Pareto Fundraising Getting The Most By Getting It Monthly 2010 Jg

1,011 views

Published on

Pareto Fundraising Masterclass presentation

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,011
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
61
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Pareto Fundraising Getting The Most By Getting It Monthly 2010 Jg

  1. 1. Getting the most by getting it monthly: how ongoing, regular support has transformed the fundraising landscape
  2. 2. Who we work with
  3. 3. Who we work with
  4. 4. What we’ll cover today 1. The power of monthly giving 2. Recruitment: how to get them 3. Engagement: how to inspire them 4. Retention: how to keep them 5. Growth: how to leverage more value 6. Bringing it all together
  5. 5. One: the power of monthly giving Changing the fundraising landscape
  6. 6. Growth in Canada $40,000,000 $25 $35,000,000 $20 $30,000,000 $25,000,000 $15 $20,000,000 $10 $15,000,000 $10,000,000 $5 $5,000,000 $0 $0 2002 2003 2004 2005 2006 2007 2008 2009 Total Income Avg Gift
  7. 7. From different sources $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Direct Mail TV Unknown Phone Face to Face Door to Door Online Unsolicited Press Inserts Email Radio Press Adverts Unaddressed
  8. 8. Monthly vs. cash
  9. 9. Monthly vs. cash $550 net (after 3 years)
  10. 10. Monthly vs. cash $550 net $270 net (after 3 years) (after 3 years)
  11. 11. Our research shows we’ve got some work to do
  12. 12. Our research shows we’ve got some work to do
  13. 13. Two: recruitment How to get them
  14. 14. How to get monthly givers • Acquisition • Conversion • Reactivation
  15. 15. How to get monthly givers • Acquisition • Conversion • Reactivation
  16. 16. Key ingredients for acquisition • Investment and Risk • Understanding the channels • Getting the proposition right • Singular focus • Benefits v features • Testing • Benchmarking
  17. 17. Key ingredients for acquisition • Investment and Risk • Understanding the channels • Getting the proposition right • Singular focus • Benefits v features • Testing • Benchmarking
  18. 18. Where do they come from?
  19. 19. Direct mail • Net value after 3 years between $500 - $600 • Cost to acquire around $150 - $200 • Year 1 attrition around 10%
  20. 20. Direct Response TV • Net value after 3 years between $250 - $300 • Cost to acquire around $300 • Year 1 attrition around 30%
  21. 21. Face to Face (street) • Net value after 3 years between $100 - $200 • Cost to acquire around $200 • Year 1 attrition around 25%
  22. 22. Digital • Net value after 3 years between $600 - $800 • Cost to acquire between $0* - $300 • Year 1 attrition around 10%
  23. 23. Proposition: the single most important thing
  24. 24. Proposition: the single most important thing
  25. 25. Benefits v Features
  26. 26. Singular focus
  27. 27. What should we test?
  28. 28. What should we test? • Singular focus v multiple options • Ask prompts • One stage v two stage recruitment • Hand raising • Creative approaches/messaging • Multi channel approaches
  29. 29. 2nd Gift Strategy – Cash to monthly
  30. 30. Multi channel approach
  31. 31. Stage 1: Prospecting
  32. 32. Stage 1: Prospecting
  33. 33. Stage 1: Prospecting
  34. 34. Stage 2: solicitation
  35. 35. Stage 2: solicitation
  36. 36. Stage 2: solicitation
  37. 37. Multi channel approach
  38. 38. Multi channel approach
  39. 39. How do you stack up?
  40. 40. How to get monthly givers • Acquisition • Conversion • Reactivation
  41. 41. Key ingredients for conversion • Integrated - mail and phone • Mail used to mop up phone campaign
  42. 42. Key ingredients for conversion • Integrated - mail and phone • Mail used to mop up phone campaign • Should aim for 10% of cash file to become monthly donors
  43. 43. Key ingredients for conversion • Integrated - mail and phone • Mail used to mop up phone campaign • Should aim for 10% of cash file to become monthly donors • Consider different sources • Onetime cash • Lottery • Purchasers/catalogue buyers
  44. 44. Key ingredients for conversion • Integrated - mail and phone • Mail used to mop up phone campaign • Should aim for 10% of cash file to become monthly donors • Consider different sources • Onetime cash • Lottery • Purchasers/catalogue buyers • New donors, speed is key
  45. 45. Speed is key
  46. 46. Speed is key 18.0% 16.0% 14.0% 12.0% Converted 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2 3 4 5 6 7 8 9 10 11 W eeks since Gift
  47. 47. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  48. 48. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  49. 49. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  50. 50. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  51. 51. Some easy rules to follow • RFV – Within last 24 months – Given more than one gift – Above $20 • Ask – For active donors, monthly amount - last cash gift x 0.1 • Overlays – Previous credit card usage – Recruitment/donation source to see whether phone/DM responsive
