Aisle be back; why As-da charity sector not retained donors with a Lidl bit of supermarket strategy?
Supermarkets have something charities crave; customer loyalty. But what took Tesco ahead of Asda, Morrison’s and Sainsbury’s in the war for the wallet? The customer journey.
Tesco. The third biggest retailer in the world. Their UK stores cover more floorspace than the city of London. They employ 472,000 people to sell 40,000 different products in 4,811 stores across 14 countries.
They also have something charities crave; customer loyalty. But what took Tesco ahead of Asda, Morrison’s and Sainsbury’s in the war for the wallet? The customer journey.
Tesco provides everything you need while you’re in the store and because you know they will, they have your trust as well. They make you feel wanted. We need different things from charities, but are they providing them? Do charities even consider them?
Imagine the scenario. It’s the day before your holiday. You need to buy food for tonight, holiday clothes and a foreign plug adapter. You need to change some holiday money, go to the chemist, visit the bank and nip into the post office. You need a haircut and the car needs washing and filling up with petrol before the airport drive. How many places do you need to visit? Just one.
Tesco also employ lots of staff. They know where everything is. They even employ someone to point out which self service till is available. It's mollycoddling in the extreme. Now I’m not suggesting charities should open up megastores, but why do some charities provide no journey at all?
Many moons ago, I decided to donate to a domestic violence charity. Back then, I didn’t even know any. I had to google one, then set up a direct debit. For this, I received a dull newsletter every month. I had no idea what my money was being spent on, how much of it reached the cause and what difference I made, if any. Why not?
Compare it to this. I moved to London last year and I needed to cram the cupboards. I googled the nearest Tesco and obviously it was less than ten minutes' walk. I knew what to expect when I got there, where the special offers were, where the reduced section would be and went safe in the knowledge that there would be plenty of trollies, staff and stock. I didn’t have to worry about my shopping experience.
Do I have the same opinion about any charity? Do I know they’ll spend my money wisely? Will they tell me what they spent it on? Do I know that the cause is being tackled at all, let alone in the right way? For me, the answer is no. No charity has ever tried effectively to tell me.
The crux of the matter is people need supermarkets. Marginalise the competition and you’re set for huge growth. No one needs to give to charity. Charities need to provide some sort of journey for their customer, or people will switch to the charitable equivalent of Asda, Sainsbury’s or Morrison’s… or worse still, stop shopping.
I want to be updated. I’d like to know that you’re grateful, but mainly I want to know I’m making a difference. I want to feel like I do pre-Tesco; that my journey is already assured.
Here are some random calls for action:
If you’re sending me a newsletter, put some interactive things in it. Ask me for my experiences. But don’t rely on it, because I may well not read it
Tell me what you’re up to without referring me to an annual report that I will never read. If I read about you in the newspaper or on social media, I’ll think "they’re really doing something and I contributed to that." You’re probably doing a great job, so don’t risk me not hearing about it
Send me a text when my direct debit goes through. Say “thanks Rob, this month we’re focussing on X Y and Z.” I know what my £10 is going towards. I bet it wouldn’t cost you that much
If I do cancel, give me a call and ask me why. You might pick up some feedback or I might have done it by accident. All I ever got were constant mailers (new paper aeroplane material) when I cancelled last time
Make me feel like I’m not the only one who cares in this relationship!
I’ve donated to three or four charities recently, both for nfpSynergy and for myself, and I've never felt like they were too fussed. Some charities probably do it very well, but as a donor I’ve never experienced that. So was I just unlucky? Or are there lots more charities out there who, if they were honest, would say they fall short?
It is difficult to manage the relationship when you have thousands of donors, but make a start and put some more thought into the journey. Every little helps.
Have you never thought about this Till now? Or do you feel shortchanged? Aisle bet you have an opinion - leave us a comment below.
Also check out our other blog from last year - 5 things charities can learn from Tesco, taking a look at the specific strategies for branding and management.