Back to Basics: 3 Principles to Acquire,
Retain, and Upgrade Your Donors
Host: Blackbaud
Presenter: Jeffrey Haguewood, Co-...
Meet the Presenter

“Real-Life” Jeff

“Sidekick” Jeff

Jeffrey Haguewood
Co-Founder & Sidekick
Sidekick Solutions
@jeffhag...
Back to Basics
=
Focus on Core Principles
Back to Basics
Core Principles

Sustainable
Performance

Substantial
Growth
Donors are Customers
Donors are Customers
Exchange of value for value

Acquisition

Retention

Upgrades
Donors are Customers
Ø  Show donors the value of your mission

through the impact of your programs.
Ø  Build relationshi...
Donors are Customers (Simplified)
1.  Offer a valuable

product
2.  Provide great

service
3.  Build a donor-

focused app...
Webinar Format
What?
Why?
How?
Offer a valuable product
Offer a valuable product – What?

“Product”

Impact of
Mission
Offer a valuable product – Why?
71% of donors who regularly or

sometimes give to new causes or
nonprofits are actively se...
Offer a valuable product – Why?
More than 60% of respondents liked
it most when nonprofits shared
stories about successful...
Offer a valuable product – Why?

46% percent of donors stop giving
to a charity for reasons related to
lack of meaningful ...
Offer a valuable product – Why?
36.2% of donors cited “I feel that
other causes are more deserving” as
the reason for not ...
Offer a valuable product – Why?
Would you rather give to an organization
that is effective at achieving their mission
or a...
Offer a valuable product – How?
What is our product?

Are we making an impact?
Offer a valuable product – How?
It’s no longer good enough
to make the case we’re
addressing real needs. We
need to prove ...
Offer a valuable product – How?
Are we making an impact?
1.  How do we define our impact?
2.  How do we know if we are mak...
Offer a valuable product – How?

Productize Your Fundraising
Offer a valuable product – How?
Example #1: Generic Giving Levels

How much would you like to donate?

$5

$10

Other

$50...
Offer a valuable product – How?
Example #2: Productized Giving

How would you like to make an impact?
$5

$1,000
Plant a t...
Offer a valuable product – How?
Productize Your Fundraising
Tangible
Comparable
Specific
Quantifiable
Generic or General
Offer a valuable product – How?
Productize Your Fundraising
Step 1: Define your results
Step 2: Attach a value to your res...
Questions?
Provide great service
Provide great service – What?

“Service”

Build
Loyalty
Provide great service – Why?

53% of donors leave due to a
charity’s lack of communication.

Source: Bloomerang “Nonprofit...
Provide great service – Why?
Only 10% of donors were very
satisfied with the service quality of the
organizations they sup...
Provide great service – Why?
Donors staying with the organization
for longer periods (more than one
gift) cite issues of s...
Provide great service – Why?

70% of donors would increase their
philanthropy if they received what
they needed from chari...
Provide great service – Why?
Almost one in three donors
said they are less likely to give
again to organizations that are
...
Provide great service – Why?
Total nonprofit donor retention is
39%, new donor retention is
22.9%, and repeat donor retent...
Offer a valuable product – Why?
Would you rather have a relationship with an
organization that is responsive, attentive, a...
Provide great service – How?
Be Responsive
Be Attentive
Be Positive
Provide great service – How?
The Golden Rule

“Treat donors the way you would
like to be treated!”
Questions?
Build a donor-focused
approach
Build a donor-focused approach – What?

“DonorFocused”

About the
Donor
Build a donor-focused approach – Why?
Nearly 60% of Generation Y, 50%
of Generation X, 37% of Boomers,
and 33% of Matures ...
Build a donor-focused approach – Why?
75% of donors list “information
on results achieved with their
gifts” as their top r...
Build a donor-focused approach – Why?
Response and click-through rates
in email campaigns declined by
16% and 18.7% respec...
Build a donor-focused approach – Why?
93% of donors would give a
second gift to the same
organization if its fundraising
w...
Build a donor-focused approach – Why?
69% of individual donors say none of
the nonprofits they support call them
without a...
Build a donor-focused approach – Why?
Would you rather be the focus of the
giving process or be a secondary
component to t...
Build a donor-focused approach – How?

