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Attrition management and stewardship
This document discusses attrition management and stewardship strategies for face-to-face fundraising campaigns. It outlines four pillars for minimizing donor attrition: inspiring donors, taking care of donor money through data management, monitoring donor performance, and treating donors differently. Specific recommendations are provided under each pillar, such as increasing communication frequency and customization, reconciling payment data monthly, and benchmarking attrition against industry averages. The importance of testing and evaluation is emphasized. The document notes that attrition rates can vary significantly between charities and that investing in attrition management could result in 50% higher income over 5 years for a campaign of 1,000 donors compared to not managing attrition.
Attrition management and stewardship
- 1. Attrition Management & Stewardship Face-to-face Fundraising 2012 Institute of Fundraising Conference 4th December 2012
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- 3. Charity ? Donor Donor Fundraiser
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- 5. Our Four Pillars‘Sweetening’ Your Acquisition Campaign … • Inspiring & motivating donors • Retention plan • Taking care of your donor’s money • Data management • Donor performance • Management reporting • Treating the donor differently • Testing & evaluating
- 6. No Acquisition Without… a Retention Plan
- 7. DARS Evidence – Minimising Attrition Do… • Increased freq. & customisation of comms • Evidencing ongoing need (appeals) • Capture & build upon donor motivations • Upgrade around 7-11 months for best longer- term performance, even if donor does not upgrade
- 8. DARS Evidence – Driving Down Retention Don’t… • Allow donor to choose frequency & channel of communications – Send them all everything anyway! • Leave donors un-contacted in case reminds them to cancel • Send all comms using single channel
- 9. No Acquisition Without… BackroomData Management
- 10. Donor Payment HealthCheck 1% Not yet started Actively paying (no issues) 29% Reactivated (no issues) Reactivated (not started) Active - have paid, but more than 2 payments out Active - reported as unpaid 58% Active - missing any payment 1% history 1% Reactivated - payment issues 2% 1% 2% 5% Cancelled Reactivated - CANX
- 11. Data: Minimising Attrition Do… • Regular meetings with data team • Sense-check data imports every month/quarter • Reconciling payment files every month • ‘Missed’ payments identified & cancelled quickly – reactivation calling maximised • Income projections based on income banked!
- 12. Data: Driving DownRetention Don’t… • Fail to work with the data team & reconcile all donors • Projecting future income on un-reconciled cancellations reported by database • Blaming when banked income falls far short of levels projected
- 13. No Acquisition Without… ManagementReporting
- 14. Reporting : MinimisingAttrition Do… • Early KPIs from campaign will play a key part in attrition – Av gift, av. Age, DD start date lapse, full comms capture (email…) • Treating your agency as a partner – regular meetings • Monthly reporting of attrition based on month of 1st payment • End of year planning looking at mix of F2F/D2D/PS • Look at ROI of Yr 1 and lifetime value of prev. yrs on ongoing basis
- 15. Benchmarking Against DARSAverage Campaign averages by year: street 90% Street 80% 2006 70% Street 2007 60% Attrition rate Street 50% 2008 Street 40% 2009 30% Street 2010 20% Street 10% 2011 0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 Months
- 16. Benchmarking Against DARSAverage Campaign averages by year: door 90% 80% Door 2006 70% Door 2007 60% Attrition rate Door 2008 50% 40% Door 2009 30% Door 2010 20% Door 2011 10% 0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 Months
- 17. Benchmarking Against DARSAverage Campaign averages by year: private sites 90% 80% Private sites 2008 70% 60% Attrition rate Private sites 2009 50% 40% Private sites 2010 30% 20% Private sites 2011 10% 0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 Months
- 19. Reporting: Driving Down Retention Don’t… • Driving agency to deliver to phasing at all costs • View agency as supplier: minimum contact • Reporting on attrition based only on cancellations • Review theoretical ROI at yr end & move on to next year’s acquisition campaign • Choice of channel based on personal preferences • Not factoring in economic climate/changes in perf.
- 20. No Acquisition Without… Testing & Evaluating
- 21. Testing & Evaluating: Minimising Attrition Do… • Find out what’s worked: ask fundraising teams • Payment-based communication with donors • Enhancing donor communications based on attrition trends: Bespoke – (…Mencap video) • Spit test key variables on quarterly basis
- 22. Testing & Evaluation:Driving Down Retention Don’t… • Only review material at end of each campaign • Communicate with donors on time-basis only – Easter Appeal at Easter; Christmas Appeal at … • Not pick up on data trends
- 23. What’s the Pointin Doing All This? Is it Cheaper to Just Acquire More Donors??
- 24. What’s the Point? 2 Attrition rates by charity: door 2010 3 80% 4 6 70% 9 14 15 60% 20 29 35 50% 35(2) Attrition rate 35(3) 40% 40 41 45 30% 47 51 20% 53 54 58 10% 59 60 61 0% 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 63 64
- 25. What’s the Pointin Investing Time & Resource Into Attrition Management & Stewardship? Difference in Income of Actual 1,000 Donor Campaign Over 5 Years Between Best & Worst Attrition? £135,000 (50%)!
- 26. Our Donor’s ExperienceWith Us How do we go from this… …to this, in practical terms?
- 27. Finance Comms Database Digital Donor Donor Donor Donor Donor Donor Fundraiser Charity
- 28. Don’t Assume Anything! Signup & Test for Yourself - Are you Happy with the Experience?
- 29. DARS: Get Involved! •DARS 2012 Report Out in 2 Weeks • User Panel presentation Thurs 13th Dec – Presentation of report – Feedback from Users to build DARS 2013 • Jan/Feb DARS 2013 launched • Feb/Mar DARS 2013; submit your data • Presentation @ PFRA AGM June 2013 (& IoF)
- 30. Thank You &Questions Morag Fleming: morag@decaidconsulting.co.uk moragf@futurefundraising.co.uk Rupert Tappin: rupert@decaidconsulting.co.uk rupertt@futurefundraising.co.uk