Building Donor Loyalty: What it takes and how your database can help

1,318 views

Published on

Most nonprofits work so diligently to secure the first gift with little plan for how to develop a deeper relationship with the donor. This personal connection results not only in increased commitment and donor loyalty, but also in as much as doubling the lifetime value of your donors.

This session will explore the fundamentals for creating Donor Loyalty. We will share the latest findings from the Fundraising Effectiveness Project report commissioned by AFP and the Urban Institute. The dismal news in this report can and should be an eye opener for every non-profit engaged in fundraising.

We will also explore the Donor Loyalty principles of Dr. Adrian Sargeant, the world-renowned authority on donor retention and donor loyalty! Dr. Sargeant’s principles are based upon years of research conducted in the sector and can be used by any organization -- whether you are a one-person shop or a large department.

You will be surprised at how simple it can be!

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,318
On SlideShare
0
From Embeds
0
Number of Embeds
569
Actions
Shares
0
Downloads
41
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Building Donor Loyalty: What it takes and how your database can help

  1. 1. Sponsored by:A ServiceOf:Building Donor Loyalty:What It Takes and How Your Database Can HelpTina Cincotti & Jay LoveJune 18, 2013Twitter Hashtag - #npweb4
  2. 2. Sponsored by:Protecting and Preserving theInstitutional Memories ofNonprofits Since 1993www.cjwconsulting.com(866) 598-0430info@cjwconsulting.comPartOf:
  3. 3. Sponsored by:PartOf:Coming this June
  4. 4. Sponsored by:A ServiceOf:Today’s SpeakersTina CincottiOwner & Principal Consultant,Funding Change Training & ConsultingHosting:Cheri J Weissman, CJW Consulting & Services, Inc.Assisting with chat questions:Jamie Maloney, Nonprofit WebinarsJay B. LoveCEO & Co-Founder7
  5. 5. How much more money will you raise overthe lifetime of your donors if you increaseyour donor retention rate by just 10%?• 50%• 100%• 150-200%First Attendee Poll8
  6. 6. Improving donor retention rates by 10% canimprove LIFETIME dollars raised by?• 150-200%!(Do we have your attention yet?)9
  7. 7. Fundraising Effectiveness Project (FEP)A project to help nonprofit organizations measure andcompareThe 2012 Fundraising Effectiveness Survey Report is based on 3,184responses for 2010-2011, from nonprofit organizations in the United States.The 2010-2011 responses reflected a total amount raised of $2,049,794,709.10
  8. 8. 2012 Fundraising Effectiveness Survey Report “FEP”Participating Donor Software Firms:• Donor2/Campus Management Corporation• PhilanthrAppeal (FundTrack Software)• DonorPerfect Fundraising Software• The Raiser’s Edge ® (Blackbaud)• eTapestry• ROI Solutions• GiftWorks (Mission Research)• Sage Software• MatchMaker FundRaising Software• Telosa Software (Exceed!)• Metafile11
  9. 9. Donor Retention Ratewas 41%Donor Attritionwas 59%!2011 FEP Data on Donor Retention Rate »12
  10. 10. Yes, your eyes read correctly:Nearly SIX out of every TEN Donorsfrom the previous year did NOTdonate at all the next year!13
  11. 11. What is the average retention rate forfirst year donors?• 21%• 27%• 32%Second Attendee Poll14
  12. 12. 15
  13. 13. This is notgood…not goodat all….16
  14. 14. Let’s cue the Expert on Donor RetentionThis scares most NPO Board Members »Donor Attrition Over Five Years# of Donors AttritionRateDonorsRemainingAfter 1 YearDonorsRemainingAfter 2YearsDonorsRemainingAfter 3YearsDonorsRemainingAfter 4YearsDonorsRemainingAfter 5Years1,000 20% 800 640 512 410 3281,000 40% 600 360 216 130 781,000 60% 400 160 64 26 1017
