I recently had a chance to read a book
by Fred Reichheld about the Net Promoter Score (NPS). Simply put, NPS measures the level of promotion that can happen through grassroots and peer marketing. The concept is based on a 0-10 rating scale that divides customers into three categories: Promoters, Passives, and Detractors. Here is a description of the categories:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
After asking individuals if they would recommend the company or institution, they would rank their response and calculate the Net Promoter Score (NPS) by taking the percentage of Promoters and subtract the percentage of Detractors. Here is good visual from the Net Promoter site
After reading this, I immediately thought of nonprofits and associations.
Nonprofits Service Providers
If you are a museum, what would your members say about the facility, the exhibits or the educational programs you offer? Would they be promoters or would you get some detractors that say the cost of entry is not worth it. If you are nonprofit social service agency, would the beneficiaries of your services speak positively about you and promote your offerings? Or, would they comment negatively about your staff or the quality of service you provide?
Nonprofit Membership Associations
Would your members promote membership to others? What would your detractors say about the membership value? If you offered a lower membership would your members be the first to take you up on the offer and then leave the moment you raise it?
When it comes to fundraising, there are even bigger implications. Would your donors recommend your organization to others in the community? Would they speak positively about your impact and the fundraising tactics you use to raise support or would they simply be a detractor or a one-time giver?
There are potentially new categories to consider for fundraising
Promoters (score 9-10) are loyal donors who will keep giving; supporting both annually and when special projects arise that fuel growth and bigger impact. They tell friends, peers, family and anyone who will listen about your organization and get others to respond to your organization’s calls for action/support.
Passives (score 7-8) are happy donors but will not increase gifts regardless of any additional tactic you use to raise support. They are satisfied with their giving level and will not increase based on your attempts to deepen the relationship. The moment they hear about a new fundraising tactic from another organization, they are intrigued and will move on if you stop trying to engage them.
Detractors (score 0-6) are one time donors who are not invested in your organization and when they talk about you in the public, they mention a recent bad experience (special event or other incident you performed poorly). They may have only given because they felt obligated by someone else or at an event where they were pressured.
So, what is your NPS? What kind of donors do you have and what do you think they would say about you? Launching any campaign or new initiative, you may want to think about how you improve your score in order to leverage their support in the community.