What Fundraisers Can Do to Stop Falling Retention Rates
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The webinar discusses strategies to improve donor retention rates, highlighting that over 60% of donors do not give again and providing retention calculations. Key insights focus on engaging donors through personalized communication, timely acknowledgments, and understanding donor motivations. The presentation emphasizes that improving donor retention by just 10% can significantly increase the lifetime value of the donor database.
What Fundraisers Can Do to Stop Falling Retention Rates
- 2. What Fundraisers Can Do to Stop Falling Donor Retention Rates
- 3. Welcome!
- 4. Founder: Girlstart VP Training, Pursuant Featured on: Oprah, CNN, the Today Show AFP Outstanding Fundraiser of the Year [email protected] T: @rachelmuir (214) 866.7747 Your Host Your speaker Rachel Muir, CFRE Rachel Muir, CFRE
- 5. Webinar housekeep ing We’ll be doing polls and taking questions
- 7. Your Presenter Jay B. Love • 30 Years of Technology Leadership • Over 20,000 Database Installations • Former Founder & CEO of eTapestry • Former CEO of Master Software/Fund-Master • AFP Board Member • AFP Ethics Committee Chairman • Center on Philanthropy at IU Board Member • Innovation Fund at Butler University Board Member • Gleaners Food Bank Board Member • Co-Chair of Indianapolis YMCA Capital Campaign 3
- 8. Poll: What size are your public contributions?
- 9. Poll: Are you currently calculating your retention rate?
- 10. Do you know your retention rate? In our surveys, less than 45% of fundraisers knew their current donor retention rate.
- 11. Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare .
- 12. Fundraising Effectiveness Survey » Participating Donor Software Firms: • Donor2/Campus Management Corporation • PhilanthrAppeal (FundTrack Software) • DonorPerfect Fundraising Software • The Raiser’s Edge ® (Blackbaud) • eTapestry • Avectra • Bloomerang • Sage Software • MatchMaker FundRaising Software • Telosa Software (Exceed!) • Metafile
- 13. The 2013 results are in » 6 out of every 10 donors do not give again!
- 14. New donor retention is even worse »
- 15. Donor Attrition Over Five Years So what? # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10
- 16. So what? Improving donor retention rates by just 10% can increase the lifetime value of your database by 150-200%! - Dr. Adrian Sergeant, Bloomerang Chief Scientist
- 17. The last 10-15 minutes will be Q&A
- 18. Donor retention math »
- 19. Calculating Your Retention Rate # of Donors in Current 12 Months (from the previous years pool) Divided by # of Donors in Previous 12 Months
- 20. Calculating Your Dollar Retention Rate Total Dollars from Donors in Current 12 Months (from the previous years pool) Divided by Total Dollars from Donors in Previous 12 Months
- 21. 21 Importance of Dollar Retention » • $0 - $25 • $26 - $100 • $101 - $1,000 • $1,001 - $10,000 • $10,000 & Up (50% of Total) (Where do you desire a 10% change?)
- 22. Beyond Dollar Retention Rate » Seattle’s Lakeside Upper School counts … Bill Gates among its alumni. Rumor has it a fundraiser for the high school called Gates, who asked: “How much is everyone else giving?” About $75 he was told. “So put me down for $75,” said Gates. -- Forbes, Jan 22, 1996, p. 16
- 23. Defining Lifetime Value » “The total net contribution that a customer/donor generates during his/her lifetime in your database”
- 24. Value Segments » $1000 + $500 - $1000 $100 - $500 $25 - $100 $25 and under annually Value Time
- 25. Why Do Customers Leave? (can this apply to donors . . .) • Death 1% • Relocation 3% • Won by Competitor 5% • Bad Complaint Handling 14% • Lack of Interest from Us 77%
- 26. Key Reasons For Donors Leaving • No longer able to afford support • No memory of ever supporting! • Organization asked for inappropriate sums • Feeling that other causes are more deserving • Not reminded to give again • Organization did not inform how monies were used • Did not feel connected!
- 27. 27
- 28. Automatic Engagement Factors » • Recency and pattern of giving • Cash donors vs. sustaining donors • # of years giving + • Upgrade / Downgrade + - • Lapsed - • Event attendance + • Opens email + • Click links in emails + • Unsubscribes from email - • Has stated communication preferences + • Has inbound interactions + • Has soft credits + • Volunteers +
- 29. 6 Key Retention Drivers (That can double lifetime value) • Drip feed mission performance data • Connect often (1st 90 Days!) • Be personal (SEGMENT via DB) • Develop like a good personal friendship • Find & use numerous human connectors • Always communicate what monies are doing!
- 30. Donor communications » “Are your charity's fundraising, advocacy or other "persuasion" communications riddled with common, hidden flaws that limit their effectiveness?” - Tom Ahern, Bloomerang Donor Communications Head Coach
- 31. Secret to Success #1 » You’re trying for “mental nods.”
- 32. Secret to Success #2 » Your appeal is NOT about how wonderful your organization is. Your appeal IS about how wonderful the donor is.
- 33. Secret to Success #3 » 1st paragraph: 10 words or less.
- 34. Secret to Success #4 » Multiple asks
- 35. Secret to Success #5 » Don’t bore me.
- 36. Secret to Success #6 » Know your SMIT. Single Most Important Thing.
- 37. Secret to Success #7 » Get them into a fight.
- 38. Secret to Success #8 » Make a promise.
- 42. Engagement Begins With The Thank You!
- 43. 5 Acknowledgment Principles (Drastically Improve First Year Donor Retention) • 48 Hour Rule • Be Different Than the Rest • Handwritten Rule Written Communications • State Exactly What the Monies will Fund • Call or See in Person as Often as Possible
- 44. Saying thanks is a privilege. - Shannon Doolittle
- 46. 5 Communication Strategy Practices (Involve Your Entire Fundraising Team) • Fully Map a Track for Each Key Segment • Survey in 1st 90 Days, Then “Honor” • Involve Human Connectors • Nurture Means Personal • Never Forget the “You” Test for EVERY “Touch”
- 47. Questions? Jay B. Love [email protected] @JayBarclayLove Rachel Muir [email protected] @rachelmuir
- 48. The art of storytelling Jump in, just 12 spots left! Qualify, retain & upgrade your donors Build a thriving major gift portfolio Overcome objections and nail The Ask Fearless Fundraising Training Oct 14 Dallas, TX
- 49. Our next free webinar: Thursday October 9th: “How to Start or Finish a Capital Campaign”
Editor's Notes
- #7: 1:02 If you are tweeting these are our handles and hashtag And now, without further ado I’m thrilled and honored to get to introduce our guest today.
- #8: 1:03 Rachel introduces Jay While you may know Jay as the man who innovated the online donor database system known as eTapestry, he has served the non-profit sector with cutting edge technology tools for fundraising and communications with companies like Social Solutions, Blackbaud, and Master Software Corporation. Jay has given more than 2,000 speeches around the world for the charity sector and chairs the AFP Ethics Committee. He is an entrepreneur, having started 2 software companies serving nonprofits, he’s a grandfather, he’s a golfer, he’s a sports fan, and he’s a board member. He has dedicated most of his life to empowering nonprofits in technology and if building donor loyalty were a rock band, Jay would be the lead singer. We are truly honored to have him here with us, we are huge fans of his work and grateful to Jay for his leadership in this sector we all love. Welcome Jay! Before I hand the mic over to Jay, we want to hear from you and learn a little more about you.
- #9: 1:04 Less than 1 million More than 1 million less than 5 million 5 million to 10 million Over 10 million
- #10: 1:04 Yes No