Maximising retention and securing ongoing gifts. Optimising life time value of donors * effective stewardship * securing second and ongoing gifts * upgrade and conversion opportunities

1. Maximising Retention and
Securing Ongoing Gifts
Fiona McPhee

2. Optimising Life Time Value

4. Our Reality
New%donor%retention
35%
58%

5. WHO ARE WE ACQUIRING?

6. The big questions

7. The big questions

8. • We acquire more community / peer-to-peer and event donors than
any other kind (1/3 of total in Aus)
• We acquire more cash donors then regular givers (this will change
here based on UK and Aus market tracking)
• Our regular givers make us more $$ in the short term
• We acquire more community / peer-to-peer and event donors than
any other kind (1/3 of total in Aus)
• We acquire more cash donors then regular givers (this will change
here based on UK and Aus market tracking)
• Our regular givers make us more $$ in the short term

9. Gross Individual Income
Bequests & Major
Gifts account for
~40% of all income

10. The big questions

11. Cash dominated
by direct mail
Cash dominated
by direct mail
Regular Giving
dominated by
Face-to-Face
Regular Giving
dominated by
Face-to-Face

12. 1/3 of cash
income comes
from donors
who have
been giving for
over 10 years.
2/3 from those
recruited five
or more years
ago.
Value comes
from a life
time of
giving, not
the short-
term.

13. We can decide
who we
recruit with a
view to the
gains over
time.
Older is still
better.
Until you have
all the older
donors
consider why
you are trying
to get the
young ones.

15. HOW ASSISTANCE DOGS
AUSTRALIA HAVE BEEN
ACQUIRING

18. The Strategy

19. First Steps

21. Objective Actual
Gross Income $96,763
Total Cost $66,730
Cost Per Unit $1.67
Net Income $30,033
RR% 7.6%
ROI 2.36
# Responded 3,038
Avg Gift $31.81
Mailing Volume 40,025
Campaign 1Campaign 1
ResultsResults
February 2011February 2011

22. First Steps

23. At this point …At this point …
$1.2 million
raised at
ROI of 0.87
28,00
0
new
donor
s

24. First Steps

29. Track Value
FirstGift 1 Recruits 1,968 First Gift 1 Recruits 11,557
Channel 1 CPA $58.30 Channel 1 CPA $34.67
Year 9 Ave Gift $44.52 Year 9 Ave Gift $37.50
Appeal 3 Recr ROI 0.76 Appeal 3 RecrROI 1.08
Premium 3 Max IncYr1 $2,250 Premium 2 Max IncYr1 $10,000
Year1RG% Year1Ratio Year1Inc Year 1ROI 2nd Gift1Yr Year1RG% Year1Ratio Year 1Inc Year1ROI 2nd Gift 1Yr
2.7% 1.85 $82.41 1.12 46.2% 1.2% 1.81 $67.87 1.37 39.2%
0%
10%
20%
30%
40%
50%
60%
2nd gift 90
days %
2nd gift 180
days %
2nd gift 270
days %
2nd gift 1
Year %
0%
10%
20%
30%
40%
50%
60%
2nd gift 90
days %
2nd gift 180
days %
2nd gift 270
days %
2nd gift 1
Year %

31. WHO STAYS & WHY?

35. Charity Recruitment
Volume
Second Gift
Rate
Number of
donors giving a
second gift
after 12 months
A 3,000 45% 1,800
B 10,000 30% 3,000
If charity A recruited 10,000 donors that
year they would have had 4,500 donors
giving a second gift after 12 months

36. Why do they give again?
Because they
were asked
Because they had
multiple opportunities
to give again
Because they
were thanked
Because they
are charity
donors

37. Building Your Second Gift
Strategy
Why did they give the first time? They don’t care about everything you do
(yet), they have shown they care about
one thing
How did they give the first time? What channel did they respond via?
When is the quickest you can ask again? The longer you wait the less likely they
will remember why they did it the first
time
Can you ask in the thank you? It’s an opportunity to do more after
understanding the impact I’ve just had
What can you ask for? Cash? Regular Gift?
Is it a good ‘ask’ vehicle Newsletter vs. an Appeal

38. What the data says
1. Ask fast: within in 6 weeks
2. Ask often: 8 asks in the subsequent year will
get a higher second gift rate than 3
3. Ask for the same thing they first gave to
4. Use the channel they did
5. Use any additional channels you have the
means to

