https://bloomerang.co/resources/webinars First-year communications are key to donor retention. Fundraising experts Jay Love and Tom Ahern will show you how to keep the love alive with effective donor retention strategies that will help you to raise more money for your mission.

1. 1
Turning First-Time Donors
Into Repeat Donors
Tom Ahern | Jay Love
9/24/13
Network for Good

2. Your Co-Presenter
Tom Ahern
• Author of 4 Books on Communications
• Award Winning Magazine Journalist
• Consultant to Major Fundraising Clients Nationwide
• Revered Weekly Newsletter on Communications
• Prolific Keynote Speaker
• Leading Authority in USA on Donor Communications
• Bloomerang Communications Coach
3

3. Jay B. Love
CEO and Co-Founder of Bloomerang
• 30 Years of Technology Leadership
• Over 20,000 Database Installations
• Former Founder & CEO of eTapestry
• Former CEO of Master Software/Fund-Master
• AFP Board Member
• AFP Ethics Committee Member
• Center on Philanthropy at IU Board Member
• Innovation Fund at Butler University Board Member
• Gleaners Food Bank Board Member
• Co-Chair of Indianapolis YMCA Capital Campaign
3
Your Co-Presenter

4. Why bother?

5. 70% of first-time donors do
not make a second gift.
When you’re a success in the commercial
world, that % is reverse: 70% of first-time
Nike buyers would buy a Nike product again.

6. LTVLifetime value

7. A 10% improvement in your
donor retention improves your
revenue 50% immediately.
And that’s just the beginning....
Source: Adrian Sargeant, 2010

8. Show me the love

10. © 2013 Tom Ahern 10
“Am I treating the
donor as our org.’s
superhero?”

11. Donor-NEGLIGENT:
“We did this. We did
that. We were amazing.
Oh, by the way, thanks.”

14. The starting point of
every donor relationship
“Is this
all I am
to you?”

15. Donor-CENTRIC:
“With your help, all
these amazing things
happened. And without
your help, they won’t.”

16. Give your donors an
important job only
they can do.
It’s not about their money.
It’s about what they make possible.

21. Stay in touch

22. • 3 wks after: Thank you packet with receipt w/BRE &
special welcome edition of their newsletter
• 4 wks after: Communications preference card
• 7 wks after: Mail appeal making matching gift offer
• 8 wks after: Phone call promoting monthly giving
• 9 wks after: Follow-up mailing requested during phone
call
• 10 wks after: Sustainer (monthly giving) mail appeal
• 11 wks after: Donor newsletter in #10 env. w/BRE & slip
• 12 wks after: in Jan., for tax time, “giving record” mailer,
w/BRE & slip Source: Lisa Sargent, Feb. 2011
How CARE ($.5 billion charity) acts, post-gift

23. A successful online retailer
sends 125 emails to a single
customer in 7 months.
Source: ExactTarget, via The Agitator

24. You’re trying to
involve them in
something.

25. You’re trying to
involve them in
something.

26. 7 Key Drivers of Donor Commitment
1. Effectively trying to achieve mission.
2. Knowing what to expect from the organization with each
interaction.
3. Timeliness of thank you’s.
4. Providing opportunities to make views known.
5. Provide feeling that I’m part of important cause.
6. Provide feeling my involvement is appreciated.
7. Send information showing who is being helped.
Source: The Agitator

27. Appeals, thanks, & newsletters work together.
You ask. You thank. You report.
You ask. You thank. You report.
You ask. You thank. You report.
The virtuous circle...

28. Actually...
You ask (and flatter).
You thank (and flatter).
You report (and flatter).
You cannot flatter too much.

29. “Even when people perceive
that flattery is insincere, that
flattery can still leave a
lasting and positive
impression of the flatterer.”
Source: Neuromarketing blog

30. Flattery corrupts both the
receiver and the giver.
Edmund Burke

31. Flattery corrupts both the
receiver and the giver.
Edmund Burke

32. SUBSCRIBE to my
free
how-to
e-newsletter…
www.aherncomm.co
m

33. Why is it so
important to retain
first time donors?

34. Let’s dig even deeper into “actual” NPO data . . .
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

35. 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.

36. 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
•Avectra
•Bloomerang
•Sage Software
•MatchMaker FundRaising Software
•Telosa Software (Exceed!)
•Metafile

38. Yes, your eyes read correctly:
Nearly SEVEN out of every TEN
new donors from the previous year
did NOT donate at all the next year!

39. DONOR RETENTION BEST PRACTICES
Dr. Adrian Sargeant
Bloomerang Chief Scientist
“A 10% improvement in retention can double
the LIFETIME value of your donor database!”

40. Donor Retention Made Simple

41. # of Donors in Current 12 Months
(from the previous years pool)
divided by
# of Donors in Previous 12 Months
Calculating Your Retention Rate

43. Donor Retention Meter
• The Dow Jones of your database
• Measures back exactly 365 days
• Reflects changes daily, weekly and monthly
• Automatic, no guesswork
• What is watched is addressed

44. “The total net contribution that a
customer/donor generates during
his/her lifetime in your database”
Defining Lifetime Value

45. $1000 +
$500 - $1000
$100 - $500
$25 and under annually
$25 - $100
Value
Value Segments »
Time

46. 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%

47. 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!

48. Engagement Level Graph
• The Donor “thermometer” of your database
• Updated automatically daily
• Adrian’s expert formulas/algorithms
• Easy to filter and report on
• Springboard for major/legacy giving

51. Automatic Engagement Factors

52. 6 Key Retention Drivers
(That aid in turning 1st
time donors into repeat donors)
• Drip feed mission performance data
• Connect often
• Be personal (SEGMENT)
• Develop like a good personal friendship
• Find & use numerous human connectors
• Always communicate what monies are doing!

53. Special Offer!
https://bloomerang.co/try

54. Questions?
Presenters:
Tom Ahern | Jay B. Love
jay.love@bloomerang.co
@JayBarclayLove