Post on 21-Jan-2018
Upgrading Your Regular GiversUnlock your value potential
Fiona McPhee
PROUDLY SPONSORED BY
Regular Giving Market
Growing Value: Upgrading
Growing Value: Outside of Upgrading
Bequest Cash Child Sponsorship
Regular Gift Event Other
$0
$100 M
$200 M
$300 M
$400 M
$0
$100 M
$200 M
$300 M
$400 M
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Inco
me
Bequest
Cash
Child Sponsorship
Regular Gift
Event
Other
Income by Year, By Year of Recruitment
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
20082009201020112012201320142015
Volume Recruited
$0
$10
$20
$30 2
00
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Ave
rage
G
ift
Average F2F 2015: $30Average Non-F2F 2015: $26
Average Face to Face RG Gift - by year
-0.108% 8.44% 8.12% 7.35% 25%YoY
chan
ge
Face to Face Phone Online Media Direct Mail
0%
10%
20%
30%
40%
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Att
riti
on
R
ate
Face to Face Phone Online Media Direct Mail Recruits
0
100 K
200 K
300 K
Rec
ruit
s
Year 1 RG Attrition from starters - by year and channel
6 years giving
upgrade rate 60%
6 years giving
upgrade rate 35%
Proposition PromotionPassive
recruitment
Active recruitment
Retaining Growing
StrategyChannels
&TechnologyOperations Campaigns
Who are these regular givers?
F2FTwo Step
Converted
Cash Converts
All Others
0
10 K
20 K2
5
50
75
10
0
Regular Giving Donors - by age
GROWING STARTS WITH KEEPING
Communicate to Grow
Declines management
Cancellation Management
Communicate to Grow
AcquisitionOn-
boardingEngagement Retention Re-engage
Strategy
Communicate to Grow
Acquisition
• Source channel
• Channel data collection
• Proposition
• Donor Demographic
On Boarding & Engagement
• Declines Management
• Proposition
• Channel usage
• Engagement
Retention
• Declines Management
• Proposition
• Channel usage
• Ongoing Engagement
• Demonstrating ongoing value
• Preference management
Strategy
Decline Management
Reprocess Credit Card right away
Contact Direct Debit Donor to request
permission to reprocess (right away / double next month)
•Phone
•SMS
Do not hold or cancel a decline
• Minimum 3 months of attempts
Reprocess Direct Debit right away
Reprocess Direct Debit right away
Channels &
TechnologyOperations
Cancellation ManagementGood Data Capture = Reactivation successDonor Save Program
Amount downgrade
Payment holiday – max 3 months
Change payment type
Change payment date
Avoiding DO NOT CONTACT as an outcome – but have contact plan
OperationsStrategy
INCREASING VALUE
Upgrade
Reactivation
Cross Sell
Strategy Campaigns
0%
20%
40%
20
09
20
10
20
11
20
12
20
13
20
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20
15
Direct Mail Face to Face Online Phone
Four year range: 74% to 4%
RG Upgrade Rate - by recruitment channel and year
Channels
Phone
• Largest volume of upgrades
• Highest response rates
• Can negotiate increase level
• Low response rates
• Set amounts
SMS
• Establish as a channel
• What is a way to engage in the conversation?
Phone Insight
Mix of acquisition sources changing
Longevity of donor relationships increasing
Info on previous contacts is growing
Recruits by Source– Do you track your upgrade program performance by recruitment source?
