The document discusses improving donor relationships and retention by focusing on donor attitudes. It presents a theory that donor attitudes dictate donor behavior and can be impacted by organizational actions. The theory led to identifying donor commitment as a key indicator of future donor behavior. Measuring donor commitment through a 3 question survey can predict behavior better than other models. The document also identifies the 7 key drivers an organization must focus on to improve donor commitment, and provides ideas for how to address each driver to strengthen donor relationships.
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Sept 20 briefing commitment findings draft1
1. We set out on this project with one simple premise:
Impacting donor attitudes is the key to retention
because,
âą Donor attitudes dictate donor behavior AND
âą The attitudes are what you impact with your actions.
2. Our simple Premise led to Relationship Theory
(and Dominos#*#%?$#?)
Domino Analogy of
Donor Relationships
3. Our Theory led to a Project And⊠7 1/2 Really BIG Takeaways
1. We have a math-based way to measure, score and improve donor attitudes. We call it Donor Commitment and
it is a proven, leading indicator of future behavior.
2. Donor Commitment is the missing link between fundraising, communications and the bottom line
3. For every $200,000 1000 donors you move from Low to High Commitment you get $200,000 more income
4. The Donor Commitment Score requires ONLY 3 questions and predicts behavior better than other models.
5. The Donor Commitment Score can be used for benchmarking, tracking and targeting and we have developed
inexpensive tools to help you do this.
6. We have identified the 7 Key Drivers, from among 34 possible options, an organization must take to improve
Donor Commitment.
7. There is a best practices Idea Bank on how to deliver on the 7 Key Drivers.
7.5 We believe these discoveries will reduce the workload and expense for organizations by helping them
focus on the few things that really matter.
8. A Comparative Look
Highest HIGH
& lowest LOW
Competing Model
based on Adrian
Commitment Sargeant âs work Satisfaction Favorability Recommend
High $344.39 $312.65 $320.18 $306.51 $295.04
Low $148.91 $162.08 $172.67 $178.96 $199.27
% increase 131% 93% 85% 71% 48%
Biggest %
Increase
9. The Gold Standard - RFM
By taking actions to build Donor Commitment, organizations can
actually improve the RFM quality of their files
Frequency of Dollar
Recency of Last Gift (in days) Giving (2010) Amount(2010)
Competitor
Competitor Model Competitor
Model Based Based on Model Based
DonorVoice on Adrian DonorVoice Adrian DonorVoice on Adrian
Commitment Sargeant's Commitment Sargeant's Commitment Sargeant's
Model work Model work Model work
High 338 383 3.94 3.59 $173.93 $160.31
Low 453 396 2.34 3.0 $92.91 $131.20
Difference 115 13 1.6 0.59 $81.02 $29.11
overall mean for the sample, 389 days since last gift mean for sample, 3.29 mean for sample, $145.69
10. What is All This
Relationship &
Commitment Stuff?
11. Donor Commitment Model â the âmessy middleâ -
Details
http://www.slideshare.net/ksch
ulman14/donor-relationship-
management
More Details Here
13. How To Measure Donor Commitment
Donor Commitment
Score (DCS)TM
0 to 10 point agree/disagree scale
1. I am a committed (insert org name) donor
Commitment 2. I feel a sense of loyalty to (insert org name)
to 3. (insert org name) is my favorite charitable
Organization organization
ïŒReliability/Satisfaction
ïŒEmotional Connection
ïŒTrust
17. Donor Commitment DONOR Map
Salvation Army Donors 9.2
High Commitment 45 yrs old, $651 last 3 yrs, 35% giving to religious cause, 24% had
experience since last gift EXCEED expectations
Potentials 50 yrs old, $487 last 3 yrs, 21% giving to religious cause, 27% had 8.2
experience since last gift EXCEED expectations
Vulnerables 50 yrs old, $488 last 3 yrs, 20% giving to religious
cause, 0% EXCEED, 14% FALL SHORT
Transactional 53 yrs old, $216 last 3 yrs, 24% giving to religious Biggest difference?
7.2
cause, 0% EXCEED, 20% FALL SHORT Overall Experience
since last gift
6.2
3.2 4.2 5.2 6.2 7.2 8.2 9.2
5.2
4.2
3.2
2.2
18.
19. How To Impact Donor Commitment?
Key Driver
Analysis.
