The Regular Giving Toolbox

Regular Giving Tool BoxWhat makes a regular giving program flourish?

Fiona McPhee

• The things that are making regular giving programs flourish

The result of me being nosey

Long ranging plan & budget

Back End Management Proposition

Channel Management On Boarding On Going

Communications

Increasing Value Measurement & Analysis Customer Service

Who are these regular givers?

F2F Two Step Converted

Cash Converts All Others

Regular Giving Income - by channel of solicitation

$0

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Inco

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Direct Mail Face to Face Media Online Other Phone

New RG Recruits - by channel of solicitation

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Recr

uits

Direct Mail Face to Face Media Online Other Phone

Two Distinct Groups

1 2 3 4 5

6

Silent (1925-1945) Boomers (1946-1964)

The sandwich generation The love generation

The Depression generation The me generation

The Beat generation Trailing-edge boomers

The beatniks The hippies

The lost generation Breakthrough generation

Boomers:• Grew up with a placid childhood which inspired

their revolution• In the 60’s they had goals of freedom, idealism,

self expression and being socially conscious. • By the 80’s they had jobs, families and were

becoming demanding consumers. • Today they have come to grips with an ethnically

diverse world, their mid-life crisis, are feeling nostalgic.

Silent:• Financial insecurity meant people had fewer children

– so it was a smaller generation• As children they worked very hard and kept quiet• They grew up in conditions complicated by war and

economic depression• This increased their need for achievement, power and

status

Generation X (1964-1979)

Generation M (Y) (1980-2000)

Slackers Google generation

The twenty/thirty somethings The MySpace generation

The generation after The MyPod generation

Leading-edge boomers iGeneration

The gap generation The corporation generation

Gen X:• Grew up in the 80’s with economic strain, AIDS,

divorce & working mums• They were also the first true tech generation• In the 90’s they created You Tube & My Space

for the next generation to use • Dealt with the inheritance of racial strife,

homelessness• They mistrust institutions, reject rules, dislike

authority but know how to work together

Gen Y:• Bought up as the most child centric generation• Highly tech literate• Used to being in a tribe/group • Juggle multiple interests all the time.

Classic Mail responsiveLess likely to moveLikely to give additional gifts via DM or TMMore likely to leave a bequestAttrition: 8% - 30% in Yr 1

Newbies Phone responsiveHighly mobileTech savvyWill upgrade but less likely to make additional gifts in traditional waysAttrition: 40% - 65% in Yr 1

Non-Face-to-Face Average Gift: $24.34 Average Gift Range: $15 to $85Year 1 Attrition: 28%Year 1 Attrition Range: 11% to 50%Year 2 Attrition: 16%Year 3 Attrition: 10%

Face-to-Face Average gift: $30.39Average Gift Range: $15 to $40Year 1 Attrition: 49%Year 1 Attrition Range: 38% to 65%Year 2 Attrition: 18%Year 3 Attrition: 9%

Cash Converts Average gift: $15Average Gift Range: $10 - 20Year 1 Attrition: 20%Year 1 Attrition Range: 7% - 30%Year 2 Attrition: 12%Year 3 Attrition: 8%

Phone / Lead Conversion Average gift: $ $20.34Average Gift Range: $12 - $27Year 1 Attrition: 35%Year 1 Attrition Range: 12% - 55%Year 2 Attrition: 18%Year 3 Attrition: 10%

1

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$- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00

Average Gift

1

2

3

4

0% 10% 20% 30% 40% 50% 60%

Year 1 Attrition

It’s not just about the Regular Gifts they make

Cash Donors converted to RG will keep giving

cash


Non-F2F are great bequest

prospects

Regular Giving Pledge BQ rate - by recruitment channel

0%

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Confi

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Conf BQ Penetration Active Regular Givers

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Activ

e RG

Do

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They have High Value Potential

RG Gifts $1K+ - by year and value band

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Inco

me

$100K+ $25K-$100K $4.8K-$25K $1.2K-$4.8K $1K-$1.2K $1K


They will do other things emergency

response, activism, DM appeals (profiled)


