Grocery stores, nonprofits and call centers..oh my.
In previous work (and a previous life) for the grocery retail sector, we applied our Commitment model to identify the key consumer experiences that drive strong relationships with the grocery store. (We use this same model is what we use to identify the donor experiences that matter to the relationship).
In the grocery space we found our measure of relationship strength – Commitment – was a very strong predictor (much stronger than satisfaction levels) of spend, share of wallet, number of visits and the number of store brand items purchased.
We also identified, from among a myriad of operational and marketing levers, the biggest drivers of this relationship strength. And is often the case, what is as interesting is what is relatively less important; in this case, the FOOD. The explanation for this underscores the danger of focusing only on customer (or donor) satisfaction. Product quality and its specific dimensions (e.g. freshness, availability,variety) are likely to be considered table stakes attributes – the “entry price” to be in the grocery business. In the nonprofit space this is akin to efficiency of spend, frequency of contact and readability of materials; none of them materially matter to the strength of the relationship.
There is ample evidence from academic studies showing service quality as the most critical determinant of merchandise quality perception. Think about that statement – customer service is the most important driver of our perception of product quality. Relating this to the non-profit space, how many organizations treat the customer service operation as a cost center? Probably the vast majority. And yet those interactions, those donor experiences, have a huge impact on the relationship and as a result, future giving. This is without factoring in the ability of inbound call center operations to upsell and crossell and drive substantial return in hard and “soft” dollars, with the latter being increased retention.
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
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I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
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Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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