Sept 20 briefing commitment findings draft1

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Lots has been written, talked and preached about the need to create, maintain and grow donor relationships...with near unanimity about the immense value derived: Higher retention. Higher net income. Higher Life Time Value.

What is missing is a systematic, math-based, proof-based and theory-based process to measure the strength of the donor relationship and the marketing, communications, fundraising and operational actions your organization can take to affect it.

In this presentation you will see evidence of the predictive power of the something we call Donor Commitment - an attitudinal indicator of future behavior. We will show that it is a better predictor than other attitudinal models or frameworks and how you can use it to track progress and segment your file in a way that supports your existing, behavior based approaches.

We will also identify what we call the "drivers" of Commitment, the seven actions/activities your organization must engage in to increase Commitment.

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Sept 20 briefing commitment findings draft1

  1. 1. We set out on this project with one simple premise:Impacting donor attitudes is the key to retentionbecause,• Donor attitudes dictate donor behavior AND• The attitudes are what you impact with your actions.
  2. 2. Our simple Premise led to Relationship Theory(and Dominos#*#%?$#?) Domino Analogy of Donor Relationships
  3. 3. Our Theory led to a Project And… 7 1/2 Really BIG Takeaways1. We have a math-based way to measure, score and improve donor attitudes. We call it Donor Commitment and it is a proven, leading indicator of future behavior.2. Donor Commitment is the missing link between fundraising, communications and the bottom line3. For every $200,000 1000 donors you move from Low to High Commitment you get $200,000 more income4. The Donor Commitment Score requires ONLY 3 questions and predicts behavior better than other models.5. The Donor Commitment Score can be used for benchmarking, tracking and targeting and we have developed inexpensive tools to help you do this.6. We have identified the 7 Key Drivers, from among 34 possible options, an organization must take to improve Donor Commitment.7. There is a best practices Idea Bank on how to deliver on the 7 Key Drivers. 7.5 We believe these discoveries will reduce the workload and expense for organizations by helping them focus on the few things that really matter.
  4. 4. What is YourRelationship Statuswith Your Donors?
  5. 5. Does it even MATTER?
  6. 6. To the DonorVoice Briefing where we’ll show the answer is emphatic YES.Does it even MATTER?
  7. 7. $200,000 more forevery 1,000 donors =
  8. 8. A Comparative Look Highest HIGH & lowest LOW Competing Model based on Adrian Commitment Sargeant ‘s work Satisfaction Favorability RecommendHigh $344.39 $312.65 $320.18 $306.51 $295.04Low $148.91 $162.08 $172.67 $178.96 $199.27% increase 131% 93% 85% 71% 48% Biggest % Increase
  9. 9. The Gold Standard - RFMBy taking actions to build Donor Commitment, organizations canactually improve the RFM quality of their files Frequency of Dollar Recency of Last Gift (in days) Giving (2010) Amount(2010) Competitor Competitor Model Competitor Model Based Based on Model Based DonorVoice on Adrian DonorVoice Adrian DonorVoice on Adrian Commitment Sargeants Commitment Sargeants Commitment Sargeants Model work Model work Model workHigh 338 383 3.94 3.59 $173.93 $160.31Low 453 396 2.34 3.0 $92.91 $131.20Difference 115 13 1.6 0.59 $81.02 $29.11 overall mean for the sample, 389 days since last gift mean for sample, 3.29 mean for sample, $145.69
  10. 10. What is All ThisRelationship &Commitment Stuff?
  11. 11. Donor Commitment Model – the ‚messy middle‛ -Detailshttp://www.slideshare.net/kschulman14/donor-relationship-management More Details Here
  12. 12. How To Measure Donor Commitment
  13. 13. How To Measure Donor Commitment Donor Commitment Score (DCS)TM 0 to 10 point agree/disagree scale 1. I am a committed (insert org name) donor Commitment 2. I feel a sense of loyalty to (insert org name) to 3. (insert org name) is my favorite charitable Organization organization Reliability/Satisfaction Emotional Connection Trust
  14. 14. All these measures, all these scores, now what?
  15. 15. *denotes small sampledirectional data only
  16. 16. Donor Commitment BRAND Map
  17. 17. Donor Commitment DONOR Map Salvation Army Donors 9.2 High Commitment 45 yrs old, $651 last 3 yrs, 35% giving to religious cause, 24% had experience since last gift EXCEED expectations Potentials 50 yrs old, $487 last 3 yrs, 21% giving to religious cause, 27% had 8.2 experience since last gift EXCEED expectations Vulnerables 50 yrs old, $488 last 3 yrs, 20% giving to religious cause, 0% EXCEED, 14% FALL SHORT Transactional 53 yrs old, $216 last 3 yrs, 24% giving to religious Biggest difference? 7.2 cause, 0% EXCEED, 20% FALL SHORT Overall Experience since last gift 6.2 3.2 4.2 5.2 6.2 7.2 8.2 9.2 5.2 4.2 3.2 2.2
