Direct Debit - The Golden Egg of Fundraising
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Direct Debit - The Golden Egg of Fundraising

on

  • 2,299 views

Presentation used by Scott Gray, Managing Director of Rapidata at the Institute of Fundraising Strategies and Retention conference.

Presentation used by Scott Gray, Managing Director of Rapidata at the Institute of Fundraising Strategies and Retention conference.

Statistics

Views

Total Views
2,299
Views on SlideShare
2,294
Embed Views
5

Actions

Likes
1
Downloads
27
Comments
0

1 Embed 5

http://rapidataservices.com 5

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Before we get going, I’d like to get a sense of how your organisation has been effected by the recession over the past year and more – can you raise your hands if your organisation has seen donations fall? Now raise your hands if donations have increased?So, what’s happening in the marketplace more generally? [hit the space bar and hopefully the bullet points will all fly in!]
  • Communicate your position in the marketplace as the leading BACs affiliate direct debit processor
  • Start by looking at cancellation rates and how they have increased over the years
  • 2008/09 massive difference compared to the rest of the data set
  • 2007/8 do NOT show the same direct debit cycle patterns
  • Average annual and average monthly cancellations for Apr 2003 – Jan 2009Average annual and average monthly cancellations for the pre-recession period Apr 2003 – Aug 2007Average annual and average monthly cancellations for the post-recession period Sep 2007 – Jan 20092007/8 do NOT show the same direct debit cycle patterns
  • 2007/8 do NOT show the same direct debit cycle patterns
  • The recession changed the cycle pattern. Note that in December 08, cancellations were falling to a point that is higher than where cancellation rates peaked in pre-credit crunch years of 03-072007/8 do NOT show the same direct debit cycle patterns
  • The average cancellation rate is still higher than that seen in pre-recession years, but the differential is now much less than its height of 67% in December last year.
  • Before I ask you if you have any questions, I’d like to ask one of my one. Can any of you tell me when you currently contact your regular supporters? How does this fit in with the direct debit cycle we showed you today

