Often, the development of one innovative tool can help many organizations learn new practices and improve their performance. In 2009, for example, Spain's Asociación Española de Fundraising (AEF) had seen a sharp drop-off in contributions and an increase in churn among donors. Using our well-known Net Promoter® system (NPS®), a Bain team helped AEF study the reasons for the change. One key discovery: 60 percent of departed contributors said they would have kept on giving if they felt a closer connection to the missions supported by their donations. Armed with such data, AEF members took action, and just one year later, the average churn rate among AEF-affiliated charities had dropped sharply, in some cases by nearly 50 percent.
Another example is Bain’s powerful decision rights tool known as RAPID® which is part of our well-established approach to helping clients build more effective organizations. Bain and Bridgespan collaborated to tailor the approach for the nonprofit sector, where it has been used by leading organizations such as Aspire Public Schools.
Today, the entire social sector is learning to operate more effectively than ever and to focus on results. Parts of the public sector are getting there too. We're proud to be playing an important role in those transformations.
NPS®
Net Promoter® score: Measuring loyalty
Bain research established that one question reliably indicates customer loyalty: "How likely is it that you would recommend this company to a friend or colleague?" Ask customers to score your company on the "would recommend" question, using a 0-to-10 scale. Label those who give you a 9 or 10 promoters—they are the assets that drive your growth. Label those who rate you from 0 to 6 detractors—they are the liabilities that eviscerate growth. Subtract the percentage of detractors [liabilities] from the percentage of promoters [assets] and you have your Net Promoter score.
Learn more at
www.netpromotersystem.com.
Net Promoter Score, Net Promoter and NPS are registered trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.
RAPID®
RAPID®: Bain's tool to clarify decision accountability
Bain created a unique tool to clarify decision accountability. RAPID—the letters stand for
Recommend,
Agree,
Perform,
Input and
Decide—assigns owners to the five key roles in any major decision. When the roles involved in any decision are clearly delineated, teams or organizations are more easily aligned and the path to high performance is clear.
Sounding Board
In the UK and Singapore, Bain hosts regular "Sounding Board" seminars to help social sector leaders keep up with the latest business ideas and best practices. The group learning often leads to follow-up action. The concept of customer-led growth was discussed in two back-to-back Sounding Board seminars in London. Right to Play, a leading humanitarian organization that uses sports and play to improve children's lives in war-torn countries, then worked with a Bain team to develop tailored value propositions for different funding groups to increase the organization's sustainability.
And after a discussion of Bain's approach to managing through a downturn, the CEO of the UK's Private Equity Foundation organized a seminar for the leaders of the charities in which she invests to help them plan more effective strategies and financial management.
