what every fundraiser can do to stop falling donor retention · · 2017-05-16what every...

What Every Fundraiser Can Do to Stop Falling

Donor Retention Rates

8/21/2013

Ignited Online Fundraising Community 1

What Every Fundraiser Can Do to Stop Falling Donor Retention

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Ignited Online Fundraising Community



8/21/2013


Donor Retention…Is the New Acquisition Strategy

Measure Donor Activity



8/21/2013


Pay Attention to Retention

It takes 4 ½ times the resources, staff and effort to get a new donor as it takes to get a renewal.

Utilize dashboards to show activity and build in accountability.



8/21/2013


What Every Fundraiser Can Do

to Stop Falling Donor Retention

Six Key Factors to Increase Lifetime Value by 200%

Jay B. Love

CEO & Co-Founder

Bloomerang

August 22, 2013

@bloomerangtech | 7

Your Presenter

Jay B. Love CEO and Co-Founder of Bloomerang

• 29 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 Member• 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

@bloomerangtech | 8



8/21/2013


What does a 10% increase in donor

retention rates mean in terms of LIFETIME dollars raised?

• 50%

• 100%

• 150-200%

Do you know your Retention %? »

@bloomerangtech | 9

Improving donor retention rates by 10% can improve LIFETIME dollars raised by?

• 150-200%!

(Do we have your attention yet?)

Is Retention important for NPO’s? »

@bloomerangtech | 10



8/21/2013


“Active donor commitment is the enduring

passion for your nonprofit. Inspiring donors is

key for loyalty.”

- 101 Fundraising

Lifetime Value = Donor Commitment


Year

5.004.003.002.001.00.00

Val

ue %

of d

onor

bas

e re

mai

ning

120

100

80

60

40

20

0

Attrition Curve




8/21/2013


Let’s dig even deeper into “actual” NPO data . . .

This scares most NPO Board Members »

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


Fundraising Effectiveness Project (FEP)

A project to help nonprofit organizations measure and

compare

The 2012 Fundraising Effectiveness Survey Report is based on 3,184

responses for 2010-2011, from nonprofit organizations in the United States.

The 2010-2011 responses reflected a total amount raised of $2,049,794,709.




8/21/2013


Fundraising Effectiveness Survey Report “FEP”

Participating Donor Software Firms:

• Donor2/Campus Management Corporation

• PhilanthrAppeal (FundTrack Software)

• DonorPerfect Fundraising Software

• The Raiser’s Edge ® (Blackbaud)

• eTapestry

• Avectra

• Bloomerang

• Sage Software

• MatchMaker FundRaising Software

• Telosa Software (Exceed!)

• Metafile

Donor Retention Rate

was 41%

Donor Attrition

was 59%!

2011 FEP Data on Donor Retention Rate »




8/21/2013


Yes, your eyes read correctly:

Nearly SIX out of every TEN Donors

from the previous year did NOT

donate at all the next year!





8/21/2013


Addressing the Retention Problem!

Is it a Donor Relationship Problem?


CUE THE EXPERTS:

Dr. Adrian Sargeant

Bloomerang Chief Scientist

Professor of Fundraising at the Center on

Philanthropy at Indiana University holding

what is presently the world’s only endowed

chair in that discipline.

Top 10 Most Influential People in Fundraising

Renowned expert on Donor Retention and

Donor Loyalty

Mr. Tom Ahern

Bloomerang Donor

Communications Head Coach One of the world’s top authorities on donor

communications

Author of 4 books on Donor Communications

Winner of 3 prestigious international IABC Gold

Quill awards




8/21/2013


DONOR RETENTION BEST PRACTICES

Dr. Adrian Sargeant

Bloomerang Chief Scientist

“A 10% improvement in retention can double

the LIFETIME value of your donor database!”


