When charities calculate the “value” of donors they have on record, they should also consider the potential to help or harm their cause through word of mouth, asks Jeff Brooks at Donor Power Blog.
Talkative and well-connected donors are worth their weight in gold – provided the information they spread about an organization is positive.
For example, Mr. Brooks, who is a marketing consultant for nonprofit groups, points to data used by the cell-phone industry to calculate customers’ “referral value” which shows that customers that praise their service provider to friends contribute a higher net revenue than the average consumer by bringing in new clients, while bad-mouthers end up costing the company more than the are worth in lost business.
Fund raisers often forget that beyond writing checks, says Mr. Brooks, some donors are taking other actions that can affect revenue.
“They’re talking you up and helping motivate people around them to become donors. Or they’re unhappy with you and they’re helping chase away prospects,” he writes.
This dollars-and-cents reminder of the importance of word of mouth should inspire nonprofit groups to invest in and treat happy donors extra well, says Mr. Brooks, and to work to neutralize or convert detractors into advocates.
“I’d bend over backward to have flawless service for donors, and to create a communication program aimed not just at harvesting donations, but at pleasing and rewarding donors,” he advises.
