bb member loyalty in non-profit organizations

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  • 7/30/2019 BB Member Loyalty in Non-profit Organizations

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    Member Loyalty in Non-Profit Organizations

    2 million regularcontributors

    subscription cancellations

    Bain & Company

    SpanishFundraising Association

    Case Overview

    Data

    Non-Profit Organizations that participated in thestudy:

    pioneer experience

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    this case has been conducted according tohigh professional standards...I felt like doing a Loyalty Achievement Master

    Average exit rate is 18% in the Non-Profit Sector,with high variations among entities

    a) first year

    b) Face to face

    c)

    d) Monthlyquarterly

    d) Exit rate by payment frequency

    Jan-May 09 annualized

    Jan-May 09 annualized

    c) Exit rate by age group

    Jan-May 09 annualized

    b) Exit rate by engagement method

    a) Exit rate by members seniority

    Member Loyalty in Non-Profit Organizations

    Jan-May 09 annualized

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    Age groupExit rate

    65-80

    55-64

    35-44

    25-34

    Engagement method

    Exit rate

    Telemarketing

    Web

    Facetoface

    Member's seniority

    Exit rate

    >10

    4-10

    High correlation between level ofrecommendation (NPS) and exit rate

    Variables explaining cancellation are highlycorrelated to NPS

    Member Loyalty in Non-Profit Organizations

    NPS: ''On a scale of 0 to 10, how likely is it you would recommend thiscompany, product or service to a friend or colleague?'

    Fred Reichheld

    Promoter Passive Detractor

    ExtremelyLikey

    ExtremelyUnlikely

    NPS = % Promoters - % Detractors

    This case was key because it allowed us todevelop an action plan. We are currentlyworking on a donor management modelwhich affects all the organization levels

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    Member Loyalty in Non-Profit Organizations

    Diagnosis

    It is essential for donors to keep in touch withthe NGO they support and to be informedabout its activities. It is important for theNGO to set regular contact targets, and it isimportant to meet them. Our experienceshows that using multiple channels tocontact donors can help in this regard ."

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    This case permitted us to know oursituation compared to other NGOs, as wellas evaluate the different engagementmethods

    Member Loyalty in Non-Profit Organizations

    On an individual basis, Organizationsdeveloped single action plans to:

    Recommendations

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    Results up to date

    extraordinaryrewarding

    pleasure to confirm

    Member Loyalty in Non-Profit Organizations

    "The NGO donors market is still incipient. Aninitial step would involve all NGOs drivingthe creation of this "category", leveragingrelevant and general attributes.Differentiation comes next.

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    Member Loyalty in Non-Profit Organizations

    About Bain