Just not this
âdriverâ
20. Survey
1. Effectively trying achieve mission
2. Knowing what expect from org w/ each interaction
3. Timeliness of thank youâs
4. Providing opportunities to make views known From 32 possible
5. Provide feeling part of important cause drivers
6. Provide feeling involvement appreciated
7. Send information showing who is being helped
22. First, Ask the Question
What, under organizationâs
control, might impact how
the donor feels about us?
âąMarketing
âąCommunications
âąFundraising
âąOperations
24. These would be very
customized for a client
specific study!
25.
26. 32 things is A LOT
Use statistical technique
to group items together
This is the mental grouping
donors would do if it was at
all possible for them (IT
ISNâT!)
27. 32 things is A LOT
Grouping them together is one thing,
But which ones really MATTER?
Which ones really Impact
Commitment?
Quick quiz: why is Regression called REGRESSION?
The term "regression" was coined by Francis Galton in the nineteenth
century to describe a biological phenomenon. The phenomenon was
that the heights of descendants of tall ancestors tend to regress down
towards a normal average (a phenomenon also known as regression
toward the mean).[6][7]
28. 32 things is A LOT
Key Driver Analysis.
1. Effectively trying achieve mission
.39
(48%)
2. Knowing what expect from org w/
each interaction .17
(21%)
3. Timeliness of thank youâs
.14
(17%)
Commitment
.11
to
4. Providing opportunities to make
(14%)
Organization
views known
.34
(45%)
5. Provide feeling part of important
cause
.28
(37%)
6. Provide feeling involvement
appreciated .13
(18%)
7. Send information showing who is
being helped
32. Key Driver Idea Bank
ïŒ Exceptional storytelling. Creates a collective experience better than
anything
ïŒ Use of donor engagement language that gives ownership to them for the
impact of programs. (âThanks to youââââyour help did xxxxââ,
âyou accomplished xxxxxâ
ïŒ Allow donors to express their reasons for supporting the cause so they
feel part of a larger community and establish a social norm.
Driver #1-Providing ïŒ Make donors the voice of the organization--invite champions to write
donors with feeling the appeals, do fundraising among their friends and family, etc.
they are part of an ïŒ Continual reminder and updating on importance and urgency of the
cause or issue
important cause ïŒ Frequent progress reports on movement toward solution along with
(45%) reminder of urgency
ïŒ Tell/show the other donors, volunteers, experts, etc who have joined in
the cause
ïŒ Use third party testimonials/endorsements from impressive/relevant
people including celebrities
ïŒ Tell the commitment stories of donors, volunteers and staff
ïŒ Use pins, decals, certificates and other indicia of 'belonging.'
33. Key Driver Idea Bank
ïŒOverhaul broken, lame acknowledgement system making it much more than just a
âreceiptingâ program.
ïŒ Send 'thank you' from beneficiaries or in voice of the beneficiaries.
ïŒ Thank you; from benficiaries is best. Thanks from program staff at front lines is
second best. Thanks from "membership or development director' is marginally better
than no thanks at all.
ïŒ Communicate sense that the donor has become an owner or integral part of the
Driver #2-Providing program and its successes
ïŒ Use technology. Videos of communities helpedâpictures of people whose lives were
donors with the changedâfirst-person emails from volunteers on the frontline.
feeling their ïŒ Send a special note of recognition and thanks on the anniversary of their first
gift, their birthday or other special occasion.
involvement is ïŒ If appropriate, recognition in 'honor rolls', special recognition clubs, annual reports
appreciated (37%) and features in newsletters
ïŒ "Insider" memos shared from the executive director, members of the board or key staff
indicating progress and noting that this wouldn't be possible without donor's support.
ïŒ Postcard or photos from the field with note recognizing support
ïŒ Certificate of recognition at key anniversaries or annually
ïŒ Packet of newspaper clips with cover note indicating the donor's help made this
posssible
ïŒ Occasional email alerting donor to special events or recent developments
ïŒ Invitations to telephone briefings
34. The commercial sector is way ahead of non-profits when it comes to online
engagement via feedback tools on websites and Facebook pages. Who cares
you say?
There are three reasons you should:
35. Thank You for Your Interest and Time Today
Contact us here for more information or with questions:
research@thedonorvoice.com
(202) 246-9649
Or visit us online, www.thedonorvoice.com
Or on Twitter, @kschulmanDV