It costs more to acquire a new customer or donor than it does to retain one. Whether you are marketing a business or fundraising for a nonprofit, the money is in the relationships you build with the customers or donors in your community. Looking for a tried-and-true way to build stronger relationships? Give thanks. Giving thanks pays dividends.
While the stats on this vary from source to source, the ballpark is that it costs 5-10x more to acquire than to retain. Think about what that means for your business. It is really expensive to spend time always chasing new leads. And, for some reason, chasing new leads seems to be the default among small businesses and smaller nonprofits.
It costs more to acquire a new customer or donor than it does to retain one. #nonprofit #smb Share on XWhether you are seeking repeat sales, more donations, or a powerful referral + testimonial combo from your contact to bring in stronger new leads, there is potentially far more profit available to you in your existing relationships.
What this means is that it makes sense to budget time and/or money for staying in touch with your customers, donors, and leads.
Not just any outreach will do. Asking them over and over to keep buying things or keep donating gets old quickly. They are not a bank. They are humans.
One of the best tools we have for maintaining strong relationships is giving thanks. If someone purchased something, thank them. If someone made a donation, thank them. Do it without an offer or an ask. Just let them know how much you appreciate them in your world. Show them some personality and gratitude to associate with your brand.
One of the best tools we have for maintaining strong relationships is giving thanks. #business Share on XIn the nonprofit fundraising world, the most productive fundraising plans usually involve a cycle of outreach. You build your brand and message. You make an ask. You thank your donors for their donations. You inform them of the good they have done with their donations. And then the cycle repeats. You’ll notice that there are potentially many touch points here, but only one that is specifically designed to be transactional. This doesn’t mean it’s the only time they’ll give you a donation. Seeing your gratitude and the results of their donation can often yield another donation. But you get there by drawing them in, involving them, and building that relationship.
The holiday season is a great time for giving thanks to your customers or donors, but this is a process that can happen throughout the year. You might find it useful to schedule a thank you message, call, or gift after the lead takes a certain action.
In my own business, I have a lot of reasons to thank people all year long. If someone does something kind, if someone makes a purchase, and any number of other actions that I have deemed gratitude-worthy, I take a moment to send a note, email, or gift to acknowledge what they have done. Although I don’t include a request, so often the recipient offers me something in return. My most solid collaborators have gotten to this point because of this cycle.
If you feel like you don’t have time or money to spend on giving thanks, just remember that whatever you budget for this is likely to be far more impactful on your overall sales, donations, and business growth than chasing new leads. Because giving thanks does pay dividends.