Keeping and Growing Donors for Life


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Keeping and Growing Donors for Life

  1. 1. Keeping and Growing Donors for Life Philip Tomé, Account Director Heather Rocheleau, Account Supervisor February 4, 2011
  2. 2. Our time together… <ul><li>The donor lifecycle </li></ul><ul><li>New donor conversion </li></ul><ul><li>Donor cultivation & retention </li></ul><ul><li>Upgrading donors </li></ul><ul><li>Reactivation </li></ul>
  3. 3. The donor lifecycle
  4. 4. Understanding the donor lifecycle
  5. 5. New donor conversion
  6. 6. New donors <ul><li>60% of new donors give a second gift </li></ul><ul><li>Of the donors that give a second gift, the majority will do so within the first six months of the relationship – while your Mission is still top of mind </li></ul>
  7. 7. Start the relationship off on the right foot… <ul><li>Make a great first impression </li></ul><ul><li>Timely receipting: 48-72 hours from initial gift </li></ul><ul><li>Donors want to know their gift was received by the Mission; don ’t make them guess </li></ul><ul><li>Give thanks: consider a postcard – in addition to gift receipt – to simply express gratitude </li></ul>
  8. 8. Send a thank you note worth saving <ul><li>Acknowledge the amount, date of gift and tie back to acquisition piece (meal offer, holiday campaign, etc.) </li></ul><ul><li>Want the donor to feel valued no matter the size of gift </li></ul><ul><li>Mention impact of gift – how it is helping to feed and care for the hungry and hurting </li></ul><ul><li>Handwritten note for major gifts – phone call as well </li></ul><ul><li>Ask for the second gift ASAP </li></ul>
  9. 9. Get to know your donors <ul><li>Use the thank you letter to get to know your donors </li></ul><ul><ul><li>Ask donors how they want to be involved </li></ul></ul><ul><ul><li>Specific programs they would like to support </li></ul></ul><ul><ul><li>Capture responses in database </li></ul></ul><ul><ul><li>Have processes in place to act on their interests </li></ul></ul><ul><ul><li>Be careful about asking up front, how much mail they want to receive </li></ul></ul>
  10. 10. Use the mail <ul><li>Welcome package </li></ul><ul><li>Initial newsletter </li></ul><ul><ul><li>Cover letter with new donor copy </li></ul></ul><ul><ul><li>Mission updates, client testimonials, drive to website, call to action </li></ul></ul><ul><ul><li>Volunteer opportunities </li></ul></ul><ul><li>Early cultivation – December or January appeals </li></ul>
  11. 11. Reach out by phone <ul><li>Thank you call – brief, no ask </li></ul><ul><li>Made by staff, volunteer, program member, graduate or teleservices company </li></ul><ul><li>Voice messaging – with simple messages of thanks voiced by President or Executive Director </li></ul>
  12. 12. Keep in mind that donors are real people who have voluntarily given to your Mission and will give again if someone listens to them and they feel they have been heard
  13. 13. Heart of the Donor™ survey says… <ul><li>When asked what some organizations have done after the donor gave the first time that encourages them to support the organization again, three factors rose to the top: </li></ul><ul><li>Explained the specific mission of the organization to me (78%) </li></ul><ul><li>Gave me information about exactly what my gift helped accomplish (75%) </li></ul><ul><li>Made me feel that my gift really made a difference (72%) </li></ul>
  14. 14. Donor cultivation & retention
  15. 15. How your mission can keep donors engaged <ul><li>Show gratitude… Often! </li></ul><ul><li>Cultivate relationships based on mutual benefit </li></ul><ul><ul><li>Get to know your donors needs and interests </li></ul></ul><ul><li>Provide opportunities to volunteer – to go beyond monetary contributions </li></ul>
  16. 16. Cultivation (0-12 months since last donation) To solidify relationship with supporter within the first year – convert acquaintances into advocates
  17. 17. Retention (13-24 months since last donation) Intentional efforts to secure gift and bring donor to current status thereby continually refreshing the 0-12 segment of file
  18. 18. Cultivation & retention best practices
  19. 19. Direct mail <ul><li>Full cultivation efforts according to prescribed audience segmentation </li></ul><ul><li>Custom copy to reflect Mission brand and messaging </li></ul><ul><li>Themed marketing periods </li></ul><ul><li>Relevant and timely thank you receipts – use warm and personal tone </li></ul><ul><li>Receipt copy – relevant to appeal and Mission specifics </li></ul>
