maximising donor retention
TRANSCRIPT
Maximising Retention and Securing Ongoing Gifts
Fiona McPhee
Optimising Life Time Value
Our Reality
35%
58%
WHO ARE WE ACQUIRING?
The big questions
The big questions
• We acquire more community / peer-to-peer and event donors than any other kind (1/3 of total in Aus)
• We acquire more cash donors then regular givers (this will change here based on UK and Aus market tracking)
• Our regular givers make us more $$ in the short term
Gross Individual Income
Bequests & Major Gifts account for ~40% of all income
The big questions
Cash dominated by direct mail
Regular Giving dominated by Face-to-Face
1/3 of cash income comes from donors who have been giving for over 10 years.
2/3 from those recruited five or more years ago.
Value comes from a life time of giving, not the short-term.
We can decide who we recruit with a view to the gains over time.
Older is still better.
Until you have all the older donors consider why you are trying to get the young ones.
HOW ASSISTANCE DOGS AUSTRALIA HAVE BEEN ACQUIRING
The Strategy
First Steps
Objective Actual
Gross Income $96,763
Total Cost $66,730
Cost Per Unit $1.67
Net Income $30,033
RR% 7.6%
ROI 2.36
# Responded 3,038
Avg Gift $31.81
Mailing Volume 40,025
Campaign 1Campaign 1ResultsResults
February 2011February 2011
First Steps
At this point …At this point …$1.2 million
raised at ROI of 0.87
28,000
new donor
s
First Steps
Track ValueFirst Gift 1 Recruits 1,968 First Gift 1 Recruits 11,557Channel 1 CPA $58.30 Channel 1 CPA $34.67Year 9 Ave Gift $44.52 Year 9 Ave Gift $37.50Appeal 3 Recr ROI 0.76 Appeal 3 Recr ROI 1.08
Premium 3 Max Inc Yr1 $2,250 Premium 2 Max Inc Yr1 $10,000Year1 RG% Year1 Ratio Year 1 Inc Year 1 ROI 2nd Gift 1Yr Year1 RG% Year1 Ratio Year 1 Inc Year 1 ROI 2nd Gift 1Yr
2.7% 1.85 $82.41 1.12 46.2% 1.2% 1.81 $67.87 1.37 39.2%
0%10%20%30%40%50%60%
2nd gift 90days %
2nd gift 180days %
2nd gift 270days %
2nd gift 1Year %
0%10%20%30%40%50%60%
2nd gift 90days %
2nd gift 180days %
2nd gift 270days %
2nd gift 1Year %
WHO STAYS & WHY?
Charity Recruitment Volume
Second Gift Rate
Number of donors giving a second gift after 12 months
A 3,000 45% 1,800
B 10,000 30% 3,000
If charity A recruited 10,000 donors that year they would have had 4,500 donors
giving a second gift after 12 months
Why do they give again?
Because they were asked
Because they had multiple opportunities to give again
Because they were thanked
Because they are charity donors
Building Your Second Gift Strategy
Why did they give the first time? They don’t care about everything you do (yet), they have shown they care about one thing
How did they give the first time? What channel did they respond via?
When is the quickest you can ask again? The longer you wait the less likely they will remember why they did it the first time
Can you ask in the thank you? It’s an opportunity to do more after understanding the impact I’ve just had
What can you ask for? Cash? Regular Gift?
Is it a good ‘ask’ vehicle Newsletter vs. an Appeal
What the data says
1. Ask fast: within in 6 weeks2. Ask often: 8 asks in the subsequent year will
get a higher second gift rate than 33. Ask for the same thing they first gave to4. Use the channel they did5. Use any additional channels you have the
means to
Direct Mail Acquired
Telephone Acquired
Welcome PackageWelcome
letter/Receipt
48 hoursDM 2nd
GiftMailing
TM RGConversio
n
6 Weeks
Ongoing Coms
Appeals,Upgrades,Donor Care
etc.
DM RGConversion
Mailing
Phone Number
Available?
