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Exploring What You Think You Know About Retaining Your Donors
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Donor Development + Retention (Moore/Prottas -- 2009-11-05)
1. Donor Development + Retention Exploring What You Think You Know About Retaining Your Donors November 5, 2009 • Saint Paul RiverCentre Daniel Moore + Jeffrey Prottas
13. Engagement Opportunity Calendar Receipt Thank You Newsletter Web Update eNewsletter MAIL PHONE EMAIL WEB EVENTS Acquisition Acquisition Volunteer Newsletter Web Update eNewsletter Thank You Newsletter Web Update eNewsletter Volunteer Renewal Renewal Renewal Renewal Receipt Receipt Big News Thank You Newsletter Web Update eNewsletter Big Event Upgrade Upgrade Upgrade Upgrade Receipt Receipt
Donor Development + Retention Exploring What You Think You Know About Retaining Your Donors Daniel Moore + Jeffrey Prottas November 5, 2009 • Saint Paul RiverCentre Minnesota Council of Nonprofits / Minnesota Council of Foundations
What is donor retention? You decide.
Why retain? Make new friends, but keep the old. One is silver, the other is gold. A circle is round, it has no end. That's how long, I will be your friend. In a weak economy, donor loyalty and retention is stable currency. It’s the donors you have a real relationship with -- those who are active and invested -- who will continue to give in trying times.
Relationship Cycle The process of generating sustainable annual support is based on the relationship one builds with both the existing and prospective donor. Each step in the process needs to be followed. Breaking the cycle sets your program back in terms of maximizing your fundraising capacity. Broken down, the steps are: Point of Entry to Your Organization – how are people introduced to your organization and how do they become passionate about your mission? Listen and Learn – Cultivating the relationship with your prospective donor, engaging your donor in activities that deepen their commitment to and passion for your organization. Ask For Money – Once the relationship is established, ask, ask, ask! Once you’ve determined that your prospect is ready, make sure you’ve done your research and ask for a substantial, meaningful and impactful gift. Get Referrals – The best source of new prospective donors is from existing donors. When a donor gives you a referral, you have succeeded in gaining a partner for life. Referrals are not easy to come by so treat them gently to cultivate them properly. Thank and Report – The best way to retain is donor is to make their very first giving experience memorable – for all the right reasons. Start Listening and Learning Again
Available Funding Sources Brand New Donors Other People’s Donors Keeping Your Donors Upgrading Your Donors Significant sums of money are spent each year on finding new sources of funds. The greatest source of funds, your existing donors, is often overlooked.
Scenario All funding sources are important, but the easiest way to increase revenue is from your existing base. It costs ten times more to acquire than retain. The value of new donors can be significantly diminished if you loose existing donors. Imagine Organization A retains 90% of its existing donors and adds 10% new every year. Organization B retains 95% (just 5% more) and adds the same 10% new. Keeping that 95% each year yields 30% growth over five years. At 14 years, Organization A doubles in revenue. So once you win them, why let them go? Happy Renewing Donors = Referrals = Cheap Acquisition By understanding renewing donors, you know what to look for when acquiring. Retention analysis will alert you of who you’ll lose.
Reasons Donors Leave All but one of these reasons are within your control. Is Giving in Other Ways Great! Thanks for volunteering or networking. Other Causes Are More Deserving Moving Marketing Messaging Cannot Afford Contribution Offer low-entry monthly giving, or deferred (planned) options. No Memory of First Gift You didn’t thank and steward effectively. Relocation Enter: The Internet Inappropriate Communication Be sensitive to channel and message. Inappropriate Amount Observe patterns. Ask by calculation. Not Asked to Give Again Ask More Often – In Diverse Ways Gift Impact Not Made Clear Stewardship Reporting. Newsletters. Death Share condolences and recognition when appropriate.
