Within your donor database lies untold lifetime value. Unfortunately, many nonprofits fail to properly nurture and steward their donors, and are content with high acquisition and high churn.
Why let this enormous asset go underutilized?
In this session, we will cover the tenets of effective database management, no matter what program or vendor you use. We will show examples of best practices in data management, communication segmenting, engagement tracking and reporting in order to help your team work smarter, not harder.
Learning Outcomes:
- Be familiar with data management techniques that maximize the capabilities of your database and increase productivity
- Understand segmenting strategies lead to higher response rates from your donor communications
- Learn how to generate meaningful reports that will impact your internal procedures
2. Your Presenter
Jay B. Love
• 34 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• Conner Prarie Museum Board Member
• AFP Ethics Committee Chairman
• Center on Philanthropy at IU Board Member
• Innovation Fund at Butler University
• Gleaners Food Bank Board Member
• Co-Chair of Indianapolis YMCA Capital Campaign
3
3. Agenda »
• The importance of donor retention
• Your database: a 3-legged stool
• Data Management 101
• Segmenting 101
• Appeals
• Acknowledgement
• Engagement Tracking/Scoring
• Reporting
5. What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”
6. What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”
(Is there a secret to achieving this purpose?)
13. 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
16. 10% of your donors in the previous year
multiplied by your average gift amount
EQUALS
Potential first-year increase!
The hidden “math” of your database »
17. “The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
Defining Lifetime Value »
19. Importance of being a chosen charity »
The number of charities supported annually:
• Income 50K – 2-3
• Income 100K – 3-4
• Income >100K – 4-5
• One is usually there church
• Second is most likely their school
21. $1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
Value Segments »
Time
22. 6 Key Retention Drivers
(That can double lifetime value)
Drip feed mission performance data
Connect often (1st 90 Days!)
Be personal (SEGMENT via DB)
Develop like a good personal friendship
Find & use numerous human connectors
Always communicate what monies are doing!
24. 5 Acknowledgment Principles
(Drastically Improve First Year Donor Retention)
48 Hour Rule
Be Different Than the Rest
Handwritten Rule Written Communications
State Exactly What the Monies will Fund
Call or See in Person as Often as Possible
26. The 3-Legged Stool »
1. Record keeping
2. Outbound communications
3. Interactions
27. 1. Record Keeping »
• The original reason to replace 3x5 cards in the 1980s!
• Everyone in the organization should use the database
• Everyone in the organization should benefit from data
28. 2. Communications »
• The “secret sauce” of retention success!
• Offline
• Appeals
• Acknowledgements
• Newsletters
• Handwritten notes (magical!)
• Online
• Email
• Website interactions
• All must be integrated!
29. 3. Interactions »
• Types
• Phone calls
• Texts
• Meetings
• Emails
• Chat
• Notes
• The institutional memory of your organization
• Enables the highest levels of engagement
• All must be integrated!
31. 0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding
32. 0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding
What should you do with each segment?
33. 0 / 10 / 90 Rule »
• 0% of your funding
• remove all but:
• previous above-average donors
• previous board members
• previous top volunteers
• alumni
• positive replies to surveys
• 10% of your funding
• handle in an automatic manner, but research
• 90% of your funding
• focus the majority of your efforts here
34. Segmenting »
Seattle’s Lakeside Upper School counts … Bill
Gates among its alumni. Rumor has it a
fundraiser for the high school called Gates,
who asked: “How much is everyone else
giving?” About $75 he was told. “So put me
down for $75,” said Gates.
-- Forbes, Jan 22, 1996, p. 16
36. Appeal principles »
• Design a “style” for each segment
• Consider calling and mailing segments 2, 4 and 6
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• More than once a year
• Always aim for monthly donors!
37. Donor communications »
“Successful donor
communications are quite
simple.
At heart, they are love
letters to donors &
prospects, woven through
with clear cries for help.”
- Tom Ahern,
Bloomerang Donor
Communications Head Coach
http://aherncomm.com
46. 1. Record keeping
2. Communication-related (plus results!)
• The key to proper testing
Reporting »
47.
48.
49. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
• Dashboards and graphics
Reporting »
50.
51. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs
• Metrics that make a difference
Reporting »
52. KPI September Goal September Actual
New Donors 500 831
New Volunteer
Signups
460 652
Web Sessions 17,500 22,253
Email Signups 12,500 16,794
Cost per New
Donor
$1.00 $1.39
Cost per Return
Donor
$0.25 $0.27
Budget YTD $61,745.09 $61,638.94
53. 1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs
5. Funnel
• Moves the funding needle the most!
Reporting »