measuring and managing donor commitment to raise more money

2013 WASHINGTON NONPROFIT CONFERENCE

THE FUTUREIS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS


Measuring & Managing Donor Commitment to Raise More Money

@jwhichard@jannschultz @operationsmile#DCNP2013


1. We Have an Industry Problem -- A broken growth model

2. There Is A Solution – A new way to view the world

3. We Have Proof – Operation Smile

4. We will end on time

Four Key Takeaways from this Session Are…


The Problem:

The Industry Model for Growth is Broken


The “Old” Growth Model: Acquiring More New Donors than We Lose


Abandon the conquest mentality where acquisition is king...customers can only be acquired, churned and reactivated so many times before they tire of your brand...lapsed reactivation is less expensive but is there a better experience waiting for them...sustainable growth will come from better relationships.

Bryan PearsonThe Loyalty Leap


Growth Strategy or a Replacement Strategy?


The Solution:

Strong Relationships Are Created Not Born


Rethink our Understanding of ‘Cause and Effect’

Non Profit Experiences

Delivered By YouCause

Constituent Behavior (Giving/Doing)


Acquiring New Donors/Members

You are just like everyone else.

I expected more.

I’m just like every other person to you.

You never asked what I want.

Why Relationships Fail

Your brand suffers from “sameness”

The “experience” didn’t match expectations

This information wasn’t relevant to me.

You don’t ask what donors think.


Impacting how the donor feels/thinks about your organization is THE key to retention.

Non Profit Experiences

Delivered By You

How Constituent Feels/Thinks About You

Cause CauseConstituent

Behavior (Giving/Doing)

Start managing the business here


Commitment to Organization

Functional Connection

Personal Connection

Behavior

Constituent Experiences

• Marketing/Brand• Donor Service• Fundraising• Engagement• Operations

Reliable/Consistent Experience

More emotive

Motive/intent to maintain


12

Donor Commitment

Scores

High Commitment 92

Potential 73

Vulnerable 43

Transactional 14

Overall 73

Source: 2012 DonorVoice National Study

Added Dimension for TargetingNew “Who”


13

0 10 20 30 40 50 60 70 80 90 100$100

$150

$200

$250

$300

$350

$133.09

$229.12

$283.16

$199.18

Value

Commitment

High Commitment

Potentials

Vulnerable

Transactional

Higher Relationship Strength = Higher LTV



Not All Experiences Matter Equally…Or at ALL!

New “What

”


15

Appreciation

Customer Service

Contact Strategy

Focus/Brand

Engagement

• Timeliness of their thanking…• Sending a personalized thank you…• Feeling part of an important cause

• Sending information on impact…• Knowing what to expect…• Clearly communicating mission & goals

• Opportunities to make views known…• Providing opportunities to take action…

Taxes

• Having helpful customer service…• Having knowledgeable customer service…

• The frequency of requests for donations• Sending information about my specific

interests

• Providing convenient year-end tax receipt

Appreciation41%

Customer Service25%

Contact Strategy19%

Focus/Brand46%

Engagement39%

Organizational Experience “Mental Groupings” Key Experiences



16

Taxes

Contact Strategy

Customer Service

Engagement

Focus/Brand

Appreciation

Importance

Performance


Importance

Performance

Repair and/or

Replace

Refine and/or Scale

Repair and/or Refine

“What Now”


Operation Smile• Envisions a world in which no child suffers or

dies because of a repairable facial deformity.

Twitter: @jannschultz @operationsmile #DCNP2013


Growth through Direct Response

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Number of Donors

Number of Donors

Overall Growth:371%


Donor Retention

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Donor Retention (%)

Donor Retention (%)


Immediate, life-changing results


Acquisition and Cultivation of Donors


Gift Catalog

Support through Consumer Purchases

Inlcude in My Will

Celebrity Endorsers

Raising Money from Friends

Promoting Student Programs

Conference Calls

Provide materials (DVD’s)

Sharing Success through Photo Albums

& Video

Using Social Media

Importance

PerformanceENGAGEMENT


72% of Facebook likes are High Commitment

Donors

78% of Twitter followers are High

Commitment Donors

3 out of every

4


Using Global Standards of Care so every child

benefits from the same equipment and proce-

dures

Having the highest standards of safety, hy-

giene and care

Helping children live with dignity

Delivering immediate, life changing results

Delivering safe surgery to remote places

MESSAGE/FOCUS

Importance

Performance


Immediate Steps - Messaging

Global Standards of Care


Holiday Catalog E-mail Appeal(BEFORE) Subject: Holiday shopping tips from Brooke Burke Charvet

(AFTER) Subject: Get Your Life-Changing Gift NOW


Donor First Commitment• We are committed to serving you, our donors,

volunteers and advocates with the same exceptional care that Operation Smile provides to children and their families around the world.


What’s on the Horizon?• Improving our feedback channels• Capturing commitment scores• Utilizing Target Analytics – Loyalty Insights and

Donor Commitment scores• Redefining our budget – focus investment on

our high commitment donors


Key Takeaways• Feedback from your donor is priceless• Your Mission is NOT your offer• There is a short list of key experiences that

have the greatest impact – focus on them• Customer service is vital to our organization,

those touch points matter


THE FUTURE IS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

Thank You!Operation Smile Case Study

Jann SchultzAssociate Vice President, Donor ServicesOperation Smile+1.757.321.7645+1 [email protected] @jannschultz @operationsmileLinkedIn Jann (Erickson) Schultz

mailto:[email protected]


THE FUTURE IS NOWSTRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

For a copy of this presentation & DonorVoice 2012 National Commitment Study Summary

1. Grab your smart phone

2. Go to http://presentnow.me

3. Enter the code “DMA”

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measuring and managing donor commitment to raise more money

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