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Sponsored by:A Service
Of:
Building Donor Loyalty:
What It Takes and How Your Database Can Help
Tina Cincotti & Jay Love
June 18, 2013
Twitter Hashtag - #npweb
4
Sponsored by:
Protecting and Preserving the
Institutional Memories of
Nonprofits Since 1993
www.cjwconsulting.com
(866) 598-0430
info@cjwconsulting.com
Part
Of:
Sponsored by:Part
Of:
Coming this June
Sponsored by:A Service
Of:
Today’s Speakers
Tina Cincotti
Owner & Principal Consultant,
Funding Change Training & Consulting
Hosting:
Cheri J Weissman, CJW Consulting & Services, Inc.
Assisting with chat questions:
Jamie Maloney, Nonprofit Webinars
Jay B. Love
CEO & Co-Founder
7
How much more money will you raise over
the lifetime of your donors if you increase
your donor retention rate by just 10%?
• 50%
• 100%
• 150-200%
First Attendee Poll
8
Improving donor retention rates by 10% can
improve LIFETIME dollars raised by?
• 150-200%!
(Do we have your attention yet?)
9
Fundraising Effectiveness Project (FEP)
A project to help nonprofit organizations measure and
compare
The 2012 Fundraising Effectiveness Survey Report is based on 3,184
responses for 2010-2011, from nonprofit organizations in the United States.
The 2010-2011 responses reflected a total amount raised of $2,049,794,709.
10
2012 Fundraising Effectiveness Survey Report “FEP”
Participating Donor Software Firms:
• Donor2/Campus Management Corporation
• PhilanthrAppeal (FundTrack Software)
• DonorPerfect Fundraising Software
• The Raiser’s Edge ® (Blackbaud)
• eTapestry
• ROI Solutions
• GiftWorks (Mission Research)
• Sage Software
• MatchMaker FundRaising Software
• Telosa Software (Exceed!)
• Metafile
11
Donor Retention Rate
was 41%
Donor Attrition
was 59%!
2011 FEP Data on Donor Retention Rate »
12
Yes, your eyes read correctly:
Nearly SIX out of every TEN Donors
from the previous year did NOT
donate at all the next year!
13
What is the average retention rate for
first year donors?
• 21%
• 27%
• 32%
Second Attendee Poll
14
15
This is not
good…not good
at all….
16
Let’s cue the Expert on Donor Retention
This scares most NPO Board Members »
Donor Attrition Over Five Years
# of Donors Attrition
Rate
Donors
Remaining
After 1 Year
Donors
Remaining
After 2
Years
Donors
Remaining
After 3
Years
Donors
Remaining
After 4
Years
Donors
Remaining
After 5
Years
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
17
CUE THE EXPERT:
Dr. Adrian Sargeant
Bloomerang Chief Scientist
Professor of Fundraising at the Center on Philanthropy at Indiana University
holding what is presently the world’s only endowed chair in that discipline.
Professor of Nonprofit Marketing and Fundraising at Bristol Business School
(U.K) and an Adjunct Professor of Fundraising at the Australian Centre for
Philanthropy and Nonprofit Studies.
Top 10 Most Influential People in Fundraising
“A 10% improvement in retention can double
the LIFETIME value of your donor database!”
18
Why Do Customers Leave?
(can this apply to donors . . .)
• Death 1%
• Relocation 3%
• Won by Competitor 5%
• Bad Complaint Handling 14%
• Lack of Interest from Us 77%
19
Key Reasons For Donors Leaving
• No longer able to afford support
• No memory of ever supporting!
• Organization asked for inappropriate sums
• Feeling that other causes are more deserving
• Not reminded to give again
• Organization did not inform how monies were
used
• Did not feel connected!
20
21
Transaction
Fundraising
Relationship
Fundraising
Focus Soliciting donations Retaining donors
Key measures Immediate response,
return on
investment,
amount of gift
Lifetime value
Orientation Urgency of cause Donor relationship
Time scale Short Long
Customer service Little emphasis Major emphasis
Comparison of Two Approaches
22
Transaction
Fundraising
Relationship
Fundraising
Focus Soliciting donations Retaining donors
Key measures Immediate response,
return on
investment,
amount of gift
Lifetime value
Orientation Urgency of cause Donor relationship
Time scale Short Long
Customer service Little emphasis Major emphasis
Comparison of Two Approaches
23
Isn’t there any
good news?