  20. 20. Direct mail <ul><li>Newsletters – use to update donors and raise additional funds </li></ul><ul><li>Year end appeal – tax incentive, specific fundraising goal </li></ul><ul><li>Special retention letter for 13+ month donors </li></ul><ul><li>Postcard targeted to near-lapsing donors: Inexpensive touch-point, affirmation, mission update, drive to website to renew support </li></ul><ul><li>Include low end, single gift donors in Fall Acquisition as well as the new Micro Donors audience (US only) </li></ul>
  21. 21. Phone <ul><li>On-going thank you calls </li></ul><ul><li>Voice messaging – with simple messages of thanks voiced by President or Executive Director </li></ul><ul><li>Phone outreach to those donors who are beginning to lapse </li></ul><ul><li>Year end calls to middle and major donors – affirm support and request holiday gift (gift conversion works in conjunction with direct mail) </li></ul>
  22. 22. Events <ul><li>Executive Director dinners or luncheons </li></ul><ul><li>Radio events </li></ul><ul><li>Open House, Missions tours, graduations </li></ul><ul><li>Volunteer/Community involvement </li></ul><ul><li>Food/GIK drives (Hope Tote) </li></ul><ul><li>Banquets/Galas </li></ul>
  23. 23. Digital <ul><li>Refresh website content regularly (virtual tour, video and photo gallery, client testimonials, Mission updates) </li></ul><ul><li>E-communications </li></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>E-Newsletters </li></ul></ul><ul><li>Strong drive to website from direct mail appeals </li></ul><ul><li>Social media – Facebook, Twitter </li></ul>
  24. 24. A good retention program looks at the entire relationship the donor has with the non-profit and acknowledges all the ways the individual interacts with the organization
  25. 25. Upgrading donors
  26. 26. Moving donors up the value chain <ul><li>Tactical dollar handle strategy to upgrade existing donors </li></ul><ul><li>RFM Segmentation – Recency, Frequency, Monetary value </li></ul><ul><ul><li>A holistic approach to managing your donor file to maximize net income </li></ul></ul><ul><li>Cultivate donors in to monthly givers , major donors, planned gift donors, GIK donors etc. </li></ul>
  27. 27. The Donor Pyramid: Delivering value over time Planned Gift 20% of Donors 80% of Funds 80% of Donors 20% of Funds Major/Capital Gift $1,000+ Renewed/Upgraded Gift $100 - $999.99 First Time Gift $0.01 - $99.99
  28. 28. Reactivation
  29. 29. Reactivation (25+ months since last donation) Intentional efforts and strategies to re-engage lapsed and inactive donors
  30. 30. Hey! Remember me? <ul><ul><ul><li>22% of lapsed donors are reactivated each year </li></ul></ul></ul><ul><ul><ul><li>40% of reactivated donors give a subsequent gift during the same year they reactivate </li></ul></ul></ul>
  31. 31. Reactivation best practices
  32. 32. Direct Mail (25+ months) <ul><li>Direct mail acquisition – all drop dates </li></ul><ul><ul><li>Pre-mail </li></ul></ul><ul><ul><li>Thanksgiving (main drop) </li></ul></ul><ul><ul><li>Late Thanksgiving </li></ul></ul><ul><ul><li>Christmas </li></ul></ul><ul><ul><li>Late Christmas (new in 2010) </li></ul></ul><ul><li>Lapsed donor copy treatment </li></ul>
  33. 33. Reach out by phone <ul><li>Donor receives call if no gift in 13+ months </li></ul><ul><li>Audience – depends on overall strategy and budget </li></ul><ul><ul><li>13-24 months – retention (pre-lapsing) </li></ul></ul><ul><ul><li>25-36 months – reactivation </li></ul></ul><ul><ul><li>37+ – win-back – highly targeted! </li></ul></ul>
  34. 34. Reach out by phone <ul><li>Call affirms donor for past support and urges them to renew </li></ul><ul><li>Calls placed by staff or specialized teleservices vendor </li></ul>
  35. 35. Forget me not… <ul><li>Remembering that you are in a relationship with your donors </li></ul><ul><li>Understanding what your donors want from you </li></ul><ul><li>Using that information to begin an active dialogue </li></ul><ul><li>Applying principles of great customer service </li></ul>
  36. 36. A final note… <ul><ul><li>Second gift conversion begins with building a relationship </li></ul></ul><ul><ul><li>Keep your donors engaged through cultivation and retention efforts </li></ul></ul><ul><ul><li>Upgrade your donors through intentional dollar handle, segmentation and personal communication strategies </li></ul></ul><ul><ul><li>When donors lapse, use a multi-channel approach including direct mail and phone outreach to reactivate their giving </li></ul></ul>
  37. 37. Thank You Philip Tomé Heather Rocheleau Account Director Account Supervisor [email_address] [email_address] (626) 463-9354 (626) 463-9306