Measuring donor satisfaction and loyalty. November, 2016
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1 Measuring donor satisfaction and loyalty November, 2016
2 Roger Lawson Roger Lawson Consulting Helping charities grow donor loyalty About Loyalty The charity sector s only Loyalty benchmarking service
3 Roger Lawson
4 How fundraising has changed 1992 What we did: Acquisition and development Strategy Cold and appeals and DD conversion Thank you letters and newsletters Our language: Relationship Fundraising Donor pyramid
5 How has fundraising changed 2000 What happened? Along came the internet and face-toface We discovered campaigning Strategy Product cross-selling Channel integration New language Integration Transactional Engagement
6 How has fundraising changed today What has changed now? Communications trigger emotions Emotions trigger response Strategy Engagement Experience New language: Loyalty Emotional Engagement
7 Loyalty
8 Why is Loyalty important? A 10% improvement in attrition can yield up to a 200% increase in projected value Professor Adrian Sargeant 1 2 Source: 1: Professor Adrian Sargeant: Donor Retention: What Do We Know and What Can We Do About It? (May 2008) 2: Fundraising Effectiveness Project (2011)
9 Two types of Loyalty Behavioural Loyalty How long someone gives for Emotional Loyalty The feeling of support or allegiance for a charity or cause
10 Loyalty is driven by Personal connection Familiarity Perceived performance Shared values Satisfaction Engagement Social capital Identity Commitment Communal orientation Knowledge Trust
11 Take a minute What do you think drives Loyalty of your donors?
12 What do you think drives Loyalty of your donors? Personal connection Familiarity Perceived performance Shared values Satisfaction Engagement Social capital Identity Commitment Communal orientation Knowledge Trust
13 The research project Retention analysis Loyalty survey Tenure Loyalty score
14 The research project Total no donors Number of surveys sent Total survey responses Response rate Survey responses analysed (supported >= 18 months) Charity A 2,027, ,101 9, % 5,073 Charity B 582,373 69,727 3, % 2,412 Charity C 1,884,614 50,431 1, % 1,642 Charity D 439,290 51,649 2, % 1,869 Charity E 1,685, ,438 4, % 2,716 Total 6,619, ,346 22, % 13,712
15 Why is loyalty important? How long does a donor give for? 4 yrs and 10 months Year of giving % still giving % % % % % % % % % % % % % % % % % % % % % % % % %
16 Why is loyalty getting more important?
17 Method of Payment
18 Product
19 Recruitment channel
20 Loyalty is driven by Commitment, Satisfaction and Trust Personal connection Familiarity Perceived performance Shared values Satisfaction Engagement Social capital Identity Commitment Communal orientation Knowledge Trust
21 A Loyalty score Because it s possible to measure Commitment, Satisfaction and Trust, it s possible to create a Loyalty score
22 Loyalty Score = Commitment + Satisfaction + Trust
23 Emotional loyalty is important
24 Loyalty varies by charity
25 Loyalty varies by segment product
26 Loyalty varies by segment recruitment channel
27 Loyalty varies by segment method of payment
28 Loyalty varies by segment time on file
29 Loyalty varies by segment lifestage
30 Multiple support is important
31 Take outs Emotional Loyalty is different to Behavioural Loyalty Emotional Loyalty = Commitment + Satisfaction + Trust Emotional Loyalty is important Different charities have different drivers Different donors have different drivers
32 Break time
33 Commitment, satisfaction and trust
34 Loyalty Score = Commitment + Satisfaction + Trust
35 Different behaviours have different drivers
36 Trust Trust varies least by charity. Although there is some variation by segment, especially recruitment channel. Research (nfpsynergy) has shown that trust in a charity tends to be inherited because of the type of charity it is. Trust can be destroyed
37 Trust Building trust Feed back Demonstrate role competence Demonstrate good judgement Being open and transparent when things go wrong Satisfactory complaint handling Destroying trust Media coverage Spelling mistakes Not listening to donors Hard to complain to Difficult to access information
38 Commitment The most important factor Structural Equation Model Professor Adrian Sargeant
39 Commitment 25%
40 How can you build commitment? Passion Ambition / vision Impact Emotion
41 How can you build commitment? Need emotions Anger Helplessness Compassion Reward emotions Gratitude Pride Togetherness 1 2 Source: 1: Alan Clayton 2: John Grain Associates
42 Over to you
43
44
45 How can you build commitment? I ve just made a donation to your last appeal. Please write me the start of your thank you letter. What can you do to make your face-to-face acquisition experience inspiring? What would you like your charity s home page to look like? Come up with three ideas for how you can grow the commitment of your donors.
46 Some ideas
47 Satisfaction Even satisfied donors lapse. It is not until a donor is extremely satisfied that this affects their retention. Professor Adrian Sargeant Causes of dissatisfaction: - Feeling pressurised (tone / frequency) - Fundraising tactics (channels) - Charity behaviour (salaries / admin / waste) - Not valuing or recognising donors
48 How can you build satisfaction? Exceed expectations What do your donors expect from you? What can you do to exceed expectations?
49 Some ideas
50 Measurement
51 Why measure? You can t manage what you don t measure Peter Drucker
52 Metrics
53 A final point
54 Everything is all about culture
55 Take aways What will you take-away from today?
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