Donor Retention Made Simple




8/21/2013


# of Donors in Current 12 Months(from the previous years pool)

Divided by

# of Donors in Previous 12 Months

23

Figuring Your Retention Rate »




8/21/2013


“The total net contribution that a

customer/donor generates during

his/her lifetime in your database”

Defining Lifetime Value »


LTV = åCi

where:

c = net contribution from each year’s fundraising activity

i = expected duration of each relationship in years


Defining Lifetime Value »



8/21/2013


$1000 +

$500 - $1000

$100 - $500

$25 and under annually

$25 - $100

Value

Value Segments »


Why Do Customers Leave? (can this apply to donors . . .)

• Death 1%

• Relocation 3%

• Won by Competitor 5%

• Bad Complaint Handling 14%

• Lack of Interest from Us 77%




8/21/2013


Key Reasons For Donors Leaving

• No longer able to afford support

• No memory of ever supporting!

• Organization asked for inappropriate sums

• Feeling that other causes are more deserving

• Not reminded to give again

• Organization did not inform how monies were used

• Did not feel connected!





8/21/2013


Automatic Engagement Factors


• Recency and pattern of giving

• Cash donors vs. sustaining donors

• # of years giving +

• Upgrade / Downgrade + -

• Lapsed -

• Event attendance +

• Opens email +

• Click links in emails +

• Unsubscribes from email -

• Has stated communication preferences +

• Has inbound interactions +

• Has soft credits +

• Volunteers +

• Social Media (coming soon)

• …and a whole lot more!

What is the

donor’s

engagement

over time!

Highlight vital “retention” information

---



8/21/2013


6 Key Retention Drivers(That can double lifetime value)

• Drip feed mission performance data

• Connect often

• Be personal (SEGMENT)

• Develop like a good personal friendship

• Find & use numerous human connectors

• Always communicate what monies are doing!


DONOR COMMUNICATION BEST PRACTICES

Mr. Tom Ahern

Bloomerang Donor Communications

Head Coach

"Successful direct mail appeals are quite simple. At

heart, they are love letters to donors & prospects,

woven through with clear cries for help."




8/21/2013




8/21/2013


Final Piece of the Puzzle

How many of you use a donor database?

What percent of the product do you use?


Final Piece of the Puzzle

How many of you use a donor database?

What percent of the product do you use?


• Majority of NPO’s Use Less Than 20% of Their

Database’s Functionality

• Large Amounts of Features = Complexity

• Database Complexity Keeps Fundraisers Out



8/21/2013



1. Game Changing Ideas

2. Relentless Execution


Revolutionary Change Comes From?



8/21/2013


Game Changing Ideas:

• CRM so Intuitive (No training needed)

• Anyone can (and WILL) use





• Bring BEST practices to life




8/21/2013





• Bring BEST practices to life

• Focus on core functions only


Net Result:

All Fundraisers Use the Database

(Quite Revolutionary!)




8/21/2013


Net Result:



Everyone using the database enables …


Net Result:



Everyone using the database enables …

FUNDRAISING SUCCESS!!




8/21/2013


Next Gen Database/CRM

Enables Fundraising Best Practices

Donor Retention/Donor Communications

Extreme Ease of Use

Relentless Focus on Results, not Features

Leading a “Revolution of Change”

Pedigree . . .

”Finally Got It Right!”

FUND-MASTER



8/21/2013


Conclusion:

So Strive For:

• Donor Satisfaction

• Donor Commitment/Engagement (which . . .)

• Donor Trust

• Donor Loyalty (close your eyes)

Doubling Your Lifetime Value = ?


Questions?

Presenter: Jay B. Love

[email protected]

52



8/21/2013


September: How to Get More Likes, Comments & Shares on your

Facebook Updates

Thursday, Sept 1911 AM Central

Facebook Guru: John Haydon

What Every Fundraiser Can Do to Stop Falling Donor Retention

Please share your feedback on today’s

session with Jay Love.

Thank you!

what every fundraiser can do to stop falling donor retention · · 2017-05-16what every...

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