Donor Retention Education with Wayne Robbins - Bloomerang
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Donor Retention Education with Wayne Robbins - Bloomerang

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    Donor Retention Education with Wayne Robbins - Bloomerang Donor Retention Education with Wayne Robbins - Bloomerang Presentation Transcript

    • Donor Retention Current Rates are Plummeting! What Every Fundraiser Can Do to Reverse the Trend! Presenter: Wayne Robbins
    • Retention » “Active donor commitment is the enduring passion for your nonprofit. Inspiring donors is key for loyalty.” - 101 Fundraising @bloomerangtech | 2
    • Agenda » 1. WHY? The Case for building/improving Donor Retention 2. Addressing the Attrition Problem (Building Donor Loyalty) 3. HOW? – Retention Drivers 4. Conclusion: Donor Engagement! @bloomerangtech | 3
    • Do you know your Retention %? » What does a 10% increase in donor retention rates mean in terms of LIFETIME dollars raised? • 50% • 100% • 150-200% @bloomerangtech | 4
    • Is Retention important for NPO’s? » Improving donor retention rates by 10% can improve LIFETIME dollars raised by? • 150-200%! (Do we have your attention yet?) @bloomerangtech | 5
    • This scares most NPO Board Members » Donor Attrition Over Five Years # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10 Let’s dig even deeper into “actual” NPO data . . . @bloomerangtech | 6
    • Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare The 2012 Fundraising Effectiveness Survey Report is based on 3,184 responses for 2010-2011, from nonprofit organizations in the United States. The 2010-2011 responses reflected a total amount raised of $2,049,794,709. @bloomerangtech | 7
    • 2012 Fundraising Effectiveness Survey Report “FEP” Participating Donor Software Firms: • • • • • • • • • • • Donor2/Campus Management Corporation PhilanthrAppeal (FundTrack Software) DonorPerfect Fundraising Software The Raiser’s Edge ® (Blackbaud) eTapestry ROI Solutions GiftWorks (Mission Research) Sage Software MatchMaker FundRaising Software Telosa Software (Exceed!) Metafile @bloomerangtech | 8
    • 2011 FEP Data on Donor Retention Rate » Donor Retention Rate was 41% Donor Attrition was 59%! @bloomerangtech | 9
    • Yes, Your Eyes Read Correctly » Nearly SIX out of every TEN Donors from the previous year did NOT donate at all the next year! @bloomerangtech | 10
    • 2012 Fundraising Effectiveness Survey Report “FEP” Participating Donor Software Firms: • • • • • • • • • • • Donor2/Campus Management Corporation PhilanthrAppeal (FundTrack Software) DonorPerfect Fundraising Software The Raiser’s Edge ® (Blackbaud) eTapestry ROI Solutions GiftWorks (Mission Research) Sage Software MatchMaker FundRaising Software Telosa Software (Exceed!) Metafile (Not a SINGLE firm above has taken any steps to address the continually increasing problem of FALLING Donor Retention!) @bloomerangtech | 11
    • This is truly what is happening with existing donors! Donor Attrition Over Five Years # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10 @bloomerangtech | 12
    • Addressing the Attrition Problem! Donor Loyalty Problem? @bloomerangtech | 13
    • Building Donor Loyalty! 1. Listen to your donors -Find out what will compel them to further help you achieve your mission. Ask for their advice, and put it to practice. 2. Share your good news -Communication is key to building any relationship, and nonprofit relationships are no different. Think about newsletters, e-mails and face-to-face visits to keep the flow of information open. @bloomerangtech | 14
    • Building Donor Loyalty! 3. Measure your success -“In general, donors like to receive regular, measurable and concrete feedback about how their money makes a difference,” says Ursula Pfahl. -By sharing the impact in real measures, you solidify the good work you are doing. 4. Survey your donors -When Courtney Polster, fund development manager at Agrace HospiceCare, started surveying her donors, she discovered that a high percentage were utilizing plannedgiving vehicles to support a charity — but she was surprised to see how few said hers was their charity of choice for this option. This revelation led to further research. “Quality initiatives like these are helping build a stewardship and recognition program as well as a planned-giving program," Polster says. "It has been most beneficial!” @bloomerangtech | 15
    • Building Donor Loyalty! 5. Leverage donor loyalty -Use your board members to make calls and write thank-you notes. The power of appreciation from a strong board member can go a long way in building loyalty. 6. Involve donors in the cause -By regularly inviting donors to come and see their donations in action, Keith Greer, fundraising and membership coordinator at Popejoy Hall, has changed the way donors view his organization and increased retention rates by 14 percent and the average donation size by $500! @bloomerangtech | 16
    • Building Donor Loyalty! 7. Get social -Create connections in the social networks where your donors spend their time. Connecting socially is very powerful. 8. Customize your approach -“Bottom line: Loyalty comes when we show folks we know them. This means we have to really listen to them. There's no cookie-cutter approach, as donor preferences vary. We have to be sensitive to our donors’ particular styles, then give them what they want,” says marketing and fundraising consultant Claire Axelrad. @bloomerangtech | 17
    • Building Donor Loyalty! 9. Recognize repeat donors -“Whether your organization is new or has been around for years, you can recognize continuous yearly donors in your annual report. Give recognition to donors who have supported you (at a set level) for three years, five years, 10 years — break it down however it works for you — but with recognition, if they have to drop a nonprofit one year, hopefully it won't be yours!” says CFRE Debbie Joyner. 10. Say thank you -“One easy element is thanking donors for every gift either with a phone call or personalized email. When dealing with loyal donors, I am always sure to mention how long they have been giving and let them know how much their continued support is appreciated. Most donors haven't thought about how long they have been giving, and I think these small gestures have deepened donor relations with a pretty small investment of my time and our long-distance bill,” says Daniel Blakemore, assistant director for individual giving at International House, New York. @bloomerangtech | 18