Yes +
eligible
Yes to RG
No to RG + Yes to Cash
Yes/No
(2 mths later)
No or Not eligible
DM 2nd Gift
Mailing
6 Weeks
(Up to 1 mthlater)
(2- 3 mths later)
Yes/No
Segmentation considerations: Credit Card vs No-credit card, 1st donation value
Yes/No
New Cash Donor Journey
Non Contacts & No to RG
or Cash
What do ADA do?
Second Gift: Ask soon and appropriately
Ongoing: Aim to build supporter relationships and trust through:
• Regular storytelling and dialogue• Beneficiaries• Stakeholders• Their work
Evidence & Education = Familiarity & Trust
What do ADA do?
What do ADA do?
What do ADA do?
What do ADA do?
ADA Tracks Second Gift Rates
A1102 A1112Q A1201Q A1202Q A1205Q A1210Q A1301Q2nd gift 90 days% 3.0% 7.3% 4.1% 7.0% 0.9% 3.7% 5.0%2nd gift 180 days % 11.7% 23.3% 16.5% 14.3% 18.2% 14.4% 13.3%2nd gift 270 days% 13.5% 25.9% 21.7% 23.7% 21.7% 19.1% 20.2%2nd gift 1Year% 25.5% 31.7% 27.0% 27.3% 27.6% 26.4% 25.5%Recruits 3,097 5,196 5,958 8,913 4,603 10,009 9,212
0
2,000
4,000
6,000
8,000
10,000
12,000
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2nd gift 90 days% 2nd gift 180 days % 2nd gift 270 days% 2nd gift 1Year% Recruits
ADA Tracks Initial Value
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
A1301Q A1102 A1112Q A1202Q A1201Q A1205Q A1210Q A1304Q A1401Q
Recruits
$50+ $25-$49.99 $10-$24.99 <$10
ADA Tracks Second Gift Rates by Value
Recruits 2ndgift 180days%
2ndgift 270days%
2ndgift 1Year%
Multi Cash All RG Ever
Any Second%
A$1000+ 22 22.73% 27.27% 40.91% 63.64% 4.55% 63.64%B$500-$999.99 46 17.39% 30.43% 43.48% 54.35% 10.87% 54.35%C$250-$499.99 74 25.68% 29.73% 36.49% 54.05% 1.35% 54.05%D$100-$249.99 2,897 17.74% 24.78% 33.14% 39.21% 5.01% 41.25%E$50-$99.99 8,356 16.98% 23.58% 30.79% 35.85% 4.37% 37.75%F$25-$49.99 25,133 15.31% 20.49% 26.09% 30.18% 2.37% 31.27%G$10-$24.99 8,945 15.22% 20.75% 25.68% 29.11% 0.95% 29.51%H<$10 1,514 11.16% 13.80% 19.88% 22.52% 0.46% 22.79%Grand Total 46,987 15.63% 21.16% 27.12% 31.37% 2.56% 32.50%
ONGOING COMMUNICATIONS TO RETAIN
Retention Strategy
© 2013
Retention Strategy
© 2013
Retention Strategy
© 2013
Test
Keep Consistent
Retention Strategy
© 2013
Keep Consistent
Test
Why
1. To thank & show them their impact2. To ask, because you have a need &
need their help
“If your story is not about the donor, its about nothing at all” Tom Ahern
When
How: Multi channel?• Direct mail donors with an email address
are up to 150% more valuable• Effective use of integration shortens time
to second gift• SMS around a direct mail renewal can
increase response by 25%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Addr
1
Addr
1+
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Land
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Addr
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Addr
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obile
Emai
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Land
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Addr
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Addr
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Land
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Cash Recruit Emergency Recruit Disaster Recruit
2nd Gift Rate (Year 1) RecruitsBase: 2009 - 2014 Recruits
Address plus something else or just address are best 2nd gift
opportunity.
Donor Type 1 Donor Type 2 Donor Type 3
How: Multi Channel?