24
25
26
27
28
29
“On behalf of the
board and staff, I
want to thank you…
blah, blah…”
30
“Thank you for your
generous gift of…”
31
Opera has a home in
Boston and it’s all because
of you.
32
A warm place to sleep.
A steady job. The keys
to their own apartment.
33
Did Chris Jahnke
knock your socks off or
what?
34
35
36
37
38
What is the single most important piece
of information donors want to know?
• The level they reach in your gift club
• The people at their table at the gala
• The impact their gift specifically made
• Your Charity Navigator Score
Third Attendee Poll
39
40
41
42
43
44
45
46
47
48
49
We sent 220 volunteers to
Joplin to help them rebuild.
Ten families are now living
in their homes again.
50
You helped send 220
volunteers to Joplin. Ten
homes were rebuilt and
families are living there
again.
51
52
53
54
More ways to
improve donor
loyalty…
55
THE BIG
THREE
56
1. Satisfaction
2. Commitment
3. Trust
57
Satisfaction is #1
Cue the Rolling Stones...
58
Encourage feedback from donors
59
How are we doing?
60
61
62
Build trust…
63
64
65
66
67
Track
Engagement
in your
Database 68
69
Automatic Engagement Factors
• Recency and pattern of
giving
• Cash donors vs.
sustaining donors
• # of years giving +
• Upgrade /
Downgrade + -
• Lapsed -
• Event attendance +
• Opens email +
• Click links in emails +
• Unsubscribes
from email -
• Has stated
communication
preferences +
• Has inbound
interactions +
• Has soft credits +
• Volunteers +
• Social Media
(coming soon)
• …and a whole lot more!
70
How will I
know if this
is working?
71
What’s your retention rate?
72
What’s your conversion rate?
73
74
75
76
77
78
79
80
Thank you for spending your valuable time with me
today!
Please stay in touch. -- Tina & Jay
tina@fundingchangeconsulting.com
TinaFCC on Twitter
jay.love@bloomerang.co
@jaybarclaylove on Twitter
81
Sponsored by:
Find listings for our current season
of webinars and register at:
NonprofitWebinars.com
Part
Of:

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130618buildingdonorloyalty 130618180708-phpapp01

  • 1. Sponsored by:A Service Of: Building Donor Loyalty: What It Takes and How Your Database Can Help Tina Cincotti & Jay Love June 18, 2013 Twitter Hashtag - #npweb 4
  • 2. Sponsored by: Protecting and Preserving the Institutional Memories of Nonprofits Since 1993 www.cjwconsulting.com (866) 598-0430 info@cjwconsulting.com Part Of:
  • 4. Sponsored by:A Service Of: Today’s Speakers Tina Cincotti Owner & Principal Consultant, Funding Change Training & Consulting Hosting: Cheri J Weissman, CJW Consulting & Services, Inc. Assisting with chat questions: Jamie Maloney, Nonprofit Webinars Jay B. Love CEO & Co-Founder 7
  • 5. How much more money will you raise over the lifetime of your donors if you increase your donor retention rate by just 10%? • 50% • 100% • 150-200% First Attendee Poll 8
  • 6. Improving donor retention rates by 10% can improve LIFETIME dollars raised by? • 150-200%! (Do we have your attention yet?) 9
  • 7. Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare The 2012 Fundraising Effectiveness Survey Report is based on 3,184 responses for 2010-2011, from nonprofit organizations in the United States. The 2010-2011 responses reflected a total amount raised of $2,049,794,709. 10
  • 8. 2012 Fundraising Effectiveness Survey Report “FEP” Participating Donor Software Firms: • Donor2/Campus Management Corporation • PhilanthrAppeal (FundTrack Software) • DonorPerfect Fundraising Software • The Raiser’s Edge ® (Blackbaud) • eTapestry • ROI Solutions • GiftWorks (Mission Research) • Sage Software • MatchMaker FundRaising Software • Telosa Software (Exceed!) • Metafile 11
  • 9. Donor Retention Rate was 41% Donor Attrition was 59%! 2011 FEP Data on Donor Retention Rate » 12
  • 10. Yes, your eyes read correctly: Nearly SIX out of every TEN Donors from the previous year did NOT donate at all the next year! 13
  • 11. What is the average retention rate for first year donors? • 21% • 27% • 32% Second Attendee Poll 14
