Copy of Increase Retention for Giving Tuesday Donors--NPS (1).pdf
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This document discusses strategies for improving donor retention rates for donors from Giving Tuesday. It recommends segmenting donors and communicating with them promptly after their donation. For new donors, it suggests making phone calls within 48 hours to thank them personally. It also recommends surveying donors to understand their motivations and sending impact stories to demonstrate how their donation was used. The document provides data showing higher retention rates and future donations associated with timely thank you calls and personalized communications for donors. It highlights the importance of retention over acquiring new donors due to the lower costs associated with retaining existing supporters.
Copy of Increase Retention for Giving Tuesday Donors--NPS (1).pdf
- 1. Dec. 14, 2022 Increase Retention for Giving Tuesday Donors
- 2. Margie Worrell Margie Worrell is the Curriculum Manager at Bloomerang. She serves on the board of the Peace Learning Center in Indianapolis, and has worked extensively with nonprofits as both a staff member and a lead volunteer. Her passions include education, theatre, her two children and her two small dogs. Curriculum Manager, Product Marketing
- 3. Agenda 1. 2. 3. 4. Why is Donor Retention so important Final thoughts Why do donors lapse, leave or stay loyal? What is typical donor communication for Giving Tuesday? 5. What should we be doing and how can we do it?
- 4. Giving Tuesday is a big deal…
- 5. …and this year was no exception…. ● $3.1 billion of critical support for communities and causes donated in just 24 hours in the US alone. ● 25% increase in giving since 2020. ● 37 million adults in the U.S. participated in GivingTuesday in some way, a 6% increase over 2021.
- 6. Christmas Eve and New Year’s Eve are bigger 10% of all giving happens in the last 3 days of the year https://neonone.com/resources/nonprofit-impact-trends-data-hub/
- 7. Why is Donor Retention So Important?
- 8. POLL Do you know your donor retention rate?
- 9. All Donors in Year #1 Return Donors in Year #2 Donor Retention Rate
- 10. Average Donor Retention Rates Over the past few years 45.1% 47.2% 44.6% 45.4% 43.6% 41.6% 2016 2017 2018 2019 2020 2021 0% 10% 50% 40% 30% 20% Source: Fundraising Effectiveness Project
- 11. Source: Fundraising Effectiveness Project 18.6% First Time Donors 41.6% Average Donors (all donors, all gifts) 60.7% Repeat Donors Average Donor Retention Rates As of Jan 2022
- 12. Why Donor Retention is Important Original Retention Rate: 41% Grand Total: $820,859 Grand Total: $1,277,208 Total Savings: $456,349 Improved Retention Rate: 51%
- 13. Cost of Donor Acquisition vs. Donor Retention It’s easier and cheaper to retain a donor than it is to acquire one Cost Per Acquisition 5X Cost per renewal Cost Per Acquisition 2-3X Initial donation amount Renewal Response Rates 20-30X Higher than acquisition response rates Source: Fundraising Effectiveness Project
- 14. Why Donors Lapse, Leave or Stay Loyal
- 15. Why Donors Stop Giving 2001 study by Adrian Sargeant 5% - Thought charity did not need them 8% - No info on how monies were used 9% - No memory of supporting 13% - Never got thanked for donating 16% - Death 18% - Poor service or communication 36% - Others more deserving 54% - Could no longer afford INSIGHT: We can make a meaningful impact on the above reasons!
- 16. Why Donors Keep Giving 2011 study by DonorVoice 1. Donor perceives organization to be effective 2. Donor knows what to expect with each interaction 3. Donor receives a timely thank you 4. Donor receives opportunities to make views known 5. Donor feels like they’re part of an important cause 6. Donor feels his or her involvement is appreciated 7. Donor receives info showing who is being helped
- 17. What Subscription- based Donors Tell Us Source: IU Lilly School of Philanthropy 52% - Stories and experiences shared by the people my gifts have helped 32% - Frequent updates about organization’s programs and services 32% - Emails with my donation’s impact and heartfelt thank you(s) 25% - Educational and interactive webinar series related to the organization’s mission and impact areas Preferred communication and content from nonprofit organizations they support INSIGHT: Stories, heartfelt thank yous and impact-based communications lead the way!
- 18. How to Improve Donor Retention 1. Thank quickly + personally 2. Illustrate that you know who the donor is 3. Segment communications 4. Tell them how gifts are used / will be used 5. Tell them what comes next 6. Be curious about donor motivation and solicit feedback 7. Prioritize monthly giving ACTION: Pick one or two to start.
