measuring and managing donor commitment to raise more money
DESCRIPTION
Presented by Jann Schultz and Josh Whichard. Lots has been said about the need to create, maintain and grow donor relationships. What has been missing is an empirical, proven framework to measure the strength of the donor relationship AND identification of the touch points and actions your organization can take that influence donor attitudes. Learn insights that are a requirement for organizations to plug their leaky bucket in order to re-establish a path of sustainable long-term revenue growth.TRANSCRIPT
2013 WASHINGTON NONPROFIT CONFERENCE
THE FUTUREIS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS
2013 WASHINGTON NONPROFIT CONFERENCE
Measuring & Managing Donor Commitment to Raise More Money
@jwhichard@jannschultz @operationsmile#DCNP2013
2013 WASHINGTON NONPROFIT CONFERENCE
1. We Have an Industry Problem -- A broken growth model
2. There Is A Solution – A new way to view the world
3. We Have Proof – Operation Smile
4. We will end on time
Four Key Takeaways from this Session Are…
2013 WASHINGTON NONPROFIT CONFERENCE
The Problem:
The Industry Model for Growth is Broken
2013 WASHINGTON NONPROFIT CONFERENCE
The “Old” Growth Model: Acquiring More New Donors than We Lose
2013 WASHINGTON NONPROFIT CONFERENCE
Abandon the conquest mentality where acquisition is king...customers can only be acquired, churned and reactivated so many times before they tire of your brand...lapsed reactivation is less expensive but is there a better experience waiting for them...sustainable growth will come from better relationships.
Bryan PearsonThe Loyalty Leap
2013 WASHINGTON NONPROFIT CONFERENCE
Growth Strategy or a Replacement Strategy?
2013 WASHINGTON NONPROFIT CONFERENCE
The Solution:
Strong Relationships Are Created Not Born
2013 WASHINGTON NONPROFIT CONFERENCE
Rethink our Understanding of ‘Cause and Effect’
Non Profit Experiences
Delivered By YouCause
Constituent Behavior (Giving/Doing)
2013 WASHINGTON NONPROFIT CONFERENCE
Acquiring New Donors/Members
You are just like everyone else.
I expected more.
I’m just like every other person to you.
You never asked what I want.
Why Relationships Fail
Your brand suffers from “sameness”
The “experience” didn’t match expectations
This information wasn’t relevant to me.
You don’t ask what donors think.
2013 WASHINGTON NONPROFIT CONFERENCE
Impacting how the donor feels/thinks about your organization is THE key to retention.
Non Profit Experiences
Delivered By You
How Constituent Feels/Thinks About You
Cause CauseConstituent
Behavior (Giving/Doing)
Start managing the business here
2013 WASHINGTON NONPROFIT CONFERENCE
Commitment to Organization
Functional Connection
Personal Connection
Behavior
Constituent Experiences
• Marketing/Brand• Donor Service• Fundraising• Engagement• Operations
Reliable/Consistent Experience
More emotive
Motive/intent to maintain
2013 WASHINGTON NONPROFIT CONFERENCE
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Donor Commitment
Scores
High Commitment 92
Potential 73
Vulnerable 43
Transactional 14
Overall 73
Source: 2012 DonorVoice National Study
Added Dimension for TargetingNew “Who”
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0 10 20 30 40 50 60 70 80 90 100$100
$150
$200
$250
$300
$350
$133.09
$229.12
$283.16
$199.18
Value
Commitment
High Commitment
Potentials
Vulnerable
Transactional
Higher Relationship Strength = Higher LTV
Source: 2012 DonorVoice National Study
2013 WASHINGTON NONPROFIT CONFERENCE
Not All Experiences Matter Equally…Or at ALL!