39. Direct Mail
Acquired
Telephone
Acquired
Welcome
Package
Welcome
letter/Receipt
48 hours DM 2nd Gift
Mailing
TM RG
Conversion
6 Weeks
Ongoing
Coms
Appeals,
Upgrades,
Donor Care etc.
DM RG
Conversion
Mailing
Phone
Number
Available?
Yes +
eligible
Yes to RG
No to RG + Yes to
Cash
Yes/No
(2 mths
later)
No orNoteligible
DM 2nd Gift
Mailing
6 Weeks
(Up to 1 mth
later)
(2- 3 mths
later)
Yes
/No
Segmentation considerations: Credit Card vs No-credit card, 1st
donation value
Yes/No
New Cash Donor
Journey
NonContacts &
No to RG
or Cash

40. What do ADA do?
Second Gift: Ask soon and appropriately
Ongoing: Aim to build supporter relationships and trust
through:
• Regular storytelling and dialogue
• Beneficiaries
• Stakeholders
• Their work
Evidence & Education = Familiarity & Trust

41. What do ADA do?

42. What do ADA do?

43. What do ADA do?

44. What do ADA do?

45. ADA Tracks Second Gift Rates
A1102 A1112Q A1201Q A1202Q A1205Q A1210Q A1301Q
2nd gift 90 days% 3.0% 7.3% 4.1% 7.0% 0.9% 3.7% 5.0%
2nd gift 180 days % 11.7% 23.3% 16.5% 14.3% 18.2% 14.4% 13.3%
2nd gift 270 days% 13.5% 25.9% 21.7% 23.7% 21.7% 19.1% 20.2%
2nd gift 1Year% 25.5% 31.7% 27.0% 27.3% 27.6% 26.4% 25.5%
Recruits 3,097 5,196 5,958 8,913 4,603 10,009 9,212
0
2,000
4,000
6,000
8,000
10,000
12,000
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2nd gift 90 days% 2nd gift 180 days % 2nd gift 270 days% 2nd gift 1Year% Recruits

46. ADA Tracks Initial Value
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
A1301Q A1102 A1112Q A1202Q A1201Q A1205Q A1210Q A1304Q A1401Q
Recruits
$50+ $25-$49.99 $10-$24.99 <$10

47. ADA Tracks Second Gift Rates by Value
Recruits
2ndgift
180days%
2ndgift
270days%
2ndgift
1Year%
Multi Cash
All RGEver
Any
Second
%
A$1000+ 22 22.73% 27.27% 40.91% 63.64% 4.55% 63.64%
B$500-$999.99 46 17.39% 30.43% 43.48% 54.35% 10.87% 54.35%
C$250-$499.99 74 25.68% 29.73% 36.49% 54.05% 1.35% 54.05%
D$100-$249.99 2,897 17.74% 24.78% 33.14% 39.21% 5.01% 41.25%
E$50-$99.99 8,356 16.98% 23.58% 30.79% 35.85% 4.37% 37.75%
F$25-$49.99 25,133 15.31% 20.49% 26.09% 30.18% 2.37% 31.27%
G$10-$24.99 8,945 15.22% 20.75% 25.68% 29.11% 0.95% 29.51%
H<$10 1,514 11.16% 13.80% 19.88% 22.52% 0.46% 22.79%
GrandTotal 46,987 15.63% 21.16% 27.12% 31.37% 2.56% 32.50%

48. ONGOING COMMUNICATIONS
TO RETAIN

50. Retention Strategy
© 2013

51. Retention Strategy
© 2013

52. Retention Strategy
© 2013
Test
Keep Consistent

53. Retention Strategy
© 2013
Keep Consistent
Test

54. Why
1. To thank & show them their impact
2. To ask, because you have a need &
need their help
“If your story is not about the donor, its
about nothing at all” Tom Ahern

55. When

56. How: Multi channel?
• Direct mail donors with an email address
are up to 150% more valuable
• Effective use of integration shortens time
to second gift
• SMS around a direct mail renewal can
increase response by 25%

57. 0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Addr1
Addr1+
Email
EmailLandline
EmailMobile
Landline
Mobile
Addr1
Addr1+
Email
EmailLandline
EmailLandlineMobile
EmailMobile
Landline
Mobile
Addr1
Addr1+
Email
EmailLandline
EmailMobile
Landline
LandlineMobile
Mobile
Cash Recruit Emergency Recruit Disaster Recruit
2nd Gift Rate (Year 1) Recruits Base:2009 - 2014 Recruits
Address plus something else or
just address are best 2nd
gift
opportunity.
Address plus something else or
just address are best 2nd
gift
opportunity.
Donor Type 1 Donor Type 2 Donor Type 3

58. How: Multi Channel?

59. Content: It has to start with what
donors want, what motivates them
© 2013

60. Content
1. What do your donor’s wants or need?
2. All content is assessed aginst these
“If your story is not about the donor, its
about nothing at all” Tom Ahern

