Understanding your donors to keep them for life

Understanding your donors to keep them for life Presented by Ashok Mahapatra Fundraising Analyst UNICEF India Country Office SAFRG, Fundraising Master Class October 30, 2010

agenda
Fundraising steps and channels
Behind a successful campaign?
What is important for a campaign?
Key things to remember before selecting data
Acquisition campaign analysis
What to do with acquired donors
Right approach: segmentation
House campaign analysis
LTV analysis
Pledge?
The ‘pledge giving’ framework
Why pledge (pledge vs One-off)
Things to know about a pledge programme

Simple fundraising Steps

Fundraising CHANNELS
Direct Mail
Telemarketing
Face to face
Telefacing
Digital
Other

Direct Mail

Telemarketing

Face to face

Telefacing +

Digital

Behind a successful campaign?

Some quality work behind getting “quality lists”
Target Audience (who to ask?)
Budget (How much can you spend?)
Goal (better 1 st year RoI or long term RoI)
From where can I get the list?
Roll out vs test
Size of the list

Target Audience who to ask?

(How much can you spend?) Budget

Goal Short term vs Long term (better 1 st year RoI or long term RoI)

From where can I get the list? List Owners List vendors List brokers

Type of List Compiled Lists Proprietary Lists

test vs roll out

Size of the list

Analyzing acquisition campaign

Cost per Unit
Total Cost
Cost per unit =
Quantity Mailed

Response Rate (RR%) Total Response Response Rate % = X 100 Quantity Mailed

Average Donation Size (ADS) Total Donation Amount ADS = No of Responses

Cost per Donor Total cost Cost per Donor = No of response

Return on Investment Total Income ROI = Total Cost

What to do with acquired donors?
Should we ask them to give MORE?
How much to ask?
Should we send the same ask to all donors?

Should we ask them to give MORE?

How much to ask?

Should we send the same ask to all donors?

Right approach
Segmentation
of donor database

Donor Life Stages Prospects Deeply lapsed Lapsed 1. New 2. Transition 3. Core

Definitions:

Segment your donors

Analyzing house campaign

LTV analysis

What is Lifetime Value?
LTV is a measure of the long term benefit of a recruited donor
“ The Net Present Value of the income gained from an average new recruit during a given number of years ”
The Lifetime value (LTV) of a donor is defined as:

To convince your board member for investing in fundraising Why LTV?

One-off or Pledge? Why LTV?
Evaluate and guide our recruitment programme

Which Channel? Why LTV?
Understand which media give the most profitable donors over the long term

Income for coming years Why LTV?
Understand the long term value of our retention programme

Lifetime Value LIFETIME VALUE COST TO ACQUIRE HOW MANY YEARS THEY ARE RETAINED COST TO RETAIN EACH YEAR HOW MUCH THEY GIVE EACH YEAR

Example LTV Calculation

Pledge

The ‘pledge giving’ framework

Pledge vs One-off

Things to know about a pledge programme
Gross Income
ROI (gross income divided by direct “non-overhead” costs
Total Number of Active Pledge Donors
Average Pledge Value
Pledge Retention Rate (% of pledge donors as of 12 months previously who are still active)
Pledge Fulfillment Rate (average number of months income received)

Ashok [email_address]

http://www.fundraisingindia.org	147
http://www.fundraisingasia.org	27

Understanding your donors to keep them for life

by Ashok Mahapatra on Nov 02, 2010

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Understanding your donors to keep them for life — Presentation Transcript