https://bloomerang.co/retention
This session explores the Fundraising Effectiveness Project report commissioned by AFP and the Urban Institute. The dismal news in this report can and should be an eye opener for every nonprofit engaged in fundraising.
We will focus on the root causes of poor retention rates, and offer tips for improvement based on the principles of Dr. Adrian Sargeant and Tom Ahern: two world-renowned authorities on building donor loyalty. Sargeant and Ahern’s principles are based upon years of research conducted in the sector and can be used by any organization, whether you are a one-person shop or a large department. We will show examples of their principles in action. The results can be astounding when put into daily use!
Learning Outcomes:
Be familiar with current research on donor retention and how an increase or decrease can impact your bottom line
Understand how to calculate your donor retention rate
Learn new donor communications techniques in order to improve donor loyalty and retention
2. Steven Shattuck
@StevenShattuck
VP of Marketing -‐ Bloomerang
Executive Director -‐ Launch Cause
Contributor to:
Ragan, NTEN, Business2Community, Social Media
Today, National Council of Nonprofits, Search Engine
Journal, ExactTarget, Raven Internet Marketing Tools,
HubSpot, Content Marketing Institute, Nonprofit Hub,
INside Indiana Business.
Speaker:
Association of Fundraising Professionals, National
Council of Nonprofits, ADRP, NCDC, NAMP, ANN,
PRSA, Planet Philanthropy
Your presenter »
@StevenShattuck
4. In our surveys, less than
45% of fundraisers
knew their current
donor retention rate.
Do you know your retention rate?
https://bloomerang.co/blog/infographic-the-state-of-donor-retention-in-2014/
5. Calculating your retention rate »
@StevenShattuck
• 1,000 donors in 2013
• 1250 donors in 2014
• 500 donors from 2013 donated again in 2014
• 750 new donors in 2014
• 500 returning donors in 2014
• 500/1000 = 50% retention rate
10. Donor Attrition Over Five Years
# of
Donors
Attrition
Rate
Donors
Remaining
After 1
Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?
https://bloomerang.co/resources/downloadables/donor-retention-math-made-simple
11. Donor retention math »
https://bloomerang.co/resources/downloadables/donor-retention-math-made-simple
13. • 5% -‐ thought charity did not need them
• 8% -‐ no info on how monies were used
• 9% -‐ no memory of supporting
• 13% -‐ never got thanked for donating
• 16% -‐ death
• 18% -‐ poor service or communication
• 36% -‐ others more deserving
• 54% -‐ could no longer afford
Why nonprofit donors leave »
https://www.linkedin.com/today/post/article/20140520191728-746287--
infographic-why-donors-stop-their-support
@StevenShattuck
15. @StevenShattuck
Key drivers of donor commitment »
1. Donor perceives your organization to be
effective in trying to achieve its mission.
2. Donor knows what to expect from your
organization with each interaction.
3. Donor receives a timely thank you.
4. Donor receives opportunities to make his
or her views known.
5. Donor is given the feeling that he or she is
part of an important cause.
6. Donor feels his or her involvement is
appreciated.
7. Donor receives information showing who is
being helped.
16. The gift
acknowledgement problem.
@StevenShattuck
24. Differentiate the acknowledgement »
@StevenShattuck
Above average gift amount
At or below average gift amount
Letter # 1
Phone call
(tour invite)
Letter #2
Handwritten note
Email/Letter #4
(Volunteer request)
Email/Letter #3
(survey)
(monthly upgrade)
30. @StevenShattuck
The personal touch »
• first-‐time donors who get a personal thank you within 48
hours are 4x more likely to give a second gift (Tom Ahern)
• a three-‐minute thank-‐you call will boost first-‐year
retention by 30%. (Roger Craver / The Agitator)
• a thank-‐you call from a board member to a newly
acquired donor within 24 hours of receiving the gifts will
increase their next gift by 39%. (Penelope Burk)
http://www.nonprofithub.org/fundraising/excuses-‐need-‐call-‐every-‐new-‐donor
http://www.guidestar.org/rxa/news/articles/2010/how-‐to-‐increase-‐donations-‐by-‐39-‐percent.aspx
31. • All acknowledgements: treat them like royalty
• Email: send a new donor survey
• Snail mail: include handwritten note
• Call as many new donors as possible
• Get board members and volunteers involved
• Schedule in-‐person meetings/tours
• 2nd ask within 90 days is okay
• Introduce monthly giving for certain segments
Quick tips »
@StevenShattuck
40. • Utilize communication preference
• Make the donor the star of the show
• more “you” than “we”
• State exactly how donation will be used
• Communicate impact
• Preview future communications
• Give the donor something to do next
Acknowledgement content tips »
@StevenShattuck
41. • Send a donor survey to 1st-‐time donors
• Boosts retention even if they don’t respond
• Respondents signify high-‐engagement
• Email receipt is a great place to include
• SurveyMonkey / Formstack / Wufoo
Survey »
@StevenShattuck
http://t.co/XMUTnvjThP
https://bloomerang.co/blog/23-‐questions-‐to-‐ask-‐donors-‐and-‐prospects/
42. • Why did you first give to our organization?
• What interests you most about organization? Why? What is less
interesting to you? Why?
• Why do you give to our organization? How would you describe our
mission? What does it mean to you?
• What are the most critical results you expect our organization to
produce?
• What do you tell others about us? How do you describe this
organization to others?
• Why does this cause matter to you? Why now in particular?
@StevenShattuck
http://t.co/XMUTnvjThP
https://bloomerang.co/blog/23-‐questions-‐to-‐ask-‐donors-‐and-‐prospects/
Survey question ideas »
44. • Make it an option on donation forms
• Suggest donation amounts
• Introduce monthly giving to repeat donors
below average gift amount
Monthly giving »
@StevenShattuck
46. • Isolate donors who haven’t given in 2+ years
• Remove from direct mail sends
• Send a lapsed donor survey
• Invest in data services
• NCOA
• Deceased Suppression Processing
Lapsed donors »
@StevenShattuck
49. • It’s not about you. It’s about the donor.
• Segment your donors.
• Create a written comms plan for each segment.
• Concentrate on first-‐time donors.
• Get that second gift.
• Personalize!
• Steward, then solicit.
Final thoughts »
@StevenShattuck