Back end Management Digital

On Boarding On Going Communications Upgrade

Reactivation Measurement & Analysis Customer Service

LONG RANGE BUDGET & PLAN

Expenditure Warm Costs Contact % Pack/Call Postage F2F cost Total costYear F2F RG Cash DM Cash Online RG Inserts RG O/L leads DRTV Fixed Warm Total Cash program 100% $1.20 $0.50 $0.00 $1.70 1

1 $112,647 $0 $30,000 $0 $31,500 $0 $0 $3,065 $177,212 F2F RG 90% $0.00 $0.00 $15.00 $13.502 $270,000 $0 $0 $0 $100,000 $0 $0 $14,346 $384,346 EOYR 100% $1.00 $0.41 $0.00 $1.413 $270,000 $0 $0 $0 $100,000 $0 $0 $24,323 $394,323 RG Conversion 50% $12.00 $0.00 $0.00 $6.00 0%4 $130,000 $0 $0 $0 $70,000 $0 $0 $28,048 $228,048 RG Servicing 100% $10.00 $1.105 $90,000 $0 $0 $0 $50,000 $0 $0 $27,412 $167,4126 $90,000 $0 $0 $0 $50,000 $0 $0 $26,684 $166,684 1 8%7 $90,000 $0 $0 $0 $50,000 $0 $0 $26,681 $166,6818 $90,000 $0 $0 $0 $50,000 $0 $0 $27,085 $167,085 DM Cash 2.500% 0.000% $35.00 $0.00 0.009 $90,000 $0 $0 $0 $50,000 $0 $0 $27,630 $167,630 F2F RG 0.000% 100.000% $0.00 $30.00 0.58

10 $90,000 $0 $0 $0 $50,000 $0 $0 $28,092 $168,092 Cash online 0.862% 0.000% $35.00 $16.00RG Inserts 0.000% 0.080% $66.00 $16.00

Acquired donors (tot) RG O/L leads 0.000% 8.000% $0.00 $15.00 0.30RG Cash DRTV 0.000% 0.011% $0.00 $23.80 0.00

Cumulative 7276 1000Expenditur Acq Warm & Conversion Net Inc Expenditure Gross Inc Net Inc Acquired donors (p.a.)Contact

Year 1 $177,212 $70,000 $76,647 $3,039 -$62,526 $177,212 $114,686 -$62,526 542 1000 100%Year 2 $384,346 $0 $338,749 $4,427 -$41,171 $561,558 $457,861 -$103,697 1395 0 100% DM Cash $1.15 $2.10 $0.00 $1.00 $3.28Year 3 $394,323 $0 $562,258 $3,924 $171,859 $955,881 $1,024,043 $68,162 1395 0 100% F2F RG $0.00 $0.00 $265 $5.00 $270.00Year 4 $228,048 $0 $634,833 $3,478 $410,263 $1,183,929 $1,662,354 $478,425 758 0 100% Cash online $0.00 $0.25 $0.00 $1.00 $0.26Year 5 $167,412 $0 $606,368 $3,083 $442,040 $1,351,341 $2,271,805 $920,465 531 0 100% RG Inserts $0.00 $0.25 $0.00 $1.00 $0.25Year 6 $166,684 $0 $580,054 $2,503 $415,872 $1,518,025 $2,854,362 $1,336,337 531 0 55% RG O/L leads $0.75 $18.48 $0.00 $5.00 $20.24Year 7 $166,681 $0 $572,786 $2,422 $408,527 $1,684,706 $3,429,570 $1,744,863 531 0 DRTV $0.02 $4.64 $0.00 $5.00 $0.02 2Year 8 $167,085 $0 $575,930 $2,147 $410,991 $1,851,792 $4,007,646 $2,155,855 531 0Year 9 $167,630 $0 $582,672 $1,903 $416,945 $2,019,422 $4,592,222 $2,572,800 531 0 Click here to visit Acqusition Phasing Sheet 1Year 10 $168,092 $0 $587,617 $1,687 $421,212 $2,187,514 $5,181,526 $2,994,012 531 0 0

