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Ian Bruce CBE, DSocSciPresident, Centre for Charity/Nonprofit Effectiveness, London
Successful relationships with Donors and Beneficiaries - using Relationship Marketing
21st Annual Lodestar Conference
How do we build successful relationships with Donors and Beneficiaries?
• Staged relationship marketing plan• Tools• Practical examples of how to use the tools• Encourage you to identify your areas of interest and
priority
What is relationship marketing?
Charity/nonprofit relationship marketing is meeting
customer needs and wishes through building a
mutually beneficial long term relationships
• Bruce 2013
We can apply this marketing theory and practice to:
•Services•Campaigning/lobbying/public education•Fundraising
VOLUNTARY ORGANISATION CUSTOMERS
Beneficiaries
Clients
Students
Patients
Users
Purchasers
Local Public
Members
Audience
Patrons
Supporters
Donors
Volunteer Fund-raisers
Voluntary Serviceworkers
Advocates
Purchasers
Stakeholders
Staff
Representatives ofbeneficiaries
Committeemembers
Regulators
CharityCommission
Local Authorities(inspection)
Local community
Bruce: 2005
VOLUNTARY ORGANISATION CUSTOMERS
Beneficiary Intermediaries Statutory Providers and Purchasers Commercial Providers Family Purchasers Voluntary org Providers Policy-makers Decision-makers
Supporter Intermediaries Church leaders Company Chief Executives School Head Teachers, etc
Stakeholder Intermediaries Staff managers Union Representatives Committee leaders
Regulator Intermediaries MPs Home Office Local councils
Bruce: 2005
Fundraising proposition to a donor is fundamentally an Idea product
• The fundraiser takes the product or offering to the beneficiary and turns it into a fundraising idea product aimed at the donor and
• makes it as tangible as possible
Bruce 1998
But how do you “sell” your product to your customer, be they donor or beneficiary?
And how do you keep on doing so over the years?
This where RELATIONSHIP MARKETING comes in“meeting
customer needs and wishes through building a
mutually beneficial long term relationships”
RELATIONSHIP MARKETING PLAN
• Establishing relationships
• Strengthening relationships
And then maintain and develop through:
• Customer appreciation and recognition
• Relationship strategies
RELATIONSHIP MARKETING FOR DONORS AND BENEFICIARIES
• Establishing relationships (product, segmentation and targeting, people)
• Strengthening relationships (Market research, spotting problems and encouraging feedback, service recovery QUALITY)
• Customer appreciation and recognition• Relationship strategies: financial, social and structural
bonding (including memberships)
Strengthening relationships• Reliability: consisting of the ability to perform the
promised service dependably and accurately.
• Responsiveness: consisting of the willingness to help customers and to provide prompt service
• Assurance: consisting of the knowledge and courtesy of employees and their ability to convey trust and confidence.
• Empathy: consisting of the provision of caring, individualised attention to customers.
• Tangibles: consisting of the appearance of the physical facilities, equipment, personnel etc Berry and Parasuraman (1991)
RELATIONSHIP MARKETING PLAN
• Establishing relationships
• Strengthening relationships
And then maintain and develop through:
• Customer appreciation and recognition
RELATIONSHIP MARKETING PLAN
• Establishing relationships
• Strengthening relationships
And then maintain and develop through:
• Customer appreciation and recognition
• Relationship strategies
Strengthening relationships• Reliability: consisting of the ability to perform the
promised service dependably and accurately.
• Responsiveness: consisting of the willingness to help customers and to provide prompt service
• Assurance: consisting of the knowledge and courtesy of employees and their ability to convey trust and confidence.
• Empathy: consisting of the provision of caring, individualised attention to customers.
