Donor Care & Thank You Magic

Norwegian Fundraising Conference8 September 2011

Damian O’Broin

More...www.askdirect.ie

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damian@askdirect.ie

Once upon a tim!...

My Summer Holiday

Extinct Reptile

Me

Why isDonor Care Important?

Bad Donor Care

Unhappy donors(or even just uninspired donors)

Loss of €€€

Building Donor Loyalty – Adrian Sargeant & Elaine Jay

€0m

€50m

€100m

€150m

€26,000,000

€78,000,000

€147,000,000

Potential Value of Legacies

IRL Legacy Giving 2009 NOR Legacy Giving 2009IRL/NOR Legacy Giving Potential

Best legacy prospects are donors for 5+ years.

Propensity to leave a legacy rockets after 15 years.

But first,we have to keep

our donors.

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Donors Face to Face Donors

Typical attrition rates

We spend a fortune recruiting donors

And then throw it all away with bad donor care

“The only things that can’t be replicated are the relationships you have with your customers”

– Larry Hochman

Price Product Place

Unique Value

Relationship with Donors

Simplicity Speed

“When given the choice, people will always spend time around people they like. When it’s expedient and practical, they’d also rather do business with and buy stuff from people they like. And now, they can.”

– Gary Vaynerchuk

-200%

0%

200%

400%

ExclusiveArrogant

SensuousDaring

Socially RespHigh Quality

FriendlyKindness & Empathy

% Change in perveived value of brand attributes 2005-09

Young & Rubicam’s BrandAsset Valuator, quoted inGerzema & D’Antonio - The Power of the Post-Recession Consumer

“Between 2005 and 2009 US consumers expressed a nearly fourfold increase in their preference for

companies, brands and products that show kindness in both their operations and their

encounters with customers.

This desire for companies to be more empathetic toward consumers is the biggest shift in any attitude we have ever seen during the BAV

survey’s two-decade history”

Gerzema & D’Antonio - The Power of the Post-Recession Consumer

How do you create great donor care?

Donor

Donor-centred

communicationsDonor-focussed

systems & structures

Banish short-term thinking

Banish short-term thinking

CampaignReturn on Investment

DonorLifetime Value

% Response& Average Gift

Long-termDonor Retention

Donor-centredcommunications

What do donors want?

Recognition

“You” or “Your” is repeated 14 times on Page 1

(and donor’s name appears four times)

Thanks donor and demonstrates impact

Donor focused solution

2009

2010

General Monthly Gifts Top Donors

General Cash +28%

Monthly Gifts +88%

Top Donors +227%

Control

MyCareZone

Has reduced face-to-face

attrition by half

2/3 donors didn’t choose a gift

Sight 70%

Safe Birth 20%

Mobility 6%

Education 4%

Feedback

The Oxfam Hunger £ Million

Four times as much money raised

Gratitude

An Emotional Connection

Donor-focussedsystems & structures

What do you really know about your

donors?

It all starts with data...

Net Promoter Score

“How likely is it that you would recommend <charity> to a friend or colleague?”

0 1 2 3 4 5 6 7 8 9 10

Detractors Promoters

Net Promoter Score

Median NPS = 16%(based on 130,000 customer survey responses for > 400 companies)

Trader Joe’s 82%

Apple 72%

Amazon 70%

Best Irish Charity Score 50%

The 3 things your THANK YOU

needs to do

Make your donor feel special

Arrive promptly

Show the impact of their gift

The Flattery Bath

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“When people ask me what difference a donation can make, I reply that

donations to Starship transform lives. Parents have told me with tears in

their eyes what it means to know their child is receiving the best possible care

at Starship.

And behind every one of these children there are compassionate

people like you dedicated to helping.

Your donation will help Starship support children and their families at their moment of greatest need. It is at these moments, when a child’s life can

hang in the balance, that your donation becomes truly

transformational.”

The Importance of Speed

We want it now

Time has shrunk

First time donors who receivea personal thank you within

48 hours are

Four times more likely to give again

– McConkey Johnston International UK

Email Post

2006 20% 13%

2008 38% 28%

2011 60% 20%

Charities who sent personalisedthank you within 48 hrs - online gifts

– Ask Direct Mystery Shopping Research

Only 1 in 4 charities sent a postal thank you after

an online gift

– Ask Direct Mystery Shopping Research (Ireland, Canada, New Zealand)

% who thanked % who thanked < 1 week

Ireland 93% 33%

Canada 27% 13%

Response to postal donations

Once upon a tim!...

You’ve got six months.

Get cracking.

Upgrade direct debit donors(optimum 4-6 months)

Secure a second cash gift(~50% of second gifts are made within 6 months)

Provide feedback on how giftsare making a difference

Cement the relationship between donor and charity

How much is poor donor care

costing you?

€113Average gross cost of recruiting a donor via direct marketing 2008-10

Nkr 854

€78Average value of first time gift to charity 2008-10

Nkr 589

6 x first gift

€4685 Year Lifetime Value of Cash Donor

Nkr 3,534

10 x first gift

€780Jeff Brooks’ Rule of Thumb for total donor value

Nkr 5,890

27 x first gift

€21065 Year Lifetime Value of cash donor who also makes monthly gift

Nkr 15,906

Now,multiply that by all the donors you’re losing...

Nkr 15,906

Thank Youwww.askdirect.ie

www.twitter.com/damianobroin

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damian@askdirect.ie