– Contact rates, response rate and ROI can vary considerably
– RG volume are still being driven by F2F, however as a proportion of all channels it has remained relatively consistent
– RG recruits from TM however has increased to over 13% as a proportion of all channels
Acquisition Source Mix
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
F2F - Supplier A F2F - Supplier B TM - Supplier A TM - Supplier B
Source & Supplier Impact
Contact Rate RG % IPB
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
5000
10000
15000
20000
25000
D2D DM F2F Other TM WEB
Source Impact
loaded RG%
Age of donor pool
Previous Non Contacts Impact on Future Penetration– For aging programs the proportion of non contacts continues to grow, impacting overall
contact rate
– This can however be planned for and an informed decisions can be made
Previous Nos
Overview of Upgrades
• Best opportunity to increase value, also
has positive impact on attrition
Upgrades
Ask Strategy Segmentation Contact Rates
Campaigns
Overview of Upgrades
• Best opportunity to increase value, also
has positive impact on attrition
Upgrades
Ask Strategy:
Balance repsonse and value
Segmentation:
Variable analysis, model it, frequency
of ask impacts
Contact Rates:
Recruitment source, age, frequency
impact
Campaigns
•Early - 4-6 months – test it;
•Then every 12 months – test it;
•Ask more often
Timing your upgrade ask
Charity A: ~40k RGs
Year 1 Year 2 Year 3
# Campaigns / Batches
1 2 5
Conversations 6,960 12,828 19,685
Upgrades 2,288 4,840 5,827
Yr 5 Net Income $1,086,000 $2,719,000 $2,907,000
Charity B: ~16k RGs Year 1 Year 2
# Campaigns / Batches 1 2
Conversations 5,174 10,901
Upgrades 2,070 4,197
Yr 5 Net Income $1,141,000 $1,977,000
End of Year Receipts Campaigns
Ask RG Avg Gift RG Annual
Income RR% ROI
Cash Ask $16.33 $3,528 5.4% 2.24
React $15.20 $1,824 0.5% 0.29
Upgrade $9.69 $15,932 0.9% 0.61
TOTAL 1.26
Campaigns
Yes, I would like to support WWF- Australia. I would like to increase my regular monthly gift.
Please increase my current monthly contribution of $35 by:☐ $5 per month☐ $8 per month☐ $12 per month☐ Surprise us $_______ per month☐ And/or I will make a one-off donation of $_________
Auto Upgrading: Opt in / Opt Out
At sign upAt
Upgrade
Auto Upgrade
PRICE PROPOSITION
Campaigns
UpgradesData Capture is critical – source, contact history, response history
Have a proposition – what’s the impact of giving more?
First approach – Too soon? Not soon enough?
Multi channel – what could you add?
Ask at least annually – sooner?
Test ask levels / multipliers – segment to test
Can Auto Upgrade work for you?
ASKING TO INCREASE ISN’T ALL THERE IS
Reactivations
Viable strategy to ‘recruit’ at better return
than acquisition
Segmentation Exclusions Ask Strategy
Strategy
Reactivations
Viable strategy to ‘recruit’ at better return
than acquisition
Segmentation:
needs to be dynamic, ask stratgey will impact
Exclusions:
to optimise ROI, Passive cancels do better than active
Ask Strategy:
Adjusted year on year to maximise value at higher
amount than previous without pushing yes below target
Reactivation
Response Rates of 10% to 16%.
• Passive can get 25% to 30%
• Donor cancelled will get 6% to 12%
Generally include up to 48mths
• Can go back as far as 108mths for charity cancelled and 72mths for donor cancelled
• The further you go back however the lower the overall RR will be
Generally get people back on board at 75% of their original gift.
Test 0 pay reactivation
Strategy
Have a proposition
Know why they cancelled & when, and what else they may have done in between
Multi channel
Warm them up – e.g. digital with phone follow up
Campaigns
•F2F – advocacy, Peer-to-Peer, digi survey
•Others – cash, advocacy, survey
Cross Sell
Strategy
It’s not just about the Regular Gifts they make
Cash Donors converted to RG will keep giving
cash
It’s not just about the Regular Gifts they make
They will do other things emergency
response, activism, DM appeals (profiled)
Asking for CashStrategy
I’m asking for your help again because your extremely generous, on going support for St John is already making a huge difference to the community in and around Wanaka. As someone who gives a regular, monthly gift to St John, you are part of Team Green – a group of our most loyal donors providing critical backup to our frontline heroes in the form of lifesaving equipment, on going world-class clinical training, frontline support services and vital ambulance resources.
