How Surveys Can Help Fundraisers Uncover the 4 Main Drivers of Donor Loyalty
What is it that drives donor loyalty? We know from research conducted over 25 years that there are four key drivers of loyalty that nonprofits need to be attending to.
1. Satisfaction
The first is how satisfied people are with how they have been treated as donors. Have they been properly thanked? Do they get a timely response to any issues or concerns? Are they asked appropriately?
In the first study to address donor satisfaction (Sargeant 2001) we identified a positive correlation with loyalty; donors indicating that they were ‘very satisfied’ with the quality of service provided being twice as likely to offer a second or subsequent gift than those who identified themselves as merely satisfied.
2. Trust
Loyalty is also a function of whether donors believe they are having an impact on the beneficiaries or cause. The mechanism for most donors is one of trust. Do they trust that the organization is doing what it says it is doing and spending its money wisely?
Sargeant and Woodliffe 2007 have demonstrated empirically the impact of trust on giving.
3. Commitment
The relationship marketing literature suggests a further driver of customer loyalty, namely relationship commitment. Sargeant and Woodliffe (2007) found that there are actually two types of commitment: passive commitment and active commitment. Active commitment is defined as a genuine passion for the future of the organization and the work it is trying to achieve.
4. Intimacy
As relationships become more intimate, the breadth and depth of the bond increases. Yim et al. (2008) and Bügel et al. (2011) see intimacy as feelings of closeness, connectedness and bondedness. Customer-firm intimacy has positive effects on trust, commitment and loyalty.
So What Does This Give Us?
All of these concepts have the power to drive donor loyalty, so our Engagement Surveys in Bloomerang will give you a sense of how you are doing relative to others and where there might be scope for improvement.
