Is EFT the Silver Bullet Solution to Sustainer Credit Card Losses?

Transcription

1 Is EFT the Silver Bullet Solution Is EFT the Silver Bullet Solution to Sustainer Credit Card Losses? Nicole Stern, Appleby Arganbright Anne Ibach, Director of Membership Oregon Public Broadcasting

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4 POP QUIZ How do Public Media member retention numbers compare to the national non profit averages? a) Lower b) Higher c) About the same

5 Public Media Retention Rates 80% 75% 74% b) HIGHER! 61% 70% 60% 50% 40% Radio 38% 24% 30% TV 23% National 20% 10% 0% New Donors Multi Year Donors Data from Target Analytics donorcentrics Report

6 Why Sustainers Matter Higher Retention Rates 2 to 3 times the retention rate of new single gift donors Higher retention rate for multi year donors too

7 Why Sustainers Matter Higher Revenue per Donor Median Revenue per New Single Gift Donor $73 Median Revenue per New Monthly Donor $104 Data from Target AnalyticsdonorCentrics Sustainer Benchmarking Report

8 POP QUIZ Potentially, how much more valuable is a New Sustainer vs. a New Non Sustainer after five years of cumulative giving? a) Twice as valuable b) Four times as valuable c) Six times as valuable

9 Five Year Value Comparison NEW Sustainer vs. NEW Non Sustainer c) Six times as valuable!

10 Projecting Sustainer Revenue

11 So what s the BAD news?

12 The MILLION DOLLAR Question

13 How do we stay on top of all these Credit Card Declines???

14 Recapture Strategies Account Updater Services Authorization i Recycling Get ahead of expiration dates Multi Channel Recapture Series

15 Credit Card Account Updater Service

16 Retry Logic/Authorization Recycling Recycle declined credit card transactions 2 3 times within month of decline. Continue to reattempt declined cards for 1 2 months after initial decline. Charge updated/recaptured creditcards cards immediately; do not wait until next scheduled payment.

17 Get ahead of Expiration Dates

18 Multi Channel Recapture Series Mail Phone Get My Attention Subject Lines and Teasers Ask Sustainers if they want to make catch up payments for missed installments.

19 Tracking CC Lost/Recaptured Revenue July August September October November December January February March April May June Annual Total # of Failed Credit Cards Monthly Revenue Lost $3,750 $5,625 $4,375 $6,250 $3,438 $7,500 $4,688 $5,625 $3,750 $3,438 $7,500 $5,000 Annual Revenue Lost $45,000 $67,500 $52,500 $75,000 $41,250 $90,000 $56,250 $67,500 $45,000 $41,250 $90,000 $60,000 # of Recaptured Credit Cards Monthly Revenue Recaptured $2,250 $3,375 $2,625 $3,750 $2,063 $4,500 $2,813 $3,375 $2,250 $2,063 $4,500 $3,000 Recaptured Revenue $27,000 $40,500 $31,500 $45,000 $24,750 $54,000 $33,750 $40,500 $27,000 $24,750 $54,000 $36,000 4,875 $60,938 $731,250 2,925 $36,563 $438,750 % of Credit Cards Recaptured 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0% 60.0%

20 EFT Why focus on converting CC Sustainers to EFT?

21 Credit Card vs. EFT Retention Comparison FIRST YEAR SUSTAINERS Median Retention Rate in Month 13 Credit Card EFT 70% 90% Data from Target Analytics donorcentrics Sustainer Benchmarking Report

22 Credit Card vs. EFT Retention Rate Comparison MULTI YEAR SUSTAINERS Median Retention Rate Credit Card EFT 88% 96% Data from Target Analytics donorcentrics Sustainer Benchmarking Report

23 Credit Card vs. EFT Lifetime Value Comparison Median Lifetime Revenue per Donor (Donors acquired in 2009) Credit Card EFT $385 $664 Data from Target Analytics donorcentrics Sustainer Benchmarking Report

24 Credit Card vs. EFT Cost Comparison Credit Card EFT Processing Fee $.30 $.30 Fixed transaction/batch/monthly Merchant/Interchange Fees % of transaction amount 29% 2.9% none

25 Let s do the Math Sustainers $Amt/Mo EFT Fees CC Fees Difference 1 $10/mo $3.60 $7.08 $ $10/mo $360 $708 $348 1,000 $10/mo $3,600 $7,080 $3,480 10,000 $10/mo $36,000 $70,800 $34,800

26 EFT Conversion Strategies BadCC Recapture Series Sustainer Upgrade Asks Post drive Thank You Calling Annual Tax Substantiation/Thank You letter

27 POP QUIZ What does NACHA stand for? Hint: I m Im not referring to these

28 Know Thy Rules NACHA National Automated Clearing House Association Governs rules for electronic payments

29 Highlights EFT Online Must have clear language authorizing a recurring monthly donation Must have a way for the donor to opt in on form this fulfills the e signature requirement. Must provide a copy of the agreement in writing (mail, ) to the donor

