Nonprofit 911:Creating a Great Donor and Client 

Experience

With John Goodman

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Today’s Speaker: 

John Goodman

Creating an Great Donor and Client Experience

Network For Good WebinarJohn Goodman, Vice Chairman, TARPNovember 29, 2011

5

Agenda

• Understand misperceptions about donors and clients

• Understand the impact great service can have on donors, clients and employees

• Specific actions you can take at little or no cost to enhance revenue and efficiency

• Quick check list for grading your organization

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About TARP

• Founded in 1971—40 years of customer experience leadership– White House Complaint Studies 1970s-80s (instigated 800#s and GE

Answer Center)– Assisted 6 Baldrige Winners and 43 Fortune 100 Companies– Initiated concept of “word of mouth” (TARP/Coca-Cola 1978 Study) and

“word of mouse” (eCare and Click & Mortar studies 1999)

• Offices in Wash., D.C. and London • Credited with developing the approach

for quantifying the impact of service and quality on revenue for organizations like USO, Neiman Marcus, MoMA, LL Bean, Toyota/Lexus/Scion, Apple, ASTD, Limited Brands, Ritz Carlton, US Green Bldg Council, National Geographic and Chick-Fil-A.

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Customers and donors will:

Use again

Use or donate more

Tell others to use or donate

Try your other products & services

+ =DOING

THE RIGHT JOB

RIGHT THE FIRST TIME

MAXIMUM CUSTOMER

SATISFACTION & LOYALTY

ImprovedProduct & Service

Quality

Respond toIndividual Customers

Identify Sourcesof Dissatisfaction

Conduct RootCause Analysis

Feedback onPrevention

EFFECTIVECUSTOMERCONTACT

MANAGEMENT

Formula For Maximizing The Customer Experience

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Ten Myths About Service Existing in Most Organizations

1. Employees are the cause of most dissatisfaction 2. It costs too much to give great service, good is good enough.3. If donors, members or clients have problems, they tell us.4. We should aim to always exceed customer expectations5. Answering the phone really fast is the key to success6. People always prefer talking to people7. We’re a non-profit, we cannot tailor services.8. The customer is always right9. Price and cost cutting is the key to success10.We’re at 90% satisfaction – let’s declare victory!

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Riding the Wave of Customer Experience Management: Six Big Ideas

1. Staff don’t causes most customer dissatisfaction –development, products and processes do

2. The revenue and word of mouth implications of great service are 10-20X its cost

3. An effective Voice of the Customer tells you exactly what to fix

4. People are still paramount – making the front line successful

5. Deliver technology that customers will enjoy –delivering psychic pizza via any channel

6. Sensibly creating remarkable delight

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Employees Do Not Cause Most Customer Dissatisfaction

- Fails to followpolicy

The majority of customer dissatisfaction is NOT caused by employee error or attitude but by products that cause disappointment and broken processes*

Customer20%-30%

Employee20%

- Wrong expectations- Customer error

-Fails to followpolicy

-Attitude

Company 40%-60%- Products and servicesdon’t meet expectations

- Marketing miscommunication- Broken processes

Poorly designed products,processes, and marketingcreate most unmet expectations. Further, employees are often notequipped with effective responses to problems.

Customer expectationsmust be set and they mustbe educated on howto avoid problemsand surprises.

*Finding based upon TARP analysis problem cause data in over 200 consumer and B2B environments.

At least 30% of

contacts are preventable

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Customer Expectation: Key Factors Driving Satisfaction• No Unpleasant Surprises• If Trouble Encountered

– Accessibility, taking ownership– Apology– Clear, believable explanation – Creating an emotional connection rather than just

courtesy– Timeliness and keeping promises

• Handle on First Contact Results in 10% Higher Satisfaction and 50% Lower Cost

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TARP’s Enhanced Tip Of the Iceberg With Social Media

Non complaints are due to:•Hopelessness•Fear•Where?

