donor retention - neoncrm · 2019. 1. 16. · •principal, hands-on fundraising •29 years...

Donor RetentionWhat you need to know and why you should care

© 2017 Hands-On Fundraising

• Principal, Hands-On Fundraising

• 29 years fundraising for nonprofits

• Donor communications, fundraising planning

• Committed donor love fanatic – because it works

About Mary

Donor Retention

© 2017 Hands-On Fundraising

Photo by Wynand van Poortvliet

Why it matters:

• 80% donors lost between 1st and 2nd gift

© 2017 Hands-On Fundraising

Why it matters:

• A 10% decrease in attrition = 200% increase in the lifetime value of your database

© 2017 Hands-On Fundraising

Why it matters:

• It costs 5-7 times more to acquire a donor than it does to keep one

© 2017 Hands-On Fundraising

Photo by Jay Castor

Drivers of loyalty from Adrian Sargeant

• Satisfaction

• Identification

• Trust

• Commitment

© 2017 Hands-On Fundraising

Photo by Robert Collins

Satisfaction

• How’s your customer service?

© 2017 Hands-On Fundraising

Photo by Drew Coffman

Identification

• Do your donors think of themselves as your donors?

© 2017 Hands-On Fundraising

Photo by Andrew Itaga

Trust

• Can you demonstrate you’re worthy of donors’ trust?

© 2017 Hands-On Fundraising

Photo by Liane Metzler

Commitment

• Are you in it for the long-haul?

© 2017 Hands-On Fundraising

Photo by Gabby Orcutt

Why do donors leave you?

• They’re tied to the cause, not the organization

• Something in their life changes

• Interactions with you have been disappointing

© 2017 Hands-On Fundraising

Passion for the cause

• Not the organization

© 2017 Hands-On Fundraising

Photo by Ian Schneider

Life changes

• Death, job loss or moves happen

© 2017 Hands-On Fundraising

Photo by Noah Silliman

How donors feel about you

• Do you show you care?

© 2017 Hands-On Fundraising

Photo by Paz Arando

What can you do to create loyal donors?

© 2017 Hands-On Fundraising

Photo by Cory Bouthillette

Culture of philanthropy

© 2017 Hands-On Fundraising

Commit to developing loyalty

• Organization-wide

© 2017 Hands-On Fundraising

Asking is not enough

Thank

Report

Ask

© 2017 Hands-On Fundraising

Ask

• Personal

• Specific & urgent

• Focused on what the donor can change, not your need for money

© 2017 Hands-On Fundraising

Thank

• Personal

• EMOTIONAL

• Prompt

• Specific

© 2017 Hands-On Fundraising

Report

• Tell donors what they did

© 2017 Hands-On Fundraising

Nashville Rescue Mission

Measure

• What you measure is what you do

© 2017 Hands-On Fundraising

Photo by Christian Kaindl

Why?

• Because $ raised don’t tell the whole story

© 2017 Hands-On Fundraising

Photo by Liam Pozz

Retention

• How to measure

© 2017 Hands-On Fundraising

# LY DONORS GIVING CY

# LY DONORS

Lifetime value

• How to measure

© 2017 Hands-On Fundraising

AVERAGE ANNUAL DONATION

ATTRITION RATE

Ask for the second gift soon

• Don’t wait until next year!

© 2017 Hands-On Fundraising

First gift retention After second gift

23%

60%

Ask for monthly gifts

• Prioritize a monthly gift program

© 2017 Hands-On Fundraising

60% - 80% retention

Talk – and listen – to your donors

• Ask for feedback – then act on it

© 2017 Hands-On Fundraising

Photo by Ugur Akdemir

Ask for feedback online

• Online after interactions (DonorVoice widget)

• Online, via surveys

© 2017 Hands-On Fundraising

Photo by Jonathan Simcoe

Ask for feedback through the mail

• Donor surveys can be relationship-builders

© 2017 Hands-On Fundraising

Reach out and touch someone

• Want to know what donors think? Call them!

© 2017 Hands-On Fundraising

Keep good data

• Bad data ruins good intentions

© 2017 Hands-On Fundraising

Photo by Markus Spiske

Communicate on their terms

© 2017 Hands-On Fundraising

Photo by Adrian Tormo

Be trustworthy

• Prove it - daily

© 2017 Hands-On Fundraising

Photo by Johannes Wredenmark

For example - Charity:Water

© 2017 Hands-On Fundraising

Donors have so many choices

• You are replaceable

© 2017 Hands-On Fundraising

Photo by Letizia Bordoni