    • CUE THE EXPERT: Dr. Adrian Sargeant Bloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline. Professor of Nonprofit Marketing and Fundraising at Bristol Business School (U.K) and an Adjunct Professor of Fundraising at the Australian Centre for Philanthropy and Nonprofit Studies. Top 10 Most Influential People in Fundraising @bloomerangtech | 19
    • Defining Lifetime Value » “The total net contribution that a customer/donor generates during his/her lifetime in your database” @bloomerangtech | 20
    • Lifetime Value, or “LTV » LTV = Ci Where c = net contribution from each year’s fundraising activity i = expected duration of each relationship in years @bloomerangtech | 21
    • Key Decisions in Building Donor Loyalty • • • Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates @bloomerangtech | 22
    • Current Retention Rate! @bloomerangtech | 23
    • Key Decisions in Building Donor Loyalty • • • • Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time @bloomerangtech | 24
    • Value Segments » $1000 + Value $500 - $1000 $100 - $500 $25 - $100 $25 and under annually @bloomerangtech | 25
    • Key Decisions in Building Donor Loyalty • • • • • Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time Using Retention/Reactivation Practices @bloomerangtech | 26
    • @bloomerangtech | 27
    • Key Decisions in Building Donor Loyalty • • • • • • Costs vs. Donation Revenues Average Lifetime (1-25 Years) Your Retention Rates Best Use of Staff Time Using Retention/Reactivation Practices Finding a Database that Helps rather than Hinders Loyalty! @bloomerangtech | 28
    • Why Do Customers Leave? (can this apply to donors . . .) • • • • • Death 1% Relocation 3% Won by Competitor 5% Bad Complaint Handling 14% Lack of Interest from Us 77% @bloomerangtech | 29
    • Key Reasons For Donors Leaving (in order of relevance) • • • • • • No longer able to afford support (smallest %) No memory of ever supporting! Organization asked for inappropriate sums Feeling that other causes are more deserving Does not feel organization needs my support Organization’s communications were inappropriate • Not reminded to give again • Organization did not inform how monies were used • Did not feel connected! @bloomerangtech | 30
    • @bloomerangtech | 31
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … From Marketo and The Agitator @bloomerangtech | 32
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 1. Less Time – According to a 3M Corporation study, we process visual information 60,000 times faster than text. In an age when grabbing someone’s attention in an instant is critical, visuals work. @bloomerangtech | 33
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 2. Less Complicated – Complex material can often be presented more simply through visuals. A common example is the “quick setup guide” your digital camera came with. Use the same concept for anything from a benefits map to a complex manufacturing process. @bloomerangtech | 34
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 3. More Emotional – Although novels can be gut-wrenching to read, marketers don’t have that kind of time to elicit such an emotional response. Visual content can do it in an instant, and connect it with the company’s brand. @bloomerangtech | 35
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 4. More Shared – On Facebook, photos are shared more than status updates or links, and videos are shared more than photos. @bloomerangtech | 36
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 5. More Channels – Not only is visual content shared more often, but there are quite a few channels to leverage that support only visual content, such as Pinterest, Flickr, YouTube and Vimeo. @bloomerangtech | 37
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 6. More Memorable – Studies have shown that, especially over the long-term, we remember images better than words; and unlike text, the effect is magnified with each viewing. @bloomerangtech | 38
    • Retention Drivers • Drip feed mission performance data SEVEN reasons why visual content is more compelling than text … 7. More SEO Juice – When top rankings for competitive keywords are elusive, having relevant visual content provides an opportunity for high rankings in the image and video search results. @bloomerangtech | 39
    • Retention Drivers • Drip feed mission performance data • Build a relationship (especially upper levels) – Connect often – Be personal (SEGMENT) – Think of how a good friendship develops @bloomerangtech | 40
    • @bloomerangtech | 41
    • A Donor ‘Timeline’ of Relationship Building! What is the donor’s engagement over time! History of every event w/ the person Highlight important “retention” information ---When upgrades/downgrades occurred ---Communication highlights
    • Retention Drivers • Drip feed mission performance data • Build a relationship (especially upper levels) – Connect often – Be personal (SEGMENT) – Think of how a good friendship develops • Develop a good complaint handling process • Provide numerous touch points @bloomerangtech | 43
    • Retention Drivers @bloomerangtech | 44
    • Retention Drivers @bloomerangtech | 45
    • Retention Drivers • Drip feed mission performance data • Build a relationship (especially upper levels) – Connect often – Be personal (SEGMENT) – Think of how a good friendship develops • Develop a good complaint handling process • Provide numerous touch points • Be honest when things go wrong @bloomerangtech | 46
    • Retention Drivers @bloomerangtech | 47
    • Retention Drivers • Drip feed mission performance data • Build a relationship (especially upper levels) – Connect often – Be personal (SEGMENT) – Think of how a good friendship develops • • • • Develop a good complaint handling process Provide numerous touch points Be honest when things go wrong Always communicate what monies are doing! @bloomerangtech | 48
    • Conclusion: So Strive For: • Donor Satisfaction • Donor Commitment/Engagement @bloomerangtech | 49
    • Retention Drivers @bloomerangtech | 50
    • Retention Drivers @bloomerangtech | 51
    • Conclusion: Strive For: • • • • Donor Satisfaction Donor Commitment/Engagement Donor Trust Donor Loyalty Doubling your lifetime value = ? @bloomerangtech | 52
    • Questions? Retention Based Fundraising Presenter: Wayne Robbins wayne.robbins@bloomerang.co