Create a value statement
for donors
“You” Statements
Build a donor-focused approach – How?

Donors are people not
transactions
Build a donor-focused approach – How?

Provide a personalized,
customized, and
individualized
experience
Build a donor-focused approach – How?
10 Ways to Segment Donors
1. 
2. 
3. 
4. 
5. 

Communication
frequency
Communication...
Questions?
What’s Next?
Manage performance to
desired outcomes
Performance Management Process
Set Goals
&
Define
Strategies

Improve

Measure
&
Analyze
Set Goals and Define Strategies
Set Goals
&
Define
Strategies

Improve

Measure
&
Analyze

Set Goals

Benchmark
Define Str...
Measure and Analyze Data
Measure
Improve

Set Goals
&
Define
Strategies

Select Metrics
“Show” w/Evidence
Analyze

Measure...
Continuously Improve Performance
Improve
Set Goals
&
Define
Strategies

Improve

What did we learn?
Should we change?

Mea...
Back to Basics Blueprint
Step 1: Apply Three Principles
1.  Offer a valuable product
2.  Provide great service
3.  Build a...
Back to Basics Blueprint
Step 1: Apply Three Principles
Step 2: Manage Fundraising Performance

Acquisition

Retention

Up...
Questions?
Contact the Presenter

“Real-Life” Jeff

“Sidekick” Jeff

Jeffrey Haguewood
Co-Founder & Sidekick
Sidekick Solutions
@jeff...
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Back to Basics: 3 Principles to Acquire, Retain, and Upgrade Your Donors

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Donor acquisition, retention, and upgrades are key drivers of a successful fundraising program. Improving these positively impacts your organization’s overall fundraising performance. In this presentation, Jeffrey Haguewood, Co-Founder of Sidekick Solutions, shares his back-to-basics approach to acquiring, retaining, and upgrading donors and how you can implement 3 simple principles to help your organization raise more funds for its cause.

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Back to Basics: 3 Principles to Acquire, Retain, and Upgrade Your Donors