Content: It has to start with what donors want, what motivates them
© 2013
Content
1. What do your donor’s wants or need?2. All content is assessed aginst these
“If your story is not about the donor, its about nothing at all” Tom Ahern
ADA Retention Program
ADA Retention ProgramTiming What & How Why
January Donor Care PackDirect Mail
Thank, additional opportunity to give
January SurveyDirect Mail
Invovle, additional opportunity to give
February AppealDirect Mail & Email
Opportunity to give
May & June Tax AppealDirect Mail & Email
Opportunity to give
July Donor Care Pack & Tax ReceiptsDirect Mail
Thank
September AppealDirect Mail & Email
Opportunity to give
November & December Christmas AppealDirect Mail & Email
Opportunity to give
Various Regular Giving ConversionDirect MailPhone
Opportunity to do more
ADA Donor Care PackADA Donor Care Pack
Donor Care Ideas
Emotional Connections
Name of sponsored child
Name of pet
Name of a loved one lost
Why someone first donated
Country / area of interest
What else do ADA do?
• Always send a thank you• Send a survey with first donation receipt• Have an acknowledgment stratgey that increases personal
contact based on value • Ask about dog ownership on response mechanisms and in
surveys• Capture dog names• Use this information in renewal and retention
communincations• Continually test and measure
Value to Date MonitoringMetric DescriptionRecruits How many donors were recruitedRecruitment ROI ROI of the initial activityTotal Rec Cost Cost of the recruitment
Recruitment IncomeIncome from recruitment (first cash gift or actual year RG income
Year 1 Cost Ongoing expenditureYear1 Warm Income Subsequent Year 1 incomeYear1 income all Recruitment Income + Warm IncomeYear1 ROI Year 1 income all /(Recruitment Cost + Year1 Cost)Year1 Net Income per Recruit Year1 Income per Recruit Year1 Ratio Ratio of the total year 1 income to the initial giftYear1 Warm income per rec Year 1 warm income /recruitsMax of Year1 income Identifies outliers in data2nd gift 180 days % 2nd gift rate as % of all recruits2nd gift 270 days % 2nd gift rate as % of all recruits2nd gift 1Year % 2nd gift rate as % of all recruitsCost per recruit Rec Cost / RecruitsAve First Gift RG Ever % % of all recruits that have convertedCash Gifts Year1 per donor Number of cash gifts in year 1 % upgraded 2nd cash 1 year % that made a second gift bigger than their acquisition gift.
INCREASING VALUE INCREASES RETENTION
Upgrade & cross-sell strategies
Upgrade Giving
Upgrade Giving
Test Ask Multipliers
• Ask 1 = Last Gift x 1Vs.
• Ask 1 – Last Gift x 1.5
Upgrade Giving
Upgrade Giving
Upgrade Giving
Upgrade Giving
Upgrade Giving
Upgrade Giving
Convert to Regular Giving
Regular Giver who makes additional cash donations 3 times more valuable than cash only donor (giving twice as much cash plus their regular gift)
ADA ConversionPack
• 4pp Letter• RM• BRE• Echo Lift• Backpack Lift• DLW with large
window
Cash ask on RM for RG + Cash Pack:
Develop a High Value Strategy
Average high value donor gave $4,442 in 2013
Introduce a Bequest Strategy
CUSTOMER CAREHow you treat me matters
Be Best in Class
Is your customer service exemplary? Through all channels? Is it a priority in your organisation? Are you staff trained?
“My name is Ruth. If you have any questions, please call me.”
REVIEW YOUR RETENTION PROGRAM
Many of our communications are filled with inconsistencies• An inconsistent experience
• Online Experience compared to Offline experience.• Inconsistent messaging
• Message online is different from what is fed back in subsequent communications
• Reason for giving is not clearly defined• Sometimes there is no messaging at all
Argee on what you are trying to build & deliver
© 2013
Starting Point
Group Sign Up Focus Commitments Made
F2F Emergency ResponseBasic needs - water, food, education"… you'll ensure charity has steady and reliable income, enabling us to go straight into action as soon as an emergency happens.""… and enable our teams to respond as soon as a crisis strikes, without waiting for appeals to be launched and donations to come in.”
“… send direct feedback about our work in the field: updates, briefings and first-hand reports from our emergency staff.”Tax receipts, direct debit date, quarterly newsletters, email alerts, invitations
OnlineHelp families in crisis. Provide urgent relief to refugees in need, whenever and wherever a disaster strikes
Over the coming months, I look forward to sending you direct feedback about our work in the field; updates, briefings and first-hand reports from our emergency staff.