• Tangibles: consisting of the appearance of the physical facilities, equipment, personnel etc Berry and Parasuraman (1991)
RELATIONSHIP MARKETING FOR DONORS AND BENEFICIARIES
• Establishing relationships (product, segmentation and targeting, people)
• Strengthening relationships (Market research, spotting problems and encouraging feedback, service recovery QUALITY)
• Customer appreciation and recognition• Relationship strategies: financial, social and structural
bonding (including memberships)
RELATIONSHIP MARKETING WILL BRING YOU MORE SUCCESSAction the points on the last two slides and beneficiaries and donors will give you
• More Loyalty
• More Support
• More staff and board satisfaction
RELATIONSHIP MARKETING WILL BRING YOU MORE SUCCESSAction the points on the last two slides and beneficiaries and donors will give you
• More Loyalty
• More Support
• More staff and board satisfaction
MARKETING PERSPECTIVES –TRANSACTION vs RELATIONSHIP MARKETING
• Transaction Marketing focuses on maximum customer recruitment and satisfying needs in the transaction – created out of physical goods marketing (FMCG)
• Relationship Marketing focuses on customer retention and building a long term relationship – created out of the rise in B2B marketing and services marketing
How do customers judge service quality? (Bruce, p 68)• Reliability: consisting of the ability to perform the
promised service dependably and accurately.
• Responsiveness: consisting of the willingness to help customers and to provide prompt service
• Assurance: consisting of the knowledge and courtesy of employees and their ability to convey trust and confidence.
• Empathy: consisting of the provision of caring, individualised attention to customers.
• Tangibles: consisting of the appearance of the physical facilities, equipment, personnel and communications material
• Berry and Parasuraman (1991)
So How does Non-Profit Marketing differ from Commercial Marketing?
• demand• Sensitive issues• Invisible benefits• Benefits to 3rd parties
• Public scrutiny• Multiple publics• Limited budgets • Huge expectations• Strategy restrictions• Culture conflict
Often negative
Why are Non-profits not automatically Customer Orientated?• Often are monopolies• Demand outstrips supply• Beneficiaries too weak to
make their voices heard• ‘haves’ can develop a
patronising attitude towards ‘have nots’
• professionalism and professional distance impact of belief
• action orientated, research a luxury
• consumer rights may be seen as alien to mission
• Concentration on too few beneficiaries, poor services to the masses
• amelioration can lead to acceptance of the status quo and that the beneficiaries’ predicament is their ‘fault’
Where are the target markets….
Who and where:-
• Beneficaries - users, the general public• Supporters –advocates, purchasers, volunteers, donors• Stakeholders – including the internal market• Regulators – charity commission, Companies House, Health
Authorities, Police
Other Player (Competitor) Analysis
• COMMERCIAL SECTOR
• STATUTORY SECTOR
• VOLUNTARY SECTOR
• INFORMAL SECTOR
What is the key competitor Information that you need toInform your marketing?
How will you get this information?
Non-Profit Strategy Choices
•Market leader•Market nicher•Market challenger•Market follower
Kotler and Andreasen:1991
Non-Profit Positioning
The sum of those attributes normally ascribed to it by the consumers – its standing, its quality, the type of people who use it, its strengths, its weaknesses, and any other unusual or memorable characteristics it may possess, its price and the value it represents.
Harrison (1987),
8 Points Of The Non-Profit Marketing Mix
• PRODUCT (goods, services or ideas): consisting of quality features, name, packaging, services, guarantees.
• PRICE comprising price, discounts, allowances, credit.
• PROMOTION consisting of advertising, personal selling, intermediary referral, customer referral, sales promotion, public relations, coalition building.
• PLACE consisting of distributors, retailers, locations, inventor, transport.
8 Points Of The Non-Profit Marketing Mix
• PEOPLE consisting of personnel (training, discretion, commitment, incentives, appearance, interpersonal behaviour and attitudes) and other customers (including behaviour, degree of involvement and customer-to customer interaction).
• PHYSICAL evidence consisting of environmental factors such as furnishings, colour, layout and noise level; facilitating goods; tangible clues.
• PROCESS consisting of policies, procedures, mechanisation, employee discretion, customer involvement, customer direction and flow of activities
• PHILOSOPHY consisting of philosophy of the charity as a whole, and philosophy to be applied to the specific product
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