developing donor loyalty in the digital age ifc 2013
DESCRIPTION
This presentation covers the principles of loyalty economics in the context of fundraising and relationship management in the digital age. Theory, tools and practice will be presented. It should encourage the building of strategy addressing donor loyalty as an organisational objective.TRANSCRIPT
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Developing Donor Loyaltyin the Digital Age
Colin HabbertonDirector: Global PartnershipsGivenGain [email protected]+27 71 401 2434@relatomics
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Introduction to the Session
This session will cover the principles of loyaltyeconomics in the context of fundraising andrelationship management in the digital age.
Theory, tools and practice will be presented.
Outcomes will include the ability to build strategyaddressing donor loyalty as a strategic imperative.
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Overview of the Session
IntroductionSetting ObjectivesThe Digital AgeLoyalty EconomicsRelationship ManagementDonor LoyaltyCase StudiesInsights Q&A
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Introduction to the Speaker
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Introduction to the Speaker
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Setting Objectives
• The principles of loyalty economics • How they apply to donors, both individual and
institutional• How these principles can be understood and
applied using digital tools• The opportunities and challenges of developing
donor loyalty in the 21st Century• Others?
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The Digital Age: In 60 Seconds…
(Source: Qmee & My Clever Agency, 2013)
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The Digital Age: Macro Themes
1. ‘Smart’ Devicing2. Real-time Access3. Timeless Time4. Placeless Space5. The Cloud6. Flexibility7. Social Networks8. Global Village9. Millenials?!
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Loyalty
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Loyalty: Steps of Commitment
(Source: CIMS UK, 2004)
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Loyalty Economics?
(Source: Reichheld, 2006,2011)
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Loyalty Economics: Lifetime Value
(Source: Adapted from Reichheld 1996, 2001)
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Loyalty Economics: Value Chains
(Source: Habberton, 2005)
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Loyalty: A Virtuous Value Chain
Employee
Business
Partner
Customer
Cost E
ffici
enci
es &
Innova
tion
Custom
er
Inte
lligen
ce
Superior
Service
Feedback
Fulfilment
Turnover
Training
& Incentives
Compensation &
Opportunities
Superior
ProductivityS
pen
d &
Pro
file
Su
perio
r
Pro
du
cts
Lo
yalt
y &
Ref
erra
l
Valu
e Ad
ded
Ben
efits
Quality
Assurance
Investor
Competitor
returns/reinvestment
marketing/mindshare
Community
Responsibilities
Environmental
Concerns
Market & Industry
Conditions
Legal & Ethical
Regulations
(Source: Habberton, 2005)
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Loyalty: Virtuous Value Chain for Causes
(Adapted: Habberton, 2005)
Team
Your Cause
Partner
Donor
Cost E
ffici
enci
es &
Innova
tion
Donor
Inte
lligen
ce
Superior
Service
Feedback
Fulfilment
Impact
Training
& Incentives
Compensation &
Opportunities
Superior
ProductivityD
on
atio
ns
&
Pro
file
Su
perio
r
Pro
du
cts
Lo
yalt
y &
Ref
erra
l
Valu
e Ad
ded
Ben
efits
Quality
Assurance
Board/Trustees
Other Causes
delivery/governance
marketing/mindshare
Community
Responsibilities
Environmental
Concerns
Market & Sector
Conditions
Legal & Ethical
Regulations
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Intermission
Q&AStretchBody Break(Please don’t ;-) Smoke
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Relationship Management
(Source: http://www.youtube.com/watch?v=avHnr3tFJNs)
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Relationship Management
(Source: http://www.youtube.com/watch?v=VTbbYLvhDSM)
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Relationship Management
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Relationship Management: Lessons
Recency, Frequency, ValueDonor Lifetime ValueCommunicationSegmentationPersonal DialogueSolving ProblemsBuilding TrustThen, AdvocacyMaybe, Funding
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Donor Loyalty?
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Donor Loyalty vs Customer Loyalty
Promise vs ProductPersonal vs PracticalEmotional vs RationalROI?ROE?CommunicationEngagementProblem SolvingTrust
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Case Studies: Charity Water
Charity Water
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Case Studies: WWF Rhino Raid
Cause GamificationLaunched April 2013555 000 downloads3 million gameplays5 minute sessionsUsers: 18-25Asia not AfricaShift of PurposeImpact Objectives
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Case Studies: GreenPop
Greenpop
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Insights
PersonalAuthenticRelationalSystemicTransparentAccountableRecognitionParticipationMeasurable
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Opportunities & Challenges
TrustRelevanceCommunicationDesignStorytellingEngagementConnection(s)MetricsTangibility
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Learning Review• The principles of loyalty
economics?• How they apply to individual and
institutional donors?• How these principles can be
understood and applied using digital tools?
• The opportunities and challenges of developing donor loyalty in the 21st Century?
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Tools & Resources• Your Community• Connected Team• Donor Lifetime Value• Reputation Management• Sentiment Analysis
• Communicating Impact• Social Media Strategy• Digital Storytelling• Video Production Skills• Designers & Writers
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Farewell - A Little Local Promotion…
(Source: http://www.youtube.com/watch?v=a6W2ZMpsxhg)
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Developing Donor Loyaltyin the Digital Age
Colin HabbertonDirector: Global PartnershipsGivenGain [email protected]+27 71 401 2434@relatomics