Donor Relationship Management Increasing Fundraising efficiency through Evaluation

Yogesh Aggarwal – Global Director Yellow Umbrella

Acquisition A Gamble

• Donor is the winning you get…. but – Do you know Why you won?– Do you know Value of Win ?– Did you win because anyone at that time would

have Won?– Can you increase probability of Win?

How are you Acquiring?

• Like A Credit Card company • Like A Time Share • Like A Life Insurance company • Like A Real Estate Company • Like AN FMCG

How You are acquiring will define How your should Retain

Few Questions for foundation of DRM

• Why did a Donor Give you ?• What is in for him?• Does he give to others? • Is it cause ? • Is it your name?• Is it because of the sales person ?• Who is He?

Introduction Donor Relationship Management is the development and maintenance of mutually beneficial long-term relationship with strategically significant Donors.

It is concerned with the creation, development and enhancement of individualized donor relationships with carefully targeted donors and donor groups resulting in maximizing their total Value association with the NGO.

WE Don’t Own a Donor Base–

In fact, the opposite is true.WE Belong to the Donor.

3 Things We Need to Stop Thinking and Stop Doing1. We need to stop thinking we own the

relationship… because we don’t

2. We Need to stop relying on the same old one-dimensional pyramid

3. We need to stop believing acquisition is the main key to growing our file

- What you send- When you send it- Which channel

- Whether to open- When to open- Whether to read- Whether to respond- When to respond- How much to give- Which channel to use

The Fundraising Dialogue

Sender Receiver

BUT WE INSIST ON THINKING IT’S ABOUT US

• We ACQUIRE Donors … ‘hostage-taking’ phase

• We RECAPTURE them, if they lapse ‘Why Have You Foresaken Us?’ letter

• Put them through a CONVERSION program Our language reflects our attitude

Proof the public craves a relationship that’s more about them?

Introducing one of the most successful new acquisition offers in the past 5 years…

Interesting, isn't it ?The Offer that explicitly promises

We Don’t Want a Relationship,Is Very Successful at

Starting a Relationship

Why Does This Work?

- Because this offer tells the donor ‘you’re in charge of this relationship’

The donor’s need for control is that deep

The Results:

• More than 25% of people responded

• Generated more 10 times of the Normal outcome.

• Giving from 20 year+ donor core has been increasing for the first time in years

The Organizationsthat Recognize the Donor OWNS THE RELATIONSHIP

Will be the Biggest Winners in the Decade Ahead.

A PROFOUND ATTITUDINAL SHIFT:

• Identify the people who really matter

• Commit to a true donor-centric approach

• Focus on engagement and donor service

• A zealous commitment to nurturing the relationship

Transaction Pyramid

Low Value

High Value

Giving Profile• Recency• Frequency• Amount

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Transaction and Action Pyramid

Low Value

High Value

Giving Profile• Recency• Frequency• Amount

Activity Profile• # of channels• Volunteer?• Special Events

Transaction, Action and Attributes Pyramid

Low Value

High Value

Giving Profile• Recency• Frequency• Amount

Activity Profile• # of channels• Volunteer?• Special Events

You Know How To Rank the Donor

Attributes • Age• Wealth• Health

But Do You KnowHow they Rank

You?

How Do You Rank in Donor Pyramid?

• Are you a Priority in Donor’s life?… or just one of many?

• Does He/she give you more than He/she gives to other charities … or less?

• Is it unusual for Donor to support you?… or does He/she donates to everyone?

How He/She SupportsOther Charities

Also Tells You How Muchthey Value You?

How You Rank?

Passion PyramidDONOR 2DONOR 1

• Gives to only 2-3 charities

• Gives you twice as much as she gives to others

• Gives to lots of organizations

• Gives more to others than you

Who’s More Passionate About You?

Low Passion

High Passion

Donor 2• Gives to lots of

organizations

• Gives more to others than you

Donor 1• Gives to only 2-

3 charities

• Gives you twice as much as she gives to others

• Most of the organizations Selected ‘High Passion’ names who did NOT meet their longstanding planned giving select criteria.

Instance #1

ValuePyramid

Low Value

Passion Pyramid

Low Passion

% RESPONSE FROM THAT SEGMENT?

We may be theONLY INDUSTRY

In the worldThat doesn’t view

RETENTIONas the key to growth!

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The most important goals for nonprofit communications strategies in 2013

All Other Responses

Retaining Current Participants

Acquiring New Volunteers

Building Print or Email List

Acquiring New Program Partipants

Creating Website Traffic

Thought Leadership / Positioning as an Expert

Retaining Current Donors

General Brand Awareness

Engaging Our Community

Acquiring New Donors

0% 10% 20% 30% 40% 50% 60%

4%

7%

12%

18%

20%

22%

22%

30%

45%

52%

57%

NonprofitMarketingGuide.com survey

The most important goals for nonprofit communications strategies in 2013

All Other Responses

Retaining Current Participants

Acquiring New Volunteers

Building Print or Email List

Acquiring New Program Partipants

Creating Website Traffic

Thought Leadership / Positioning as an Expert

Retaining Current Donors

General Brand Awareness

Engaging Our Community

Acquiring New Donors

0% 5% 10% 15% 20% 25% 30% 35%

7%

30%

NonprofitMarketingGuide.com survey

KEYS TO RETENTION:Commit to Greater investment, focused on:

• Truly knowing your best supporters; their interests, their needs

• Using the Whole pyramid: Transactions, Actions, Attributes … and Passion

• Nurturing true relationships through superior donor service

The Reality:The donor doesn’t belong to us.We belong to them.And unless we do more to embrace this mindset, we are not going to have the best Donor Relationship Management.

Thank You