pareto fundraising getting the most by getting it monthly 2010 jg
DESCRIPTION
Pareto Fundraising Masterclass presentationTRANSCRIPT
Getting the most by getting it monthly:monthly:
how ongoing, regular support has transformed the fundraising landscape
Who we work with
Who we work with
What we’ll cover today
1. The power of monthly giving
2. Recruitment: how to get them
3. Engagement: how to inspire them3. Engagement: how to inspire them
4. Retention: how to keep them
5. Growth: how to leverage more value
6. Bringing it all together
One: the power of monthly giving
Changing the fundraising landscape
Growth in Canada
$15
$20
$25
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$0
$5
$10
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
2002 2003 2004 2005 2006 2007 2008 2009
Total Income Avg Gift
$15,000,000
$20,000,000
$25,000,000
From different sources
$0
$5,000,000
$10,000,000
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Direct Mail TV Unknown Phone Face to Face Door to Door Online
Unsolicited Press Inserts Email Radio Press Adverts Unaddressed
Monthly vs. cash
$550 net (after 3 years)
Monthly vs. cash
$550 net (after 3 years)
$270 net (after 3 years)
Monthly vs. cash
Our research shows we’ve got some work to do
Our research shows we’ve got some work to do
Two: recruitment
How to get them
• Acquisition
• Conversion
• Reactivation
How to get monthly givers
• Reactivation
• Acquisition
• Conversion
• Reactivation
How to get monthly givers
• Reactivation
Key ingredients for acquisition
• Investment and Risk
• Understanding the channels
• Getting the proposition right• Getting the proposition right
• Singular focus
• Benefits v features
• Testing
• Benchmarking
Key ingredients for acquisition
• Investment and Risk
• Understanding the channels
• Getting the proposition right• Getting the proposition right
• Singular focus
• Benefits v features
• Testing
• Benchmarking
Where do they come from?
Direct mail
• Net value after 3 years
between $500 - $600
• Cost to acquire around
$150 - $200 $150 - $200
• Year 1 attrition around
10%
• Net value after 3 years
between $250 - $300
• Cost to acquire around
$300
Direct Response TV
$300
• Year 1 attrition around
30%
• Net value after 3 years
between $100 - $200
• Cost to acquire around
$200
Face to Face (street)
$200
• Year 1 attrition around 25%
• Net value after 3 years
between $600 - $800
• Cost to acquire between
$0* - $300
Digital
$0* - $300
• Year 1 attrition around 10%
Proposition: the single most
important thing
Proposition: the single most
important thing
Benefits v Features
Singular focus
What should we test?
• Singular focus v multiple options
• Ask prompts
• One stage v two stage recruitment
What should we test?
• One stage v two stage recruitment
• Hand raising
• Creative approaches/messaging
• Multi channel approaches
2nd Gift Strategy – Cash to monthly
Multi channel approach
Stage 1: Prospecting
Stage 1: Prospecting
Stage 1: Prospecting
Stage 2: solicitation
Stage 2: solicitation
Stage 2: solicitation
Multi channel approach
Multi channel approach
How do you stack up?
• Acquisition
• Conversion
• Reactivation
How to get monthly givers
• Reactivation
• Integrated - mail and phone
• Mail used to mop up phone campaign
Key ingredients for conversion
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become monthly donors
Key ingredients for conversion
monthly donors
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become monthly donors
Key ingredients for conversion
monthly donors
• Consider different sources
• Onetime cash
• Lottery
• Purchasers/catalogue buyers
• Integrated - mail and phone
• Mail used to mop up phone campaign
• Should aim for 10% of cash file to become monthly donors
Key ingredients for conversion
monthly donors
• Consider different sources
• Onetime cash
• Lottery
• Purchasers/catalogue buyers
• New donors, speed is key
Speed is key
10.0%
12.0%
14.0%
16.0%
18.0%
Co
nv
ert
ed
Speed is key
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2 3 4 5 6 7 8 9 10 11
Weeks since Gift
Co
nv
ert
ed
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
• RFV
– Within last 24 months
– Given more than one gift
– Above $20
Some easy rules to follow
• Ask
– For active donors, monthly amount - last cash gift x 0.1
• Overlays
– Previous credit card usage
– Recruitment/donation source to see whether phone/DM
responsive
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
1. Focus on the benefits, not the ‘product’
2. Explain why monthly so vital
3. Get the targeting right
4. Use compelling and empowering copy
Getting the execution right
4. Use compelling and empowering copy
5. Personalize where possible
6. Break down into daily amounts
7. Focus on changing ‘behavior’
How do you stack up?
Three: engagement
How to inspire them
The Honeymoon period:
What does this look like?