Ratio of complaints to problems is “the multiplier”, usually 1:20-1:200

Misleading or disrespectful actions do four times as much damage

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Challenges for The Non-Profit Manager

• 75-90% of members, donors and clients don’t complain upon encountering a problem

• Staff often need special training and consistent explanations to handle complaints and inquiries. Lack of skills result in failure to acknowledge problems

• You must understand donor and member experience and the issues that most contribute to lost revenue and negative word of mouth – same with delighters

• You need a unified client, donor and member experience strategy, from website, welcome and payments to education on benefits and avoiding problems, to service delivery and feedback

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1. Prevent Problems By Setting Proper Expectations

• Welcome packages • Welcome calls• Encourage questions before customers get

into trouble• Reconnecting

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2. Get CFO Support by Quantifying the Impact of Problem Experience on Loyalty (example)

IQuestion/problem

experience

II Contactbehavior

IIIContact handling

ClientsDonors

Volunteers

No Question/problem

experience70%

Question/problem

experience*

30%

IVMarketimpact

Non-contactors

76%

Satisfied1

34%

Mollified2

22%

% Definitely Will

Recommend

69%

39%

74%

42%

32%Dissatisfied3

43%

Word of

Mouth**

---

2.9

1.7

4.4

5.5

% Definitely Will

Keep Donating

82%

42%

86%

42%

22%

% Very Satisfied with

ABC

81%

40%

82%

52%

35%

Contactors24%

* In the past 6 months** Average number of friends/colleagues told about the experience with ABC1 Top box (i.e., I was completely satisfied)2 Second and third box (i.e., I was not completely satisfied, but the action taken was acceptable and I was not completely satisfied, but some action

was taken)3 Fourth and fifth box (i.e., I was not at all satisfied with the action taken and I was not at all satisfied because no action was taken)

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=

=

=

=

x xx

=

350

1530

3060

7,870

12,810Total members at risk

35,000Members

withproblems

20%Dissatisfied

Many notrepurchasing

Some notrepurchasing

50%Satisfied

Almost allrepurchasing

50% Do notcomplain

50%Complain

30%Mollified

Some notrepurchasing

Estimating Members At Risk Due to Problems and How They Are Handled

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Negative Word Of Mouth Can Trump Marketing

10%delighted

70%satisfied

Telltwo

Tell one

=

=

2,000

7,000

-3,000

10,000customers

Example calculation of potential impact

20%dissatisfied

Tell six

= -12,000

20% dissatisfaction can counter 80% satisfaction

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Great Service Is A Word of Mouth Management Mechanism

10%delighted

80%satisfied

Telltwo

Tell one

=

=

2,000

8,000

4,000

10,000customers

Example calculation of potential impact

10%dissatisfied

Tell six

= -6,000

10% decrease in dissatisfaction results in net positive WOM

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Reduced Problems Reduce Sensitivity to Price

10%

22%

46%

74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

No problems 1 problem 2 to 5 problems 6 problems ormore

Percent of customers dissatisfied with fees rises with number of problems.

2020

3. The Call Center Can Become the Focal Pointof the Voice of the Customer on Customer Experience• Customer surveys• Customer contact and interaction data• Internal operations process, quality data• Employee input• Together, these elements are used to identify

opportunities for product and service quality improvement

+ = Total view of the customer

experience

Internal process and quality data and employee

input

+ Customer contact and

interaction data

Surveys of customer

satisfaction and loyalty

Take The Role Of Chief Customer Officer

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4. Creating A Culture of Success Reduces Turnover

Great Pay is Nice But Less Frustration is Better• Prevention via Welcome and Education• Tools –

– flexible solution spaces – believable explanations – supported by tools and information

• Training – ongoing training and story telling• Motivation – celebration via victory sessions &

promotability

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Role of Customer Contact

1. Resolve issue on first contact, delighting and creating emotional connection when appropriate

2. Educate to prevent future issues3. Cross sell other services to enhance value4. Gather Voice of the Customer input

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5. Deliver Technology People Enjoy

• Why people hate technology– Wastes my time– Gets in the way – phone trees and voicemail

• Why they love it– Anticipates – HP printer ink– Simplifies – Continental boarding pass

• Delivering psychic pizza– NJ NG– Auto Club of Southern California– PBS Station

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6. Identify Cheap Delightful Experiences

Delight experience Average lift to repurchase or recommend (Top Box)

Service beyond expectation 12%

Assistance during life event 14%

No unpleasant surprises 22%

Friendly 90-second staff interaction 25%

Personal relationship over months 26%

Tell me of new product or service I can really use

30%

Consistently good service 32%

Proactively provide information on how to avoid problems or get more out of your product

32%

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Summary• Set proper expectations• Deliver Psychic Pizza• Provide clear explanations for policies• Create a VOC that listens to your mid-range donors and

quieter clients• Quantify the impact of problems and measure word of mouth• Encourage emotional connection as a cheap delighter

• Outlined in detail in Strategic Customer Service published by AMACOM

• jgoodman@tarp.com or 703-284-9253

Nonprofit911.orgJoin us for our next webinar on December 6:Build a Captivating Community that Lasts