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New Donor Trends: Why donor retention is key in 2013 with Chuck Longfield

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New Donor Trends: Why donor retention is key in 2013 with Chuck Longfield

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In this webinar Chuck Longfield, Senior Vice President and Chief Scientist at Blackbaud, discusses the importance of donors to your organisation and provides advice on how you can improve your donor retention.
View the recording for this webinar online at: https://www.blackbaud.com.au/notforprofit-events/webinars/past

In this webinar Chuck Longfield, Senior Vice President and Chief Scientist at Blackbaud, discusses the importance of donors to your organisation and provides advice on how you can improve your donor retention.
View the recording for this webinar online at: https://www.blackbaud.com.au/notforprofit-events/webinars/past

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New Donor Trends: Why donor retention is key in 2013 with Chuck Longfield

  1. 1. 7/30/2013 Customer & Market Insights 1 RETENTION Chuck Longfield, Chief Scientist, Blackbaud July 29, 2013
  2. 2. 7/30/2013 Customer & Market Insights 2 AUSTRALIA IS THE MOST GENEROUS COUNTRY IN THE WORLD
  3. 3. 7/30/2013 Customer & Market Insights 3 • Finding new donors is difficult and expensive. • Growth in number of Regular Givers from 2011 to 2012 was 4%. This was was significantly lower than the growth from 2007 to 2008 (~14%). • Cost to acquire a new donor is 6-7 times that to retain an existing donors. • Top 18 Australian charities had a massive 1% change in the number of donors on file. They lost 28% and gained 29%! >>> We estimate they spent over $60m to basically stand still. • According to the 2012 SONI survey, of Australian donors - 35% were willing to support 3+ charities with one-off gifts - but only 16% were willing to support 3+ charities with regular gifts • Young donors are less loyal than older donors RETENTION VS ACQUISITION
  4. 4. 7/30/2013 Customer & Market Insights 4 SO WHAT SHOULD WE DO?
  5. 5. 7/30/2013 Customer & Market Insights 5 EMPHASIZE DONOR RETENTION OVER ACQUISITION
  6. 6. 7/30/2013 Customer & Market Insights 6
  7. 7. 7/30/2013 Customer & Market Insights 7 • View current donors as valuable assets! Acquiring a new donor is not a fair trade for losing a current donor. 85% of existing, Regular Givers were retained but only 58% of new, Regular Givers* 65% of existing, Regular Givers were retained but only 27% of new, Regular Givers* * 2011 donorCentrics analysis of large, multi-national, Australian non-profits EMPHASIZE DONOR RETENTION OVER ACQUISITION
  8. 8. 7/30/2013 Customer & Market Insights 8 • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level 2013 Australian donorCentrics First Year Retention Rates: 41% - Single Gift, Mail Acquired Donors 25% - Single Gift, Web/Digital Acquired Donors 7% - Single Gift, Event Acquired Donors 49% - Regular Gift, Face to Face Acquired Donors 77% - Regular Gift, DRTV Acquired Donors 78% - Regular Gift, Web/Digital Acquired Donors EMPHASIZE DONOR RETENTION OVER ACQUISITION
  9. 9. 7/30/2013 Customer & Market Insights 9
  10. 10. 7/30/2013 Customer & Market Insights 10 • View donors as valuable assets! • When acquiring new donors, factor in whether you will retain the donor, and at what dollar level • Fill the holes in your leaky bucket! • Why did the donor give? Stop giving? • According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .” EMPHASIZE DONOR RETENTION OVER ACQUISITION
  11. 11. 7/30/2013 Customer & Market Insights 11 • Be willing to invest in your donors, e.g. thank you calls. See Donor-Centered Fundraising – Penelope Burk • Determine a donor’s potential early in your relationship and allocate resources accordingly • Be Donor-Centric, not Campaign-Centric - Personalisation - Segmentation - Guided Moves Management FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES
  12. 12. 7/30/2013 Customer & Market Insights 12
  13. 13. 7/30/2013 Customer & Market Insights 13 • Set goals and measure your results • Find peer groups and benchmark your results • Checklist Manifesto, by Atul Gawande • Identify best practices • Find ways to collaborate to maximize results FOCUS ON RESULTS, NOT EFFORT
  14. 14. 7/30/2013 Customer & Market Insights 14 • Organize yourself to recognize a donor’s passion for your mission • See yourself through the eyes of your donors • Be willing to invest in your donors • Test investments and track results carefully INVEST IN YOUR MOST PASSIONATE SUPPORTERS
  15. 15. 7/30/2013 Customer & Market Insights 15
  16. 16. 7/30/2013 Customer & Market Insights 16 1. Emphasize donor retention over donor acquisition 2. Focus on a donor’s lifetime value, not a campaign’s response rate 3. Focus on results, not effort 4. Identify & invest in your most passionate supporters KEY TAKE-AWAYS
  17. 17. 7/30/2013 Customer & Market Insights 17 • Over 300 of the best fundraising ideas ever, at your fingertips 24/7…for free! • Contribute your own exhibit. • Sign up to receive hot news and updates. • What three things will you do differently, starting next week? WWW.SOFII.ORG A unique online resource of everything you could want to know about fundraising from c.1500 BC to the present day
  18. 18. 7/30/2013 Customer & Market Insights 18 The Raiser’s Edge for Retention can help your organisation to:  Focus on donor retention & stewardship  Improve visibility of fundraising results  Manage regular giving  Improve efficiency For more information contact Rebecca.Shortern-Rule@Blackbaud.com.au. It’s time to start treating your donors as your most valuable asset
  19. 19. 7/30/2013 Customer & Market Insights 19 QUESTIONS? Chuck Longfield, Chief Scientist chuck.longfield@blackbaud.com

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