Donor Care in the Downturn

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Presentation on Donor Care to the Fundraising Ireland National Conference 2011

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Donor Care in the Downturn

  1. 1. Donor Care inthe Downturn Fundraising Ireland National Conference 30 March 2011 Damian O’Broin
  2. 2. Once upon a tim!...
  3. 3. Why isDonor CareImportant?
  4. 4. Bad Donor Care Unhappy donors(or even just uninspired donors) Loss of !!!
  5. 5. Building Donor Loyalty– Adrian Sargeant & Elaine Jay
  6. 6. Potential Value of Legacies IRL Legacy Giving 2009 IRL Legacy Giving Potential !150m !100m !50m 2009 !0m
  7. 7. Best legacy prospects are donors for 5+ years.Propensity to leave a legacy rockets after 15 years.
  8. 8. But first,we have to keep our donors.
  9. 9. Typical attrition rates Cash Donors Face to Face DonorsYear 1 Year 2 Year 3 Year 4 Year 5
  10. 10. We spend a fortune recruiting donorsAnd then throw it all away with bad donor care
  11. 11. Customers (& donors) in control, forever. “The only things that can’t be replicated are the relationships you have with your customers” – Larry Hochman
  12. 12. If your charity went out of business tomorrow,would your donors miss you?
  13. 13. Simplicity Speed Unique Value Relationship with Donors
  14. 14. “When given the choice,people will always spend timearound people they like.When it’s expedient andpractical, they’d also ratherdo business with and buy stufffrom people they like. Andnow, they can.”– Gary Vaynerchuk
  15. 15. % Change in perveived value of brand attributes 2005-09 400% 200% 0%Exclusive Arrogant Sensuous Daring Socially Resp -200% High Quality Friendly Kindness & Empathy Young & Rubicam’s BrandAsset Valuator, quoted in Gerzema & D’Antonio - The Power of the Post-Recession Consumer
  16. 16. “Between 2005 and 2009 US consumers expressed a nearly fourfold increase in their preference for companies, brands and products that show kindness in both their operations and their encounters with customers. This desire for companies to be more empathetic toward consumers is the biggest shift in any attitude we have ever seen during the BAV survey’s two-decade history” Gerzema & D’Antonio - The Power of the Post-Recession Consumer
  17. 17. The Collapse of Trust & Confidence
  18. 18. How do youcreate greatdonor care?
  19. 19. Do red s nt on sys no tem r-fo -ce ati or ic s & cus on unD m stru sed ctuc om res Donor Banish short-term thinking
  20. 20. The % response rate of your most recent direct mail campaign?The ROI of your most recent direct mail campaign?The lifetime value of donors recruited through each of your main acquisition channels? Banish short-term thinking
  21. 21. Donor-centredcommunications
  22. 22. What do donors want?
  23. 23. Recognition
  24. 24. “You” or “Your” is repeated 14 times on Page 1 (and donor’s name appears four times) Thanks donor and demonstrates impact
  25. 25. Donor focused solution
  26. 26. General Monthly Gifts Top Donors20092010 General Cash +28% Monthly Gifts +88% Top Donors +227%
  27. 27. Control
  28. 28. MyCareZone Has reduced face-to-faceattrition by half
  29. 29. Sight 70%Safe Birth 20%Mobility 6%Education 4%2/3 donorsdidn’t choose a gift
  30. 30. Feedback
  31. 31. The Oxfam Hunger £ Million
  32. 32. Four t imes mone as mu y rais ch ed
  33. 33. An Emotional Connection
  34. 34. Donor-focussedsystems & structures
  35. 35. What do youreally knowabout your donors?
  36. 36. It all starts with data...
  37. 37. Net Promoter Score“How likely is it that you would recommend <charity> to a friend or colleague?” 0 1 2 3 4 5 6 7 8 9 10 Detractors Promoters
  38. 38. Net Promoter Score Median NPS = 16%(based on 130,000 customer survey responses for > 400 companies) Trader Joe’s 82% Apple 72% Amazon 70% Best Irish Charity Score 50%
  39. 39. Arrive promptly The 3 things your THANK YOU needs to doMake your donor Show the impact feel special of their gift
  40. 40. Th e Flattery Bath
