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Navigating Change in the Not for Profit Sector

The not for profit landscape is changing dramatically in Australia.  Be assured, it will not be the same in 10 years time, most likely five.  But are we ready?  Have we asked and answered the marketing questions we may need to survive?

Environmental change in the not for profit sector will see organisations reviewing and subsequently relying on effective and targeted marketing to adapt and respond to the new environment in which they are operating if they are to remain sustainable and relevant into the future.

The procurement of human services by governments is also changing.  There’s  a greater outsourcing of services to the non government sector.  We’re now in a competitive environment in which for-profits are emerging and pricing and client outcomes are key. This is creating a hybrid market economy, where on one hand we’re operating in a competitive environment and on the other there are increased bureaucratic, reporting and contract demands on what funding we get, and how we use it.

We have no choice but to be competitive and some of us need to change our charity mentality in this regard.

The economic environment and the response to debt and expenditure pressures by government will see an increased demand for human and social services. This at a time of budgetary restrictions on funding for social services.

We are all too aware of the changing demographics of our community. How will we provide effectively for our ageing population?

There is an increased focus on customers and customer outcomes, as there should be.  Ironically, this is being lead by the changes in how government provides its funding and procures services.

Irrespective, the customer will now have greater choice and control over how they use their money, which service provider they use and even what staff they will have in their home providing those services.

We will see people move between service providers.  The traditional service provider ‘specialist’ model will largely cease.

To meet these needs not for profits will either be large organisations, which have size and scale, or will be niche service providers. The ‘middle ground’, where you provide quite a few different services but to a limited customer base in each, is disappearing.

We need to ask some fundamental marketing questions. Do we know our ‘competition’?  Do we know our customers?  Have we got the right service mix?  Can we deliver on our service promise?  Have we got the right pricing structure?  Do people know who we are?  What is our reputation?  The list goes on.

For me, there are three key marketing lessons:

  1. Differentiate or die.
  2. The customer is key.
  3. Outcomes are pivotal.

Keep these points in mind, and navigating change in the non profit sector may be a little more manageable.