Managing Director, Membership Acquisition Sierra Club
Presentation Summary: The NPO model thrives on lasting sustainer relationships, aiming to utilize donations effectively for a meaningful impact. Sustainers gain satisfaction from contributing positively, while the NPO secures reliable revenue. Smart NPOs prioritize sustaining relationships by reducing cancellations, measuring satisfaction, and intervening when cancellations occur. While intentional cancellations are a concern, up to 48% of churn in the subscription world (which correlates nicely with the donor model) is caused by failed payments, otherwise known as involuntary churn. Many organizations overlook this, treating it as a one-time transactional issue impacting solely that month's revenue. However, failed payments jeopardize the entire sustainer relationship. Recognizing this, NPOs should optimize their payment infrastructure to minimize the adverse effects of failed payments on sustainer relationships.
Learning Objectives:
Recognize why a failed payment can trigger the loss of a relationship and not just the loss of one month's transaction.
Explain how recovering a failed payment ensures the organization receives the sustainer's full lifetime value.
Identify what constitutes an ideal failed payment recovery solution and how an NPO can begin implementation.