Another Donor Complaint – So Who Cares?!

Another Donor Complaint – So Who Cares?!

The Donor cared enough to complain. And if you have any interest in raising funds for your cause, you HAVE to care! Here’s why: Take a look at the percentage of net revenue (i.e.“profit”) that comes from your existing donor pool. Unless you’ve just had an ice-bucket challenge, you are raising substantially more net revenue from your existing donor pool than you are from first time donors. You need to keep as many donors as possible. Non-financial transactions like complaints are a good indicator of loyalty. (If you have a “complaints database” or record donor-initiated human interaction in donor records, you’re sitting on a gold mine!) It’s generally five (or more) times more expensive to replace an existing donor with a new one, than to keep an existing donor. According to research conducted by Professor Adrian Sargeant, if you can resolve the complaint to the donor’s satisfaction immediately, 82 – 94% will make a subsequent donation. Even if the donor complains and you aren’t able to resolve the problem to the donor’s satisfaction, 18 – 47% will give again. (Read this and other essential information for increasing lifetime value in Building Donor Loyalty by Adrian Sargeant and Elaine Jay) Word of mouth is powerful. Apparently a dissatisfied donor will tell 10 others. BUT people who have their complaint resolved will tell 4 – 5 people about it.   WORRY ABOUT DONORS WHO DON’T COMPLAIN. Research conducted by Professor Adrian Sargeant show that of donors who have experienced a problem with a nonprofit and don’t complain, only 8 – 31% of them will ever make another donation (8% if it...