This document outlines a 3-step process for developing a member retention strategy: 1. Analyze existing member and donor data to identify areas for improvement. Run reports to see where members and donors are being lost. 2. Strategize with a team to prioritize 2-3 segments to focus on and set SMART goals for success. 3. Execute the plan, track results against goals, and regularly review progress with the team. Membership software can help track key metrics and progress.

2. 2
RETAINING YOUR MEMBERS
Why It’s Imperative to Have a Retention Strategy

3. 3
• Ryan King
• Channel Marketer for Arts and Cultural
• ryan.king@blackbaud.com
• @Wryan_Ki

4. 4
• The State of Donor and Member Retention
• Should I Retain or Acquire to Grow?
• Where Do I Go from Here?
AGENDA

5. The State of Retention
80
85
90
95
100
105
110
Donors Dollars
New
Lapsed
According to the 2012 Fundraising Effectiveness Report published by AFP, in 2011, for every 100
new donors that organizations acquired, 107 were lost. For every $100 raised from new donors in
2011, $100 was lost due to donors lapsing.

6. New Donors are Hard to Find
900
950
1000
1050
1100
1150
1200
1250
1300
New Donors
According to research from Target Analytics, from 2001 to 2007, cultural organizations were
seeing 5% growth in new donors each year. However, from 2007 to 2010, that number changed
to -2% per year! By 2010, you were back to 2004 acquisition rates

8. Steps to Acquire
Acquiring new donors requires time, energy, and resources. To acquire a new donor you need to
identify them, engage with them, and then ask them.

9. Steps to Retain
To retain members, on the other hand, removes the identify step, often the most expensive step.
You already have people’s attention. They recognize your name and so your job moves from
“attention getting” to “delighting.” In comparison, these activities are much cheaper than
acquisition activities, more rewarding, and often easier to measure, based on how often they are
used.

11. 1 Level Set
The first step is to find out where you stand. Ask questions and run reports to see where you are
losing members and donors. Is it certain membership levels? Age groups? Gift size? Your donor
and membership software should be able to run these reports easily. Spend some time digging
around to identify where there is room for improvement. Identify 4 or 5 areas you want to review
with your team.

12. A membership activity dashboard in Altru, Blackbaud’s membership and ticketing software for
arts and cultural organizations.

13. 2
Strategize
Get with your team and review your findings. Share the areas that you’ve identified for
improvement and prioritize them for the rest of the year. I recommend focusing on two or three
of the five segments you identified in Step 1.

14. Specific
Measurable
Attainable
Relevant
Time-bound
Before leaving this step, make sure you define success and set goals that are specific, measurable,
attainable, relevant, and time bound.

15. 3 Execute
and Track
The last step is to Execute your plan and Track the results. Reference your SMART goals as your
definition for success and keep track of key metrics that will help you accomplish your goal.
Schedule regular review meetings with the team that is working on retention and review your

16. As with the previous reports, your membership software should be able to easily run reports to
help you track your progress. The reports you see here are from Altru, Blackbaud’s membership
and ticketing software for arts and cultural organizations.

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QUESTIONS
For additional questions, contact us:
P: 800.443.9441
E: solutions@blackbaud.com
W: www.blackbaud.com/altru
Ryan King
ryan.king@blackbaud.com
@Wryan_ki