Don’t just ask what your supporters can do for you…

Gary HancockCustomer Management Consulting

Truths

Our single-minded focus: protecting and increasing

customer value

What we do for the customer is at least as important in driving

value as what we do to the customer

Why it matters

What if?

• Completely satisfied customers six times more likely to repurchase than satisfied customers

• Completely satisfied customers over 40% more likely to be loyal

How much does it cost you to acquire a new supporter?

Currently active supporters 100,000 Average value £ p.a. £60Tenure (years) 6LTV £360

100,000 +5%

+1£441

100,000 +10%

+1£462

Source:Why Satisfied Customers DefectJones & Sasser, 1995

Why it matters

Charities?

Proven

In the first study to address donor satisfaction Sargeant (2001) 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.

Perceptions of the quality of service offered to donors are the

single biggest driver of loyalty in the fundraising context.

Source:Donor Retention: What Do We Know and What Can We Do About It?Sargeant, 2008

Drivers of satisfaction

The fundamentals of the product or service

Support services that make the product or service easier to use

Recovery processes for addressing bad experiences

Additional services: customisation, addressing customer preferences

You don’t have to delight me

Support services that make the product or service easier to use

Just make it easy for me

Reduce customer effort

Knowledgeable employees

First contact resolution

One example

• Top down commitment to great customer service

• Careful use of IVR, towards a more relevant conversation

• Listen to your customer: give them time to explain what they need

• Information readily available, to provide reassurance

• Gather information to drive the future relationship

• Confirm what will happen next

How easy do we make it for our customers?

Action for Blind PeopleAction on Hearing LossActionAidAge UKAlzheimers SocietyAmnesty InternationalBarnardo'sBreakthrough Breast CancerBreast Cancer CampaignBreast Cancer CareBritish Heart FoundationBritish Red CrossCAFODThe Children's Society -Christian AidCRUKDiabetes UKDogs TrustFarm AfricaFriends of the EarthGreenpeaceGuide Dogs for the BlindIFAWMacmillan Cancer SupportMarie Curie Cancer CareMencapMind

National TrustNSPCCOxfamPDSAPlan InternationalRNIBRNLIRoyal British LegionRSPBRSPCASalvation ArmySave the ChildrenScopeSenseShelterSightsavers InternationalTearfundTeenage Cancer TrustThe BrookeUNICEFVSOWaterAidWoodland TrustWorld Cancer Research FundWSPAWWF UKYMCA

• Pell & Bales mystery shopping survey of over 50 UK charities

• An initial enquiry about supporting financially (looking to make a regular gift)

• Fieldwork from July 2012 - February 2013

• Highlights from the mail and email enquiries

Initial response

• We made 54 initial enquiries, by both mail and email• 10% of our mail enquiries and almost a quarter of our email

requests went unanswered

Base: 54

Speed of response

• Same day/next day is becoming the norm for email response. 60% of those that responded did so within this time

• Two thirds of mailed replies arrived within 10 days

Base: 54

Quickest response:Email: same dayMail: 2 days

Slowest response:Email: 20 daysMail: 71 days

Thanking and proactivity

• Whilst levels of thanking are high, promotion of regular giving could be improved:– Two thirds of

responses promoted regular giving

– One in six email responses did not mention regular giving at all

Base: 42 email and 49 mail responses

Direct debit confirmation

• We made a total of 108 attempts to

provide financial support: one in

five attempts were unsuccessful

• Eight gifts were set up without

confirmation being received

• Half of all mail confirmations took

longer than 10 days

• Half of email confirmations were

received on the same day (largely

automated confirmations)

Base: 54

Base: 40 email and 40 mail

confirmations

Quickest response:Email: same dayMail: 4 days

Slowest response:Email: 17 daysMail: 45 days

Best in class

Email Mail

You don’t have to delight me

Just make it easy for me

I can set that up for you today: would that be OK?

Just make it easy for me

“If you do decide to support us we would love to hear from you – you can call on 0800 269065 or donate on line on www.greenpeace.org.uk. I have also enclosed a form for you to return to us”

Get the basics right

“How lovely to receive your letter today…

The most cost-effective way for you to support our work is with a regular gift by direct debit, as it gives UNICEF the financial foundation to plan our projects effectively…

Remember also that, under the Gift Aid scheme…

You can set up a monthly gift online… or over the telephone by calling…”

Make me feel welcome

• Thanks for support• Confirms direct debit• Reminds about Gift Aid• Tells me how they will keep

in touch• Encourages me to tell

others• Makes it feel personal

Make me feel part of something

“Your gift will change the future”

“You’re now part of a movement”

‘Welcome’ doesn’t have to mean ‘pack’

Find new ways to thank me

Simple, engaging, proactive

Each donation we receive makes such a huge difference to the care and support that we provide for the children, young people and families that visit us here. Your money goes towards anything from employing a Care Team member to provide one to one care for each guest, to helping to pay for our gas and electricity.

If you would like to come to Helen & Douglas House to see the difference your gift can make first hand please reply to this e-mail. We hold a number of Open Mornings throughout the year as well as an Open Day in September.

Thank you for your support.

With best wishes,

Dear Gary, Angela & Joseph,

Thank you for your kind in memoriam donation of £25.00 to Helen & Douglas House. As a charity we are almost entirely dependant on the generosity of people such as yourself and we are most grateful for your contribution.