  1. 1. Back to Basics: 3 Principles to Acquire, Retain, and Upgrade Your Donors Host: Blackbaud Presenter: Jeffrey Haguewood, Co-Founder Sidekick Solutions
  2. 2. Meet the Presenter “Real-Life” Jeff “Sidekick” Jeff Jeffrey Haguewood Co-Founder & Sidekick Sidekick Solutions @jeffhaguewood jeff@sidekicksolutionsllc.com www.sidekicksolutionsllc.com
  3. 3. Back to Basics = Focus on Core Principles
  4. 4. Back to Basics Core Principles Sustainable Performance Substantial Growth
  5. 5. Donors are Customers
  6. 6. Donors are Customers Exchange of value for value Acquisition Retention Upgrades
  7. 7. Donors are Customers Ø  Show donors the value of your mission through the impact of your programs. Ø  Build relationships with donors and provide an exceptional donor experience. Ø  Focus your message and your relationship on the donor.
  8. 8. Donors are Customers (Simplified) 1.  Offer a valuable product 2.  Provide great service 3.  Build a donor- focused approach 3 Core Principles
  9. 9. Webinar Format What? Why? How?
  10. 10. Offer a valuable product
  11. 11. Offer a valuable product – What? “Product” Impact of Mission
  12. 12. Offer a valuable product – Why? 71% of donors who regularly or sometimes give to new causes or nonprofits are actively seeking information about that cause or nonprofit. As many as 75% of donors use information about a nonprofit’s impact in their giving decisions. Source: Informed Giving: Information Donors Want and How Nonprofit Can Provide It. Root Cause. 2013.
  13. 13. Offer a valuable product – Why? More than 60% of respondents liked it most when nonprofits shared stories about successful projects or people they help. Source: The 2013 Millennial Impact Report. Achieve. The Case Foundation. 2013.
  14. 14. Offer a valuable product – Why? 46% percent of donors stop giving to a charity for reasons related to lack of meaningful information. Source: Burk, Penelope. Donor-Centered Fundraising. 2003.
  15. 15. Offer a valuable product – Why? 36.2% of donors cited “I feel that other causes are more deserving” as the reason for not continuing their support. Source: Sargent, Adrian. Managing Donor Defection. 2001.
  16. 16. Offer a valuable product – Why? Would you rather give to an organization that is effective at achieving their mission or an organization that is ineffective? Show donors you are effective in your mission!
  17. 17. Offer a valuable product – How? What is our product? Are we making an impact?
  18. 18. Offer a valuable product – How? It’s no longer good enough to make the case we’re addressing real needs. We need to prove that we’re making a real difference. - Mario Morino Source: Mario Morino. Leap of Reason. A Venture Philanthropy Partners Publication. 2011
  19. 19. Offer a valuable product – How? Are we making an impact? 1.  How do we define our impact? 2.  How do we know if we are making an impact? 3.  How do we communicate our impact to others? 4.  How do we evaluate our impact? 5.  How can we increase our impact?
  20. 20. Offer a valuable product – How? Productize Your Fundraising
  21. 21. Offer a valuable product – How? Example #1: Generic Giving Levels How much would you like to donate? $5 $10 Other $50 $100 $250
  22. 22. Offer a valuable product – How? Example #2: Productized Giving How would you like to make an impact? $5 $1,000 Plant a tree Keep a youth off the street $10 One meal for a Senior $350 One day of camp for cancer patient
  23. 23. Offer a valuable product – How? Productize Your Fundraising Tangible Comparable Specific Quantifiable Generic or General
  24. 24. Offer a valuable product – How? Productize Your Fundraising Step 1: Define your results Step 2: Attach a value to your results Step 3: Position your “mission products”
  25. 25. Questions?
  26. 26. Provide great service
  27. 27. Provide great service – What? “Service” Build Loyalty
  28. 28. Provide great service – Why? 53% of donors leave due to a charity’s lack of communication. Source: Bloomerang “Nonprofit Donor Loyalty Primer” Infographic via Sargent, Adrian. Managing Donor Defection. 2001.
  29. 29. Provide great service – Why? Only 10% of donors were very satisfied with the service quality of the organizations they supported, but donors who were very satisfied with service quality were 2x more likely to make a further donation than those who were merely satisfied. Source: Sargent, Adrian. Managing Donor Defection. 2001.
  30. 30. Provide great service – Why? Donors staying with the organization for longer periods (more than one gift) cite issues of service quality, particularly communication, as their primary reason for lapse. Source: Sargent, Adrian. Managing Donor Defection. 2001.
  31. 31. Provide great service – Why? 70% of donors would increase their philanthropy if they received what they needed from charities. Source: Burk, Penelope. Donor-Centered Fundraising. 2003.