- 19. What is the typical donor communication for Giving Tuesday donations?
- 20. Steven’s Great $5 Donor Communications Experiment What do you see here that could be improved upon?
- 21. What should we be doing and how can we do it?
- 22. Four things you can do now to increase your retention from Giving Tuesday 1. Phone calls to first time donors 2. Segment and communicate promptly 3. Send a survey to get their input 4. Share impact storytelling to emphasize the importance of their donation
- 23. Consider phone calls for first-time donors Research into the efficacy of phone calls to first-time donors First-time donors who get a personal thank you within 48 hours are 4x more likely to give a second gift. (McConkey-Johnston International UK) A thank-you call from a board member to a newly acquired donor within 24 hours of receiving the gifts will increase their next gift by 39%. (Penelope Burk) Thank-you calls to first-time donors increases: ● the retention rate ● speed to second gift ● the amount of the second gift Source: Bloomerang, June 2022
- 24. Consider segmenting your donors After you segment, create different follow-up plans Repeat donor – below average donation amount New donor – below average donation amount New donor – above average donation amount Repeat donor – above average donation amount Consider calling them? This could start to build a new relationship. A three-minute phone call will boost 1st year retention by 30%. Acknowledge their first gift and explain how it will be used. Tell a story and set stage for what will come next. Do something special? Consider sending a video thank you. Recognize that they have gone above and beyond. Consider follow-up for recurring giving. Acknowledge their gift with gratitude. Consider reaching out to get feedback.
- 26. Use impact storytelling to help donors understand the importance of their gift
- 27. The Personal Touch Works Personal emails + video
- 28. Putting all the pieces together
- 29. Demo these four in Bloomerang 1. Phone calls to first time donors 2. Segment and communicate promptly 3. Send a survey to get their input 4. Share impact storytelling to emphasize the importance of their donation
- 30. Wrap Up 1. Make retention a priority 2. Have a second gift strategy 3. Segment your thank you list 4. Say thanks thoughtfully before asking 5. Pick up the phone 6. Ask for their input 7. Tell stories of impact
- 31. https://bloomerang.co/product/mobile-app/ “Putting our donor retention rate in front of us every day has been invaluable. Our retention rate has risen to 70%, and we aim to increase it even more.” -Kristen Westermann, Godparents of Tanzania
- 32. Resources Donor Retention Donor Retention Calculator (article with active donor retention calculator) What’s The Impact of Improving First-Time Donor Retention? (article) What Is Donor Retention? (article) The Art and Science of Retaining Digital Donors (downloadable ebook) Personalized Communications: The Key To Donor Retention (video with transcript) A Guide to Donor Retention (article) 5 Ways to Build Relationships and Increase Donor Retention (webinar) The Fundraiser’s Guide to Loving Lapsed Donors Recapture Lapsing Donors (Bloomerang Academy)
- 33. Resources Donor Engagement The Best GIving Tuesday Email Subject Lines of 2022 (article) Storytelling To Help Donors Understand the Value of their Dollar (video with transcript) How Can Nonprofits Move From Exploitative Storytelling To Justice-Oriented Storytelling? (article) Getting More People To Open Your NPO eNewsletter (webinar recording) Giving Tuesday: Designing Engaging Emails (Bloomerang Academy) Donor Surveys Getting To Know You: A Guide to the Hidden Power of Donor Surveys (ebook) Can Donor Surveys Really Help You Raise Money? (article) Dr. Adrian Sargeant's 7 Principles of Donor Loyalty (article, with links to sample surveys) Segmentation Donor Segmentation | Comprehensive Guide + Tips For Success (article) Beginner’s Guide to Nonprofit Data Segmentation (ebook) How Donor Segmentation Improves Year-End Appeal Results (article) List Segmentation (Bloomerang Academy)
- 34. Resources Resources shared in the chat by fellow participants (thank you!): Phone resources: ● Google Voice (noted for keeping your personal phone number private) ● Microsoft Teams (shows work number if you call from the app; may require organization-wide buy-in) ● One Talk by Verizon (allows you to add a work number to your cell phone) ● Dialpad ● For those that don't have work cells, Tmobile is offering any nonprofit who receives any government funds phones for $25/month inclusive of everything. Book suggestion: The Little Book of Gold, Erik Handberg. (geared toward small nonprofits)
- 35. POLL Would you like a follow-up to learn more about Bloomerang can help you and your organization?
- 36. Thank you for attending! Visit our website to see more upcoming Nonprofit Success webinars!