Pareto Fundraising Masterclass presentation

1. Getting the most by getting it
monthly:
how ongoing, regular support has
transformed the fundraising landscape

4. Who we work with

5. Who we work with

6. What we’ll cover today
1. The power of monthly giving
2. Recruitment: how to get them
3. Engagement: how to inspire them
4. Retention: how to keep them
5. Growth: how to leverage more value
6. Bringing it all together

7. One: the power of monthly giving
Changing the fundraising
landscape

8. Growth in Canada
$40,000,000 $25
$35,000,000
$20
$30,000,000
$25,000,000
$15
$20,000,000
$10
$15,000,000
$10,000,000
$5
$5,000,000
$0 $0
2002 2003 2004 2005 2006 2007 2008 2009
Total Income Avg Gift

9. From different sources
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Direct Mail TV Unknown Phone Face to Face Door to Door Online
Unsolicited Press Inserts Email Radio Press Adverts Unaddressed

10. Monthly vs. cash

11. Monthly vs. cash
$550 net
(after 3 years)

12. Monthly vs. cash
$550 net $270 net
(after 3 years) (after 3 years)

13. Our research shows we’ve got
some work to do

14. Our research shows we’ve got
some work to do

15. Two: recruitment
How to get them

16. How to get monthly givers
• Acquisition
• Conversion
• Reactivation

17. How to get monthly givers
• Acquisition
• Conversion
• Reactivation

18. Key ingredients for acquisition
• Investment and Risk
• Understanding the channels
• Getting the proposition right
• Singular focus
• Benefits v features
• Testing
• Benchmarking

19. Key ingredients for acquisition
• Investment and Risk
• Understanding the channels
• Getting the proposition right
• Singular focus
• Benefits v features
• Testing
• Benchmarking

20. Where do they come from?

21. Direct mail
• Net value after 3 years
between $500 - $600
• Cost to acquire around
$150 - $200
• Year 1 attrition around
10%

22. Direct Response TV
• Net value after 3 years
between $250 - $300
• Cost to acquire around
$300
• Year 1 attrition around
30%

23. Face to Face (street)
• Net value after 3 years
between $100 - $200
• Cost to acquire around
$200
• Year 1 attrition around 25%

24. Digital
• Net value after 3 years
between $600 - $800
• Cost to acquire between
$0* - $300
• Year 1 attrition around 10%

25. Proposition: the single most
important thing

26. Proposition: the single most
important thing

27. Benefits v Features

28. Singular focus

30. What should we test?

31. What should we test?
• Singular focus v multiple options
• Ask prompts
• One stage v two stage recruitment
• Hand raising
• Creative approaches/messaging
• Multi channel approaches

32. 2nd Gift Strategy – Cash to monthly

34. Multi channel approach

35. Stage 1: Prospecting

36. Stage 1: Prospecting

37. Stage 1: Prospecting

38. Stage 2: solicitation

39. Stage 2: solicitation

40. Stage 2: solicitation

41. Multi channel approach

42. Multi channel approach

43. How do you stack up?

44. How to get monthly givers
• Acquisition
• Conversion
• Reactivation

45. Key ingredients for conversion
• Integrated - mail and phone
• Mail used to mop up phone campaign

46. Key ingredients for conversion
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become
monthly donors

47. Key ingredients for conversion
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become
monthly donors
• Consider different sources
• Onetime cash
• Lottery
• Purchasers/catalogue buyers

48. Key ingredients for conversion
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become
monthly donors
• Consider different sources
• Onetime cash
• Lottery
• Purchasers/catalogue buyers
• New donors, speed is key

49. Speed is key

50. Speed is key
18.0%
16.0%
14.0%
12.0%
Converted
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2 3 4 5 6 7 8 9 10 11
W eeks since Gift

51. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

52. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

55. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

58. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

59. Some easy rules to follow
• RFV
– Within last 24 months
– Given more than one gift
– Above $20
• Ask
– For active donors, monthly amount - last cash gift x 0.1
• Overlays
– Previous credit card usage
– Recruitment/donation source to see whether phone/DM
responsive

60. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

63. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

65. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

67. Getting the execution right
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’

70. How do you stack up?

71. Three: engagement
How to inspire them

72. The Honeymoon period:

73. What does this look like?
• Kill off cognitive dissonance
• Thank, welcome and reaffirm
• Ensuring excitement of sale doesn’t wear off
• Focus on key cancellation periods
• Relevant and regular communications

