When people are deciding to give for the first time, they aren’t yet our donors

When people are deciding to give for the first time, they aren’t yet our donors

At LemonTree, we believe that donor-centricity is the ongoing dedication to increasing the depth and breadth of your donor understanding. In doing so, you generate insights that can be used to tailor your communication and engagement efforts and demonstrate to your donors that they are at the heart of your entire organisation.

Why you ask? Well, essentially this builds trust and loyalty – the critical foundations of any lasting and sustainable relationship.

I recently read an interesting article from the Institute for Sustainable Philanthropy, which made a powerful observation:

“When people are deciding to give for the first time, they aren’t yet our donors. But they are a parent, a cancer survivor, a humanitarian, a moral person, a liberal, a patriot and so on. So the key to raising more money is to resonate with who the donors are, or rather that aspect of the self that is activated during their engagement with your organisation.”

Long ago the commercial world realised that the ‘customer is king’ and so adopted a customer-centric approach to their business strategy. Marketing teams work tirelessly to get inside the hearts and minds of their customers so they can position and promote their products and services in the right way, at the right time and with the right message to engage and nurture the customer and eventually make the sale.

A positive customer experience makes us feel something and – as humans – we are motivated to act based on how we feel. We tend to make decisions based on emotion, then find a way to justify that decision based on logic. This is why we choose to walk that little bit further to get our morning coffee, even though it costs 50c more…but the barista greets us by name, remembers our order, and takes the time to ask how our kids are getting on with that school project. We walk further and pay more because of the way the experience makes us feel; that’s what keeps us coming back. It makes us trust the barista; makes us loyal to the cafe and gives them a competitive advantage. 

In today’s challenging times with COVID-19, this entrenched loyalty – built up from years of providing a positive customer experience – is keeping many businesses alive, and for that, we applaud them and wish them every success.

To deliver the best customer experience and earn a sustained competitive advantage, businesses need to earn trust and build loyalty by adopting a customer-centric approach:

  1. Understanding what their customers want, need, like, dislike, hope, fear, and value at each stage of their life:
  2. Infusing these customer insights across all their business functions to help shape decisions.
  3. Creating a unique and ongoing value exchange for their customers.
  4. Engaging in open, honest, and transparent two-way conversations with their customers, across many different channels; and
  5. Empowering customers to interact with their brand on their own terms.

This same approach applies to not-for-profits looking to secure sustainable giving. You need to earn trust and build loyalty by adopting a donor-centric approach, and that starts by increasing the depth and breadth of your donor understanding.

So how can LemonTree help you understand your donors more and implement practical solutions to help you connect with your donors in a more meaningful and valuable way? We have a range of proven solutions for acquisition, growth, and conversion; used regularly by charities such as Cancer Council NSW, World Animal Protection, The Shepherd Centre, and many more!

Explore our FREE resources:

The power of relationships

The power of relationships

If the past few years have shown us anything, it’s that donor-centricity has really taken off around the globe. However, as Adrian Sargeant, renowned author, Fundraising Professor and co-Director of the Institute for Sustainable Philanthropy asks in his recent blog post, how far have we really come?

Whilst some charities are doing ground-breaking work, too many are merely swapping out a few keywords in their communications, ticking a non-existent donor-centric box and hoping for the best.

Why is this?

Well, according to Sargeant:

“Because the metrics organisations use to assess fundraising are still all about the money. Very few charities measure the quality of the donor experience, and how giving makes donors feel or contributes to their sense of wellbeing. Almost no-one rewards their fundraisers for improvements in any of these latter relationship metrics, so financial measures continue to dominate.”

As detailed in our recent publication, The Donor-Centricity e-Book, we believe that donor-centricity is the ongoing dedication to increasing the depth and breadth of your donor understanding, so you can connect more meaningfully, collaborate more effectively, and – most importantly – genuinely care for your donors in order to create ongoing value exchange, build trust and increase loyalty.

By continually seeking to understand your donors, you gain insights that can be used not simply to tailor your communication, but also to adapt your engagement efforts, provide a more positive donor experience, and demonstrate to your donors that they are at the heart of your entire organisation. This builds trust and loyalty – the critical foundations of any lasting, sustainable relationship.

How do we know this?

Because we’ve seen it before in the commercial world, with our parent company Marketsoft.

Whether we’re a customer or donor, a positive experience makes us feel good and – as humans – we are motivated to act based on how we feel. We tend to make decisions based on emotion, then find a way to justify that decision based on logic.

To deliver the best customer experience and earn a sustainable competitive advantage, businesses need to earn trust and build loyalty by adopting a customer-centric approach. They do this by:

  1. Understanding what their customers want, need, like, dislike, hope, fear and value at each stage of their life;
  2. Infusing these customer insights across all their business functions to help shape decisions;
  3. Creating a unique and ongoing value exchange for their customers;
  4. Engaging in open, honest and transparent two-way conversations with their customers, across many different channels; and
  5. Empowering customers to interact with their brand on their own terms.

This same applies to not-for-profits looking to generate sustainable giving, you need to earn trust and build loyalty by adopting a donor-centric approach.

Sustainable giving will only ever come from sustainable relationships, and therein lies the source of donor-centric gap. Too many organisations underestimate the power of building and nurturing meaningful relationships. Instead, they measure fundraising teams purely on the literal sense of the word.

But fundraising’s true power comes not from focusing on the dollar, but from focusing on the relationship between donor, charity and beneficiary. If an organisation can keep their focus on the donor, on finding ways to forge genuine connections, of caring for them whether they are giving or not; if they can listen and learn from their donors; if they can involve them in decision-making, and if they can make them feel heard, recognised and a valued member of the ‘family’, then trust and loyalty will follow.

So, yes, we’ve come a long way on the journey to donor-centricity, but there’s still a long way for organisations to go, especially when it comes to where their priorities lie.

“Let’s focus instead on what we ourselves are well placed to do best; the building of deeper, more fulfilling relationships, that can grow the human capacity to love others. That should be the real purpose of fundraising.”

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If you’re guiding your organisation towards donor-centricity, you’re not alone! We invite you to join our FREE donor-centric community and learn from your peers, share the successes (and the failures!) and together we can grow sustainable giving in Australia.