  • 12. 15
  • 13. This is not good…not good at all…. 16
  • 14. Let’s cue the Expert on Donor Retention This scares most NPO Board Members » Donor Attrition Over Five Years # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10 17
  • 15. CUE THE EXPERT: Dr. Adrian Sargeant Bloomerang Chief Scientist Professor of Fundraising at the Center on Philanthropy at Indiana University holding what is presently the world’s only endowed chair in that discipline. Professor of Nonprofit Marketing and Fundraising at Bristol Business School (U.K) and an Adjunct Professor of Fundraising at the Australian Centre for Philanthropy and Nonprofit Studies. Top 10 Most Influential People in Fundraising “A 10% improvement in retention can double the LIFETIME value of your donor database!” 18
  • 16. Why Do Customers Leave? (can this apply to donors . . .) • Death 1% • Relocation 3% • Won by Competitor 5% • Bad Complaint Handling 14% • Lack of Interest from Us 77% 19
  • 17. Key Reasons For Donors Leaving • No longer able to afford support • No memory of ever supporting! • Organization asked for inappropriate sums • Feeling that other causes are more deserving • Not reminded to give again • Organization did not inform how monies were used • Did not feel connected! 20
  • 18. 21
  • 19. Transaction Fundraising Relationship Fundraising Focus Soliciting donations Retaining donors Key measures Immediate response, return on investment, amount of gift Lifetime value Orientation Urgency of cause Donor relationship Time scale Short Long Customer service Little emphasis Major emphasis Comparison of Two Approaches 22
  • 20. Transaction Fundraising Relationship Fundraising Focus Soliciting donations Retaining donors Key measures Immediate response, return on investment, amount of gift Lifetime value Orientation Urgency of cause Donor relationship Time scale Short Long Customer service Little emphasis Major emphasis Comparison of Two Approaches 23
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  • 27. “On behalf of the board and staff, I want to thank you… blah, blah…” 30
  • 28. “Thank you for your generous gift of…” 31
  • 29. Opera has a home in Boston and it’s all because of you. 32
  • 30. A warm place to sleep. A steady job. The keys to their own apartment. 33
  • 31. Did Chris Jahnke knock your socks off or what? 34
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  • 36. What is the single most important piece of information donors want to know? • The level they reach in your gift club • The people at their table at the gala • The impact their gift specifically made • Your Charity Navigator Score Third Attendee Poll 39
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  • 47. We sent 220 volunteers to Joplin to help them rebuild. Ten families are now living in their homes again. 50
  • 48. You helped send 220 volunteers to Joplin. Ten homes were rebuilt and families are living there again. 51
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  • 52. More ways to improve donor loyalty… 55
  • 55. Satisfaction is #1 Cue the Rolling Stones... 58
  • 57. How are we doing? 60
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  • 67. Automatic Engagement Factors • Recency and pattern of giving • Cash donors vs. sustaining donors • # of years giving + • Upgrade / Downgrade + - • Lapsed - • Event attendance + • Opens email + • Click links in emails + • Unsubscribes from email - • Has stated communication preferences + • Has inbound interactions + • Has soft credits + • Volunteers + • Social Media (coming soon) • …and a whole lot more! 70
  • 68. How will I know if this is working? 71
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  • 78. Thank you for spending your valuable time with me today! Please stay in touch. -- Tina & Jay tina@fundingchangeconsulting.com TinaFCC on Twitter jay.love@bloomerang.co @jaybarclaylove on Twitter 81
  • 79. Sponsored by: Find listings for our current season of webinars and register at: NonprofitWebinars.com Part Of: