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Turning First-Time DonorsInto Repeat Donors

Tom Ahern | Jay Love9/24/13

Network for Good

Your Co-Presenter

Tom Ahern• Author of 4 Books on Communications• Award Winning Magazine Journalist• Consultant to Major Fundraising Clients Nationwide• Revered Weekly Newsletter on Communications• Prolific Keynote Speaker • Leading Authority in USA on Donor Communications • Bloomerang Communications Coach

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Jay B. Love CEO and Co-Founder of Bloomerang • 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 Member• 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

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Your Co-Presenter

Why bother?

70% of first-time donors do not make a second gift.

When you’re a success in the commercial world, that % is reverse: 70% of first-time

Nike buyers would buy a Nike product again.

LTVLifetime value

A 10% improvement in your donor retention improves your revenue 50% immediately.

And that’s just the beginning....Source: Adrian Sargeant, 2010

Show me the love

© 2013 Tom Ahern 10

“Am I treating thedonor as our org.’s

superhero?”

Donor-NEGLIGENT:

“We did this. We did that. We were amazing. Oh, by the way, thanks.”

The starting point of every donor relationship

“Is this all I am to you?”

Donor-CENTRIC:

“With your help, all these amazing things

happened. And without your help, they won’t.”

Give your donors an important job only

they can do.

It’s not about their money.

It’s about what they make possible.

Stay in touch

• 3 wks after: Thank you packet with receipt w/BRE & special welcome edition of their newsletter

• 4 wks after: Communications preference card

• 7 wks after: Mail appeal making matching gift offer

• 8 wks after: Phone call promoting monthly giving

• 9 wks after: Follow-up mailing requested during phone call

• 10 wks after: Sustainer (monthly giving) mail appeal

• 11 wks after: Donor newsletter in #10 env. w/BRE & slip

• 12 wks after: in Jan., for tax time, “giving record” mailer, w/BRE & slip Source: Lisa Sargent, Feb. 2011

How CARE ($.5 billion charity) acts, post-gift

A successful online retailer sends 125 emails to a single

customer in 7 months.

Source: ExactTarget, via The Agitator

You’re trying to involve them in

something.

You’re trying to involve them in

something.

7 Key Drivers of Donor Commitment

1.     Effectively trying to achieve mission.2.     Knowing what to expect from the organization with each interaction.3.     Timeliness of thank you’s.4.     Providing opportunities to make views known.5.     Provide feeling that I’m part of important cause.6.     Provide feeling my involvement is appreciated.7.     Send information showing who is being helped.

Source: The Agitator

Appeals, thanks, & newsletters work together.

You ask. You thank. You report.You ask. You thank. You report.You ask. You thank. You report.

The virtuous circle...

Actually...

You ask (and flatter).You thank (and flatter).You report (and flatter).

You cannot flatter too much.

“Even when people perceive that flattery is insincere, that flattery can still leave a lasting and positive impression of the flatterer.”

Source: Neuromarketing blog

Flattery corrupts both the receiver and the giver.

Edmund Burke

Flattery corrupts both the receiver and the giver.

Edmund Burke

SUBSCRIBE to myfreehow-toe-newsletter…www.aherncomm.com

Why is it so important to retain first time donors?

Let’s dig even deeper into “actual” NPO data . . .

This scares most NPO Board Members Donor Attrition Over Five Years

# 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

Fundraising Effectiveness Project (FEP)A project to help nonprofit organizations measure and compare

The 2012 Fundraising Effectiveness Survey Report is based on 3,184 responses for 2010-2011, from nonprofit organizations in the United States. The 2010-2011 responses reflected a total amount raised of $2,049,794,709.

Fundraising Effectiveness Survey Report “FEP”

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

Yes, your eyes read correctly:Nearly SEVEN out of every TEN

new donors from the previous year did NOT donate at all the next year!

DONOR RETENTION BEST PRACTICES

Dr. Adrian SargeantBloomerang Chief Scientist

“A 10% improvement in retention can double the LIFETIME value of your donor database!”

Donor Retention Made Simple

# of Donors in Current 12 Months(from the previous years pool)

divided by

# of Donors in Previous 12 Months

Calculating Your Retention Rate

Donor Retention Meter • The Dow Jones of your database • Measures back exactly 365 days• Reflects changes daily, weekly and monthly• Automatic, no guesswork• What is watched is addressed

“The total net contribution that a customer/donor generates during his/her lifetime in your database”

Defining Lifetime Value

$1000 +

$500 - $1000

$100 - $500

$25 and under annually

$25 - $100

Value

Value Segments »

Time

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%

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!

Engagement Level Graph • The Donor “thermometer” of your database • Updated automatically daily• Adrian’s expert formulas/algorithms • Easy to filter and report on• Springboard for major/legacy giving

Automatic Engagement Factors

6 Key Retention Drivers(That aid in turning 1st time donors into repeat donors)

• Drip feed mission performance data • Connect often• Be personal (SEGMENT)• Develop like a good personal friendship• Find & use numerous human connectors• Always communicate what monies are doing!

Special Offer!

https://bloomerang.co/try

Questions?Presenters:

Tom Ahern | Jay B. Love

jay.love@bloomerang.co@JayBarclayLove