maximize your database for fundraising success (inapef)
TRANSCRIPT
Maximize Your Database for Fundraising Success
Jay B. Love
• 30 Years of Technology Leadership• Over 20,000 Database Installations• Former Founder & CEO of eTapestry• Former CEO of Master Software/Fund-Master• AFP Board Member• AFP Ethics Committee Chairman• Center on Philanthropy at IU Board Member• Innovation Fund at Butler University Board Member• Gleaners Food Bank Board Member• Co-Chair of Indianapolis YMCA Capital Campaign
3
Your presenter »
Agenda »
• The importance of donor retention
• Your database: a 3-legged stool
• Data Management 101
• Segmenting 101
• Appeals
• Acknowledgement
• Engagement Tracking/Scoring
• Reporting
What is the key purpose of a database?
What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”
What is the key purpose of a database?
“To enable and insure the proper
funding of your organization’s mission.”
(Is there a secret to achieving this purpose?)
Calculating Your Retention Rate »
# of Donors in Current 12 Months(from the previous years pool)
divided by
# of Donors in Previous 12 Months
Fundraising Effectiveness Project (FEP)A project to help nonprofit organizations
measure and compare
Who is Studying Donor Retention?
The 2014 results are in »
Nearly 6 out of every 10 donors do not give again!
New donor retention is even worse »
Who to focus on »
Donor Attrition Over Five Years
# of Donors Attrition Rate
Donors Remaining
After 1 Year
Donors Remaining
After 2 Years
Donors Remaining
After 3 Years
Donors Remaining
After 4 Years
Donors Remaining
After 5 Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
So what?
So what?
Improving donor retention rates by just 10% can increase the lifetime value of your database by 150-200%!
- Dr. Adrian Sergeant,Bloomerang Chief Scientist
10% of your donors in the previous year multiplied by your average gift amount
EQUALS
Potential first-year increase!
The hidden “math” of your database »
“The total net contribution that a customer/donor generates during his/her lifetime in your database”
Defining Lifetime Value »
$1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
Value Segments »
Time
”Proper database usageis the key to donor retention
and lifetime value!
The 3-Legged Stool »
1. Record keeping2. Outbound communications3. Interactions
1. Record Keeping »
• The original reason to replace 3x5 cards in the 1980s!
• Everyone in the organization should use the database
• Everyone in the organization should benefit from data
2. Communications »• The “secret sauce” of retention success!
• Offline• Appeals
• Acknowledgements
• Newsletters
• Handwritten notes (magical!)
• Online• Email
• Website interactions
• All must be integrated!
3. Interactions »• Types
• Phone calls
• Texts
• Meetings
• Emails
• Chat
• Notes• The institutional memory of your organization
• Enables the highest levels of engagement
• All must be integrated!
Data Management »
Can you have too many names in your database?
0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding
0 / 10 / 90 Rule »
• 0% of your funding
• 10% of your funding
• 90% of your funding
What should you do with each segment?
0 / 10 / 90 Rule »• 0% of your funding
• remove all but:
• previous above-average donors/sponsors
• previous board members
• previous top volunteers
• alumni
• survey respondents
• 10% of your funding
• handle in an automatic manner, but research
• 90% of your funding
• focus the majority of your efforts here
Appeal segmenting »
Appeal principles »
• Design a “style” for each segment
• Consider calling and mailing segments 2, 4 and 6
• Handwritten notes and/or P.S. are powerful
• Test, test, test!
• Personalize as much as possible (database fields)
• More than once a year
• Always aim for monthly donors!
Acknowledgement segmenting »
• 48-72 hour rule
• Call ALL first-time donors (if possible)
• Handwritten notes
• Be different than the rest
• State exactly how donation will be used
• Fully map a track for each segment
Acknowledgement principles »
Donor communications »
“Successful donor communications are quite simple.
At heart, they are love letters to donors & prospects, woven through with clear cries for help.”- Tom Ahern,
Bloomerang Donor Communications Head Coach
http://aherncomm.com
Engagement factors »
40
The number of charities supported annually
• Income 50K – 2-3
• Income 100K – 3-4
• Income >100K – 4-5
• One is usually there church
• Second is most likely their school
Importance of Being a “Chosen” Charity »
Where Does This Leave Your Cause?
Reporting »
1. Record keeping• Hone in on what is truly needed
Reporting »
1. Record keeping
2. Communication-related (plus results!)• The key to proper testing
Reporting »
1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)• Dashboards and graphics
Reporting »
1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs• Metrics that make a difference
Reporting »
KPI September Goal September Actual
New Donors 500 831
New Volunteer Signups
460 652
Web Sessions 17,500 22,253
Email Signups 12,500 16,794
Cost per New Donor
$1.00 $1.39
Cost per Return Donor
$0.25 $0.27
Budget YTD $61,745.09 $61,638.94
1. Record keeping
2. Communication-related (plus results!)
3. Big picture for board (YTD and vs budget)
4. KPIs
5. Funnel• Moves the funding needle the most!
Reporting »
Free educational resources »
https://bloomerang.co/resources
•Daily blog post
•Weekly webinar
•Downloadables
•Nonprofit Wrap-Up
•Bloomerang TV
