Keeping track of it all can be tough.
Let’s break it down:
- Funders will want regular check-ins on the programmes they are funding and will often require insights taken from data. Which is similar to the information that partners require too.
- For staff members, volunteers and trustees you not only need to manage their schedules and match their skills to the right tasks, you need to ensure that any data they have to see or report on is easily accessibly in a format that makes sense.
- Clients and customers are a whole segment on their own, who require their data to be handled with care, data which forms the backbone of the operations of many organisations.
And that’s not including other kinds of stakeholders, such as local and government authorities, who need different types of information at different times.
The result? A lot of spreadsheets, sticky notes, frantic searching through email threads and endless word documents stuffed with information that you needed for a meeting that started five minutes ago.
This juggling act isn’t just stressful – it has real consequences. Missed opportunities for funding, volunteers who feel undervalued and drift away, beneficiaries who fall through the cracks, and partnerships that fizzle out due to poor communication.
All of this relationship management takes time – time that could be spent actually delivering on your organisation’s mission and making a real difference in your community.
You Need a Centralised Solution
So, what’s the solution to all this digital chaos? The answer is the Customer Relationship Management System, or the CRM. It does more than just track customer relationships though, it’s a versatile tool for any data-led organisations.
If you’ve never used one, the best way to think of it is as a digital assistant that never sleeps – it knows where all your data is, it doesn’t need to find a spreadsheet or memorise a sticky note. It’s the central hub for all your data and interactions, accessible to everyone who needs it.
Here’s what a good CRM can do for you:
- Gather Your Data: No more silos. All your information lives in one place, talking to each other like old friends at a reunion. No more multiple departments working from multiple spreadsheets – everything lives in the one place, and everyone uses the same data to do their work and make decisions.
- Automate the Boring Stuff: Let the system handle routine tasks, freeing you up for the important work.
- Track Impact: Gather and analyse data to show funders exactly how you’re changing the world.
- Personalise at Scale: Tailor communications to different groups without cloning yourself.
- Stay Compliant: Keep your data secure and your GDPR Officer happy.
- Enable quick, informed decisions: With access to real-time data, you can make swift, data-driven decisions that keep your organisation agile and responsive.
- Streamline processes: By automating and optimising your business processes, a CRM can lead to significant cost savings, allowing you to invest more towards your mission and vision.
Put simply, a CRM can turn your organisation into a well-oiled machine. It not only manages relationships, but it enhances them and makes your life easier.
One of the best things about CRM systems is that they’re useful no matter the size of your organisation. Whether you’re a small community group or a large national charity, a CRM can be tailored to fit your needs and scale with you as you grow.
Worried about cost? Don’t be. There are low-cost and even no-cost options available. Many CRM providers offer off-the-shelf, customisable platforms with low-commitment monthly subscription options. This means you can choose a solution that fits both your needs and your budget, making CRMs a cost-effective option for organisations of all sizes.
How Do You Get Started?
Knowing that you have a wealth of data out there that needs to be pulled together is a good first step, but each implementation of a CRM is very bespoke, and a well-functioning one is customised to each organisation’s specific requirements.
So before you decide to take the plunge, it would be good to:
- Know What You Need: not all CRMs are created equal. Make a list of all the features that will make you and your organisation’s lives easier.
- Get Buy-In: this is critical. What you’re doing here is essentially a digital transformation project. It is imperative that everyone sees your vision and is onboard with it.
- Clean Your Data: make sure your data is in good shape.
- Remember to Train: A CRM is only as good as the people who use it, so invest time in training them to use it right.
- Start Small: begin with the core functions of your business then build from there.
Implementing a CRM is a journey. Over time it will evolve, much like your organisation will. And while it may seem like a daunting project, the payoff in efficiency, insight and impact is absolutely worth it.
You Don’t Have to Go It Alone
As we said, this is a daunting task, but you don’t have to face it alone. At CEIS we’ve got all the expertise and knowledge to guide you through the process of implementing and using a CRM. We can help build a solution that fits your organisation perfectly, and we work together with you to create a system that works exactly the way you need it to.
Our support doesn’t just start at implementation. We can help you identify where a CRM can improve business processes in your organisation, conducting a thorough appraisal to ensure you’re getting the most value possible. From initial assessment all the way through to implementation and beyond, we’re here to support you every step of the way.
Get in touch with us today to learn more about digital transformation and CRM implementation.
