Economics and the Art of Church Shopping
The handwriting is on the wall.
Actually, it’s not handwriting that adorns the walls of many churches, but a wooden plaque with removable numbers that indicate the church’s attendance and offering receipts. For many churches, that information has migrated from the plaque on the wall to a spot in the church bulletin. Either way, pastors and church leaders know that these two numbers are often indicators of whether a pastor is going to get a raise… or if it is time to put a resume together.
Autonomous churches (like Baptists) are organizations with rules about how to make important decisions. Often, these decisions are made at church business meetings (aka church conferences). By discussing issues and voting on them, churches can democratically make tough decisions. Yet, there are more subtle ways that church members can cast their ballot.
Albert Hirschman came to America as a refugee from Nazi Germany. A brilliant economist, he taught at Berkley, Harvard, Columbia, and Yale Universities. In his landmark book Exit, Voice, and Loyalty, Hirschman tackles questions surrounding an organization’s decline. These principles are relevant to local church leaders who are evaluating the ups and downs of church attendance. Hirschman’s constructs of “exit” and “voice” are lenses that church leaders can utilize as they seek to understand the dynamics of dissatisfied church members.
Before moving forward, let me address the elephant in the room. I need to clarify that I am fully aware of the following:
- Churches are not businesses and pastors are not C.E.O.s
- Many of Jesus’ followers left Him when He began to challenge people’s theology.
- A spiritually unhealthy church can grow numerically and financially.
- Churches should be led by the Holy Spirit, not economic theory.
- Churches should be about bringing glory to God, not satisfying church members.
Having said that, from an “all truth is God’s truth” perspective, churches can gain insight from a variety of organizations that may be of value when applied to the church context. Below are some of my thoughts as I applied Hirschman’s economic theory to church growth.
EXIT
When church members are dissatisfied with something about the church, they often detach from the body. This is usually done in one of two ways. The first method is to vote with one’s feet. Voting with feet is an analogy that refers to casting a vote of dissatisfaction via physical absence. In other words, church members who are dissatisfied may found themselves visiting a different church the following Sunday.
PHYSICAL EXIT
The concept of “church shopper” is connected to the exit option. Church members who have problems with the church or its leadership often find themselves on a journey to find a new church. They often visit many churches, evaluating the pros and cons of each one.
FINANCIAL EXIT
The second way that dissatisfied church members exit is less visible. They vote with one’s wallet. When church members stop giving financially to the church, the leadership of the church usually takes notice. Some pastors choose not to have access to individual church giving records in order to prevent a show of favoritism, even at a subconscious level. Yet, a significant decrease in total giving may cause church leaders to stop and assess the situation.
VOICE
The exit option is not the only action taken by church members who have issues with the church. Hirschman also theorized that some dissatisfied members of an organization choose to vote with their voice. Instead of abandoning the church, frustrated church members identify ways to influence leaders and church members. By complaining, confronting, or via dialogue, church members who have problems with the church do not leave. They attempt to influence the resolution of these problems. Church members who vote with their voice can influence positive change… or can instigate a painful church split.
Pastors often debate among themselves which type of vote they would rather deal with…feet, wallet, or voice.
Someone who leaves the church physically is often a permanent loss to the fellowship. Often times, a church member leaves and the pastor does not have a clue to the source of their dissatisfaction until it is too late.
Someone who simply leaves the church economically (by ceasing to contribute financially) is a less drastic situation. If the decision to stop funding the church is not public, there is no shame connected with the “exit” and it can easily reverse.
Finally, a church member who votes with his/her voice can be a blessing or a curse. For example, pastors may value the candor of a church leader who cares enough about the organization to point out fixable flaws. Then again, there are sometimes men and women in churches who seem to want nothing but destruction. They may even have an agenda of seeing the pastor fired. Most pastors agree that it would be best if these men and women leave the church as soon as possible.
LOYALTY
The concept of loyalty is a very important factor when churches face “exit” and “voice” issues. Most pastors can tell you about people who join their church, only to move on to another church in less than a year. This is the quintessential “church shopper.” Without a sense of loyalty to the church, members may choose to exit rather than speak up and attempt to change things.
Loyalty to a church means that there might be a larger desire to address problems rather than to simply leave.
A lot of these issues are related to the availability of other options. For example, in my city, there are literally hundreds of churches within a 20-minute drive from my home. If I did not like one church, I can show up at another next Sunday. If someone lives in a community with only one church, then the limited options may make that person want to stay and try to settle problems (voice) rather than to exit. In an area that is saturated with a wide variety of churches, the “exit” option might be easier than the “voice” option.
Either way, if a person feels a connection to a church, usually via quality relationships with other members, then he/she is more likely to want to work through problems instead of moving on to another church (or to give up on church altogether).
CONCLUSION
Church leaders might want to make themselves familiar with the economic concepts of exit, voice, and loyalty as they seek to grow strong, healthy churches.
Hirschman, Albert O. Exit, voice, and loyalty: responses to decline in firms, organizations, and states. Cambridge, MA: Harvard Univ. Press, 2007.
About the Author
Stu Cocanougher
5 responses to “Economics and the Art of Church Shopping”
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Stu, I appreciate the way in which you broke down the exit into physical and financial exit. In my post, I only looked at the physical, but you are right in that people also make an exit with their finances. I remember one member in one of the churches I pastored decided he didn’t like the direction of the church and so he decided to give his offering to the Sunday School department–a relative of his just happened to be the director of the Sunday School program! Great analysis and application Stu!
Stu you address some valid connections within the church and Hirschman. While the church is not a business the church is made up of people. People tend to behave in a similar fashion in any times of challenge or conflict. I personally have witnessed some of the examples you provide of Exit, Voice and Loyalty.
Another thought is I do think that the unfortunate reality of living in a consumerism driven society is that churches are not exempt. There appears to be competitive pressure within church communities to retain their members and financial stability. People do use their exit and voice as a means to apply that pressure to their respective church organizations.
Nice application to the Hirschman!
“Vote with your dollars.”
I hadn’t thought of that, Stu, but you are right. We are actually ‘guilty’ of that. Not that we were trying to be obstructive, but just in our own consciences we couldn’t continue to give at the church where we were. When we realized that it wasn’t fair to the church, to say nothing of disobeying God by not giving, we did exit.
Economics doesn’t seem ‘spiritual’ but it really does matter.
First, I greatly appreciate the caveats you list before diving into Hirschman’s text and its relationship to the church. Yes, followers exited as Jesus taught radical concepts of discipleship (“take up your cross”). In learning the history of the congregation I’m now serving, I understand many people left as the church decided to change their model from seeker to missional, and from giving hand outs to being asset based.
Second, re: church shopping– you might be interested in this book by my former professor (Kenneson) and former pastor I worked with (Street): Selling out the Church: The Dangers of Church Marketing
Finally, I’m going to start watching your blog tags. This one was AWESOME!
You broke it down on the exits my brother.
As a member and participant in a Baptist church, some follow the guidelines and some don’t.
Thanks for your post.