74. What does it look like?

75. Killing off cognitive dissonance

82. © Pareto Fundraising 2009

83. Example email

87. Ensure the excitement doesn’t
wear off

89. CanTeen:
Thank you message from
CanTeen Member: Sam

91. Key cancellation periods

92. Regular, relevant communications

93. It works

94. Four: retention
How to keep them

95. How to keep them
• Keep it personal
• Give and get feedback
• Understand drivers of attrition

96. Keep it personal

97. Keep it personal

98. Keep it personal

99. Keep it personal

100. It’s worth it
Knowing Bilbo’s
name increases
upgrade rate by 43%

101. Giving feedback

102. Giving feedback

103. Giving feedback

104. Getting feedback

106. What really drives attrition of
street recruits?

108. What really drives attrition of
street recruits?
• Recruitment • Amount
Source • Email Provided
• Gender • Home Phone
• Payment Method • Work Phone
• Payment • Mobile Phone
Frequency
• Age

109. Some really ugly, but useful
analysis
Year2 attrition
Node 0
Category % n
No 76.00 12012
Yes 23.00 3793
Total (100.00) 15805
Gender
Adj. P-value=1.0000, Chi-square=0.0412, df =1
F M;U
Node 15 Node 16
Category % n Category % n
No 75.92 5282 No 76.06 6730
Y es 24.08 1675 Yes 23.94 2118
Total (44.02) 6957 Total (55.98) 8848

110. Insights: what we found
• Age is the most significant factor in predicting
Year 1 attrition
• Payment type is significant, with credit card
payers more likely to attrite

111. What this allowed Amnesty to do
• Predict future value of supporters
• Prioritize spend
• Identify high risk supporters and treat them
differently

112. Five: growth
How to leverage more value

113. Leveraging more value
• Continuing to ask
• Understand relative value
• Upgrading

114. Continuing to ask

115. Continuing to ask
No. of Attrition Total months Avg months Total Value since
Terminated
donors Rate since 2008/09 given 2008/09
Included 3,434 287 8.36% 54,510 15.87 $14,334,329
Excluded 3,433 295 8.59% 53,979 15.72 $13,176,515

117. Getting the real lowdown: Net
Value to Date
Ave VTD by Channel by Year
$400
$300
$200
Ave Year 1 Net
Ave Year 2 Net
$100
Ave Year 3 Net
Ave Year 4 Net
$0
-$100
-$200

118. What this allowed SickKids to do
• Say things like:
“A donor acquired in 2005 by <insert channel>
is worth $450 whereas a donor acquired in
2005 by <insert channel> is worth $200”

119. What this allowed SickKids to do
• Say things like:
“A donor acquired in 2005 by <insert channel>
is worth $450 whereas a donor acquired in
2005 by <insert channel> is worth $200”
• Focus on areas generating the best real return

120. What this allowed SickKids to do
• Say things like:
“A donor acquired in 2005 by <insert channel>
is worth $450 whereas a donor acquired in
2005 by <insert channel> is worth $200”
• Focus on areas generating the best real return
• Understand implications of future program
decisions

121. Upgrading
• Phone the most effective medium
– Use mail to ‘mop up’ and consider testing online
• Testing between 4 and 9 months after
recruitment
• Serial upgrade rejecters – auto upgrade

122. Aim for 70% after 5 years
70% 3,000
60% 2,500
Number of upgraders
50%
2,000
Upgrade %
40%
1,500
30%
1,000
20%
10% 500
0% 0
2004 2005 2006 2007 2008 2009

123. Bringing it all together
Final takeaways

124. Bringing it all together
• Acquisition not cheap, need to balance
investment and risk with expected outcomes

125. Bringing it all together
• Acquisition not cheap, need to balance
investment and risk with expected outcomes
• To maximize acquisition and conversion, you
must:
– Keep it singularly focused
– Understand and explain why monthly so vital
– Kill off cognitive dissonance

126. Bringing it all together
• Focus on partnership and benefits, not
product names

127. Bringing it all together
• Focus on partnership and benefits, not
product names
• Honeymoon period essential, don’t let
excitement of joining you wear off

128. Bringing it all together
• Focus on partnership and benefits, not
product names
• Honeymoon period essential, don’t let
excitement of joining you wear off
• Continuing to ask will help leverage more
value and keep more donors

129. Bringing it all together
• Focus on partnership and benefits, not
product names
• Honeymoon period essential, don’t let
excitement of joining you wear off
• Continuing to ask will help leverage more
value and keep more donors
• Use net long term value as key measure, not
just CPA

130. Thank you and Questions
.
jonathon.grapsas@paretofundraising.com
www.jonathongrapsas.blogspot.com
twitter: jonathongrapsas
www.paretofundraising.com