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Building Donor Loyalty
Adrian Sargeant
Director – Centre for Sustainable Philanthropy
Plymouth University
Is Retention An Issue?
Improving attrition rates by 10% can
improve revenue generated by?
• 50%
• 100%
• 150-200%
12-Jan-15
Defection Curve
Year
5.004.003.002.001.00.00
Value%ofdonorbaseremaining
120
100
80
60
40
20
0
So……...
What Drives Donor Value….???
Reasons For Quitting
• No longer able to afford support
• No memory of ever supporting!!
• Still supporting by other means
• Feeling that other causes are more (or equally)
deserving
• X no longer needs my support
• Death/Relocation
• Not reminded to give again
• X did not inform me how my monies were used
• Xs communications were inappropriate
• X asked for inappropriate sums
Excellent fundraising for a better world
Measure on a 5 Point Scale
1 = Very Dissatisfied
2 = Dissatisfied
3 = No Opinion
4 = Satisfied
5 = Very Satisfied
Excellent fundraising for a better world
Customer Satisfaction
Rating
Donor Satisfaction
%
But what about commitment?
12-Jan-15
Payment Method
Personal Link
Organisation’s Performance
Risk
Tangible Link To Beneficiaries
Multiple Engagements
Choice in Communications
Communication Quality
Trust in Organization
Message Media
Active
Commitment
Passive
Commitment
Knowledge/
Learning
Behaviour
Availability of
alternatives
Shared
Beliefs
Quantitative Phase
Risk
Trust
Personal
Link
Passive
Commitment
Active
Commitment
Loyalty
+
Service
Quality
Shared
Beliefs
Learning
Multiple
Engagements
.58
.54
.27
.41
.18
.20
.27
.11.22
.14
.21
.13
.11
.23
.10
.37
Structural Equation Model
And Trust
Drivers
• Drip feed performance data
• Demonstrate role competence
• Demonstrate good judgement
• Be honest when things go wrong
• Develop and promote complaints procedure
So
• Satisfaction
• Commitment
• Trust
And understand where attrition is occurring and
engineer communications accordingly…
Welcome cycles …

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