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7/30/2013 Customer & Market Insights 1
RETENTION
Chuck Longfield, Chief Scientist, Blackbaud
July 29, 2013
7/30/2013 Customer & Market Insights 2
AUSTRALIA IS THE MOST GENEROUS COUNTRY IN
THE WORLD
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
7/30/2013 Customer & Market Insights 4
SO WHAT SHOULD WE DO?
7/30/2013 Customer & Market Insights 5
EMPHASIZE DONOR RETENTION OVER ACQUISITION
7/30/2013 Customer & Market Insights 6
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
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
7/30/2013 Customer & Market Insights 9
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
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
7/30/2013 Customer & Market Insights 12
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
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
7/30/2013 Customer & Market Insights 15
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
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
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
7/30/2013 Customer & Market Insights 19
QUESTIONS?
Chuck Longfield, Chief Scientist
chuck.longfield@blackbaud.com

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

  • 1. 7/30/2013 Customer & Market Insights 1 RETENTION Chuck Longfield, Chief Scientist, Blackbaud July 29, 2013
  • 2. 7/30/2013 Customer & Market Insights 2 AUSTRALIA IS THE MOST GENEROUS COUNTRY IN THE WORLD
  • 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. 7/30/2013 Customer & Market Insights 4 SO WHAT SHOULD WE DO?
  • 5. 7/30/2013 Customer & Market Insights 5 EMPHASIZE DONOR RETENTION OVER ACQUISITION
  • 6. 7/30/2013 Customer & Market Insights 6
  • 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. 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. 7/30/2013 Customer & Market Insights 9
  • 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. 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. 7/30/2013 Customer & Market Insights 12
  • 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. 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. 7/30/2013 Customer & Market Insights 15
  • 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. 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. 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. 7/30/2013 Customer & Market Insights 19 QUESTIONS? Chuck Longfield, Chief Scientist chuck.longfield@blackbaud.com