Direct Debit - The Golden Egg of Fundraising Presentation Transcript

  • 1. Institute of Fundraising – Strategies for Supporter Retention
    Direct Debits – The Golden Egg of Fundraising…
  • 2. Direct Debits – The Golden Egg of Fundraising…
    Introduction
    Scott Gray, Managing Director,
    Rapidata Services plc
    sgray@rapidata.co.uk
  • 3. Direct Debits – The Golden Egg of Fundraising…
    Why am I here?
    • Findings of our Direct Debit Tracking Report
    • 4. Impact of the Recession on DD donations
    • 5. How to turn the data to your advantage - what can you do to boost retention, prevent cancellations & re-activate donors
  • Direct Debits – The Golden Egg of Fundraising…
    How has the recession affected you?
    • Donations have fallen by 11% over the past year (source: UK Giving 2009, CAF/NCVO)
    • 6. 50% of charities globally have reported a decrease in income over the past 12 months (source: The Management Centre)
    • 7. But, the good news is that regular giving through direct debits etc, is on the rise. 37% of donors now use regular giving (up from 34% in 2006/07) and these donations constitute 31% of total amount given (source: UK Giving 2009, CAF/NCVO
  • Direct Debits – The Golden Egg of Fundraising…
    Rapidata’s Charity Direct Debit Tracking Report
    Rapidata produced its first Direct Debit Tracking Report in January 2009.
    Why track direct debit donations?
    Best placed to see what the impact of the recession has had on direct debit cancellations
    To raise the profile of direct debit in fundraising
  • 8. Direct Debits – The Golden Egg of Fundraising…
    Rapidata’s Charity Direct Debit Tracking Report
    What the Tracking Report shows:
    Direct Debit Cycle
    Falling cancellation rates* prior to the onset of the credit crunch
    Effect of the credit crunch and recession –cancellations rates of direct debits skyrocketed
    *The cancellation rate is the number of direct debits cancelled in a calendar month as a percentage of total live direct debits.
  • 9. Direct Debits – The Golden Egg of Fundraising…
    Average monthly cancellation rates
  • 10. Direct Debits – The Golden Egg of Fundraising…
    Average monthly cancellation rates
  • 11. Direct Debits – The Golden Egg of Fundraising…
    Direct Debit Annual Cycle
  • 12. Direct Debits – The Golden Egg of Fundraising…
    What does the data tell us
    • Direct debit cancellation rates follow an annual cycle
    • 13. Cancellations rise in the lead up to the Summer – peaking in August/September
    • 14. There is a sharp fall in cancellations for the latter part of the year, dropping to their lowest over Christmas
    • 15. Cancellations rise again in January, before dropping back down again through February and March
  • Direct Debits – The Golden Egg of Fundraising…
    Direct Debit Annual Cycle
  • 16. Direct Debits – The Golden Egg of Fundraising…
    Direct Debit Annual Cycle
  • 17. Direct Debits – The Golden Egg of Fundraising…
    The impact of the recession
  • 18. Direct Debits – The Golden Egg of Fundraising…
    The impact of the recession
  • 19. Direct Debits – The Golden Egg of Fundraising…
    The impact of the recession
  • 20. Direct Debits – The Golden Egg of Fundraising…
    The impact of the recession
    • In September 2008…
    50% more people cancelled their DD than in the average pre-recession September
    • In December 2008…
    Two thirds (67%) more people cancelled their DD than in the average pre-recession December
    • In January 2009…
    54% more people cancelled their DD than in the pre-recession January
  • 21. Direct Debits – The Golden Egg of Fundraising…
    What has happened this year?
  • 22. Direct Debits – The Golden Egg of Fundraising…
    A plateau in cancellation rates?
  • 23. Direct Debits – The Golden Egg of Fundraising…
    A plateau in cancellation rates?
    Not yet!
    For cancellation rates to return to their pre-recession levels this year, we would need to see a reversal of the Annual Direct Debit Cycle. Cancellations would need to have fallen this summer
    They have not!
  • 24. Direct Debits – The Golden Egg of Fundraising…
    A plateau in cancellation rates?
  • 25. Direct Debits – The Golden Egg of Fundraising…
    Implications for 2009/10
    In summary:
    • People are still cancelling their charity direct debits in significantly higher numbers than they were doing before the onset of the recession in August 2007.
    • 26. Cancellations are now starting to decrease, which might be the first sign that cancellations might – we stress might – be beginning to plateau
    • 27. 2009/10 will still be a year of higher than average direct debit cancellations
  • Direct Debits – The Golden Egg of Fundraising…
    How to use this data to your advantage
    While we can’t prevent a recession, there are ways to use this data to your advantage:
    • To aid donor retention
    • 28. To prevent cancellations
    • 29. To re-activate donors
  • Direct Debits – The Golden Egg of Fundraising…
    How to use this data to your advantage
    • See if the direct debit cycle matches your direct debit cancellation rates. Is it higher or lower?
    • 30. Before a high cancellation month, contact your donors to reinforce your cause:
    • 31. Thank donors & communicate what the charity has been able to achieve
    • 32. Issue a newsletter
    • 33. Use this knowledge to consider when to run your next DM campaign or a reactivation / upgrade campaign
  • Direct Debits – The Golden Egg of Fundraising…
    What to do?
    Acknowledge any direct debit cancellation, thanking donors for their support and act fast!
    “The most important thing to remember is that the process of reactivating a cancelled donor starts from the very moment they cancel”
  • 34. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    2) Offer alternatives
    • Reduced amount
    • 35. Payment holiday
    • 36. Change in frequency
  • Direct Debits – The Golden Egg of Fundraising…
    What to do?
    3) Ask for feedback - questionnaire
  • 37. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    4) Online Reactivation
  • 38. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    5) Regularly test sample reactivations
  • 39. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    6) Attempt to reactivate sooner rather than later
  • 40. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    7) Reactivation Budget
  • 41. Direct Debits – The Golden Egg of Fundraising…
    What to do?
    In summary…
    Acknowledge
    Offer Alternatives
    Ask for feedback
    Online Reactivation
    Test reactivations
    Reactivate sooner
    Budget
  • 42. Direct Debits – The Golden Egg of Fundraising…
    THANK YOU – Questions?
    “The most important thing to remember is that the process of reactivating a cancelled donor starts from the very moment they cancel”
    www.rapidataservices.com