Technology is meant to power your growth, not hold you back. Can you confidently say that your software partner is speeding up your growth instead of slowing it down?
The enriching programs and services nonprofits provide positively impact communities and each life within. Daxko helps power that purpose through accelerating growth, connection, and transformation. Part of achieving that goal requires leveraging data and insights to measure progress and track success. Each data discovery helps direct our focus and ensure that future product updates and developments will directly power purpose.
To provide a benchmark for success, we often compare key performance indicators between Daxko users and organization’s using competing software partners. Recently, we sought to evaluate our customers’ growth relative to that of associations using a newer, lower-cost software solution. To perform this data study, we compared revenue from 2016 to 2019 between similarly sized YMCAs in two groups: those using Daxko Operations and those using a new lower-cost competitor for their software.
Our findings showed higher rates of total revenue growth and program revenue growth for similarly sized Daxko YMCAs when compared with YMCAs using a lower-cost competitor.
From 2016-2019, Daxko YMCAs saw total revenue grow 5.3% year over year and total program revenue grow 6.2% year over year. At the same time, YMCAs using the lower-cost competitor saw a 1.3% decrease in year-over-year total revenue growth rate and a 1.75% decrease in total program revenue growth rate.
Growth also slowed significantly for YMCAs after implementing the lower-price competitor software.
YMCAs on the lower-price competitor software saw a 7.8% drop in rate of total revenue growth and a 23.8% drop in rate of total program revenue growth after implementing the new software.
For a full picture of the return on investment experienced by YMCAs in both groups, we also analyzed total expenses in comparison to total revenue. Here’s what we found:
- YMCAs using the lower-cost competitor software reported a 3.94% increase in total expenses year over year before implementing the new software, followed by a 0.32% increase in expenses after implementing the software.
- Daxko YMCAs reported a 4.4% increase in year-over-year expenses over the same period.
- While the Daxko customers did report comparatively higher rates of expenses, their total revenue growth far outpaced their expense growth rates. The same was not true for YMCAs using the lower-price software.
For Daxko Operations users considering whether or not their technology solution is supporting their growth, the numbers speak for themselves—and the answer is definitively “yes”. Book a demo to see how Daxko can take your association’s growth to the next level.
Disclaimer: All data was compiled through publicly available 990 tax forms for 2017, 2018, and 2019, with some tax fields representing data from the prior year.