New “What
”
2013 WASHINGTON NONPROFIT CONFERENCE
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Appreciation
Customer Service
Contact Strategy
Focus/Brand
Engagement
• Timeliness of their thanking…• Sending a personalized thank you…• Feeling part of an important cause
• Sending information on impact…• Knowing what to expect…• Clearly communicating mission & goals
• Opportunities to make views known…• Providing opportunities to take action…
Taxes
• Having helpful customer service…• Having knowledgeable customer service…
• The frequency of requests for donations• Sending information about my specific
interests
• Providing convenient year-end tax receipt
Appreciation41%
Customer Service25%
Contact Strategy19%
Focus/Brand46%
Engagement39%
Organizational Experience “Mental Groupings” Key Experiences
Source: 2012 DonorVoice National Study
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Taxes
Contact Strategy
Customer Service
Engagement
Focus/Brand
Appreciation
Importance
Performance
2013 WASHINGTON NONPROFIT CONFERENCE
Importance
Performance
Repair and/or
Replace
Refine and/or Scale
Repair and/or Refine
“What Now”
2013 WASHINGTON NONPROFIT CONFERENCE
Operation Smile• Envisions a world in which no child suffers or
dies because of a repairable facial deformity.
Twitter: @jannschultz @operationsmile #DCNP2013
2013 WASHINGTON NONPROFIT CONFERENCE
Growth through Direct Response
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Number of Donors
Number of Donors
Overall Growth:371%
2013 WASHINGTON NONPROFIT CONFERENCE
Donor Retention
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Donor Retention (%)
Donor Retention (%)
2013 WASHINGTON NONPROFIT CONFERENCE
2013 WASHINGTON NONPROFIT CONFERENCE
Immediate, life-changing results
2013 WASHINGTON NONPROFIT CONFERENCE
2013 WASHINGTON NONPROFIT CONFERENCE
Acquisition and Cultivation of Donors
2013 WASHINGTON NONPROFIT CONFERENCE
Gift Catalog
Support through Consumer Purchases
Inlcude in My Will
Celebrity Endorsers
Raising Money from Friends
Promoting Student Programs
Conference Calls
Provide materials (DVD’s)
Sharing Success through Photo Albums
& Video
Using Social Media
Importance
PerformanceENGAGEMENT
2013 WASHINGTON NONPROFIT CONFERENCE
72% of Facebook likes are High Commitment
Donors
78% of Twitter followers are High
Commitment Donors
3 out of every
4
2013 WASHINGTON NONPROFIT CONFERENCE
Using Global Standards of Care so every child
benefits from the same equipment and proce-
dures
Having the highest standards of safety, hy-
giene and care
Helping children live with dignity
Delivering immediate, life changing results
Delivering safe surgery to remote places
MESSAGE/FOCUS
Importance
Performance
2013 WASHINGTON NONPROFIT CONFERENCE
2013 WASHINGTON NONPROFIT CONFERENCE
Immediate Steps - Messaging
Global Standards of Care
2013 WASHINGTON NONPROFIT CONFERENCE
Holiday Catalog E-mail Appeal(BEFORE) Subject: Holiday shopping tips from Brooke Burke Charvet
(AFTER) Subject: Get Your Life-Changing Gift NOW
2013 WASHINGTON NONPROFIT CONFERENCE
Donor First Commitment• We are committed to serving you, our donors,
volunteers and advocates with the same exceptional care that Operation Smile provides to children and their families around the world.
2013 WASHINGTON NONPROFIT CONFERENCE
What’s on the Horizon?• Improving our feedback channels• Capturing commitment scores• Utilizing Target Analytics – Loyalty Insights and
Donor Commitment scores• Redefining our budget – focus investment on
our high commitment donors
2013 WASHINGTON NONPROFIT CONFERENCE
Key Takeaways• Feedback from your donor is priceless• Your Mission is NOT your offer• There is a short list of key experiences that
have the greatest impact – focus on them• Customer service is vital to our organization,
those touch points matter
2013 WASHINGTON NONPROFIT CONFERENCE
THE FUTURE IS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS
Thank You!Operation Smile Case Study
Jann SchultzAssociate Vice President, Donor ServicesOperation Smile+1.757.321.7645+1 [email protected] @jannschultz @operationsmileLinkedIn Jann (Erickson) Schultz
2013 WASHINGTON NONPROFIT CONFERENCE
THE FUTURE IS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS
For a copy of this presentation & DonorVoice 2012 National Commitment Study Summary
1. Grab your smart phone
2. Go to http://presentnow.me
3. Enter the code “DMA”