DRIVING DONOR LOYALTY
Donor Retention
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Process not a Project
Commitment
Retention Versus Loyalty
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How do they relate?
Retain
1. to keep possession of. 2. to continue to use, practice,
etc.: to retain an old custom. 3. to continue to hold or
have. 4. to keep in mind; remember. 5. to hold in place or
position.
Loyalty
[implies] a sense of duty or of devoted attachment to
something or someone. Loyalty connotes sentiment and
the feeling of devotion that one holds for one’s country,
creed, family, friends, etc…implies unwavering devotion
and allegiance to a person, principle, etc.
Who Are We Loyal To?
Who Are We Loyal To?
alma maters
college sports
professional sports
friends and family
movie & television stars
our faith
political parties
Who Are We Loyal To?
Who Are We Loyal To?
alma maters
college sports
Professional
sports
friends and family
movie & television stars
our faith
political parties
Retention Versus Loyalty
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Constituents have multi-faceted relationships with your
council
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Thought key, donating is only one way a constituent
can interact
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Look for missionaries not just transactional behaviors
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Life-time value is not calculated year over year
Donor retention is only one measure of loyalty
Donor Demographics
Boom, Bust, and Echo
 Understanding of basic demographic dynamics can
explain most of the current patterns we observe in
consumer behavior. Donation is a purchase
Why?
 Everyone ages
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As we age, we enter into life-cycle phases that govern
our attitudes, careers, and discretionary income
spending habits
Donor Demographics
Baby Boomers—the Boom
General Description
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Born between 1947 and 1966
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The “me” generation will start to shift focus to its legacy
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Less willing to comparison shop, they seek quality and high level
of service
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“Baby-boomers are human beings, not a new species. Previous
generations also had their own popular music and they too
learned to appreciate classical music” (Boom, Bust, and Echo)
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Volunteerism should increase as relatively healthy individuals
leave the workforce
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Continuing education becomes a focus
Communication Focus
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Legacy and leaving the world a better place
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Financial planning
Donor Demographics
Generation X—the Bust
General Description
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Born between 1967 and 1979
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Fewer in numbers, also having fewer children themselves
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First generation to have a lower quality of life than the one before
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Estimated that this generation will have on average three complete
careers
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More action rather than idea oriented
Communication Focus
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This age cohort is more cynical and less idealistic; they seek
authenticity
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Return on investment is more psychic than material—don’t dwell on
benefits
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Want “proof” of monies well spent
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Well positioned to be the most loyal group in decades…
will have “pet” causes
Donor Demographics
Generation Y—the Echo
General Description:
 Born between 1980 and 1994
 Never knew a time before MTV and 50+ television
channels
 Least religious of all prior generations
 Not a rebellious group—seldom had limits to start with
 Young Cosmopolitans (“Yo-Co’s”) much sought after
but offer little loyalty
Communication Focus:
 Very visual, prefer multi-media
 Able to consume vast amounts of information
 Very short attention spans
Evaluating Loyalty
Institutional mission and objectives
 What is your council’s mission
 What are your long-term objectives
 What are you short-term objectives
 How do you measure success
 Why should donors support you
Evaluating Loyalty
Environmental/Competitors
Who is raising money from your donors?
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What are their activities
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How are they doing
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What are their strategies
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What are their strengths
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What are their weaknesses
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Is there anything you can learn from them
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Do they attract all of your donors or just particular
segments
o If yes, which segment(s)
Evaluating Loyalty
Donor Analysis
 Who are your donors?