  32. 32. Provide great service – Why? Almost one in three donors said they are less likely to give again to organizations that are late in acknowledging gifts. Source: The Burk Donor Survey. Cygnus Applied Research, Inc. 2013.
  33. 33. Provide great service – Why? Total nonprofit donor retention is 39%, new donor retention is 22.9%, and repeat donor retention is 60.8%. It is more costly to acquire new donors than to retain existing donors, yet attrition is substantially high. Source: 2013 Fundraising Effectiveness Survey Report. Association of Fundraising Professionals. The Urban Institute. 2013.
  34. 34. Offer a valuable product – Why? Would you rather have a relationship with an organization that is responsive, attentive, and courteous or a relationship that is unresponsive, inattentive, and ungrateful? Serve donors as customers of your mission!
  35. 35. Provide great service – How? Be Responsive Be Attentive Be Positive
  36. 36. Provide great service – How? The Golden Rule “Treat donors the way you would like to be treated!”
  37. 37. Questions?
  38. 38. Build a donor-focused approach
  39. 39. Build a donor-focused approach – What? “DonorFocused” About the Donor
  40. 40. Build a donor-focused approach – Why? Nearly 60% of Generation Y, 50% of Generation X, 37% of Boomers, and 33% of Matures agree that the ability to directly see the impact of their donation would have a significant bearing on their decision to give. Source: The Next Generation of American Giving. Blackbaud. 2013.
  41. 41. Build a donor-focused approach – Why? 75% of donors list “information on results achieved with their gifts” as their top requirement to motivation for future giving. Source: The Burk Donor Survey. Cygnus Applied Research, Inc. 2013.
  42. 42. Build a donor-focused approach – Why? Response and click-through rates in email campaigns declined by 16% and 18.7% respectively from 2012 to 2013. Declining response rates illustrate a saturated channel with non-differentiated messaging and campaigns. Source: Online Marketing Benchmark Study for Nonprofits. Blackbaud. 2013.
  43. 43. Build a donor-focused approach – Why? 93% of donors would give a second gift to the same organization if its fundraising were donor-centered. Source: Burk, Penelope. Donor-Centered Fundraising. 2003.
  44. 44. Build a donor-focused approach – Why? 69% of individual donors say none of the nonprofits they support call them without asking for another gift. 61% of donors say they’ve received a request for a second gift with their thank you and this has offended 81% of those donors. Source: [2011 FEP Donor Retention Supplement. Association of Fundraising Professionals. The Urban Institute. 2011. “Quotes from Penelope Burk in “Donor-Centered Fundraising” in Ken Burnett’s book “Relationship Fundraising.”]
  45. 45. Build a donor-focused approach – Why? Would you rather be the focus of the giving process or be a secondary component to the giving process? Focus on donors’ needs, not your own!
  46. 46. Build a donor-focused approach – How? Create a value statement for donors “You” Statements
  47. 47. Build a donor-focused approach – How? Donors are people not transactions
  48. 48. Build a donor-focused approach – How? Provide a personalized, customized, and individualized experience
  49. 49. Build a donor-focused approach – How? 10 Ways to Segment Donors 1.  2.  3.  4.  5.  Communication frequency Communication method Types of communication Program interests Generation demographic Affiliation 7.  Entity type 8.  Annual giving level 9.  Year-over-year giving status 10.  Preferred giving channel 6. 
  50. 50. Questions?
  51. 51. What’s Next? Manage performance to desired outcomes
  52. 52. Performance Management Process Set Goals & Define Strategies Improve Measure & Analyze
  53. 53. Set Goals and Define Strategies Set Goals & Define Strategies Improve Measure & Analyze Set Goals Benchmark Define Strategies How-to achieve goal?
  54. 54. Measure and Analyze Data Measure Improve Set Goals & Define Strategies Select Metrics “Show” w/Evidence Analyze Measure & Analyze Evaluate & Review Requires Discipline
  55. 55. Continuously Improve Performance Improve Set Goals & Define Strategies Improve What did we learn? Should we change? Measure & Analyze What works & what doesn’t work?
  56. 56. Back to Basics Blueprint Step 1: Apply Three Principles 1.  Offer a valuable product 2.  Provide great service 3.  Build a donor-focused approach Step 2: Manage Fundraising Performance 1.  Set Goals and Define Strategies 2.  Measure and Analyze Data 3.  Continuously Improve Performance
  57. 57. Back to Basics Blueprint Step 1: Apply Three Principles Step 2: Manage Fundraising Performance Acquisition Retention Upgrades
  58. 58. Questions?
  59. 59. Contact the Presenter “Real-Life” Jeff “Sidekick” Jeff Jeffrey Haguewood Co-Founder & Sidekick Sidekick Solutions @jeffhaguewood jeff@sidekicksolutionsllc.com www.sidekicksolutionsllc.com
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