61. ADA Retention
Program

62. ADA Retention Program
Timing What & How Why
January Donor Care Pack
Direct Mail
Thank, additional opportunity to give
January Survey
Direct Mail
Invovle, additional opportunity to give
February Appeal
Direct Mail & Email
Opportunity to give
May & June Tax Appeal
Direct Mail & Email
Opportunity to give
July Donor Care Pack
& Tax Receipts
Direct Mail
Thank
September Appeal
Direct Mail & Email
Opportunity to give
November & December Christmas Appeal
Direct Mail & Email
Opportunity to give
Various Regular Giving Conversion
Direct Mail
Phone
Opportunity to do more

63. ADA Donor Care PackADA Donor Care Pack

64. Donor Care Ideas

66. Emotional Connections
Name of sponsored child
Name of pet
Name of a loved one lost
Why someone first donated
Country / area of interest

68. What else do ADA
do?
• Always send a thank you
• Send a survey with first donation receipt
• Have an acknowledgment stratgey that increases
personal contact based on value
• Ask about dog ownership on response mechanisms and
in surveys
• Capture dog names
• Use this information in renewal and retention
communincations
• Continually test and measure

69. Value to Date Monitoring
Metric Description
Recruits How many donors were recruited
Recruitment ROI ROI of the initial activity
Total Rec Cost Cost of the recruitment
Recruitment Income
Income from recruitment (first cash gift or actual year RG income
Year 1 Cost Ongoing expenditure
Year1 Warm Income Subsequent Year 1 income
Year1 income all Recruitment Income + Warm Income
Year1 ROI Year 1 income all /(Recruitment Cost + Year1 Cost)
Year1 Net Income per Recruit
Year1 Income per Recruit
Year1 Ratio Ratio of the total year 1 income to the initial gift
Year1 Warm income per rec Year 1 warm income /recruits
Max of Year1 income Identifies outliers in data
2nd gift 180 days % 2nd gift rate as % of all recruits
2nd gift 270 days % 2nd gift rate as % of all recruits
2nd gift 1Year % 2nd gift rate as % of all recruits
Cost per recruit Rec Cost / Recruits
Ave First Gift
RG Ever % % of all recruits that have converted
Cash Gifts Year1 per donor Number of cash gifts in year 1
% upgraded 2nd cash 1 year % that made a second gift bigger than their acquisition gift.

70. INCREASING VALUE
INCREASES RETENTION
Upgrade & cross-sell strategies

71. Upgrade Giving

72. Upgrade Giving

73. Test Ask Multipliers
• Ask 1 = Last Gift x 1
Vs.
• Ask 1 – Last Gift x 1.5

74. Upgrade Giving

75. Upgrade Giving

76. Upgrade Giving

77. Upgrade Giving

78. Upgrade Giving

79. Upgrade Giving

80. Convert to Regular Giving
Regular Giver
who makes
additional cash
donations 3 times
more valuable
than cash only
donor (giving
twice as much
cash plus their
regular gift)

81. ADA Conversion
Pack
• 4pp Letter
• RM
• BRE
• Echo Lift
• Backpack Lift
• DLW with large
window
Cash ask on RM for RG + Cash Pack:

82. Develop a High Value Strategy
Average high
value donor gave
$4,442 in 2013

83. Introduce a Bequest Strategy

84. CUSTOMER CARE
How you treat me matters

85. Be Best in Class
Is your customer service
exemplary? Through all channels?
Is it a priority in your organisation?
Are you staff trained?
“My name is Ruth. If you
have any questions, please
call me.”

86. REVIEW YOUR RETENTION
PROGRAM
Many of our communications are filled with inconsistencies
• An inconsistent experience
• Online Experience compared to Offline experience.
• Inconsistent messaging
• Message online is different from what is fed back in
subsequent communications
• Reason for giving is not clearly defined
• Sometimes there is no messaging at all

87. Argee on what you are trying
to build & deliver
© 2013

88. Starting Point

89. Group Sign Up Focus Commitments Made
F2F Emergency Response
Basic needs - water, food, education
"… you'll ensure charity has steady and reliable
income, enabling us to go straight into action
as soon as an emergency happens."
"… and enable our teams to respond as soon as
a crisis strikes, without waiting for appeals to
be launched and donations to come in.”
“… send direct feedback about our work in the field:
updates, briefings and first-hand reports from our
emergency staff.”
Tax receipts, direct debit date, quarterly newsletters,
email alerts, invitations
Online
Help families in crisis. Provide urgent relief to
refugees in need, whenever and wherever a
disaster strikes
Over the coming months, I look forward to sending
you direct feedback about our work in the field;
updates, briefings and first-hand reports from our
emergency staff.
Phone
Acquisition 1 million in Syria. Emergency relief, life-saving
items like tents, blankets & other items
You will receive a welcome pack and updates on how
your contribution is helping hundreds of thousands
of people across the world, a tax receipt at the end of
the year
Phone
Conversion West Africa lead in - Magnitude of need &
Response to crisis (basics of shelter, food,
water & health care)
We will respond to emergencies as soon as they
occur, we will send a confirmation letter in the next
10 working days, you will hear from us very soon.
© 2013

