Making a real difference to retention norman barrett, hugh mc caw, nick pride
1. Donor Stewardship
Making a real difference to
retention
Norman Barrett, Chief Executive, AICR
Hugh McCaw, Founder, RFundraising
Nick Pride, Managing Director, DMS
2. Today’s objectives
1. Show that stewardship works
2. Demonstrate that stewardship is cost-
effective
3. Outline the key ingredients
4. Describe the single biggest obstacle
5. Context
“… even though more frequent donors have
stronger bonds with the charitable
organisation, ignoring their patronage over
a period of time may potentially corrode
the relationship …”
Source: Merchant et al. (2010)
6. Context
“The quality of service provided … to donors
appears to drive the level of active
commitment”
Source: Sargeant &
Woodliffe (2007)
7. Context
“… the UK practice of referring to regular
donors as ‘committed’ is inappropriate …
a greater proportion of these individuals
feel no real bond to the organisation at all”
Source: Sargeant &
Woodliffe (2007)
8. Context
“On average … lapsers … were taking 2-3
months to finalise their decisions and then
cancel.”
Source: Nathan & Hallam
(2009)
9. Context
“…ensure that [nonprofits] … give ongoing
and specific feedback to donors as to how
their funds have been put to use, in
particular the benefit that has resulted for
the beneficiary group …”
Source: Sargeant (2001)
10. Context
“ … a link between the extent to which a
donor might be satisfied with the feedback
received and the overall longevity of the
relationship with the organisation …”
Source: Sargeant (2001)
13. Integration
• Stewardship is built in
– Organisation
– Donor communications programme
• Who’s driving stewardship
– Donor > process
– What do I think is appropriate?
14. Multi-channel
• Prize-led direct mail
– Recruitment
– Donor programme
• Events
• Online
• Reactivation
• Legacy
• Home Money Box
15. Multi-stage
Action Cash ask CoG conversion TQ / upgrade
Call to introduce Send letter to Call to say TQ Call to thank and
charity and ask ask to empty box and ask to upgrade (sep calls)
to take a home become a
money box committed giver
Engage Convert Care
16. Multi-stage
Placement 1st ask 2nd ask 3rd ask Thank you/upgrade
Responders
No
Yes Empty box
Responders No Conversion (cash)
Empty box to CoG
Yes (cash)
Non
responders
Box/ Empty box Yes
coin card (cash)
Conversion No Thank Upgrade
to CoG you
Engage Convert Care
17. Retention over 5 years
Retention Rates for Committed Givers - Based on Donor Year (from date of 1st gift to month 12, 24, 36 etc)
Make 1st Active 12 Months Active 24 Months Active 36 Months Active 48 Months Active 60 Months
Payment After 1st Payment After 1st Payment After 1st Payment After 1st Payment After 1st Payment
% CG retained over 60 months 96.5% 78.6% 66.7% 57.8% 52.1% 49.7%
Retention Rates for Committed Givers
100.0%
90.0%
80.0%
70.0%
60.0%
50.0% 49.7%
40.0%
30.0%
20.0%
10.0%
0.0%
Make 1st Active 12 Months After 1st Active 24 Months After 1st Active 36 Months After 1st Active 48 Months After 1st Active 60 Months After 1st
Payment Payment Payment Payment Payment Payment
% CG retained over 60 months
26. Proving it works
• Results
– Upgrading with and without a thank you
– Effect of thank-you on Gift Aid sign-up
– Supporter card
– Impact of newsletter
– Effect on reactivation
27. Summary
• What seems to be working
• You can do this
• Retention as (every) part of your
organisation
28. Impact
• In last 3 years, additional £3.38m income,
£4.04m including Gift Aid
• Reduce attrition by 0.5%
• = £100,000 for us
• = another grant funded
• What would it mean for you?
