As much as you might hope for relief from the subject, count on The Agitator to talk more retention, retention, and more retention in 2017! And within retention, a critical sub-theme … donor (customer) service and experience.

Why?

Consider this article … Is Customer Experience the Great Competitive Differentiator of Loyalty Marketers?

The article begins: “Two years ago, Gartner published a study that contained the following statistic: 89% of companies plan to compete primarily on the basis of customer experience by 2016.”

Both conceptually and in terms of execution, most marketers in the for-profit world are light years ahead of most nonprofit marketers when it comes to understanding the value of retaining customers and the customer service/experience practices that will improve the odds of doing so.

The product or service itself isn’t enough. Just as fundraisers asserting they have the best scientists, the smartest lawyers, the most committed workers in the field isn’t enough.

The competition for customer loyalty is now more encompassing.

Listen to these marketers …

“…winning the consumer’s wallet based on pure product differentiation has become increasingly hard. It’s simply not enough anymore. A good or great product married with a poor customer experience (CX) detracts from the consumer’s perception of the product and the brand. The consumer now looks holistically at the product and the CX as one complete impression of the brand. Creating a fantastic customer experience is now make-or-break for brands in any industry.”

“Nearly every brand on the planet, whether they are aware of it or not, is competing primarily on customer experience today … Those that refuse or drag their feet in moving toward this new way of doing business are putting their futures in serious jeopardy. The minute customers have a choice, they will migrate toward companies that show they’re willing to invest in creating experiences−and relationships−that are meaningful.”

“Consumers continue to demand a positive experience throughout each step of the purchase path. Interestingly, we see a positive payment experience as more essential than ever to a successful purchase.”

Why is this commercial marketing view important? Because these guys are shaping — and steadily ramping up — the expectations of all consumers in every setting … including your donors as they assess their experience dealing with your nonprofit.

Fundraisers, when confronted with low and declining retention rates, tend to come up with all sorts of macro and programmatic reasons for the situation. And often these reasons are depicted as ‘out of our control’ (e.g, a sour economy or stock market).

But as Roger has emphasized over and over, a major reason nonprofits lose donors is that they treat their donors poorly — donation pages, call handling, record accuracy, thank you’s … you name it. Nearly 20% of donors who drop out quit because of lousy donor service. And yet this is entirely an issue, attitude and set of practices that fundraisers and their nonprofits can totally control.

Consciously or not, you define the ‘customer experience’ of your donors. So be aware and take control!

Tom