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RETENTION
Chuck Longfield, Chief Scientist, Blackbaud
July 29, 2013
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AUSTRALIA IS THE MOST GENEROUS COUNTRY IN
THE WORLD
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• Finding new donors is difficult and expensive.
• Growth in number of Regular Givers from 2011 to 2012 was 4%. This was
was significantly lower than the growth from 2007 to 2008 (~14%).
• Cost to acquire a new donor is 6-7 times that to retain an existing donors.
• Top 18 Australian charities had a massive 1% change in the number of
donors on file. They lost 28% and gained 29%!
>>> We estimate they spent over $60m to basically stand still.
• According to the 2012 SONI survey, of Australian donors
- 35% were willing to support 3+ charities with one-off gifts
- but only 16% were willing to support 3+ charities with regular gifts
• Young donors are less loyal than older donors
RETENTION VS ACQUISITION
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S O W HAT S HOUL D W E DO?
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EMPHASIZE DONOR RETENTION OVER ACQUISITION
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• View current donors as valuable assets! Acquiring a new donor is not a fair trade for losing a current donor. 85% of existing, Regular Givers were retained but only 58% of new, Regular Givers* 65% of existing, Regular Givers were retained but only 27% of new, Regular Givers* * 2011 donorCentrics analysis of large, multi-national, Australian non-profits
EMPHASIZE DONOR RETENTION OVER ACQUISITION
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• When acquiring new donors, factor in whether you will retain the donor, and at what dollar level 2013 Australian donorCentrics First Year Retention Rates: 41% - Single Gift, Mail Acquired Donors 25% - Single Gift, Web/Digital Acquired Donors 7% - Single Gift, Event Acquired Donors 49% - Regular Gift, Face to Face Acquired Donors 77% - Regular Gift, DRTV Acquired Donors 78% - Regular Gift, Web/Digital Acquired Donors
EMPHASIZE DONOR RETENTION OVER ACQUISITION
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• View donors as valuable assets!
• When acquiring new donors, factor in whether you will retain the donor, and at what dollar level
• Fill the holes in your leaky bucket!
• Why did the donor give? Stop giving?
• According to Adrian Sargeant, Ph.D. from Indiana University’s Center on Philanthropy “A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200% .”
EMPHASIZE DONOR RETENTION OVER ACQUISITION
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• Be willing to invest in your donors, e.g. thank you calls. See Donor-Centered Fundraising – Penelope Burk
• Determine a donor’s potential early in your relationship and allocate resources accordingly
• Be Donor-Centric, not Campaign-Centric - Personalisation - Segmentation - Guided Moves Management
FOCUS ON LIFETIME VALUE, NOT RESPONSE RATES
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• Set goals and measure your results
• Find peer groups and benchmark your results
• Checklist Manifesto, by Atul Gawande
• Identify best practices
• Find ways to collaborate to maximize results
FOCUS ON RESULTS, NOT EFFORT
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• Organize yourself to recognize a donor’s passion for your mission
• See yourself through the eyes of your donors
• Be willing to invest in your donors
• Test investments and track results carefully
INVEST IN YOUR MOST PASSIONATE SUPPORTERS
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1. Emphasize donor retention over donor acquisition
2. Focus on a donor’s lifetime value, not a campaign’s response rate
3. Focus on results, not effort
4. Identify & invest in your most passionate supporters
KEY TAKE-AWAYS
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• Over 300 of the best fundraising ideas ever, at your fingertips 24/7…for free! • Contribute your own exhibit. • Sign up to receive hot news and updates. • What three things will you do differently, starting next week?
WWW.SOFII.ORG
A unique online resource of everything you could want to know about fundraising from c.1500 BC to the present day
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The Raiser’s Edge for Retention can help your organisation to:
Focus on donor retention & stewardship Improve visibility of fundraising results Manage regular giving Improve efficiency
For more information contact [email protected].
It’s time to start treating your donors as your most valuable asset
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QUESTIONS?
Chuck Longfield, Chief Scientist