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Donor Care &Thank You Magic  Norwegian Fundraising Conference           8 September 2011          Damian O’Broin
More...      www.askdirect.iewww.twitter.com/damianobroinwww.slideshare.net/damianobwww.delicious.com/damianob    damian@a...
Once upon a tim!...
My Summer Holiday
Extinct ReptileMe
Why isDonor CareImportant?
Bad Donor Care    Unhappy donors(or even just uninspired donors)        Loss of €€€
Building Donor Loyalty– Adrian Sargeant & Elaine Jay
Potential Value of Legacies                                                        €150m                                  ...
Best legacy prospects are donors           for 5+ years.Propensity to leave a legacy rockets          after 15 years.
But first,we have to keep our donors.
Typical attrition rates          Cash Donors            Face to Face DonorsYear 1       Year 2     Year 3           Year 4...
We spend a fortune recruiting donorsAnd then throw it all away with       bad donor care
“The only things that can’t be        replicated are the relationships        you have with your customers”        – Larry...
Simplicity                          Speed              Unique Value         Relationship with Donors
“When given the choice,people will always spend timearound people they like.When it’s expedient andpractical, they’d also ...
% Change in perveived value of brand attributes 2005-09                                                                   ...
“Between 2005 and 2009 US consumers expressed a nearly fourfold increase in their preference for    companies, brands and ...
How do youcreate greatdonor care?
Do           red s         nt on                           sys no                              tem r-fo      -ce ati    or...
Campaign                    DonorReturn on Investment         Lifetime Value    % Response                Long-term   & Av...
Donor-centredcommunications
What do donors   want?
Recognition
“You” or “Your” is repeated    14 times on Page 1 (and donor’s name appears four times)     Thanks donor and    demonstrat...
Donor focused solution
General        Monthly Gifts   Top Donors20092010                 General Cash +28%                 Monthly Gifts +88%    ...
Control
MyCareZone Has reduced  face-to-faceattrition by half
Sight        70%Safe Birth   20%Mobility     6%Education     4%2/3 donorsdidn’t choose a gift
Feedback
The Oxfam Hunger £ Million
Four t      imes  mone      as mu        y rais    ch               ed
Gratitude
An Emotional Connection
Donor-focussedsystems & structures
What do youreally knowabout your  donors?
It all starts with      data...
Net Promoter Score“How likely is it that you would recommend   <charity> to a friend or colleague?”    0   1   2 3    4 5 ...
Net Promoter Score                Median NPS = 16%(based on 130,000 customer survey responses for > 400 companies)        ...
Arrive promptly           The 3 things your            THANK YOU             needs to doMake your donor        Show the im...
Th e Flattery Bath
!"#$%&()*#+ ,(-.%/*//(0/"1%.2 345 6&."7&."(,588                                                                           ...
The Importance of Speed
Time has shrunkWe want it now
First time donors who receive a personal thank you within       48 hours            are   Four times  more likely to give ...
Charities who sent personalisedthank you within 48 hrs - online gifts                 Email                 Post      2006...
Only 1 in 4 charities senta postal thank you after     an online gift     – Ask Direct Mystery Shopping Research (Ireland,...
Response to postal donations                        % who thanked          % who thanked                          < 1 week...
Once upon a tim!...
You’ve got six  months.Get cracking.
Provide feedback on how giftsare making a differenceSecure a second cash gift(~50% of second gifts are made within 6 month...
How much ispoor donor care  costing you?
€113           Nkr 854Average gross cost of recruiting a donor via direct marketing 2008-10
€78 Nkr 589Average value of first time gift to charity 2008-10
6 x first gift€468Nkr 3,534  5 Year Lifetime Value of Cash Donor
10 x first gift€780Nkr 5,890Jeff Brooks’ Rule of Thumb for total donor value
27 x first gift€2106Nkr 15,9065 Year Lifetime Value of cash donor who also makes monthly gift
Now,multiply that by all the donorsyou’re losing...
Nkr 15,906
Thank You      www.askdirect.iewww.twitter.com/damianobroinwww.slideshare.net/damianobwww.delicious.com/damianob    damian...
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
Donor Care & Thank You Magic
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Donor Care & Thank You Magic

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Presentation to Norwegian Fundraising Conference, 8 September 2011

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Donor Care & Thank You Magic