0Lowest net income point is -$117,471 in Month 20 0

0

Acquisition Breakeven Month is Month 33

Warm DM Program

Ongoing Cash Giving

RG Conversion in month

1.27

F2F Attrition

Bequest Income

Major Donor Income

0%

0%

DRTV Attrition

Acq CostsLists and

PostPack/Call

Cost F2F CostThank

you Total cost

Executive SummaryAnnualIncome

Year 1 ROI

O/L Lead Attrition

Activity Cash Resp RG RespCash Ave

GiftRG Ave

Gift

0.00

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5.00 ROI by Year

-$0.2$0.0$0.2$0.4$0.6$0.8

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Mill

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Net Income Gross Income

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2.50 Cumulative ROI by Year

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Mill

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Net Income Gross Income

$0$0$0$0$0$0

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Thou

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s Est Major Donor Income by Year

Est MD Income

$0$0$0$0$0$0

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s Est Bequest Income by Year

Est Bequest Income

-$0.50

$0.00

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$1.00

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$2.50

$3.00

$3.50

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101

105

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Milli

ons Acquisition Breakeven Month is Month 33

Lowest net income point is -$117,471 in Month 20

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Cash Regular GiftPFBM10_Analysis_ALL_v2.xlsm

Reduction in acquisition volumes over time.

23

$0

$2

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Mill

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Cash Regular GiftPFBM10WWF_AU_IncomeSummary_v4.x lsm

The consequences of this reduction in acquisition can be seen in 2008 - 2010, but WWF

kept some activities going.

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Cash Regular GiftPFBM10_Analysis_ALL_v2.xlsm

CCI was more vulnerable – smaller, with a newer program than WWF, the reduction in acquisition…

$0.0

$0.5

$1.0

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$3.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ions

Cash Regular GiftPFBM10CCIA_IncomeSummary_v4.xlsm

Invested in

acquisition & RG

Reduced investment in

acqInveste

d in

acquisition…. Had a much more profound

impact on the bottom line. An older program like WWF’s would be more resilient to a couple of years reduced acquisition

BACK END

Direct Debit & Credit Card

facilities

Database & data capture

Processing & banking

Paperless Direct Debit

Decline Management


facilities

Structure to allow for analytics



Decline Management


facilities




Decline Management


facilities


In-house or Outsourced

agility is critical


Decline Management


facilities




Decline Management


facilities



Huge impact on outsourced

phone campaigns

Decline Management


facilities




Decline Management


facilities




Biggest impact on managing

attrition

Decline ManagementReprocess Credit Card right away

Contact Direct Debit Donor to request

permission to reprocess (right away / double next month)

•Phone• SMS•Email

Do not hold or cancel a decline

• Minimum 3 months of attempts

Reprocess Direct Debit right away

Reprocess Direct Debit right away

PROPOSITION

Critical factors• Simple, single minded, unique• Can you back it up, year on year?

– Feeding back the impact the donor is having• Be realistic about the price point

CHANNEL MANAGEMENT

Face to Face • Supplier quality & your ability to engage• Retention & ongoing management

Digital / Integrated• Website – landing environment• Two step integrating with phone• Straight to donation – learn from warm & two

step

Phone• Find the right supplier for you• Delivers best response for conversion of warm & leads (but can’t

reach everyone)

Direct Mail• Strong response for warm conversion• Acquisition opportunity?

TV• Expertise• Budget• Inbound conversion – phone / web

ON BOARDING

Reintroduce ourselves

Reinforce our unique benefit

Reinforce the unique value of supporting us

Introduce more beneficiaries

Introduce more of what the donors

cares about

Reinforce our values

Promote ‘membership’ of our community

Use multiple channels

Say thank you, again and again

Use the Product / Proposition

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 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

Case Study / Story N/A Video reel showcase of 'children in crisis' being helped Case study - TBC N/A

Signatory Supporter Services Supporter Services CEO CEO Supporter Services Supporter Services

Multi ChannelDonors # % Total Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Cumulative

Total 16,722 -12.26% -5.71% -4.52% -3.25% -2.61% -3.46% -2.11% -2.39% -36.30%

All Communications Sent & Opened/Delivered 2,767 17% -10.91% -5.68% -3.96% -2.74% -2.62% -4.32% -0.38% -2.13% -32.74%