Your kindness is astonishing and I hope you can see from Jordan’s story how your support helps keep families together.
By being a vital part of Team Green, you’ve proven that you don’t just understand how important St John’s frontline work is, you’re also prepared to take action when it’s needed. And, right now, I really need your help. An additional gift from you today will help make sure that St John can carry on providing all these amazing services – so that our ambulance officers can save lives every day
It’s not just about the Regular Gifts they make
Non-F2F are great bequest
prospects
0%
1%
2%
3%
Dir
ect
Mai
l
Oth
e r
Med
i a
On
line
Ph
on e
Face
to
Fa
ce
Co
nfi
rmed
Be
qu
est
Rat
e
Conf BQ Penetration Active Regular Givers
0
200 K
400 K
600 K
Act
ive
RG
Do
no
rs
Regular Giving Pledge BQ rate - by recruitment channel
GOING BACK TO THE START
Proposition – Does it support asking for more?
Clash with cash?
Upgrade proposition
Ability to feedback / show impact
Downgrade alternative to retain (downgrade product?)
High Value alternative?
Strategy
It’s not just about the Regular Gifts they make
They have High Value Potential
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Inco
me
$100K+$25K-$100K
$4.8K-$25K$1.2K-$4.8K
$1K-$1.2K$1K
RG Gifts $1K+ - by year and value band
Acquisition On-boarding Engagement Retention Re-engage
StrategyChannels &
Technology
Are you proactively capturing channels?
Donors # % Total Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Cumulative
Total 16,722 -12.26% -5.71% -4.52% -3.25% -2.61% -3.46% -2.11% -2.39% -36.30%
All Communications Sent & Opened/Delivered 2,767 17% -10.91% -5.68% -3.96% -2.74% -2.62% -4.32% -0.38% -2.13% -32.74%
Emails Sent (Opened) 2,902 17% -11.04% -5.76% -3.92% -2.80% -2.75% -4.30% -1.16% -2.03% -33.77%
Emails Sent (Not Opened) 5,539 33% -11.80% -5.47% -4.32% -3.30% -3.36% -3.50% -2.11% -3.02% -36.87%
Emails Not Sent 2,874 17% -14.62% -6.28% -5.56% -3.71% -0.80% -2.53% -2.99% -1.42% -37.91%
Print Only 2,640 16% -14.22% -6.08% -5.68% -4.00% -0.97% -2.47% -3.10% -1.46% -37.97%
On Boarding: creating an obvious desire to do more?
Reintroduce ourselves
Reinforce our unique benefit
Reinforce the unique value of supporting us
Introduce more beneficiaries
Introduce more of what the donors
cares about
Reinforce our values
Promote ‘membership’ of our community
Use multiple channels
Say thank you, again and again
Strategy
Retaining: On Going Communications Strategy
Low Value Sub $10
• There is no evidence that sending anything to low value (Sub $10 per month) regular givers is worthwhile
• Test it
• Try to upgrade (test)
• Tax Receipt Donor Care
Mid to High Value
• Multi Channel every month
• Planned story – that’s about the donor NOT you
• Includes other support and interaction opportunities:
• Upgrade
• Cash
• Survey / feedback / comment
• Advocacy
• Tax Receipt Donor Care
CUSTOMER SERVICE
Strategy
Does everyone in your organisation know why you are
doing RG?
Does everyone know how to
defend the channels being used?
Does everyone know how to sell regular giving?
Do you have an inbound save
program?
HOW WILL YOU KNOW ITS WORKING?
Example Pareto Fundraising Control Panel Reporting Module
Strategy Technology Operations Campaigns
Proposition –standard & high
value
Opt in Upgrade at Sign Up
(proposition)
Declines Management
Multi Channel Comms to grow
EOYR & Auto Upgrade
Regular Upgrade opportunities (proposition &
channels)
Cross-Sell Donor Save Reactivation