• Kill off cognitive dissonance
• Thank, welcome and reaffirm
• Ensuring excitement of sale doesn’t wear off• Ensuring excitement of sale doesn’t wear off
• Focus on key cancellation periods
• Relevant and regular communications
What does it look like?
Killing off cognitive dissonance
© Pareto Fundraising 2009
Example email
Ensure the excitement doesn’t wear off
CanTeen:
Thank you message fromThank you message from
CanTeen Member: Sam
Key cancellation periods
Regular, relevant communications
It works
Four: retention
How to keep them
• Keep it personal
• Give and get feedback
• Understand drivers of attrition
How to keep them
Keep it personal
Keep it personal
Keep it personal
Keep it personal
It’s worth it
Knowing Bilbo’s name increases
upgrade rate by 43%
Giving feedback
Giving feedback
Giving feedback
Getting feedback
What really drives attrition of street recruits?
• Recruitment Source
• Gender
• Amount• Email Provided• Home Phone
What really drives attrition of street recruits?
• Gender• Payment Method• Payment
Frequency• Age
• Home Phone • Work Phone• Mobile Phone
Category % n
No 76.00 12012
Yes 23.00 3793
Total (100.00) 15805
Node 0
Year2 attrition
Some really ugly, but useful analysis
Category % n
No 76.06 6730
Yes 23.94 2118
Total (55.98) 8848
Node 16
Category % n
No 75.92 5282
Yes 24.08 1675
Total (44.02) 6957
Node 15
Gender
Adj. P-value=1.0000, Chi-square=0.0412, df=1
M;UF
• Age is the most significant factor in predicting Year 1 attrition
• Payment type is significant, with credit card payers more likely to attrite
Insights: what we found
payers more likely to attrite
• Predict future value of supporters
• Prioritize spend
• Identify high risk supporters and treat them
What this allowed Amnesty to do
• Identify high risk supporters and treat them differently
Five: growth
How to leverage more value
• Continuing to ask
• Understand relative value
• Upgrading
Leveraging more value
Continuing to ask
No. of
donorsTerminated
Attrition
Rate
Total months
since 2008/09
Avg months
given
Total Value since
2008/09
Included 3,434 287 8.36% 54,510 15.87 $14,334,329
Continuing to ask
Included 3,434 287 8.36% 54,510 15.87 $14,334,329
Excluded 3,433 295 8.59% 53,979 15.72 $13,176,515
$200
$300
$400
Ave VTD by Channel by Year
Getting the real lowdown: Net Value to Date
-$200
-$100
$0
$100
$200
Ave Year 1 Net
Ave Year 2 Net
Ave Year 3 Net
Ave Year 4 Net
• Say things like:
“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”
What this allowed SickKids to do
2005 by <insert channel> is worth $200”
• Say things like:
“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”
What this allowed SickKids to do
2005 by <insert channel> is worth $200”
• Focus on areas generating the best real return
• Say things like:
“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”
What this allowed SickKids to do
2005 by <insert channel> is worth $200”
• Focus on areas generating the best real return
• Understand implications of future program decisions
• Phone the most effective medium
– Use mail to ‘mop up’ and consider testing online
• Testing between 4 and 9 months after
Upgrading
recruitment
• Serial upgrade rejecters – auto upgrade
Aim for 70% after 5 years
2,000
2,500
3,000
40%
50%
60%
70%
Nu
mb
er
of
up
gra
de
rs
Up
gra
de
%
0
500
1,000
1,500
0%
10%
20%
30%
40%
2004 2005 2006 2007 2008 2009
Nu
mb
er
of
up
gra
de
rs
Up
gra
de
%
Bringing it all together
Final takeaways
• Acquisition not cheap, need to balance investment and risk with expected outcomes
Bringing it all together
• Acquisition not cheap, need to balance investment and risk with expected outcomes
• To maximize acquisition and conversion, you must:
Bringing it all together
must:
– Keep it singularly focused
– Understand and explain why monthly so vital
– Kill off cognitive dissonance
• Focus on partnership and benefits, not product names
Bringing it all together
• Focus on partnership and benefits, not product names
• Honeymoon period essential, don’t let excitement of joining you wear off
Bringing it all together
excitement of joining you wear off
• Focus on partnership and benefits, not product names
• Honeymoon period essential, don’t let excitement of joining you wear off
Bringing it all together
excitement of joining you wear off
• Continuing to ask will help leverage more value and keep more donors
• Focus on partnership and benefits, not product names
• Honeymoon period essential, don’t let excitement of joining you wear off
Bringing it all together
excitement of joining you wear off
• Continuing to ask will help leverage more value and keep more donors
• Use net long term value as key measure, not just CPA
Thank you and Questions
.
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