Understanding your donors to keep them for life

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Understanding your donors to keep them for life

  1. 1. Understanding your donors to keep them for life Presented by Ashok Mahapatra Fundraising Analyst UNICEF India Country Office SAFRG, Fundraising Master Class October 30, 2010
  2. 2. agenda • Fundraising steps and channels • Behind a successful campaign? • What is important for a campaign? • Key things to remember before selecting data • Acquisition campaign analysis • What to do with acquired donors • Right approach: segmentation • House campaign analysis • LTV analysis • Pledge? • The ‘pledge giving’ framework • Why pledge (pledge vs One-off) • Things to know about a pledge programme
  3. 3. Simple fundraising Steps
  4. 4. Fundraising CHANNELS • Direct Mail • Telemarketing • Face to face • Telefacing • Digital • Other
  5. 5. Direct Mail
  6. 6. Telemarketing
  7. 7. Face to face
  8. 8. Telefacing +
  9. 9. Digital
  10. 10. Behind a successful campaign?
  11. 11. Some quality work behind getting “quality lists” • Target Audience (who to ask?) • Budget (How much can you spend?) • Goal (better 1st year RoI or long term RoI) • From where can I get the list? • Roll out vs test • Size of the list
  12. 12. Target Audience who to ask?
  13. 13. (How much can you spend?) Budget
  14. 14. Goal Short term vs Long term (better 1st year RoI or long term RoI)
  15. 15. From where can I get the list? List Owners List vendors List brokers
  16. 16. Type of List Compiled Lists Proprietary Lists
  17. 17. test vs roll out
  18. 18. Size of the list
  19. 19. Analyzing acquisition campaign
  20. 20. Cost per Unit Total Cost Cost per unit = Quantity Mailed
  21. 21. Response Rate (RR%) Total Response Response Rate % = X 100 Quantity Mailed
  22. 22. Average Donation Size (ADS) Total Donation Amount ADS = No of Responses
  23. 23. Cost per Donor Total cost Cost per Donor = No of response
  24. 24. Return on Investment Total Income ROI = Total Cost
  25. 25. What to do with acquired donors? • Should we ask them to give MORE? • How much to ask? • Should we send the same ask to all donors?
  26. 26. Should we ask them to give MORE?
  27. 27. How much to ask?
  28. 28. Should we send the same ask to all donors?
  29. 29. Right approach Segmentation of donor database
  30. 30. 30 Donor Life StagesDonor Life Stages Prospects Deeply lapsed Lapsed 1. New 2. Transition 3. Core
  31. 31. 31 Definitions:Definitions:
  32. 32. Segment your donors
  33. 33. Analyzing house campaign
  34. 34. LTV analysis
  35. 35. 38 “ The Net Present Value of the income gained from an average new recruit during a given number of years ” “ The Net Present Value of the income gained from an average new recruit during a given number of years ” What is Lifetime Value? • LTV is a measure of the long term benefit of a recruited donor  The Lifetime value (LTV) of a donor is defined as:
  36. 36. To convince your board member for investing in fundraising Why LTV?
  37. 37. One-off or Pledge? Why LTV? Evaluate and guide our recruitment programme
  38. 38. Which Channel? Why LTV? Understand which media give the most profitable donors over the long term
  39. 39. Income for coming years Why LTV? Understand the long term value of our retention programme
  40. 40. 43 Lifetime Value LIFETIME VALUE LIFETIME VALUE COST TO ACQUIRE COST TO ACQUIRE HOW MANY YEARS THEY ARE RETAINED HOW MANY YEARS THEY ARE RETAINED COST TO RETAIN EACH YEAR COST TO RETAIN EACH YEAR HOW MUCH THEY GIVE EACH YEAR HOW MUCH THEY GIVE EACH YEAR
  41. 41. 44 Example LTV Calculation
  42. 42. Pledge
  43. 43. 46 The ‘pledge giving’ framework
  44. 44. Pledge vs One-off
  45. 45. Things to know about a pledge programme • Gross IncomeGross Income • ROI (gross income divided by direct “non-ROI (gross income divided by direct “non- overhead” costsoverhead” costs • Total Number of Active Pledge DonorsTotal Number of Active Pledge Donors • Average Pledge ValueAverage Pledge Value • Pledge Retention Rate (% of pledge donors as ofPledge Retention Rate (% of pledge donors as of 12 months previously who are still active)12 months previously who are still active) • Pledge Fulfillment Rate (average number ofPledge Fulfillment Rate (average number of months income received)months income received)
  46. 46. Ashok ashok.mahapatra@gmail.com

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