  41. 41. !"#$%&()*#+ ,(-.%/*//(0/"1%.2 345 6&."7&."(,588 5;<=,<>=55 4/&*([*2()*#+G D%/(@/#@E/(&27(C/(+%&.(F"99/*/?/(&(F#&."#(?&(C&7/G(H(*/@EI(.%&.(F#&."#2(.#(!.&*2%"@(.*&29#*C(E"J/2K(L&*/.2( %&J/(.#EF(C/(+".%(./&*2("(.%/"*(/I/2(+%&.(".(C/&2(.#(7#+(.%/"*(?%"EF("2(*/?/"J"1(.%/($/2.(@#22"$E/(?&*/(&.(!.&*2%"@K( -F($/%"F(/J/*I(#/(#9(.%/2/(?%"EF*/(.%/*/(&*/(?#C@&22"#&./(@/#@E/(E"7/(I#B(F/F"?&./F(.#(%/E@"1K(M%&7(I#BK N#B*(F#&."#(+"EE(%/E@(!.&*2%"@(2B@@#*.(?%"EF*/(&F(.%/"*(9&C"E"/2(&.(.%/"*(C#C/.(#9(1*/&./2.(//FK((H.("2(&.(.%/2/( C#C/.2G(+%/(&(?%"EFO2(E"9/(?&(%&1("(.%/($&E&?/G(.%&.(I#B*(F#&."#($/?#C/2(.*BEI(.*&29#*C&."#&EK( H(%&J/(2//(%#+(&(2/*"#B2EI("EE(?%"EF(?&(9&?/("?*/F"$E/(2".B&."#2(+".%(&(C&.B*".I(+/EE($/I#F(.%/"*(I/&*2K(M%/2/( ?%"EF*/(?&(/P%"$".(&("2@"*&."#&E(&$"E".I(.#(?&**I(#(+".%(&(2C"E/(&F(&(&C&Q"1EI(@#2"."J/(RE"J/(E"9/O(&..".BF/K( )B.(&(@#2"."J/(&..".BF/(&E#/("2O.(/#B1%(.#(1/.(.%*#B1%(&(E"9/(.%*/&./"1(C/F"?&E(?%&EE/1/(S(I#B*(F#&."#(C/&2(A/+( T/&E&F(?%"EF*/(%&J/(&(+#*EF(?E&22(9&?"E".I(.#(1"J/(.%/C(.%/($/2.(@#22"$E/(%#@/(9#*(&(9BEE(&F(%&@@I(E"9/K(M%"2("2(.%/(7"F( #9(?&*/(H($/E"/J/(/J/*I(?%"EF(F/2/*J/2K N#B(?&(7//@(B@(.#(F&./(+".%(2#C/(#9(.%/(2B??/22(2.#*"/2(I#B*(1"9.(%&2(C&F/(@#22"$E/($I(J"2"."1( +++K2.&*2%"@K#*1KQ<9#BF&."#G(#*("9(I#B(%&J/(&I(UB/2."#2G(@E/&2/(?&EE(#(=V(,=8(WVX8K M%&7(I#B(&1&"(9#*(1"J"1(JBE/*&$E/(I#B1(?%"EF*/(.%/($/2.(@#22"$E/(?%&?/(&.(E"9/K )/2.(+"2%/2G )*&F(YE&*7 Y%"/9(ZP/?B."J/ %&()*&+,-.-*/-0+1*)2+)2(34+5,&673/?/"@.(ABC$/*: !()$() !"#$%&()*#+ ,(-.%/*//(0/"1%.24#&."#(#9: !"#$## 3454&./: !"#$%#&$!! 6&."7&."(,588
  42. 42. The Importance of Speed
  43. 43. Time has shrunkWe want it now
  44. 44. First time donors who receive a personal thank you within 48 hours are Four times more likely to give again – McConkey Johnston International UK
  45. 45. 38% sent personalised email thank you within 48 hours 28% sent thank you letter within 2 working days Only 50% managed to send a personalised thank you within 48 hours – Ask Direct Mystery Shopping Research 2008
  46. 46. Almost 1 in 5failed to acknowledge the gift in any way. Ever. – Ask Direct Mystery Shopping Research 2008
  47. 47. Charities who sent personalised thank you within 48 hours Email Post 2006 20% 13% 2008 38% 28% 2011 60% 20% – Ask Direct Mystery Shopping Research
  48. 48. 2011 Mystery Shopping Email Response 0% 25% 50% 75% 100%Prompt & Personal Email Thank You Auto Email ConfirmationNo Email Thank You
  49. 49. Who sends your emails?
  50. 50. Once upon a tim!...
  51. 51. You’ve got six months.Get cracking.
  52. 52. Provide feedback on how giftsare making a differenceSecure a second cash gift(~50% of second gifts are made within 6 months)Upgrade direct debit donors(optimum 4-6 months)Cement the relationship betweendonor and charity
  53. 53. Convinced of the need forexcellent donor care?
  54. 54. Adrian Sargent & Elaine Jay, 2004 “Long term donors are significantly more likely... to offeradditional gifts in response to emergency appeals, to volunteer, to upgrade their gift levels, to lobby for the organisation, toactively seek out other donors... to buy from a catalogue, and to promote the organisation to friends...”
  55. 55. George Smith, 1996“...For we need to find more ways for people to give, build more products around the process, stop taking people for granted. Which, ironically and tragically, is what we do with so much of that tradecraft.”
  56. 56. Ken Burnett, 1991 “...an approach to the marketing of a cause that centres on the unique and special relationship between a nonprofit and eachsupporter. Its overriding consideration is to care for and developthat bond and to do nothing that might damage or jeopardize it. Every activity is therefore geared toward making sure donorsknow they are important, valued, and considered, which has the effect of maximzing funds per donor in the long term.”
  57. 57. How much ispoor donor care costing you?
  58. 58. !113Average gross cost of recruiting a donor via direct marketing 2008-10
  59. 59. !78Average value of first time gift to charity 2008-10
  60. 60. 6 x first gift!468 5 Year Lifetime Value of Cash Donor
  61. 61. 10 x first gift!780Jeff Brooks’ Rule of Thumb for total donor value
  62. 62. 27 x first gift!21065 Year Lifetime Value of cash donor who also makes monthly gift
  63. 63. Now,multiply that by all the donorsyou’re losing...
  64. 64. One final "ory....
  65. 65. Extinct ReptileMe
  66. 66. Thank You www.askdirect.iewww.twitter.com/damianobroinwww.slideshare.net/damianobwww.delicious.com/damianob damian@askdirect.ie

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