90. Develop a roadmap for each
donor group through the three
critical stages

91. Sign Up
• Are the commitments made at sign up
consistent?
• Is the language used consistent from
acquisition to thank you and beyond?
• Do I ‘walk away’ 100% clear who I am
helping, how and why?
• What should the donors feel post sign
up?
© 2013

92. On Boarding

93. Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1
MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY
Stage SIGNUP WELCOME JOURNEY
Communication title
Thank you and welcome
email
Supporter Details Leadership Thank You Mission moment Get involved Introductory eNews
Communication #
Timeframe 0 Day 3 Day 5 Week 3 Week 6 Week 13
Channel/s Email Email Email (video) Email (picture/video) Email
Overview
Instant recognition of action
taken and welcome
Delivering high quality
supporter service and care
Personal and heartfelt thank
you from SCA leadership
Child voice focused story to
generate emotional reward
Cross-promote other actions
to take in support of mission
Transition to ongoing
supporter communications
Donor response objective
Real-time acknowledgement
of action taken
Validation of successful
transaction and sign-up
Experience emotional reward
for action taken
Positive supporter service
experience
Establish relationship and
trust
Overcome remorse and
cognitive dissonance
Shared values, beliefs and
mission to make a difference
Recreate original emotional
connection
Reinforce donation impact
Reinforce donation impact
via focus on a single child
Demonstrate effectiveness
Build donor-beneficiary
connection
Reinforce organisational trust
Increase understanding of
organisation and activities
Inspire to take additional
steps to support
Understand the ongoing
communications and how
they'll be kept updated and
informed
Organisational objective
Easy, seamless and engaging
sign-up experience
Create great first impression
Start relationship
Reinforce product name and
proposition
Friendly and and efficient
supporter services
Introduce main contact and
offer proxy contacts
Open-up two way
communications
Drive self-identity belief
through product and brand
positioning
Build relationship through
shared values and mission
Establish 'voice' of
organisation
Reinforce product and key
beneficiary group/s
Demonstrate donation 'at
work'
Deepen relationship
Increase # supporters
engaged in multiple actions
Set clear expectations for
supporters
Increase eNews open rates
and engagement
How should Donor feel?
Acknowledged, Excited,
Enthusiastic
Valued, Respected
Affinity, Appreciated, Proud,
Gratified of self worth
Powerful, Uplifted, Inspired to do more Informed, Appreciated
Prominent Value(s)
expressed
Passion, Optimism Respect, Responsibility Trust, Determination Achievement Effective
Impactful; Expert;
Appreciative
Focus - proposition and
messaging
Assure successful sign-up and
welcome to the movement
for 'children in crisis'
Important information to
note
Ways to connect and contact
us
Build concept of 'we-ness'
and self-identification i.e. one
who cares about 'children in
crisis'
Single child story the
supporter can related to and
connect with to affirm impact
of gift
Other actions you may like to
take in support of our mission
Keep informed about the
work you are achieving for
'children in crisis'
Case Study / Story N/A
Video reel showcase of
'children in crisis' being
helped
Case study - TBC N/A
Content
Thank you for taking action
and welcome to the frontline
for 'children in crisis'
Join the community on social
media
Confirmation of supporter
details: supporter number,
payment date, payment
amount, starting date,
update details online form
SCA contact details: email,
phone
Join a campaign
Shop with us
Volunteering
Events
Signatory Supporter Services Supporter Services CEO CEO Supporter Services Supporter Services
New RG Donor On Boarding

94. Retention Communications
1. Everything you send is about
retaining
2. Asking is the only way to get a gift
But never forget to thank or feedback
1. The more a donor interacts the more
likely they are to give again
2. Compelling, emotional stories lead to
action, fact / figures lead to thought

95. Content Checklist

96. What do your donors want
from you?
1.Have you asked them?
2.Have you tested it?

97. It’s all about Optimising Life
Time Value

98. THANK YOU
Fiona McPhee
fiona.mcphee@paretofundraising.com
Twitter: fimcphee
Phone: +6421 336 905
Web: www.paretofundraising.com