Donor Reten)on: Current Rates Are Plumme)ng. What Fundraisers Can Do to Reverse the Trend! Jay B. Love. Bloomerang.
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1 Donor Reten)on: Current Rates Are Plumme)ng What Fundraisers Can Do to Reverse the Trend! Jay B. Love CEO & Co- Founder Bloomerang
2 Your Presenter 3 Jay B. Love CEO and Co- Founder of Bloomerang 30+ Years of Technology Leadership Over 20,000 Database Installa?ons Former Founder & CEO of etapestry AFP Ethics CommiHee Chairman Board Member: AFP Center on Philanthropy at IU Innova?on Fund at Butler University Gleaners Food Bank Co- Chair of Indianapolis YMCA Capital Campaign Former CEO of Master SoQware/Fund- 2
3 The State of Donor 3
4 Our 2014 Donor Reten)on Survey» hhps://bloomerang.co/blog/infographic- the- state- of- donor- reten?on- in- 4
5 Our 2014 Donor Reten)on Survey» hhps://bloomerang.co/blog/infographic- the- state- of- donor- reten?on- in- 5
6 Fundraising Effec)veness Project (FEP). A project to help nonprofit organizaaons measure and 6
7 FEP Report» Par)cipa)ng Donor SoSware Firms: Donor2/Campus Management Corpora)on PhilanthrAppeal (FundTrack SoSware) DonorPerfect Fundraising SoSware The Raiser s Edge (Blackbaud) etapestry Avectra Bloomerang Sage SoSware MatchMaker FundRaising SoSware Telosa SoSware (Exceed!) 7
8 The Latest FEP Data» Donor Reten)on Rate was 39% Donor A_ri)on was 8
9 Yes, your eyes read correctly: More than SIX out of every TEN Donors from the previous year did NOT donate at all the next 9
10 @bloomerangtech 10
11 @bloomerangtech 11
12 What does a 10% increase in Donor Reten)on rates mean in terms of LIFETIME dollars raised? 50% 100% 12
13 What does a 10% increase in Donor Reten)on rates mean in terms of LIFETIME dollars raised? 50% 100% % <<<< Do we have your a_en)on 13
14 Life)me Value = Donor Commitment» Ac)ve donor commitment is the enduring passion for your nonprofit. Inspiring donors is key for loyalty
15 This Scares Most NPO Boards» Donor A_ri)on Over Five Years # of Donors AHri?on Rate Donors Remaining AQer 1 Year Donors Remaining AQer 2 Years Donors Remaining AQer 3 Years Donors Remaining AQer 4 Years Donors Remaining AQer 5 Years 1,000 20% ,000 40% ,000 60%
16 Is it a donor rela)onship 16
17 CUE THE EXPERTS: Mr. Tom Ahern Bloomerang Donor Communica)ons Head Coach One of the world s top authori?es on donor communica?ons Author of 4 books on Donor Communica?ons Winner of 3 pres?gious interna?onal IABC Gold Quill awards Dr. Adrian Sargeant Bloomerang Chief Scien)st Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world s only endowed chair in that discipline. Top 10 Most Influen?al People in Fundraising Renowned expert on Donor Reten?on and Donor 17
18 How Do Two Long Term Experts in Separate Corners of the Nonprofit World Sync Up? Common Desire to Address an Ever Increasing Crisis in the Sector We Both 18
19 Donor Reten)on Best Prac)ces» A 10% improvement in reten)on can double the LIFETIME value of your donor database! - Dr. Adrian Sargeant, Bloomerang Chief 19
20 Donor Reten)on Math Made 20
21 Calcula)ng Your Reten)on Rate» # of Donors in Current 12 Months (from the previous years pool) divided by # of Donors in Previous 12 21
22 @bloomerangtech 22
23 Defining Life)me Value» The total net contribu)on that a customer/donor generates during his/her life)me in your 23
24 Value Segments» Value $ $500 - $1000 $100 - $500 Time $25 - $100 $25 and under 24
25 Why Do Customers Leave? (can this apply to donors...) Death 1% Reloca)on 3% Won by Compe)tor 5% Bad Complaint Handling 14% Lack of Interest from Us 25
26 Key Reasons For Donors Leaving No longer able to afford support No memory of ever suppor)ng! Organiza)on asked for inappropriate sums Feeling that other causes are more deserving Not reminded to give again Organiza)on did not inform how monies were used Did not feel 26
27 @bloomerangtech 27
28 Automa)c Engagement Factors Recency and pa_ern of giving Cash donors vs. sustaining donors # of years giving + Upgrade / Downgrade + - Lapsed - Event a_endance + Opens + Click links in s + Unsubscribes from - Has stated communica)on preferences + Has inbound interac)ons + Has sos credits + Volunteers + Social Media (coming soon) and a whole lot 28
29 6 Key Reten)on Drivers (That can double lifeame value) Drip feed mission performance data Connect osen (1 st 90 Days!) Be personal (SEGMENT via DB) Develop like a good personal friendship Find & use numerous human connectors Always communicate what monies are 29
30 Donor Reten)on Best Prac)ces» "Successful direct mail appeals are quite simple. At heart, they are love le_ers to donors & prospects, woven through with clear cries for help. - Tom Ahern Bloomerang Donor Communica)ons Head 30
31
32
33
34 Engagement Begins With The Thank You! Above Average GiQ At or Below Average 34
35 5 Acknowledgment Principles (DrasAcally Improve First Year Donor RetenAon) 48 Hour Rule Be Different Than the Rest Handwri_en Rule Wri_en Communica)ons State Exactly What the Monies will Fund Call or See in Person as OSen as 35
36 5 Communica)on Strategy Prac)ces (Involve Your EnAre Fundraising Team) Fully Map a Track for Each Key Segment Survey in 1 st 180 Days, Then Honor Involve Human Connectors Strive for Monthly Giving Never Forget the You Test for EVERY 36
37 Conclusion: Strive For: Donor Sa)sfac)on Donor Commitment/Engagement (which...) Donor Trust Donor Loyalty (close your eyes) Doubling Your Life)me Value 37
38 Ques)ons? Presenter: Jay B. Love
Donor Retention: Current Rates Are Plummeting What Fundraisers Can Do to Reverse the Trend! Jay B. Love CEO & Co Founder Bloomerang December 6, 2013
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