Emails Sent (Opened) 2,902 17% -11.04% -5.76% -3.92% -2.80% -2.75% -4.30% -1.16% -2.03% -33.77%

Emails Sent (Not Opened) 5,539 33% -11.80% -5.47% -4.32% -3.30% -3.36% -3.50% -2.11% -3.02% -36.87%

Emails Not Sent 2,874 17% -14.62% -6.28% -5.56% -3.71% -0.80% -2.53% -2.99% -1.42% -37.91%

Print Only 2,640 16% -14.22% -6.08% -5.68% -4.00% -0.97% -2.47% -3.10% -1.46% -37.97%

ONGOING COMMUNICATIONS

Low Value – sub $10

• There is no evidence that sending anything to low value (Sub $10 per month) regular givers is worthwhile• Test it

• Try to upgrade • Test it

• Tax Receipt Donor Care

Mid to High Value•Common practice is something every month•Multi channel•Planned story – that’s about the donor NOT you•Includes other support and interaction opportunities:

•Upgrade•Cash•Survey / feedback / comment•Advocacy

•Tax Receipt Donor Care

How many touchpoints?• Telephone• Email• SMS• Direct Mail

What channels do you have?

•Updates / feedback•Survey•Value add •Product give aways•Event invitations (relevant)•Cross-sell

What is relevant?

• 1 email a month minimum• Remember very few will be able to receive all• Remember very few will actually consume all• You can test

The best are up around 20 touchpoints in a year

Developing Content Have a content strategy

• What motivates donors within the product / proposition?• When are your key need and impact times?• When will you have impactful, relevant and timely content?• When are your make or break timings?

Ensure each communication delivers on the needs the strategy calls for• (Re)Presenting the need• Showing urgency• Showing tangibility – impact / needs• Being authentic• Asking e.g. upgrades, engagement/participation• Thanking• Personalisation

Always thank for the Regular Gift

• Reinforce the proposition / impact the donor is having

• Use the name if you have one

Recognise the RG relationships before suggesting more opportunities

INCREASING VALUE

Donor Save• Amount downgrade• Payment holiday

– Max 3 months• Change payment type• Change payment date• Avoiding DO NOT CONTACT as an outcome

– But do some thing with them

RG Upgrade Rate - by recruitment channel and year

0%

20%

40%

60%

2008

2009

2010

2011

2012

2013

2014

Direct Mail Face to Face Online Phone

Five year range: 85% to 0%

Have a proposition

First approach ~6 months (test)

Multi channel

Ask at least annually

Test ask levels / multipliers

Can Auto Upgrade work for you?

Ask at sign up to opt in to

Auto Upgrade

Call to increase the amount

Call to upgrade Ask to opt in to Auto Upgrade

Ask at sign up to opt in to

Auto Upgrade

Call to increase the amount

Call to upgrade Ask to opt in to Auto Upgrade

Best in class has 80%+ of all 5 year plus recruits upgraded

Average is 36%

ReactivationResponse Rates of 10% to 16%.• Passive can get 25% to 30% • Donor cancelled will get 6% to 12%.

Generally include up to 48mths • Can go back as far as 108mths for charity cancelled and 72mths for donor cancelled. • The further you go back however the lower the overall RR will be.

Generally get people back on board at 75% of their original gift.

Test 0 pay reactivation

Have a proposition

Know why they cancelled & when, and what else they may have done in between

Multi channel

Warm them up

• E.g. digital with phone follow up

ANALYSIS / REPORTING

Attrition by payment number & cumulativeIncome per donor, Av number payments, Year 1 Ratio

3 month attritionCumulative 3 month attrition

Compare suppliers / channels / products

Breakeven Analysis

CUSTOMER SERVICE

Does everyone in your organisation know why you are

doing RG?

Does everyone know how to

defend the channels being used?

Does everyone know how to sell

regular giving?

Do you have an inbound save

program?


Back End Management Proposition

Channel Management On Boarding On Going

Communications

Increasing Value Measurement & Analysis Customer Service

Fiona [email protected] Twitter: fimcpheePhone: +6421 336 905Web: www.paretofundraising.com

mailto:[email protected]

Government & Nonprofit

The Regular Giving Toolbox