Top Ten Tactics for Ensuring Donor Loyalty @ Bridge Conference
DONOR LOYALTY PPT_FINAL
Transcript of DONOR LOYALTY PPT_FINAL
SAGE INSIGHTS SURVEYD O N O R LOYA LT Y S T U DY , 2 0 1 3
DID YOU KNOW ?
of nonprofits surveyed do not know or are not sure if they have a formal strategy in place for managing donor loyalty.
69%
What Is Donor Loyalty?“Loyalty” is faithfulness or devotion to a person, country, group, or cause. While philosophers may debate what things people can actually be loyal to, we define Donor Loyalty as an emotional connection and relationship between donors and your organization. The relationship itself is defined by the donor’s perception.
Donor loyalty doesn’t mean that your nonprofit is the sole recipient of a donors attention and giving. It means that a donor is listening, engagedand motivated to action repeatedly. Connecting through advocacy, volunteering, and yes, giving to your organization!
A donor loyalty program is the output of your focused attention on creating and building a relationship through multiple touchpoints or experiences you have delivered.
WHOSE JOB IS IT
ANYWAY?
Of the organizations with a donor loyalty program,
identify development as the function that is primarily responsible for and owns the donor loyalty strategy.
Followed by
41% Executive Management
24% the Board of Directors
24% Program Director or Management
74%
How Often Is Your Donor
Loyalty Program Reviewed?
AnnualBi-AnnuallyQuarterlyMonthly2-3 Years
129
3-5 YearsOtherDo Not Know
364
3413
96
6
Number of Responses
What are the External Challenges?
Potential losses in local, state and federal funding as a result of budget cuts
Economic down-turn affecting available dollars
Increased competition with so manynonprofit organizations
Staffing
Other
46%
34%
9%
7%3%
What are the Internal Challenges?
Reducing costs without impactingservices
Doing more with less
Developing and motivating teams for results
Reporting performance
Managing assets and risks
Other
39%
35%10%
5%6%
4%
Donor Communications
None 1 to 3 4 to 6 7 to 9 10 to 12 More than 12
26% 28% 18% 7% 9% 13%
17% 47% 25% 5% 3% 3%
67% 27% 3% 1% 1% 0%
38% 47% 9% 3% 1% 2%
41% 20% 10% 6% 9% 15%
13% 60% 14% 4% 3% 6%
43% 44% 7% 3% 2% 2%
47% 41% 6% 3% 1% 2%
In the past 12 months, how many times did your average donor received communication from your organization via each of the following methods?
Received an email message
Received a direct mail piece
Received a survey
Receieved a phone call
Received a social media message
Received a thank you letter
Received a handwritten thank you note
Received a call, thanking a person
Asking donors how you canserve them better is a greatway to enhance loyalty.
Handwritten notes or in-person thank you’s
reign as king of loyalty.
THANK YOU
What Is Your Current Donor Attrition Rate*?What does
your organization
do today?
Clearly and consistently communicate to donors your organization’s values.
Ensure that all promises made to donors are adhered to.
Measure and communicate your organization’s impact or key performance indicators.
Ensure communications match donor expectationsin respect to content, frequency and quality.
Provide staff training in customer service.
Communicate to donors the rationale for major decisions related to strategy or programs.
Maintain a complaints process or procedure.
Engage donors in a two-way dialogue about the service they can expect.
Maintain a donor welcome program. Measure the quality of service received by donors and/or constituents.
Conduct regular exit polling of lapsed supporters.
* the percentage of donors who give one year but not the next
What Is Your Current Donor Attrition Rate*?
Don’t Know
Yes, We Measure
51% 49%
26-50%
0-25%
76-100%
35-75%PERCENT WHO MEASURE DONOR ATTRITION
DONOR ATTRITION RATE
GOOD TO KNOW
Knowing what percent of your organization’s donations are recurring is a first step in benchmarking your organization’s donor loyalty program.
However, a significant number of organization’s surveyed “Don’t know” and are unable to quantify the percent of recurring donations.
When A Recurring Donation Ends,
What Do You Typically Do To Follow Up?
Phone CallNothingDirect MailEmailNo Recurring Donors
208
OtherConduct an Exit Poll
169150
9565
1145
Number of Responses
29%of nonprofits do nothing
when a donor lapses.
SHOCKING NEWS
What Branded Promotional or Motivational Objects Do You Provide To Donors?SHOCKING NEWS
Computer or tech accessories (memory drive, phone charges, mouse pad, iPad)
Caps or hats
Pens, pencils, and markers Drinkware
5% 11%
24% Clothing (t-shirt, jacket, dress shirt)
19% 21%
52% give nothing
The pen is tops when it comes to loyalty gifts,
probably due to affordability.
52% give nothing
Annual Reports are used by
69% of respondents to
communicate how donorsmonies will be used.
AnnualReport 2012
Annual Reports are used by
69% of respondents to
communicate how donorsmonies will be used.
Annual Report
Acknowledgementat events such
as an annual gala
Donor name onplaque, signage,
tree or wallAward or recognition ceremony Donor name listed
on your website
Recognize Donor in
Social Media
Press Releases
Purchase mediato acknowledge
and thank
WHO RESPONDED TO OUR SURVEY?
15% Less than $1 Million
$1 Million to $4,999,999
$5 Million to $10 Million
$10 to $50 Million
$More than $50 Million
18% 46%
17%
4%
Annual Operating Budget
Human and Social Services
Other (specify)
Advocacy
Health and Hospitals
Faith-Based
Education (Higher)
49%
15%
12%
9%
9%
Community Development/Organizer
Education (K - 12)
Environmental and Conservation
Arts, Culture, and Humanities
8%
7%
6%
5%
5%
4%
0 5 10 15 20 25
Animal Welfare
Membership
4%
3%
30
Museum/ Zoo
Church
Foundation
2%
2%
2%
35 40
Education (Other)
45 50
Science
United Way
International
1%
1%
Library
Public broadcasting/media
1%
0%
0%
Organization Type
About Sage Nonprof i t So lu t ions
Sage Nonpro f i t So lu t ions has been se rv ing nonpro f i t and gove rnmenta l o rgan i za t ions th roughout Nor th Amer ica fo r more than 30 yea rs . The o rgan i za t ion he lps more than 32 ,000 un ique no t - fo r -p ro f i t o rgan i za t ions i nc rease e f f i c i ency and more eas i l y manage the i r ope ra t ions th rough the use o f t echno logy . F rom fund account ing , donor and fundra i s ing management , and g ran t management to on l i ne dona t ion p rocess ing , human resources (HR ) , pay ro l l , and f i xed asse t management , Sage o f fe rs a so f tware p roduc t o r se rv ice to meet the o rgan i za t ion ’s need . Fo l low Sage Nonpro f i t So lu t ions on Tw i t te r® (www. tw i t te r .com/SageNonpro f i t ) and Facebook® www. facebook .com/sagenonpro f i t ) , r ead i t s b log (www.sagewords .ne t ) , and jo in i t s commun i t y fo r no t - fo r -p ro f i t s ( h t tp : / /commun i t y . sagenonpro f i t . com) .