Acquisition | Identification Identifying individuals with an affinity for your cause and offer them a compelling opportunity to get involved, those who: Are inspired by your organization’s vision. Have a personal connection to your purpose. Believe your organization is accomplishing its goals. Direct mail, telemarketing, Internet, viral volunteer networks, television, radio, events Direct mail is the most widely used acquisition vehicle. Expect to make an investment in acquisition. Understanding your long term donor value (LTV) will help you prioritize your acquisition efforts and know what the acceptable cost per new donor is for your organization. LTV = [ Total Income ( - ) Total Cost (acquisition and annual renewal) ] * Appropriate number of years (5)
Acquisition | Qualification Qualify potential donors based on their: Linkage - discern existing personal connection to purpose Inclination - discern potential interest in seeing mission fulfilled Ability - discern financial or in-kind capacity to serve your organization Find a big white board and create a map. Organization name in the center First ring is what you do (all the specialties & sub specialties of your mission and services) Second ring is audiences that might connect or empathize with a ‘branch’ of what you do Third ring is how you’d engage them (vehicles, opportunities, and potential offers)
Acquisition | Communication Acquisition Best Practices Audience (40%) Built-in constituencies -- Patient Families, Alumni, Parents, Grandparents, Board of Directors Philanthropic community members -- Known Donors who give to charity, give to religious causes, give to causes in your sector Response Files -- Direct Mail donors, Internet donors, Catalog buyers Multi-buyers -- Appear on more than one list that you’ve purchased. These are great donors and worth mailing multiple times throughout your acquisition program. Offer (40%) Your gift will have twice its normal value. $20 will provide $40 worth of state-of-the-art treatment, research and other lifesaving assistance. Matching gift offer clearly indicated on outer envelope. Creative (20%) Strong and engaging teaser (image and language) In acquisition, it’s rare that people read great, compelling copy in your letter and elect not to give. It’s much more likely that they move past your package without even opening it. Connect to things your audience cares about: saving time, feeling good about themselves, feeling powerful, etc. Identify and offer a compelling reward for taking action. Remember, good rewards are immediate, personal, credible and reflective of audience values. Have a clear call to action. Good actions are specific, feasible and filmable (in other words, easy to visualize doing). They should also measurably advance your mission. Make it memorable. We don't want simply to make an impression; we want to make a lasting impression. What makes something memorable? It's memorable if it's different, catchy, personal, tangible and desirable. But a word of caution: memorable elements should always be closely tied to our cause. Think of all the advertisements that were so funny or memorable that we told a friend about them, but when asked what product the ad was for, we were not sure. We don't just need a memorable idea or picture; we need an idea or picture that makes our cause memorable.
T.H.I.N.K. Thank – Prompt Letters, Personal from CEO, Handwritten notes Honor – Cumulative; Certificate, plaque or other keepsake for them to keep and display; Giving Clubs; Annual Giving; Milestones; Longevity Invite -- Clever Parties; Inexpensive Receptions; Celebrations & Blessings Involve -- Hands-on Volunteer Service; Seek Advice Inform -- Educational Seminars; Health Issues Updates – State of the “Union” by CEO 84% of healthcare donors consider the giving experience to be what they expected. 11% say the charity went beyond their expectations. 5% say the charity fell short. Know Observe the “Platinum Rule” Keep notes on important details Surprise them with a newspaper clipping about them or about something of interest to them. Be responsive when they contact you. Welcome Series Thank you receipt Welcome Kit Phone Call 2nd Request Cultivate relationships by: Tailoring activities to knowledge gained through qualification. Bringing prospect closer to the mission through engagement. Providing transparency into activities and decision-making. Creating opportunities to involve in mission-centered hands-on experiences Remember that donors give because they are inspired by your vision, have a personal connection to your cause, believe the mission is working, and see work being done responsibly. Reinforce throughout cultivation the clear mission, what makes you unique, specific fund raising goals, and what specifically gifts will accomplish. Practice Channel Neutrality, Flexibility, and Careful Message Cohesion
As you work toward improving your retention program, think of your best customer experience as a consumer. You can immediately bring to mind the feeling you had when you got what you wanted, felt good about the transaction, enjoyed the experience, and were ready and willing to buy and/or participate again. Take those thoughts and build them into your retention efforts. Use your own experiences to dictate what you intuitively know helps establish solid, ongoing relationships with your constituents. With every donor you keep involved in your program, your database of supporters will continue to multiply and grow organically. Your retention program will build momentum and become a stabilizing factor in keeping your file strong, year after year.
Jeffrey Prottas [email_address] linkedin.com/in/jprottas Daniel Moore [email_address] linkedin.com/in/danieljmooremn