o
o
o
o
o
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Age range
Gender
Socio/economic factors
Education
Interests/Activities
Why do your donors support you
Do your mid to high-range donors differ from broad-based
donors
What characteristics do they share
Why do these donors support you
Of the two groups, who has a higher retention rate
What do donors like about your institution
What aspects of your mission create the most
interest
Evaluating Loyalty
Donor Analysis (continued)
 What kinds of communication do your donors want
 Are there gaps
 Are you overwhelming your donors with
communications
 What is the ratio of pure information to asks (both soft
and direct)
 What other nonprofits do your donors support
 Why do they support them
 How do they decide “what portion of the pie” they give
to you
 What prompts your donors to start giving
 Why do they stop
Evaluating Loyalty
Donor Relations
 How do you identify new donors
 Do you segment your database
 What criteria do you use for segmentation
 Can this be further refined
 What is the annual attrition rate for each segment
 Does one perform significantly better
o If yes, why
 What types of donor acquisition work
Evaluating Loyalty
Based on the evaluation of your retention activities
 What are your strengths
o How would you rank them
 What are your weaknesses
o How do they fit into the following buckets
o Fully resolvable in 0-6 months
o Significant action taken within the year
o Long-term planning required
What are your goals for donor retention
 Percentage retained year over year
 Dollars raised from retention activities
Which segments will produce these results
Costs for retention programs
 How will you define success?
Headquarters City
Givers
'12
$ PD '12
# PD '11 NR
$ PD '11 NR
# 10, 09, 08
$ 10, 09, 08
Council A
1,603
314,635
567
61,883
1,234
147,024
Council B
1,443
524,089
675
121,920
1,165
162,539
Council C
454
157,849
199
45,259
208
27,559
Council D
777
232,167
487
109,809
731
130,707
Council E
1,041
501,898
398
102,928
689
171,396
Council F
1,120
483,491
508
135,282
247
60,479
Council G
652
230,553
162
33,641
200
37,414
Council H
1,324
555,052
844
180,048
543
193,109
Council I
1,143
312,690
563
133,378
922
172,376
Council J
697
265,358
346
70,160
416
72,717
Council K
1,493
344,912
296
54,395
362
95,375
Council L
859
406,265
284
56,228
377
85,734
What are the possible reasons why
we’re not retaining these donors?
Reasons for Quitting
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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
X’s communications were inappropriate
X asked for inappropriate sums
What are specific things we can do to
better retain our 2012 donors in 2013?
Survey says…
Shocking BSA Statistics
A 2012 BSA survey revealed:
 Slightly more than half of all councils (55 percent)
have a written overall fundraising/development
plan with timelines and goals.
 Only 43 percent of councils have a systematic,
year-round approach to cultivating donor
relationships.
 25 percent of councils report they don’t have a
development plan or an approach to cultivating
donor relationships!
Donor Communication Is
Infrequent and Self-centered
A 2012 BSA council survey revealed:
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23.5 percent have board members call donors to
thank them
35.3 percent send a donor targeted newsletter
59.5 percent send a holiday card
60.1 percent mail an annual report
Some councils reported doing NOTHING to reach
out to donors.
Our communication focuses on what the
COUNCIL has done with the money, not on
how the DONOR has made an impact on lives.
Most Councils Do Not Hold
Donor Cultivation Events
Only 47 percent of councils conducted a donor cultivation
event in 2011. These events included:
 Recognition meals
 Heritage Society receptions
 Camp visits and open houses
 Major gift dinners/receptions
It’s all about the donors
Video located at
http://www.youtube.com/watch?v=_Zs7mSHrDKA&feature=play
er_detailpage
Building Relationships Is
Important
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Improves donor retention
Leads to higher giving levels
Creates higher long-term value
Increased involvement
Leads to long-term donor loyalty and legacies
Retain Your Donors
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It is easier to keep a donor than find a new
one.
 Build long-term relationships by
maintaining regular communication.
 Don’t focus on the one-time gift; look for
continued support.
Donor Communication Plans
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Long term
 Annual
 Calendarized
 Specific Goals for targeted groups
o Community at large
o Scouting Family
Major Donor Strategies
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Highly personal
Meet as many as you can
Personalized proposals
Regular contact person from the council
Volunteer and Pro partnership
Major Donors
Once you go personal, you can’t go back,
move carefully
 Labor intensive and takes time
 The more individual the strategy, the better
the results
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Walk Before You Run…
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Phase in gradually
Helps you better evaluate results
Improve annually
You get better with practice
Donor feedback will help you determine
you next steps
If You Can’t Do It All…
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Start small with five donors
 What could you do with five key donors
this month? Next month?
 Start small…but do get started
 Success will breed success
Video located at
http://www.youtube.com/watch?feature=player_detailpage&v=go
0kWpHJGqM