Why Customer Experience Matters in not for profits

With increasing expectations for transparency and demonstrating outcomes, not for profits need to ensure they are providing an experience which meets customers’ needs.

A side note - don’t get caught up with terminology – customers, clients, families, recipients, ‘people with a a disability’ etc – whoever it is that your not for profit exists for.

Why does it matter?

1.       Customers can choose between and not for profits and for profits

With the advent of the NDIS, not for profits who used to get broad-based funding no longer do – it is tied to individual NDIS plans and the customer has the choice over which providers to choose.  

I can choose suncream made by the Cancer Council or by Coles. (No thanks to Little Shop, don’t get me started on that!)

When I was choosing my kids’ preschool, I could choose from a Uniting Care preschool, a private provider or a family daycare (BTW I chose a Uniting Care one and would recommend it 10/10).

When my grandmother was moving into a nursing home, similar choice set: The Salvation Army village, private provider or an individual.  (BTW she chose The Salvation Army and I still remember the personalised care provided by the staff).

On the plus side, I know from research I do that the fact a service provider is a not for profit is often the reason people choose that service. I certainly do but I’m probably an outlier.

2.       Other not for profits are considered ‘competitors’

Speaking of my grandmother, who passed away from cancer, I just did a quick search and the top 3 results are three different not for profits.

BTW, whenever this comes up in research I do, people get really annoyed that there are so many not for profits seemingly doing the same thing, especially for research.  I often hear “why don’t they all just pool their resources and surely together they could find a cure”.

3.       Expectations are set by for profits

Expectations about customer experience are set by the corporate world – we expect apps for everything and to have personalised content and services.

4.       Paying customers can cross-subside other services  

Paying customers (either directly or in the case of disability services, NDIS funding) can effectively cross-subsidise services provided at little or no cost. So if we don’t keep the paying customers happy, we may not be able to provide the vital services that aren’t commercially viable.

5.       A great customer experience creates loyal supporters

As I explained here, customers can make the most loyal supporters if we identify the moments of truth and nurture the relationship.

At the end of the day, we want to make a difference. We can only do that by truly understanding customers, designing and delivering experiences that do exactly that. Otherwise we might get the case of ‘great landing, wrong airport’.

 Take away action

Review your customer experience. Do you know the pain points, moments of truth and opportunity areas? What is your customer value proposition? What feedback do you get from your customers? What is your organisation’s aspirational customer experience, and how are you doing to nurture them along the journey?