donor development - blackbaud · 80% of unhcr donors give only once. 15% of monthly donors...

reducing attrition – maximising donor value – communications – in memoriam

DONOR DEVELOPMENT

Maximising donor value – making a plan

11 October 2010

Kevin KibbleDevelopment Director

The Supporter Development Team

Thought for the day

Surely dogs are better than cats or humans.

Come home an hour late from the pub to a cold dinner onthe table. Wife, cat, dog - which is still pleased to see you?


Nairn Lawson

What we’re going to cover today…..

1. Why invest in donor retention and development?

2. Why donors leave us

3. How do we plan for donor development?

4. Some plan elements

5. Top tips on donor communication


Acknowledgements for inspiration to Chris Innes, Adrian Sargeant & Jonathon Grapsas

Donor attritionExample

80% of UNHCR donors give only once

15% of monthly donors attrition likely

Number one reason given for cancelling – lack of money (probably untrue)

25% of donors don’t know why they stopped or remembered that they had started

25-33% stopped to move to other more important causes


Reasons for quitting – Adrian Sargeant

No longer able to afford support

No memory of ever supporting

Still supporting by other means

Feeling that other causes are more deserving

X no longer needs my support

Relocated

Not reminded to give again

X did not inform me how my monies were used

Xs communications were inappropriate

X asked for inappropriate sums


Stuff we should remember

People who give 3 gifts give for much longer and give more

One of the top 5 reasons to continue to give is due to a professional approach – 1st impressions

Your best donors are your existing donors


Keeping donors makes you money

If we increase loyalty in year 1 by 10% profit rises by 50% for cash donors

This rises to 150% if we include value of long-term and regular donors

The prize is worth the pain


Something I prepared earlier……

Carry out a retention audit – just who cancels, when?

SWOT analysis – what do we have to offer, to whom?


Set out retention objectives, targets

Budget

Monitoring plan – how will we know how successful we’ve been

What should be our objectives?

Understand, predict and optimise the income different groups of donors will give over their lifetime


Knowingourdonors


Knowing our donors



Why it matters

UK Giving 2009

What should be our objectives?

Understand, predict and optimise the income different groups of donors will give over their lifetime

Maximise our ROI from each group of donors

Invest strategically

Build a long-term vision/plan for donor development


Donor development planning

The building blocks of success


Donor development planning

1. Make a LTV model – who’s worth what

2. Develop a programme for donor segments

3. Create a donor story/journey

4. Make medium choices

5. Set out your development timeline


The Plan part 1 – LTV model

Classic donor pyramid


The Plan part 1 –LTV model

All parts of the plan should point in one direction


Donor cost analysis - example

Cost of acquisition £40.00Servicing costs (over lifetime) £10.00Lifetime costs £50.00

Annual gift level £40.00Lifetime of donor 2.5 yearsLifetime value £100.00

Net lifetime value £50.00Lifetime ROI 2:1


The Plan part 2 - Communications and value

Acknowledgments to UNHCR


Building the donor story


The Plan part 3 - Building the donor storyDonors want…..

Not to be asked too oftenTo decide the amount they givePolite communicationsTo know how their money is spent – TRUST


The Plan part 3 - Building the donor storyDonors want…..

Not to be asked too oftenTo decide the amount they givePolite communicationsTo know how their money is spent - TRUSTTo be thanked

ie: choice – recognition - feedback


Donor story - considerations for communications

Audience & methods of recruitment – Who?

Messaging – What?

Contact frequency – When?

Media choice – How?

Visible/invisible – Where does this show?

Benefits summary – Why are we doing this?


Building the donor story - to deliver?

Upgrade within the programme (giving more, more often?)

Emergency appeals

Reactivation

Upgrade to a new programme


Building the donor story

Steps to success


Building the donor story – cash donors


Building the donor story – regular donors


Building the donor story – higher value donors


The Plan part 4 – matching the media


The Plan part 5 – the timeline


It all comes down to communication

Remember what donors want?


Not to be asked too oftenTo decide the amount they givePolite communicationsTo know how their money is spent - TRUSTTo be thanked

ie: choice – recognition - feedback

Time to ask yourself some questions…

1. Why should donors give? Give again? Give more/ Give for a longer period


2. Have we segmented our donors into priority groups? Have we missed anyone?

3. What is the cost of a new donor for each group? How can it be reduced?

4. Which acquisition channels work best and why?

5. Is our welcome process good enough?

More questions…..

6. What and when are the breakeven points for each donor group – can it be improved?


7. How many donors only make one gift, and how many make only two?

8. How many donors cancel or stop giving in each group after year two?

9. What is our donor servicing cost for each group?

10. What is the lifetime value of donors in each group?

Yet more questions……

11. Do we have a programme of communications for each group that is relevant to donors?


12. Have we considered the brand in differentiating our communications to each group?

13. Can we utilise our media choices better – are we getting best value or response?

14. Do we thank donors enough or well enough? Compare

15. Do we have an effective upgrade programme for moving donors up/along the pyramid?

And finally in terms of questions….

16. Have we a reactivation plan for each donor group?


17. Do we have a programme for upgrading levels of giving within a group?

18. Have we made a plan for the year (and beyond) for each group?

19. Can we calculate the effects of improving KPIs such as ave annual gift, ave annual costs and can we test them?

20. Have we got a plan that shows how performance of each group of donors can be improved over the next 3 – 5 years?

Great advice on thanking donors – from Jonathon Grapsas

Actually say the words thank youThank for the gift, not the communicationAny thank you should ‘play back’ the story of the askDo it quickly – but do it wellMake the thank you stand outBe personalBe relevantBe specificDon’t be hindered by technology or processesCall it a thank you letter


Try this out yourself

Try writing a new thank you letter to a new donor that does not start with either:


Thank you or I’m writing to thank you - or

I’m writing on behalf of


That’s all folks

Thank you for listeningAny questions?

Kevin KibbleThe Supporter Development Team

07710 416436kevin@supporterdevelopmentteam.orgwww.supporterdevelopmentteam.org

www.twitter.com/kevinkibble

mailto:[email protected]

http://www.supporterdevelopmentteam.org

donor development - blackbaud · 80% of unhcr donors give only once. 15% of monthly donors...

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