Associations and nonprofits rely heavily on data and modern systems to run operations and engage with their communities. But two systems play particularly crucial roles in this regard: association management system (AMS) software and customer relationship management (CRM) software.
Both are essential tools for organizational success. Understanding the distinctions between the two is vital if you want to maximize their benefits.
AMS and CRM are software solutions specifically designed to help organizations manage their interactions with members, customers and stakeholders. However, they serve distinct purposes that cater to different organizational management needs.
AMS primarily focuses on managing your association’s membership data, event registrations and financial records. Meanwhile, CRM software centers on managing relationships and interactions with both individuals and organizations while tracking communications, sales and customer service processes.
Let’s explore their differences further.
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What Is an AMS?
So, what is an AMS? Put simply, it’s a comprehensive, centralized software solution that helps associations and nonprofits manage their day-to-day operations efficiently.
The value of AMS software is no secret. The AMS market size was worth $1.54 billion in 2021, and analysts expect it to reach almost 4 billion by 2030. That increase indicates a 10.94% compound annual growth rate (CAGR) from 2023 to 2030.
These are the core functions of an AMS:
- Membership management. An AMS enables an organization to maintain accurate member records, track membership statuses and manage payments seamlessly.
- Event registration. Association management software streamlines event, conference and seminar organization through various tasks. For example, an AMS facilitates online registration and attendee information management.
- Financial tracking. An AMS gives an association the capabilities to track sensitive financial transactions, manage budgets and generate reports to gain insights into their financial health.
But an AMS provides many more functions.
Other aspects include features tailored to associations’ unique needs. These might involve committee management, member directories and even dues renewal — all essential for fostering member engagement and organizational growth.
[Related: Does Your Association Really Need an AMS?]
What Is a CRM?
For starters, CRM software is the fastest-growing software for digital marketing, with revenue reaching $48.7 billion in 2021. Analysts also expect it to grow at about a 14% CAGR between 2021 and 2028.
In sum, CRM is a software solution that helps organizations manage their interactions with customers, client prospects and other relevant stakeholders. Unlike an AMS — which primarily focuses on internal operations — CRM software focuses on external relationship management.
These are a CRM system’s primary purposes:
- Interaction management. CRM software facilitates tracking and managing interactions with people and organizations across touch points, such as emails, phone calls, meetings and social media platforms.
- Communications tracking. CRM software lets organizations record and track customer and prospect communications. This process leads to timely follow-ups and personalized engagement.
- Sales and customer service improvement. CRM software streamlines processes by managing leads and opportunities in sales pipelines. It also provides efficient customer service by centralizing support requests and automating responses.
[Related: How To Collect Helpful Member Feedback]
Key Differences Between AMS and CRM
While both AMS and CRM software systems offer functions integral to association and nonprofit success, they also have distinct functions that cater to your organization’s needs.
Here’s a summary of the top ways they differ:
- Focus. AMS centers on internal operations and membership management, while CRM software centers on external relationship management and customer engagement.
- Features. AMS features include event management, financial tracking and member directories. CRM software features revolve around managing interactions, tracking communications and facilitating sales and customer service processes.
- Purpose. AMS helps associations streamline administrative tasks and manage member data. CRM software helps organizations build and maintain relationships with their customers, prospects and stakeholders.
This leads us to the question of which is better for your organization. But it also begs the question: Do you have to choose one or the other?
[Related: Tips for an Outstanding New Member Onboarding Process]
Integration and Interoperability
Although AMS and CRM systems serve different purposes, integrating the two provides your association with a more comprehensive view of all your interactions.
If you’re looking for more accurate data, an enhanced member experience and streamlined administrative processes, combining AMS and CRM systems may be right for you.
With the integration of AMS and CRM systems, you can expect seamless data exchanges. This lets your association leverage member data for targeted marketing campaigns and more personalized communications. You can also extract insights that lead to better decision-making!
But let’s explore what you can expect if you choose one or the other.
Choosing the Right System for Your Association
When selecting among an AMS, CRM software or both, you should assess a few key considerations:
- Organization size. Small associations may find an all-in-one AMS sufficient. However, larger organizations may benefit from an AMS-CRM software combination for more extensive member engagement and relationship management.
- Membership structure. Associations with diverse, complex membership categories and structures may require robust AMS functions to manage member data more effectively.
- Functional requirements. Associations with a strong focus on event management might prioritize AMS features over CRM software features. However, an association seeking to boost member engagement and retention may need and appreciate CRM software more than AMS capabilities.
[Related: How To Turn Your Board’s Vision Into Reality]
Contact Dennison & Associates
If your association or nonprofit wants to develop an effective technology strategy, understanding the differences between AMS and CRM software is vital! You can leverage their unique capabilities and integrate them when and if necessary.
We encourage you to evaluate your association’s specific needs and consult with technology experts at Dennison & Associates before deciding.
Based on your requirements, we’ll help you make informed decisions on choosing a CRM system, AMS system or both before implementation. Properly determining what you need is especially important before signing any software contracts.
Contact us today for a consultation to explore your options and our services!
Featured image via Unsplash
