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Uk donor commitment study august 2012

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  • 1. UK Donor Commitment Project August 2012
  • 2. This Project Has One Simple PremiseImpacting how the donor feels/thinks about your organization is THE key toretention. Start managing the business here How Non Profit Constituent Constituent Experiences Cause Cause Behavior Feels/ThinksDelivered By You (Giving/Doing) About You
  • 3. Extended Premise….Are Good Donors Created or Born?
  • 4. How Define “Good/Loyal” Donor Transactional Variables = Good/Loyal Donor “Born” Formula How do you manage this? These are both outcomes, there is no cause and effect.Experiences from/with organization = How Feel =Transaction = Loyal Donor Creation Formula These are not outcomes, they are means and you directly control experiences
  • 5. What You’ll Learn Today• We will show you the bottom line link between Commitment and income. – HINT: For every 1,000 donors you steward from Low to High Commitment, you can expect £83,000 more in income (over 3 years)• How to get into the “creation” biz and measure the strength of the constituent relationship – we call it Commitment - to your organization.• You will learn a new and better way to segment your file for maximum marketing efficiency and return using Commitment.• We will show you how to manage the relationship with the 7 experiences you should focus on tomorrow to improve Commitment to your organization.
  • 6. Methodology• National survey of 1200, recent, frequent UK cause donors• Nine UK organizations supplying house file names and associated transactional information• All work completed in first half of 2012
  • 7. Reason to believe: Expected impact on income if manage the business to increase Commitment 3 year giving£180 £162 average£160£140£120£100 £80 £60 £79 = £83,000 more for every 1,000 donors £40 £20 £0 Low Commitment High Commitment Source: National UK Study
  • 8. Reason to believe, Part II£290.00 Source: UK House File Study Participant£270.00 £257.17£250.00£230.00 £217.87£210.00£190.00£170.00 £164.32£150.00 Low High File Average Commitment Commitment 3 Year Cummulative Giving
  • 9. The Committed are best targets for multi-product upsell and cross-sell90.00%80.00%70.00%60.00%50.00%40.00% Low Commitment High Commitment30.00%20.00%10.00% 0.00% 1 2 3 4 5 Source: UK House File Study Participant Number of products
  • 10. Commitment is not only “a” framework it is THE bestHighest HIGH& lowest LOW Commitment Favorability Satisfaction Recommend/NPS High £162.07 £154.10 £154.62 £125.88 Low £79.22 £92.14 £97.93 £120.45 % increase 105% 67% 58% 5% Source: National UK Study Biggest % Increase
  • 11. What is All This Relationship & Commitment Stuff?
  • 12. Commitment Framework Personal Connection CommitmentConstituent Experiences to Behavior• Marketing/Brand Organization• Donor Service• Fundraising• Operations Functional Connection Donor Commitment Score (DCS) 1. I am a committed (org name) donor 2. I feel a sense of loyalty to (org name) 3. (org name) is my favorite charitable organization
  • 13. All these measures, all these scores, now what?
