I’m excited.
I’m five years old, getting ready to fly from Hartford to Cleveland.
All by myself. (I know, I know. Things were just different back in the 70s.)
I’m dressed in a tie and jacket. I have a small bag with some snacks and books to read. My dad walks me onto the plane, buckles me into the seat near the front and says goodbye.
The pilot lets me come into the cockpit. He gives me a wing pin. (Can’t remember what airline). The stewardesses dote on me and make sure to give me cards, coloring books and whatever else they have onboard for kids.
When we land, I am the last one to get off. The stewardess holds my hand, we exit the plane and are met by my grandfather at the gate. He asks me how was the flight. I answer with one word:
“Excellent!”
It’s Not Fun
Fast forward 46 years. I’m flying from Minneapolis to New York.
I get to the airport two plus hours before the flight. Time to check in my own bags without having to talk to anyone.
I go stand in a line for twenty minutes waiting for TSA agents to check my bags and scan my body.
The gate has very limited seating so I stand while I wait for my flight to be called. Hopefully it’ll depart on time.
I’m in zone 7 so I wait forever to board, hoping they won’t take my carry-on and put it underneath.
I finally board and find my seat. The seats are thinner and smaller than they were years ago. There’s less legroom.
When I speak to a friend, they ask how the flight was. My answer:
“I hate the flying experience.”
Times certainly have changed.
What Type Of Experience?
There are many similarities between nonprofits and for-profit businesses. One of them is the customer experience.
Why do you always buy a certain brand of clothing? Because the customer experience was a pleasant one. Purchasing the clothes was quick, it was easy to return some of them and the company you buy from sends you coupons and offers to keep you coming back.
Companies spend a LOT on retaining your business year over year. Acquisition costs 5-10 more than retention so that makes sense.
And the longer you stick around, the more you buy which means your lifetime value is high. All wins for the company.
But then I read this article in the Wall Street Journal: The U.S. customer experience rating has hit a new low. People don’t feel like they’re getting value for their dollar. (Thank you shrinkflation.) They’re not getting a better experience with higher prices. (Thank you exorbitant fees. Looking at you Ticketmaster.)
Think about your last few online purchases and in-store experiences. Was it pleasant? Did you enjoy it? Or did you grumble the whole time about the prices, the lack of parking spaces, no personnel to help you find what you’re looking for and the self-checkout machines that sometimes don’t work?
Now take that customer encounter and consider the experience of your organization’s supporters.
Do your donors enjoy giving to you or not?
The data says the latter.
People Don’t Enjoy Giving
Airlines have made the flying experience a miserable one. Maybe those select few who have access to lounges and first class tickets but for the rest of us? Flying sucks.
Now consider your organization: A person gives, receives a perfunctory thanks letter and then they don’t hear from you till the next fundraising campaign. They’re just another passenger who paid for their seat. Nothing special, no one worth connecting with.
Is that how your nonprofit acts? Because if yes, your retention rate is probably really crappy.
Supporters want to know how their gift was used. They have to find out the impact of their donation. They need to know how they made their community a better place.
If the only time they hear from you is when you hold your hand out asking for money, they feel like cash cows. And that’s not going to convince them to give.
That’s a negative donor experience. And that’s why supporters stop giving.
Which of course explains why the overall donor retention rate in our sector is 40%.
A donor’s experience with you is a transactional one, as if they bought a sweater online. Not because they treat it that way but because YOU do.
Which means your fundraising, communications and marketing have to consider your donor’s experience and whether their interactions with your organization are a positive or a negative one.
A fundraising expert once told me that everyone deserves to experience the joy of being a philanthropist. There should be a happiness associated with giving, not grumbling and a feeling of I’m giving but never again.
Summertime is a great time for you to check your processes, to dig deep into how you engage and interact with donors. It’s a good time to send a survey to donors about THEIR giving experience.
There’s a lot you can learn by doing this. You’ll change what needs fixing. The goal: Provide donor’s with an exceptional giving experience.
Do that and your retention rate will soar which means you’ll be raising more money and spending less to do so.
Sounds like a win win to me!
Is your organization’s donor retention rate hovering around 40%? Looking to boost that while building more relationships and raising more money? I’ve got what you’re looking for! Let’s chat and get you on the road to sustainability and growth.