warmth and competence as drivers of alumni loyalty and giving in higher education
TRANSCRIPT
© Copyright Fidelum Partners 2013. All Rights Reserved© Copyright Fidelum Partners 2013. All Rights Reserved
Date: September 27, 2013
How Warmth & Competence Drive Alumni Loyalty and Annual Giving
Chris Malone, Managing Partner Jamie Ressler, Associate Dean
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Clues From Evolutionary Social Psychology
Basic Survival Questions:
1. Your intentions toward me? (i.e. friend or foe, WARMTH)
2. Ability to carry out intentions?(strong or weak, COMPETENCE)
Our Warmth & Competence Instincts
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Warmth & Competence Guide Loyalty & Relationships
These universal dimensions of human social perception have been shown to explain over 80% of social behavior through academic research in 37 countries.
Source: Universal dimensions of social cognition: warmth and competence, Susan T. Fiske, Amy J.C. Cuddy and Peter Glick, TRENDS in Cognitive Sciences Vol.11 No.2, 2007
Perceptions of Others Low Competence High Competence
High Warmth Sympathy & Indifference
Admiration & Attraction
Low Warmth Contempt& Rejection
Envy & Grudging Cooperation
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Warmth & Competence Drive Brand Relationships
Ten studies with over 5,000 consumers on over 45 brands confirm heavy influence on brand loyalty & purchase intent.
A detailed review and several commentaries were published in the Journal of Consumer Psychology in April 2012.
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Are They Perceived Like People & Social Groups?
These fundamental dimensions of human perception were used to assess and analyze alumni relationships with a medium-sized higher education brand.
White paper: http://www.relationalcapitalgroup.com/resources/white-papers/a-better-way-to-measure-value-business-relationships/
Is honest and trustworthy
Acts with your best interests in mind
Listens well & is responsive to your needs
Resolves differences fairly & respectfully
Communicates clearly and effectively
Reflects well on your reputation
Has valuable knowledge and expertise
Consistently delivers on commitments
Offers high quality advice & assistance
Helps you accomplish your goals
Is best in their field of expertise
Is worthy of your time and resources
Warmth Dimensions Competence Dimensions
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Warmth & Competence Drive Overall Loyalty
These warmth and competence perceptions were highly predictive of overall loyalty, explaining over half of alumni relationship strength.
In addition, “worthy of your donations” was among the strongest predictors of overall University relationship strength and loyalty.
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Loyalty Segmentation of University Alumni
Our cluster analysis loyalty segmentation allowed us to identify five groups of alumni, each with distinct attitudes and behaviors toward this university.
Angry Isolated Critics
13%
Underserved & Alienated Boomers
15%
Proud But Disconnected Donors
19%
Financially Frustrated Fans
25%
Satisfied Super Supporter
29%
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Warmth & Competence Perceptions Vary by Segment
These basic dimensions of social perception provide a brand relationship diagnosis for each loyalty segment of university alumni.
Given your recent experience as an alumnus/a, please indicate the degree to which the following statements describe this university now, on a 1 to 7 scale. (Mean Score)
All Alumni SSS FFF PBDD UAB AIC
reflects well on your reputation 5.3 6.1 5.3 5.6 4.0 4.5
is honest and trustworthy 5.3 6.0 5.2 5.6 4.2 4.5
communicates clearly and effectively 4.9 5.6 4.8 5.2 3.8 4.0
has valuable knowledge and resources 4.7 5.5 4.7 5.0 3.7 3.9
is worthy of your charitable donations 4.6 5.7 4.4 5.1 3.4 3.6
is the best in their field of expertise 4.6 5.3 4.5 4.8 3.5 3.8
consistently and reliably delivers on commitments 4.5 5.5 4.5 4.8 3.3 3.6
resolves differences fairly and respectfully 4.3 5.1 4.3 4.5 3.2 3.5
always acts with your best interests in mind 4.2 5.1 4.2 4.4 3.0 3.2
listens well and is responsive to your needs 4.1 5.0 4.0 4.2 3.0 3.0
offers high quality advice and assistance 4.0 4.9 4.0 4.2 3.0 3.0
helps you accomplish your goals 3.7 4.7 3.7 3.8 2.6 2.6
SSS FFF PBDD UAB AIC
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Alumni Loyalty Varies Greatly by Attitudinal Segment
Not surprisingly, these perceptions are highly predictive of overall alumni loyalty.