GUIDE Introductions – Norman, 2 minutes Intros each of us Each speak to introduce ourselves and say something about: - Length of time - Nature of relationship
Objectives, Norman, 3 minutes GUIDE Key points Stewardship works We are doing it What to do in your own organisation It’s not a department 3 year progression
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = 18.5% reduction in total year (monthly value halves in 18 months, quarters in 36 months) At 1.1% per month, stays above half monthly value for more than five years) Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
Context, Nick, 2 minutes GUIDE Environment Competition Rapidata figures without comparisons 3.8% per month for 12 months = xx% in the year Quotations following each other on screen, one after another# References in footer Merchant et al Sargeant an Woodliffe Nathan and Hallam Sargeang
5 years ago (NB, 1 min) GUIDE From Focus on organisation All about the science The language of scientists To Focus on donor How donors enable science Show Annual report
5 years ago (NB, 1 min) GUIDE From Focus on organisation All about the science The language of scientists To Focus on donor How donors enable science Show Annual report
Integration (NB, 3 mins) GUIDE Process-driven Fi’s example British Red Cross 3 month, then 6 month upgrade Retention is different department AICR 12 month, thank you, 36 month What would I be comfortable with? Silos Retention built in to Organisation Programme
Nick (1 min) Add in Event people, Sweeps people in first box, various sources Hugh to Talk in detail about the HMB example DM HMB Event Online Lapsed / reactivation Cold Data from Acxiom De dupe against warm file Existing Donors profiled from prize-led giving stream Lapsed Prospect lists Service users Volunteers Event participants
How it works (HM, 5 mins) – this and following three slides
?Need to include interim thank-yous in this, eg newsletters “ Thank you each time we call and write Separate thank you call on anniversary of giving Updates”
Hugh
Norman here, overall results (2 Mins)
Norman here, overall results
A retaining programme, Nick 6 mins GUIDE DVD Brand From 11 mins to 4 + Social media Staffing, interaction, thank you E-newsletter Prizes Visits Feedback Norman’s FB birthday Newsletter Thank you for making the science possible Donor survey Frequency of contact Channel Event support Marathon Reactivation Phone Thank you including DVD
A retaining programme, Nick 6 mins GUIDE DVD Brand From 11 mins to 4 + Social media Staffing, interaction, thank you E-newsletter Prizes Visits Feedback Norman’s FB birthday Newsletter Thank you for making the science possible Donor survey Frequency of contact Channel Event support Marathon Reactivation Phone Thank you including DVD
On average our January Special Supporter sweeps comms achieve 24.15% donating response rate and a £9.84 average gift On average our sweeps mailing achieve 22.08% DRR and a £9.33 average gift. This 9.3% uplift in donating response rate can be attributed to the creative which leads on thanking the donors. The pack includes a personalised donor card and paper based premium. It also clearly highlights what has been achieved the donations that have been sent.
A retaining programme, Nick 6 mins GUIDE DVD Brand From 11 mins to 4 + Social media Staffing, interaction, thank you E-newsletter Prizes Visits Feedback Norman’s FB birthday Newsletter Thank you for making the science possible Donor survey Frequency of contact Channel Event support Marathon Reactivation Phone Thank you including DVD
A retaining programme, Nick 6 mins GUIDE DVD Brand From 11 mins to 4 + Social media Staffing, interaction, thank you E-newsletter Prizes Visits Feedback Norman’s FB birthday Newsletter Thank you for making the science possible Donor survey Frequency of contact Channel Event support Marathon Reactivation Phone Thank you including DVD
Results, Norman, 3 mins GUIDE Thank you + upgrade Additional 49% of donor gift 2:1 ROI by year 2 Additional GiftAid sign-up Of those who upgrade – from 78% to 85% Supporter Card Newsletter Here’s the science 9 months thank you 28% upgrade over the phone at 12 months – tested
Summary (NB, 3 mins) GUIDE What seems to be working You can do this How … Put the attrition graphs back in? May be others that we can use here – NB Show difference in income value if attrition was twice as high – Katie? Or Nick
“If you improve attrition from the monthly industry average of 3.8% to 3.3% using the above forecast (a reduction of 0.5%), you will save over £100,000 in the first year – for us that means another grant funded”