30 Highlights EFT in Mail Clear authorization language Must obtain the donor s signature Must obtain account information /voided blank check Must keep authorization form on file for two years after the donation has ended

31 Highlights EFT over Phone Must obtain oral authorization of recurring monthly payments from the donor including name, date, amount of payment, date of payment and account Must record the phone call and keepthe recording on file for two years after the donation has ended Must provide a copy of the agreement in writing (mail, ) to the donor

32 Contact Nicole Stern Appleby lb Arganbright bi LLC

33 Sustainer EFT Acquisition EFT Acquisition and Conversion

34 OPB Sustainer Overview: FY 2008 to 2014 Number of Sustainers Sustainer Revenue $4,500, $4,000,000 $3,500,000 $3,000, $2,500, $2,000,000 $1,500, $1,000, $500,000 0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 $ FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Sustainer Revenue by Fiscal Year FY 2014

35 Monthly Sustainer Revenue $500,000 $450,000 $400,000 $350,000 FY 2008 $300,000 FY 2009 FY 2010 $250,000 FY 2011 FY 2012 $200,000 FY 2013 FY 2014 $150,000 $100,000 $50,000 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June $

36 Percentage of Sustainers on EFT FY % FY % 3,800 12,500 $685,000 $1,798,000

37 Why Focus on EFT Over Charge Cards?

38 Charge Cards vs EFT Charge Cards Processing cost: 65 cents Retention rate: 85%* Resources to recapture increasing declines Credit Card security issues will probably only increase over time EFT Processing cost: 40 cents Retention rate: 95% Very few declines Currently not many issues with EFT/checking security

39 OPB Charge Card Declines in Last 12 Months

40 Potential Net Revenue Benefit of Increasing EFT OPB is currently saving $32,000 in charge processing fees with existing EFT donors. OPB s potential savings in processing is $82,000 By increasing the retention rate of charge donors by converting them to EFT, the potential revenue is an additional $254,000 PLUS ti f S t i f PLUS you retain more of your Sustainers for more future revenue

41 So What is OPB Doing About This? *Mail *On Air *Online * *Customer Service *Door to door Canvassing

42 Sustainer EFT Conversion Letter

43 Pre R1 Sustainer Acquisition Reply

44 Charge Decline Notification Letters

45 Charge Decline

46 Online Contribution Forms

47 Regular Sustainer Form

48 Sustainer Upgrade Form

49 Sustainer Update Form

50 opb.org/sustain

51 DRAMATIC Charge Decline Radio Spots Keep OPB in the loop!!if you re a Sustainer and you ve received a new credit card, please take just a moment to update your payment information. Better yet use your checking account so you never have to worry about expired or replaced cards again. You can update your information easily online at opb.org/sustain or give us a quick call at Thanks for supporting OPB!

52 INFORMATIVE Charge Decline Radio Spots If you re an OPB Sustainer and you ve received a new credit card in the past few weeks, please take a moment to update your information or even better use your checking account so you never have to worry about new cards again. It s a simple change. Just make your quick update online at opb.org/sustainorg/sustain or give usa call at Thank you for sustaining the programs you love!

53 Charge Decline Radio Spots SITUATIONAL We know your Sustaining i membership is important tto you and it s important to OPB. If your charge card is one of the millions sof reissued cards across the country, pease please take aeaa moment to update your information online at opb.org/sustain or with a quick call to Better yet, use your checking account and you ll be worry free for the long term. Thank you for helping OPB thrive!

54 Radio Drive Pitches Make your contribution as part of the Sustaining Circle with an auto renewing membership! It s so easy it s quickly becoming the most popular way to support OPB. It starts at just $5 a month andcomes directly from the checking account or credit card of your choice. Once you set it up, you will never have to worry about keeping your support current.

55 Radio Drive Pitches It's great to join the Sustaining Circle with an ongoing, monthly contribution from your checking account or credit card. It runs as long as you like and you ll feel the great satisfaction of knowing that your support is always there for the programs you love.

56 Radio Drive Pitches Grab your checkbook and grab your phone or mouse to become a member of the Sustaining Circle with an ongoing, monthly contribution. It's the easiest way to support OPB and make your contribution go even further to support the shows that matter to you.

57 Customer Service When a member calls in and wants to be a Sustainer, the rep sells the option of contributing through EFT When a current Sustainer calls in to update their credit card info, the rep sells the option of contributing through EFT

58 Door to door Canvassing

59 What s Next? Improving pitching/messaging i of EFT during on air drives Inbound Call Center Outbound Telemarketing Beefing Up Customer Service EFT Conversion

60 Anne Ibach Director of Membership