Phone Acquisition 1 million in Syria. Emergency relief, life-saving
items like tents, blankets & other items
You will receive a welcome pack and updates on how your contribution is helping hundreds of thousands of people across the world, a tax receipt at the end of the year
Phone Conversion West Africa lead in - Magnitude of need &
Response to crisis (basics of shelter, food, water & health care)
We will respond to emergencies as soon as they occur, we will send a confirmation letter in the next 10 working days, you will hear from us very soon.
© 2013
Develop a roadmap for each donor group through the three
critical stages
Sign Up
• Are the commitments made at sign up consistent?
• Is the language used consistent from acquisition to thank you and beyond?
• Do I ‘walk away’ 100% clear who I am helping, how and why?
• What should the donors feel post sign up?
© 2013
On Boarding
Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1 Priority - Phase 1MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY MANDATORY
Stage SIGNUP WELCOME JOURNEY
Communication title Thank you and welcome email Supporter Details Leadership Thank You Mission moment Get involved Introductory eNews
Communication # Timeframe 0 Day 3 Day 5 Week 3 Week 6 Week 13Channel/s Email Email Email (video) Email (picture/video) Email
Overview Instant recognition of action taken and welcome
Delivering high quality supporter service and care
Personal and heartfelt thank you from SCA leadership
Child voice focused story to generate emotional reward
Cross-promote other actions to take in support of mission
Transition to ongoing supporter communications
Donor response objective
Real-time acknowledgement of action takenValidation of successful transaction and sign-upExperience emotional reward for action taken
Positive supporter service experienceEstablish relationship and trustOvercome remorse and cognitive dissonance
Shared values, beliefs and mission to make a differenceRecreate original emotional connectionReinforce donation impact
Reinforce donation impact via focus on a single childDemonstrate effectivenessBuild donor-beneficiary connectionReinforce organisational trust
Increase understanding of organisation and activitiesInspire to take additional steps to support
Understand the ongoing communications and how they'll be kept updated and informed
Organisational objective
Easy, seamless and engaging sign-up experienceCreate great first impressionStart relationshipReinforce product name and proposition
Friendly and and efficient supporter servicesIntroduce main contact and offer proxy contactsOpen-up two way communications
Drive self-identity belief through product and brand positioningBuild relationship through shared values and missionEstablish 'voice' of organisation
Reinforce product and key beneficiary group/sDemonstrate donation 'at work'
Deepen relationshipIncrease # supporters engaged in multiple actions
Set clear expectations for supportersIncrease eNews open rates and engagement
How should Donor feel? Acknowledged, Excited, Enthusiastic Valued, Respected Affinity, Appreciated, Proud,
Gratified of self worth Powerful, Uplifted, Inspired to do more Informed, Appreciated
Prominent Value(s) expressed Passion, Optimism Respect, Responsibility Trust, Determination Achievement Effective Impactful; Expert;
Appreciative
Focus - proposition and messaging
Assure successful sign-up and welcome to the movement for 'children in crisis'
Important information to noteWays to connect and contact us
Build concept of 'we-ness' and self-identification i.e. one who cares about 'children in crisis'
Single child story the supporter can related to and connect with to affirm impact of gift
Other actions you may like to take in support of our mission
Keep informed about the work you are achieving for 'children in crisis'
Case Study / Story N/AVideo reel showcase of 'children in crisis' being helped
Case study - TBC N/A
Content
Thank you for taking action and welcome to the frontline for 'children in crisis'Join the community on social media
Confirmation of supporter details: supporter number, payment date, payment amount, starting date, update details online formSCA contact details: email, phone
Join a campaignShop with usVolunteeringEvents
Signatory Supporter Services Supporter Services CEO CEO Supporter Services Supporter Services
New RG Donor On Boarding
Retention Communications
1. Everything you send is about retaining2. Asking is the only way to get a gift
But never forget to thank or feedback3. The more a donor interacts the more
likely they are to give again4. Compelling, emotional stories lead to
action, fact / figures lead to thought
Content Checklist
What do your donors want from you?
1.Have you asked them?2.Have you tested it?
It’s all about Optimising Life Time Value
THANK YOU
Fiona [email protected] Twitter: fimcpheePhone: +6421 336 905Web: www.paretofundraising.com