  15. 15. CUE THE EXPERT:Dr. Adrian SargeantBloomerang Chief ScientistProfessor of Fundraising at the Center on Philanthropy at Indiana Universityholding what is presently the world’s only endowed chair in that discipline.Professor of Nonprofit Marketing and Fundraising at Bristol Business School(U.K) and an Adjunct Professor of Fundraising at the Australian Centre forPhilanthropy and Nonprofit Studies.Top 10 Most Influential People in Fundraising“A 10% improvement in retention can doublethe LIFETIME value of your donor database!”18
  16. 16. Why Do Customers Leave?(can this apply to donors . . .)• Death 1%• Relocation 3%• Won by Competitor 5%• Bad Complaint Handling 14%• Lack of Interest from Us 77%19
  17. 17. Key Reasons For Donors Leaving• No longer able to afford support• No memory of ever supporting!• Organization asked for inappropriate sums• Feeling that other causes are more deserving• Not reminded to give again• Organization did not inform how monies wereused• Did not feel connected!20
  18. 18. 21
  19. 19. TransactionFundraisingRelationshipFundraisingFocus Soliciting donations Retaining donorsKey measures Immediate response,return oninvestment,amount of giftLifetime valueOrientation Urgency of cause Donor relationshipTime scale Short LongCustomer service Little emphasis Major emphasisComparison of Two Approaches22
  20. 20. TransactionFundraisingRelationshipFundraisingFocus Soliciting donations Retaining donorsKey measures Immediate response,return oninvestment,amount of giftLifetime valueOrientation Urgency of cause Donor relationshipTime scale Short LongCustomer service Little emphasis Major emphasisComparison of Two Approaches23
  21. 21. Isn’t there anygood news?24
  22. 22. 25
  23. 23. 26
  24. 24. 27
  25. 25. 28
  26. 26. 29
  27. 27. “On behalf of theboard and staff, Iwant to thank you…blah, blah…”30
  28. 28. “Thank you for yourgenerous gift of…”31
  29. 29. Opera has a home inBoston and it’s all becauseof you.32
  30. 30. A warm place to sleep.A steady job. The keysto their own apartment.33
  31. 31. Did Chris Jahnkeknock your socks off orwhat?34
  32. 32. 35
  33. 33. 36
  34. 34. 37
  35. 35. 38
  36. 36. What is the single most important pieceof information donors want to know?• The level they reach in your gift club• The people at their table at the gala• The impact their gift specifically made• Your Charity Navigator ScoreThird Attendee Poll39
  37. 37. 40
  38. 38. 41
  39. 39. 42
  40. 40. 43
  41. 41. 44
  42. 42. 45
  43. 43. 46
  44. 44. 47
  45. 45. 48
  46. 46. 49
  47. 47. We sent 220 volunteers toJoplin to help them rebuild.Ten families are now livingin their homes again.50
  48. 48. You helped send 220volunteers to Joplin. Tenhomes were rebuilt andfamilies are living thereagain.51
  49. 49. 52
  50. 50. 53
  51. 51. 54
  52. 52. More ways toimprove donorloyalty…55
  53. 53. THE BIGTHREE56
  54. 54. 1. Satisfaction2. Commitment3. Trust57
  55. 55. Satisfaction is #1Cue the Rolling Stones...58
  56. 56. Encourage feedback from donors59
  57. 57. How are we doing?60
  58. 58. 61
  59. 59. 62
  60. 60. Build trust…63
  61. 61. 64
  62. 62. 65
  63. 63. 66
  64. 64. 67
  65. 65. TrackEngagementin yourDatabase 68
  66. 66. 69
  67. 67. Automatic Engagement Factors• Recency and pattern ofgiving• Cash donors vs.sustaining donors• # of years giving +• Upgrade /Downgrade + -• Lapsed -• Event attendance +• Opens email +• Click links in emails +• Unsubscribesfrom email -• Has statedcommunicationpreferences +• Has inboundinteractions +• Has soft credits +• Volunteers +• Social Media(coming soon)• …and a whole lot more!70
  68. 68. How will Iknow if thisis working?71
  69. 69. What’s your retention rate?72
  70. 70. What’s your conversion rate?73
  71. 71. 74
  72. 72. 75
  73. 73. 76
  74. 74. 77
  75. 75. 78
  76. 76. 79
  77. 77. 80
  78. 78. Thank you for spending your valuable time with metoday!Please stay in touch. -- Tina & Jaytina@fundingchangeconsulting.comTinaFCC on Twitterjay.love@bloomerang.co@jaybarclaylove on Twitter81
  79. 79. Sponsored by:Find listings for our current seasonof webinars and register at:NonprofitWebinars.comPartOf:

×