Wanted: Retention Superstars

October 7, 2014      Admin

Agitator readers know well how incessantly Roger and I beat the donor retention drum. Heck, Roger’s even written a book on the subject, Retention Fundraising.

But sometimes, when you think you’ve said it all, someone comes along and makes an observation that shocks you to attention, forcing you to admit … “I never looked at it that way.”

That’s the case with a brief comment by Mike Cowart at Allegiant Direct on a recent Agitator post, Doing Versus Wishing. Mike wrote simply:

“I’ve never seen such lethargy and lack of accountability as in the nonprofit  sector. Our commercial friends would be fired with customer attrition of 60-70%!”

Imagine — if you can (I struggle) — a nonprofit fundraiser getting fired for losing donors!

In a past life, I’ve consulted to a few dozen corporate clients on marketing. Anyone in the private sector who holds a position of responsibility for marketing the product is ultimately judged on one criterion — lifting revenue. That could be successful brand extension or new product introduction, increasing market share, more efficient customer acquisition, upselling and retention, or simply beating a sales target. And doing it without excuses in a competitive, even hostile, marketplace.

FiredBut the bottom line is: perform to very measurable metrics, or perish.

And nothing would be more likely to draw the ax than losing customers!

Then there’s the nonprofit sector.

Usually meeting the sector ‘average’ or making a ‘valiant effort against challenging circumstances’ is enough to win job security … for agencies and individuals.

To be sure, the occasional agency or consultant will bite the dust when their efforts and advice repeatedly fail to move the needle.

But have you ever heard of a fundraiser within a nonprofit being fired for not meeting a revenue goal? Or even more specifically, fired for losing donors? Have you ever fired (or confess, blamed) an agency for failing, specifically, to improve your retention rates?

Probably, to most, that seems too harsh an approach for marketers in the nonprofit sector. We’re a pretty soft bunch. We like to hand out A’s for effort and commiserate about those undiscerning, uncaring, unresponsive donors … or the economy.

And so we settle for steadily rising attrition rates, comforted — perversely — by the fact that the ‘average’ rate by which we might be judged is going up for everybody.

Tom

P.S. If you do want to set a higher standard for yourself and your nonprofit — and maybe even market yourself as a ‘Retention Superstar’ some day — get ahold of Retention Fundraising. Here are some Q&As from GuideStar previewing Roger’s message.

P.P.S. If you’re already a Retention Superstar, tell us your story. We’ll promote your career enthusiastically!

 

 

 

 

 

 

 

 

 

3 responses to “Wanted: Retention Superstars”

  1. J says:

    Yes we do fire fundraisers for not meeting revenue goals. I can attest to that. The problem is that revenue is not solely the fundraisers goal. It is the revenue goals for the organization. Maybe the CEO or CFO should be held accountable and fired. Maybe the board chair should be replaced. Happens all the time in for-profit. Until such time that organization leadership accepts ultimate responsibility for revenue goals and fundraising, nothing will change. Donors will leave and fundraiser turnover will continue.

  2. It’s definitely two-pronged: not enough focus on donor retention and not enough investment in fundraising.

    It’s difficult to hold only fundraisers accountable for revenue that doesn’t increase when the organization won’t invest in their activities. Most fundraisers struggle with budgets that don’t provide what would really be necessary to get the job done right. That fault goes right to the top. So long as spending on fundraising is seen as taking away from program and mission instead of feeding it, we’ll have this problem.

  3. Mike Cowart says:

    Tom,
    Thanks for the mention of my comment and your continuous “nose punching” on retention. I hope our nonprofit friends wake up one morning and not smell the coffee but smell the sound of donor feet leaving the organization.