Each donation we receive makes such a huge difference to the care and support that we provide for the children, young people and families that visit us here. Your money goes towards anything from employing a Care Team member to provide one to one care for each guest, to helping to pay for our gas and electricity.

If you would like to come to Helen & Douglas House to see the difference your gift can make first hand please reply to this e-mail. We hold a number of Open Mornings throughout the year as well as an Open Day in September.

Thank you for your support.

With best wishes,

Essentials

Reduce customer

effort Increase proactivity

5Delivering proactive customer care: five steps

Insight VisionSituation analysis

Strategy Delivery

Step 1

Ask your customers:

• What’s important to you?• How satisfied are you?• What would make it easier for

you to engage with us?

Insight

Find out:

• What are your most frequent customer transactions?

• What are your frequently asked questions?

Your customer service priorities

Critical insight

• ‘How satisfied are our supporters?’ is the most critical measure of your performance

• Start now, and establish a baseline

– Continuous research– A periodic exercise– Through your

contact with supporters

– Post-experience survey

• Measure satisfaction and importance

Low

Low

High

High

Satisfaction

Impo

rtan

ce

Monitor De-prioritise

Invest Sustain

Matrix adapted from Donor Retention: What Do We Know and What Can We Do About It? Sargeant, 2008

Step 2

Ask yourself and your team:

• Which organisations make it easy for me to do business with them?

• What do they do that is exceptional?

• What can we learn from them?

Insight

Determine:

• What customer experience you want to create

• What you want the customer to think, feel, do

• The impact on your business

The customer experience you want to create

Insight Vision

Step 3

Internally review:

InsightInsight VisionSituation analysis

Strategy

People

Process

Technology

Key questions

Leadership challenges

• Do you have a customer care strategy?• Who ‘owns’, is ultimately responsible for customer care

in your organisation?• How widely understood is the role of customer service

in increasing customer value?• Does everyone share your vision?

Strategy

Key questions

• Do front line customer service teams seek and exploit

opportunities to increase customer value?

• Do customer service staff have skills in proactive

customer engagement?

• Does your organisation structure make it easy to deliver

proactive customer service?

Strategy

People

Key questions

• Are your customer processes documented?• What is the customer process for your priority

transactions?• Have you established service levels for your priority

transactions?• How are performance standards monitored and

reported? What systems and management information are in place?

• How does your performance compare with your standards, and customer expectations?

Strategy

People

Process

Key questions

• Do you have a single customer view?• Can you handle priority transactions at all major

customer touchpoints?• How accessible is the knowledge that you need, to

handle priority transactions?• Are you able to engage with customers through their

preferred channel?

StrategyStrategy

People

Process

Technology

Step 3

InsightInsight VisionSituation analysis

How close you are to the customer experience you want to create

Internally review: Mystery shop:

• Your priority customer transactions• Focus on customer effort and

proactivity• Assess your performance against

your vision and standards

Step 4

Critical elements:

• Realism: achievable objectives• Prioritisation: focus on ease and proactivity• Prioritisation: focus on priority transactions• The commitment required to achieve sustainable change

InsightInsight VisionSituation analysis

Strategy

How you will deliver proactive customer care

Step 5

Increase your chances of success:

• Evangelical sponsor• Report to ET/SMT• Dedicated project management• Involve the front line

Insight

Demonstrate impact:

• Identify and implement quick wins to gain support

• Measure impact – as best you can

Insight VisionSituation analysis

Strategy Delivery

Towards proactive customer care

2Proactive customer care: two simple examples

Moments of truth

Fast track win back

Proactive supporter care: Moments of Truth

Every interaction with a supporter is an opportunity to create value or potential value. They happen in your supporter service team every day

65% of all Moments of Truth activities resulted in a positive outcome, of which 67% had a direct financial impact

We developed a programme with one client, to explore the potential of Moments of Truth:

Description Desired outcome

Supporter complainsSupporter confirms continued support

Supporter calls to cancelSupporter won back during call

Anyone makes a product enquiry

Supporter makes commitment during call

Supporter calls for any reason

Check/obtain Gift Aid declaration

Supporter calls for any reason

Check/obtain core supporter data

Proactive supporter care: Fast track win back

• When a supporter cancels their regular gift, do you attempt to save them?

• We helped one client to establish a fast track reactivation programme within their supporter service team

• A dedicated team member contacted all lapsed supporters within three weeks of cancellation, to ask them to continue their support

Over 40% of all supporters contacted by telephone agreed to restart their regular gift

Proactive customer care

• Our single-minded focus: protecting and increasing customer value• What we do for the customer is at least as important in driving value

as what we do to the customer• Satisfaction alone is not enough: complete satisfaction must be our

aim• You don’t have to delight your customers, just make it easy for them• Your organisation needs a customer care vision and strategy• Invest in understanding what your customers expect• Be honest about your current situation and what you can achieve• Focus your plan on the transactions that matter most to you and

your customers• Measure your impact from Day 1, to build sustainable change

Gary HancockCustomer Management Consulting

gh.crm@btopenworld.comlinkedin.com/in/garyhancock

@oxfordgary

07918 104500