Loyalty Inflection Points
Is organizational loyalty infectious? Possibly. For example, after momentous achievements that inspire group celebration and pride in belonging. But I’m not talking in this post about ‘infectious’ … the word in the title is ‘inflection’.
So, first, a definition from a fascinating white paper, Inflection Points: Seizing the Moments in Customer Loyalty, authored by loyalty marketing firm, Aimia:
“The term ‘inflection point’ has multiple definitions. In differential calculus, an inflection point is a point on a curve at which the concavity changes from positive curvature to negative curvature, or vice versa. In political science, an inflection point is a moment in history that dramatically alters a geopolitical situation, for better or worse. In business, Intel co-founder Andy Grove has described a strategic inflection point as “an event that changes the way we think and act.” Each of these definitions describes a moment at which our fortunes change — and in many cases, we can’t recognize the moment until after it’s passed.”
The white paper continues:
“When it comes to customer loyalty, inflection points are no less important. Every customer interaction — from her first encounter with your brand, through her first purchase, at each touch point she encounters in your loyalty program, and into each post-purchase service encounter — can make or break her relationship with your brand.”
Even though Inflection Points: Seizing the Moments in Customer Loyalty is focused on the retail sector, I strongly recommend it to you for two reasons.
First, so you can see the degree of determination and sophistication with which commercial marketers are striving for customer loyalty and retention. This is the bigger ocean in which your donors are swimming.
Second, in hopes that you might pick up some insights about identifying the inflection points in your own donors’ experience with your organization, so that you can better seize the opportunities to strengthen your own ‘customer’ retention.
Inflection Points: Seizing the Moments in Customer Loyalty identifies the ’10 most important loyalty moments of truth’ in the retail marketing setting.
What might be the ’10 most important loyalty moments of truth’ for your donors as they experience your nonprofit? Here are some possibilities (and/or missed opportunities!):
- Timely sending of a ‘thank you’
- Using personalization in any communication
- Correctly spelling a name
- Correctly making an address or any other record change
- Effectively and graciously handling any ‘customer service’ type donor inquiry
- Honoring a donor request (e.g., a channel preference)
- Demonstrating you know who that specific donor is (e.g., referencing a recent contribution, a program preference)
- Acknowledging the anniversary date of the donor’s first engagement with your organization
- Thanking a donor for taking a non-contribution action (and especially when she sings your praise)
- Asking the donor for advice or input (e.g., donor surveys)
Can you add to this ‘inflection point’ list?
Are you leveraging these opportunities to nurture donor loyalty?
Well done, Aimia.
Tom
This is a great list! I’d add — Reporting back to the donor on what was possible bc of their gift, the impact their generosity had.
Tina