making a real difference to retention norman barrett, hugh mc caw, nick pride
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Donor Stewardship
Making a real difference to retention
Norman Barrett, Chief Executive, AICR
Hugh McCaw, Founder, RFundraising
Nick Pride, Managing Director, DMS
Today’s objectives
1. Show that stewardship works
2. Demonstrate that stewardship is cost-effective
3. Outline the key ingredients
4. Describe the single biggest obstacle
Context
Source: Rapidata (2011)
Context
“Thank-you notes play an important role …”
Source: Merchant et al. (2010)
Context
“… even though more frequent donors have
stronger bonds with the charitable
organisation, ignoring their patronage over
a period of time may potentially corrode
the relationship …”
Source: Merchant et al. (2010)
Context
“The quality of service provided … to donors
appears to drive the level of active
commitment”
Source: Sargeant & Woodliffe (2007)
Context
“… the UK practice of referring to regular
donors as ‘committed’ is inappropriate … a
greater proportion of these individuals feel
no real bond to the organisation at all”
Source: Sargeant & Woodliffe (2007)
Context
“On average … lapsers … were taking 2-3
months to finalise their decisions and then
cancel.”
Source: Nathan & Hallam (2009)
Context
“…ensure that [nonprofits] … give ongoing
and specific feedback to donors as to how
their funds have been put to use, in
particular the benefit that has resulted for
the beneficiary group …”
Source: Sargeant (2001)
Context
“ … a link between the extent to which a
donor might be satisfied with the feedback
received and the overall longevity of the
relationship with the organisation …”
Source: Sargeant (2001)
The journey
• Process, not a single step
• Five years so far
The journey
Integration
• Stewardship is built in – Organisation– Donor communications programme
• Who’s driving stewardship– Donor > process– What do I think is appropriate?
Multi-channel
• Prize-led direct mail– Recruitment– Donor programme
• Events• Online• Reactivation• Legacy• Home Money Box
Multi-stage
Engage Convert Care
Action Cash ask CoG conversion TQ / upgrade
Call to introduce charity and ask to take a home
money box
Send letter to ask to empty box
Call to say TQ and ask to become a
committed giver
Call to thank and upgrade (sep calls)
Multi-stage
Placement 1st ask 2nd ask Thank you/upgrade3rd ask
Empty box (cash)
Box/coin card
Yes
No
No
Yes
Responders
Non responders
Conversion to CoG
Empty box (cash)
Empty box (cash)
Thank you
Upgrade
No
Yes
Responders
Conversion to CoG
Engage Convert Care
Retention over 5 yearsRetention Rates for Committed Givers - Based on Donor Year (from date of 1st gift to month 12, 24, 36 etc)
Make 1st Payment
Active 12 Months After 1st Payment
Active 24 Months After 1st Payment
Active 36 Months After 1st Payment
Active 48 Months After 1st Payment
Active 60 Months After 1st Payment
% CG retained over 60 months 96.5% 78.6% 66.7% 57.8% 52.1% 49.7%
49.7%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
Make 1st Payment
Active 12 Months After 1st Payment
Active 24 Months After 1st Payment
Active 36 Months After 1st Payment
Active 48 Months After 1st Payment
Active 60 Months After 1st Payment
Retention Rates for Committed Givers
% CG retained over 60 months
Attrition rates
Source: Rapidata (2011) and AICR (2012)
Attrition rates
Source: AICR (2012)
Cancellations %
August All direct debits HMB recruits
2010 1.6% 1.6%
2011 1.8% 1.4%
2012 1.4% 1.1%
Stewardship: thank you
Stewardship: survey
Stewardship: newsletter
Stewardship: supporter card
Stewardship: social media
Stewardship: social media
Proving it works
• Results– Upgrading with and without a thank you– Effect of thank-you on Gift Aid sign-up– Supporter card– Impact of newsletter– Effect on reactivation
Summary
• What seems to be working
• You can do this
• Retention as (every) part of your organisation
Impact
• In last 3 years, additional £3.38m income, £4.04m including Gift Aid
• Reduce attrition by 0.5%
• = £100,000 for us
• = another grant funded
• What would it mean for you?
Good luck!Any questions?