  18. 18. How To Impact Donor Commitment? Key Driver Analysis. Just not this “driver”
  19. 19. Survey1. Effectively trying achieve mission2. Knowing what expect from org w/ each interaction3. Timeliness of thank you’s4. Providing opportunities to make views known From 32 possible5. Provide feeling part of important cause drivers6. Provide feeling involvement appreciated7. Send information showing who is being helped
  20. 20. What is All This This KeyDriver Stuff About?
  21. 21. First, Ask the QuestionWhat, under organization’scontrol, might impact howthe donor feels about us? •Marketing •Communications •Fundraising •Operations
  22. 22. Second, Make a List
  23. 23. These would be verycustomized for a clientspecific study!
  24. 24. 32 things is A LOTUse statistical techniqueto group items togetherThis is the mental groupingdonors would do if it was atall possible for them (ITISN’T!)
  25. 25. 32 things is A LOT Grouping them together is one thing, But which ones really MATTER? Which ones really Impact Commitment? Quick quiz: why is Regression called REGRESSION?The term "regression" was coined by Francis Galton in the nineteenthcentury to describe a biological phenomenon. The phenomenon wasthat the heights of descendants of tall ancestors tend to regress downtowards a normal average (a phenomenon also known as regressiontoward the mean).[6][7]
  26. 26. 32 things is A LOT Key Driver Analysis.1. Effectively trying achieve mission .39 (48%)2. Knowing what expect from org w/ each interaction .17 (21%)3. Timeliness of thank you’s .14 (17%) Commitment .11 to4. Providing opportunities to make (14%) Organization views known .34 (45%) 5. Provide feeling part of important cause .28 (37%) 6. Provide feeling involvement appreciated .13 (18%) 7. Send information showing who is being helped
  27. 27. Really Practical Stuff Shameless Plugs &
  28. 28. Really Practical StuffQuestion: What do I do to perform better onthe key drivers?Answer: Check the Idea Bank
  29. 29. Key Driver Idea Bank  Exceptional storytelling. Creates a collective experience better than anything  Use of donor engagement language that gives ownership to them for the impact of programs. (‚Thanks to you“‛“‛your help did xxxx‛“, ‚you accomplished xxxxx‛  Allow donors to express their reasons for supporting the cause so they feel part of a larger community and establish a social norm.Driver #1-Providing  Make donors the voice of the organization--invite champions to writedonors with feeling the appeals, do fundraising among their friends and family, etc.they are part of an  Continual reminder and updating on importance and urgency of the cause or issueimportant cause  Frequent progress reports on movement toward solution along with(45%) reminder of urgency  Tell/show the other donors, volunteers, experts, etc who have joined in the cause  Use third party testimonials/endorsements from impressive/relevant people including celebrities  Tell the commitment stories of donors, volunteers and staff  Use pins, decals, certificates and other indicia of belonging.
  30. 30. Key Driver Idea Bank Overhaul broken, lame acknowledgement system making it much more than just a ‘receipting’ program.  Send thank you from beneficiaries or in voice of the beneficiaries.  Thank you; from benficiaries is best. Thanks from program staff at front lines is second best. Thanks from "membership or development director is marginally better than no thanks at all.  Communicate sense that the donor has become an owner or integral part of theDriver #2-Providing program and its successes  Use technology. Videos of communities helped“pictures of people whose lives weredonors with the changed“first-person emails from volunteers on the frontline.feeling their  Send a special note of recognition and thanks on the anniversary of their first gift, their birthday or other special occasion.involvement is  If appropriate, recognition in honor rolls, special recognition clubs, annual reportsappreciated (37%) and features in newsletters  "Insider" memos shared from the executive director, members of the board or key staff indicating progress and noting that this wouldnt be possible without donors support.  Postcard or photos from the field with note recognizing support  Certificate of recognition at key anniversaries or annually  Packet of newspaper clips with cover note indicating the donors help made this posssible  Occasional email alerting donor to special events or recent developments  Invitations to telephone briefings
  31. 31. The commercial sector is way ahead of non-profits when it comes to onlineengagement via feedback tools on websites and Facebook pages. Who caresyou say?There are three reasons you should:
  32. 32. Thank You for Your Interest and Time TodayContact us here for more information or with questions:research@thedonorvoice.com(202) 246-9649Or visit us online, www.thedonorvoice.comOr on Twitter, @kschulmanDV

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