Please indicate how strong and loyal a relationship you currently feel toward each the following on a scale from one to seven: (Mean Scores)
All Alumni SSS FFF PBDD UAB AIC
The University overall 5.2 6.4 5.3 5.6 3.4 3.7
Classmates from your graduating class 4.6 5.8 5.5 3.8 3.0 2.9
Athletic teams 4.5 5.4 4.6 4.7 2.8 3.7
Roman Catholic Church 4.1 4.7 4.2 4.3 3.2 3.7
Classmates from your major 3.7 4.6 4.2 3.4 2.5 2.5
Classmates from other social groups 3.5 4.6 4.2 2.9 2.2 2.2
Faculty members 3.3 4.3 3.5 3.3 2.3 2.2
Current students 3.1 4.2 3.1 3.2 1.9 2.1
Alumni Outreach & Development staff 2.9 3.8 2.7 3.1 1.8 1.9
Alumni you've met through University events 2.8 3.8 3.0 2.8 1.8 1.8
SSS FFF PBDD UAB AIC
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Loyalty Also Drives Annual Alumni Giving
Clearly alumni must have both the means and desire to provide financial support, but relationships and loyalty outweigh wealth in actual giving behavior.
$333
$269$511
5.26.4
5.3 3.4
3.75.6
$118
$118
$112
SSS (29%)
FFF (25%)
PBDD (19%)
UAB (15%)
AIC (13%)
ALL (100%)
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Twenty Years of Total Alumni Giving Explained
While a variety of financial and life stage variables impact total alumni giving, it’s clear that alumni attitudes, relationships and perceptions play a major role.
Nearly half of total giving behavior (49%) can be explained by just these attitudinal variables alone.
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Structural Equation Model for Average Annual Gift
At this university, improving perceived warmth and competence among alumni will have a 27-41% pass-through impact on overall loyalty to the institution.
Similarly, for every 1 point increase in overall loyalty, average annual gift size increases by $61.27 for every alum at this institution.
● P-values on all relationships < .001● RW = Regression Weight: for each 1-point change in upstream variable, observe .xx change in downstream variable● Perceptions and loyalty were rated on a 7 point scale
Alumni Competence Perceptions
Alumni Warmth Perceptions
Loyalty to University
Annual Gift Average
27% Impact
41% Impact
23% Increase, +$61.27
5.2
4.4
4.7
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Research Implications & Value
Warmth and competence, well-established concepts in social psychology, are also relevant in consumer brand relationships
Improving perceptions of warmth and competence will improve alumni loyalty
Stronger alumni loyalty increases the size of alumni contributions
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Research Implications & Value
Warmth features that universities should ensure/improve:● is honest and trustworthy● acts with alumni interests in mind● resolves differences with alumni in a fair manner● listens and responds● communicates with alumni● provides status to the alumni’s personal reputation
Competence features that universities should ensure/improve:● deliver on commitments● provide valuable knowledge and resources● is worthy of contributions● offers quality advice● enables alumni to reach their personal goals● have competent experts in the fields of study.
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More Research, Case Studies and Findings…
"The HUMAN Brand is a brilliant synthesis of psychological science and marketing wisdom. Engaging, insightful, and deeply original, an essential book for every business reader." - Dan Gilbert, Edgar Pierce Professor of Psychology at Harvard University
“Susan Fiske’s renowned work on warmth and competence explains how we unconsciously judge people and companies. The HUMAN Brand is a must-read for anyone with an interest why we make the choices we do.” - Jennifer Aaker, General Atlantic Professor of Marketing at Stanford University GSB
“The HUMAN Brand is a must read for those who want a truly evolved understanding of how to earn loyalty and create lasting relationships with customers. It's a timely look at how modern corporations hold onto customers... and how we drive them away.” - Beth Comstock, Chief Marketing Officer, General Electric
● 1st chapter free at TheHUMANBrand.com● eBook available online now● Hardcover: October 14, 2013