Fact: when it comes to measuring marketing performance, the nonprofit and commercial sectors are much more similar than they are different.

Yes, bottom line revenue goes to different places but the way in which nonprofits and commercial counterparts evaluate effectiveness is through similar metrics; acquisition of new donors/customers, retention of donors/customers, lifetime value, etc.

Given that our goals and measurements are very similar nonprofits should be more inclined to “steal” every commercial “best practice” not just to keep pace with the competition but to most importantly to stay relevant as a sector.

One of the critical gaps we see in today’s nonprofit sector, when compared to their commercial counterparts, is the effort and value assigned to capturing and acting on customer feedback.

Much has been written about the ever-increasing expectations of charitable donors yet most of the nonprofit sectors efforts to capture and understand donor sentiment currently reside in the unsolicited comment mail bins under a desk in an empty cube.

Is it realistic to believe that the nonprofit sector could ever meet these growing needs without seeking to understand how donors think and feel or what are really the key experiences that really matter?

The commercial sector has put tremendous effort and value into this area and frankly To follow are some examples, very different examples, of how the commercial sector is asking for feedback.  Clearly they have assigned real value to this insight and are seeking a wide-range of insight.  Could they really be this off track and investing in data of such little value?

They No Longer Just Ask Nicely … Companies Are Rewarding You for Feedback:

If you don’t think examples of companies simply asking for customer feedback proves value then look closer at how many companies are offering incentives in exchange for this information.

After a recent flight I received this email from AirTran (pictured below).  AirTran isn’t simply just asking me for feedback they are willing to compensate me with additional miles for insight into my experience.

The GAP retailer has a scripted “close” at checkout where they circle an offer on every receipt pointing out that the completion of an online survey about my shopping experience will give me a 20% discount on any single item in my next purchase.  There was no fine print, it wasn’t limited to sale items, purchasing online or in store, a straight 20% off – a “payment” of potentially $15 to $20 for a few moments of my time.

The Commercial Sector Seeks Feedback on Everything:

Even in the absence of competition many companies, probably those that are most successful, are still asking me for feedback on experiences that lack competition.  Here is an example from GOGO Internet…I was using Wifi on a plane, where there is no competition yet clearly my experience still matters.

Companies Know What Experiences Matter:

If you need proof that there are right questions and wrong questions, look to Amazon as an example.  Amazon has clearly understands what are the ‘key experiences’ in each customer experience and aims to measure them. Amazon sent me an email asking for feedback only related to the “packaging” of my items.

They have clearly identified this as a key experience that influences customer satisfaction or loyalty and have taken steps to measure it and likely improve upon it.

3 Reasons Why Donor Insights Should Matter to You:

In the nonprofit sector today “Experience” and “Engagement” are nothing more than the latest buzzwords to replace yesterdays “CRM” and “Donor Journey”.

Look no further than the commercial sector for proof that they have quantified the ROI associated with experience and customer loyalty and realize the path to this improved experience only comes from capturing actionable attitudinal insights from their customers.

As you consider, your next move here are three reasons why understanding donors attitudes should matter to your mission:

1. It is a fact, the mere act of asking for feedback increases Donor Commitment levels and by extension, the likelihood they engage in key behaviors. This is just you ASKING for feedback, nothing else.
2. If the donor/constituent actually responds, and remember, you get Return on Investment just by asking, you get the opportunity to build the relationship and increase their commitment to your organization. And because there is an open-end comment box you may actually get good ideas for your organization along the way.
3. Your organization has spent a lot of time and money creating an online presence and building an audience. Feedback tools of this sort are well established in the commercial sector and have a solid track record of delivering individual constituent level engagement.