  • 14. Application of Model• Change Who – A Better Way to Segment – Enterprise wide – Strategic – Better ROI• Change the What – Differentiated levels of service – Differentiated marketing treatment and spend• Benchmark & KPI
  • 15. Enterprise Wide Segmentation Based On Relationship, Needs•Slice the world horizontally, not vertically.•Treat them differently. Past Financial Constituent Type Tenure/Time on File Performance High Commitment •Interest in Issues A &B •Prefers mail channel •Likes experiences A-F Potential for High Commitment •Interest in Issues A &C •Prefers email •Likes Experiences A, C and F Low Commitment
  • 16. The Problem with Organization Centric Segmentation Donor and Activist100 Special Donor 95 87 87 Monthly Donor 90 81 Regular Donor 85 77 80 Lapsed 75 68 Activist Only 70 65 55 60 55 50 Source: UK House File Study Participant
  • 17. UK UK Enterprise Wide National Org National Org % of File Avg DCS DCS Avg. Segmentation 11 High Commitment 33% 47% 99 94 Potentials 41% 10% 81 80 10 Vulnerables 19% 33% 64 72 Transactional 7% 10% 37 46 9 8 71 3 5 7 9 11 6 5 4Source: UK House File StudyParticipant 3 2 1
  • 18. The New Who - Applied•Reverse engineering – shift from CAUSE to PREDICTION.•Use transactional or other hand raiser data as proxies to FIND attitudinalsegments on customer file High Commitment/ Potential -1.61331 + (Contribution recency*.00177) + (Number of children in household*.48508) + (Membership length*-.00011) + (Number of active sponsors*-.39679) + (Age*.02530) + (Household income*.17480) + (Sum DF (fy09-fy12dec)*.00036) + (Gender*-.44085) + Low (Letter recency*.00031) + Commitment (Sum Contr (fy09-fy12dec)*-.00029)
  • 19. Changing the What – Experiences and Service Levels Simple Question: What, under organization’s control, might impact how the donor feels about us? •Marketing/Communications •Fundraising •Donor Service •Operations
  • 20. Master List of Experiences from National UK Study These would be very customized for a client specific study!
  • 21. How Experiences Group Together in Mind of the UK Donor COMMUNICATIONS ACKNOWLEDGEMENT RELIABLE EXPERIENCE FEELING INVOLVED MISSION EFFECTIVENESS BRAND TAXES ENGAGEMENT THE ASK
  • 22. Key Drivers of UK Commitment BRAND 41% FEELING INVOLVED 26% 16%ACKNOWLEDGEMENT 16% Behavior ENGAGEMENT 44%RELIABLE EXPERIENCE 34% COMMUNICATIONS 22%MISSION EFFECTIVENESS 22
  • 23. The Details Being a well respected charity BRAND Being clearly focused on their mission Providing you with a feeling that your involvement is appreciatedFEELING INVOLVED Providing you with a feeling of being part of an important cause Providing you with a feeling of accomplishment made possible by your support Publicly recognising my contribution Sending a personalised thank you for your supportACKNOWLEDGEMENT Timeliness of their thanking you for your support Thanking you for your support in a way that makes you feel good about donation How regularly they thank you for any on-going support Providing opportunities to get more involved (e.g. see the organisations work first hand, meet staff, volunteer time) ENGAGEMENT Providing opportunities to take action for the cause (e.g. sign petition, organise others, attend rally) Providing opportunities to make my views known (e.g. solicit your opinion on where they should focus their effort, easy to make suggestions)
  • 24. The Details Sending information that makes me glad I support it COMMUNICATIONS Sending information that shows who is being helped Keeping me informed about how organisation is getting results Sending information that reflects my specific interestsRELIABLE EXPERIENCE Knowing what to expect when I interact with the organisation MISSION Knowledge of issues they are focused onEFFECTIVENESS Using donations ethically Effectively trying to achieve their mission TAXES Explaining the tax benefits of your donation The frequency of requests for donations THE ASK Asking you for appropriate donation amounts
  • 25. ProspectBenchmarking
  • 26. House File Benchmarking Overall Donor High % Difference in Giving for Commitment Score Commitment % of File that is High High vs. Low (DCS) DCS Commitment CommitmentRSPCA 88 88 43% 57%TearFund 82 97 37% 149%ActionAid 81 99 33% 41%WaterAid 79 95 32% 34%AICR 76 97 27% 9%RSPB 76 95 32% 13%Barnardos 71 94 29% 34%Univ Bristol 63 86 24% 138%Guidepost 44 75 17% 443%house fileaverage 73 92 30% 102%
  • 27. Thank You for Your Interest and Time Today•We will send an email to all webinar registrants with a link to thepresentation and a recorded version of the webinar.•For questions or comments or to learn about a customCommitment study for your organization, contact us here:Kevin Schulmankschulman@thedonorvoice.com(202) 246-9649Or visit us online, www.thedonorvoice.comOr on Twitter, @DonorVoice

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