  1. 1. Donor Care &Thank You Magic Norwegian Fundraising Conference 8 September 2011 Damian O’Broin
  2. 2. More... www.askdirect.iewww.twitter.com/damianobroinwww.slideshare.net/damianobwww.delicious.com/damianob damian@askdirect.ie
  3. 3. Once upon a tim!...
  4. 4. My Summer Holiday
  5. 5. Extinct ReptileMe
  6. 6. Why isDonor CareImportant?
  7. 7. Bad Donor Care Unhappy donors(or even just uninspired donors) Loss of €€€
  8. 8. Building Donor Loyalty– Adrian Sargeant & Elaine Jay
  9. 9. Potential Value of Legacies €150m €147,000,000 €100m €78,000,000 €50m €26,000,000 €0mIRL Legacy Giving 2009 NOR Legacy Giving 2009IRL/NOR Legacy Giving Potential
  10. 10. Best legacy prospects are donors for 5+ years.Propensity to leave a legacy rockets after 15 years.
  11. 11. But first,we have to keep our donors.
  12. 12. Typical attrition rates Cash Donors Face to Face DonorsYear 1 Year 2 Year 3 Year 4 Year 5
  13. 13. We spend a fortune recruiting donorsAnd then throw it all away with bad donor care
  14. 14. “The only things that can’t be replicated are the relationships you have with your customers” – Larry HochmanPrice Product Place
  15. 15. Simplicity Speed Unique Value Relationship with Donors
  16. 16. “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
  17. 17. % 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
  18. 18. “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
  19. 19. How do youcreate greatdonor care?
  20. 20. 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
  21. 21. Campaign DonorReturn on Investment Lifetime Value % Response Long-term & Average Gift Donor Retention Banish short-term thinking
  22. 22. Donor-centredcommunications
  23. 23. What do donors want?
  24. 24. Recognition
  25. 25. “You” or “Your” is repeated 14 times on Page 1 (and donor’s name appears four times) Thanks donor and demonstrates impact
  26. 26. Donor focused solution
  27. 27. General Monthly Gifts Top Donors20092010 General Cash +28% Monthly Gifts +88% Top Donors +227%
  28. 28. Control
  29. 29. MyCareZone Has reduced face-to-faceattrition by half
  30. 30. Sight 70%Safe Birth 20%Mobility 6%Education 4%2/3 donorsdidn’t choose a gift
  31. 31. Feedback
  32. 32. The Oxfam Hunger £ Million
  33. 33. Four t imes mone as mu y rais ch ed
  34. 34. Gratitude
  35. 35. An Emotional Connection
  36. 36. Donor-focussedsystems & structures
  37. 37. What do youreally knowabout your donors?
  38. 38. It all starts with data...
  39. 39. 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
  40. 40. 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%
  41. 41. Arrive promptly The 3 things your THANK YOU needs to doMake your donor Show the impact feel special of their gift
  42. 42. Th e Flattery Bath
  43. 43. !"#$%&()*#+ ,(-.%/*//(0/"1%.2 345 6&."7&."(,588 “When people ask me what difference 5;<=,<>=55 a donation can make, I reply that 4/&*([*2()*#+G donations to Starship transform lives. D%/(@/#@E/(&27(C/(+%&.(F"99/*/?/(&(F#&."#(?&(C&7/G(H(*/@EI(.%&.(F#&."#2(.#(!.&*2%"@(.*&29#*C(E"J/2K(L&*/.2( %&J/(.#EF(C/(+".%(./&*2("(.%/"*(/I/2(+%&.(".(C/&2(.#(7#+(.%/"*(?%"EF("2(*/?/"J"1(.%/($/2.(@#22"$E/(?&*/(&.(!.&*2%"@K( Parents have told me with tears in -F($/%"F(/J/*I(#/(#9(.%/2/(?%"EF*/(.%/*/(&*/(?#C@&22"#&./(@/#@E/(E"7/(I#B(F/F"?&./F(.#(%/E@"1K(M%&7(I#BK their eyes what it means to know their 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( child is receiving the best possible care H(%&J/(2//(%#+(&(2/*"#B2EI("EE(?%"EF(?&(9&?/("?*/F"$E/(2".B&."#2(+".%(&(C&.B*".I(+/EE($/I#F(.%/"*(I/&*2K(M%/2/( at Starship. ?%"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($/E"/J/(/J/*I(?%"EF(F/2/*J/2K And behind every one of these N#B(?&(7//@(B@(.#(F&./(+".%(2#C/(#9(.%/(2B??/22(2.#*"/2(I#B*(1"9.(%&2(C&F/(@#22"$E/($I(J"2"."1( +++K2.&*2%"@K#*1KQ<9#BF&."#G(#*("9(I#B(%&J/(&I(UB/2."#2G(@E/&2/(?&EE(#(=V(,=8(WVX8K children there are compassionate M%&7(I#B(&1&"(9#*(1"J"1(JBE/*&$E/(I#B1(?%"EF*/(.%/($/2.(@#22"$E/(?%&?/(&.(E"9/K people like you dedicated to helping. )/2.(+"2%/2G Your donation will help Starship )*&F(YE&*7 support children and their families at Y%"/9(ZP/?B."J/ their moment of greatest need. It is at these moments, when a child’s life can hang in the balance, that your !()$() %&()*&+,-.-*/-0+1*)2+)2(34+5,&67 !"#$%&()*#+ donation becomes truly3/?/"@.(ABC$/*:4#&."#(#9: !"#$## ,(-.%/*//(0/"1%.2 345 transformational.”4&./: !"#$%#&$!! 6&."7&."(,588
  44. 44. The Importance of Speed
  45. 45. Time has shrunkWe want it now
  46. 46. First time donors who receive a personal thank you within 48 hours are Four times more likely to give again – McConkey Johnston International UK
  47. 47. Charities who sent personalisedthank you within 48 hrs - online gifts Email Post 2006 20% 13% 2008 38% 28% 2011 60% 20% – Ask Direct Mystery Shopping Research
  48. 48. Only 1 in 4 charities senta postal thank you after an online gift – Ask Direct Mystery Shopping Research (Ireland, Canada, New Zealand)
  49. 49. Response to postal donations % who thanked % who thanked < 1 weekIreland 93% 33%Canada 27% 13%
  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. How much ispoor donor care costing you?
  54. 54. €113 Nkr 854Average gross cost of recruiting a donor via direct marketing 2008-10
  55. 55. €78 Nkr 589Average value of first time gift to charity 2008-10
  56. 56. 6 x first gift€468Nkr 3,534 5 Year Lifetime Value of Cash Donor
  57. 57. 10 x first gift€780Nkr 5,890Jeff Brooks’ Rule of Thumb for total donor value
  58. 58. 27 x first gift€2106Nkr 15,9065 Year Lifetime Value of cash donor who also makes monthly gift
  59. 59. Now,multiply that by all the donorsyou’re losing...
  60. 60. Nkr 15,906
  61. 61. Thank You www.askdirect.iewww.twitter.com/damianobroinwww.slideshare.net/damianobwww.delicious.com/damianob damian@askdirect.ie

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