  52. 52. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  53. 53. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  54. 54. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  55. 55. Getting the execution right 1. Focus on the benefits, not the ‘product’ 2. Explain why monthly so vital 3. Get the targeting right 4. Use compelling and empowering copy 5. Personalize where possible 6. Break down into daily amounts 7. Focus on changing ‘behavior’
  56. 56. How do you stack up?
  57. 57. Three: engagement How to inspire them
  58. 58. The Honeymoon period:
  59. 59. What does this look like? • Kill off cognitive dissonance • Thank, welcome and reaffirm • Ensuring excitement of sale doesn’t wear off • Focus on key cancellation periods • Relevant and regular communications
  60. 60. What does it look like?
  61. 61. Killing off cognitive dissonance
  62. 62. © Pareto Fundraising 2009
  63. 63. Example email
  64. 64. Ensure the excitement doesn’t wear off
  65. 65. CanTeen: Thank you message from CanTeen Member: Sam
  66. 66. Key cancellation periods
  67. 67. Regular, relevant communications
  68. 68. It works
  69. 69. Four: retention How to keep them
  70. 70. How to keep them • Keep it personal • Give and get feedback • Understand drivers of attrition
  71. 71. Keep it personal
  72. 72. Keep it personal
  73. 73. Keep it personal
  74. 74. Keep it personal
  75. 75. It’s worth it Knowing Bilbo’s name increases upgrade rate by 43%
  76. 76. Giving feedback
  77. 77. Giving feedback
  78. 78. Giving feedback
  79. 79. Getting feedback
  80. 80. What really drives attrition of street recruits?
  81. 81. What really drives attrition of street recruits? • Recruitment • Amount Source • Email Provided • Gender • Home Phone • Payment Method • Work Phone • Payment • Mobile Phone Frequency • Age
  82. 82. Some really ugly, but useful analysis Year2 attrition Node 0 Category % n No 76.00 12012 Yes 23.00 3793 Total (100.00) 15805 Gender Adj. P-value=1.0000, Chi-square=0.0412, df =1 F M;U Node 15 Node 16 Category % n Category % n No 75.92 5282 No 76.06 6730 Y es 24.08 1675 Yes 23.94 2118 Total (44.02) 6957 Total (55.98) 8848
  83. 83. Insights: what we found • Age is the most significant factor in predicting Year 1 attrition • Payment type is significant, with credit card payers more likely to attrite
  84. 84. What this allowed Amnesty to do • Predict future value of supporters • Prioritize spend • Identify high risk supporters and treat them differently
  85. 85. Five: growth How to leverage more value
  86. 86. Leveraging more value • Continuing to ask • Understand relative value • Upgrading
  87. 87. Continuing to ask
  88. 88. Continuing to ask No. of Attrition Total months Avg months Total Value since Terminated donors Rate since 2008/09 given 2008/09 Included 3,434 287 8.36% 54,510 15.87 $14,334,329 Excluded 3,433 295 8.59% 53,979 15.72 $13,176,515
  89. 89. Getting the real lowdown: Net Value to Date Ave VTD by Channel by Year $400 $300 $200 Ave Year 1 Net Ave Year 2 Net $100 Ave Year 3 Net Ave Year 4 Net $0 -$100 -$200
  90. 90. What this allowed SickKids to do • Say things like: “A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”
  91. 91. What this allowed SickKids to do • Say things like: “A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200” • Focus on areas generating the best real return
  92. 92. What this allowed SickKids to do • Say things like: “A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200” • Focus on areas generating the best real return • Understand implications of future program decisions
  93. 93. Upgrading • Phone the most effective medium – Use mail to ‘mop up’ and consider testing online • Testing between 4 and 9 months after recruitment • Serial upgrade rejecters – auto upgrade
  94. 94. Aim for 70% after 5 years 70% 3,000 60% 2,500 Number of upgraders 50% 2,000 Upgrade % 40% 1,500 30% 1,000 20% 10% 500 0% 0 2004 2005 2006 2007 2008 2009
  95. 95. Bringing it all together Final takeaways
  96. 96. Bringing it all together • Acquisition not cheap, need to balance investment and risk with expected outcomes
  97. 97. Bringing it all together • Acquisition not cheap, need to balance investment and risk with expected outcomes • To maximize acquisition and conversion, you must: – Keep it singularly focused – Understand and explain why monthly so vital – Kill off cognitive dissonance
  98. 98. Bringing it all together • Focus on partnership and benefits, not product names
  99. 99. Bringing it all together • Focus on partnership and benefits, not product names • Honeymoon period essential, don’t let excitement of joining you wear off
  100. 100. Bringing it all together • Focus on partnership and benefits, not product names • Honeymoon period essential, don’t let excitement of joining you wear off • Continuing to ask will help leverage more value and keep more donors
  101. 101. Bringing it all together • Focus on partnership and benefits, not product names • Honeymoon period essential, don’t let excitement of joining you wear off • Continuing to ask will help leverage more value and keep more donors • Use net long term value as key measure, not just CPA
  102. 102. Thank you and Questions . jonathon.grapsas@paretofundraising.com www.jonathongrapsas.blogspot.com twitter: jonathongrapsas www.paretofundraising.com

×