1.
© 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

2.
© Copyright Fidelum Partners 2013. All Rights Reserved
Clues From Evolutionary Social Psychology
Basic Survival Questions:
1. Your intentions toward me?
(i.e. friend or foe, WARMTH)
1. Ability to carry out intentions?
(strong or weak, COMPETENCE)
Our Warmth & Competence Instincts

3.
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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

4.
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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.

5.
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What About Higher Education Brands?

6.
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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

7.
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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.

8.
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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%
ed & Alienated Boomers
15%
Proud But
isconnected Donors
19%
Financially Frustrated Fans
25%
Satisfied Super Supporter
29%

9.
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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

10.
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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

11.
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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%)

12.
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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.

13.
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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

14.
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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

15.
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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.

16.
© Copyright Fidelum Partners 2013. All Rights Reserved
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