Understanding your donors to keep them for life
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Understanding your donors to keep them for life Presented by Ashok Mahapatra Fundraising Analyst UNICEF India Country Office SAFRG, Fundraising Master Class October 30, 2010
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Transcript of Understanding your donors to keep them for life
Understanding your donors to keep them for life
Presented byAshok Mahapatra
Fundraising Analyst UNICEF India Country Office
SAFRG, Fundraising Master Class
October 30, 2010
agenda• Fundraising steps and channels• Behind a successful campaign?• What is important for a campaign?• Key things to remember before selecting data• Acquisition campaign analysis• What to do with acquired donors• Right approach: segmentation• House campaign analysis• LTV analysis• Pledge?• The ‘pledge giving’ framework• Why pledge (pledge vs One-off)• Things to know about a pledge programme
Simple fundraising Steps
Fundraising CHANNELS• Direct Mail• Telemarketing• Face to face• Telefacing• Digital• Other
Direct Mail
Telemarketing
Face to face
Telefacing
+
Digital
Behind a successful campaign?
Some quality work behind getting “quality lists”
• Target Audience (who to ask?)• Budget (How much can you spend?)• Goal (better 1st year RoI or long term RoI)• From where can I get the list?• Roll out vs test• Size of the list
Target Audience
who to ask?
(How much can you spend?)
Budget
Goal
Short term vs Long term
(better 1st year RoI or long term RoI)
From where can I get the list?
List Owners
List vendors
List brokers
Type of List
Compiled Lists
Proprietary Lists
test vs
roll out
Size of the list
Analyzing acquisition campaign
Cost per Unit Total Cost
Cost per unit = Quantity Mailed
Response Rate (RR%)
Total ResponseResponse Rate % = X 100
Quantity Mailed
Average Donation Size (ADS)
Total Donation Amount ADS =
No of Responses
Cost per Donor
Total costCost per Donor =
No of response
Return on Investment
Total IncomeROI =
Total Cost
What to do with acquired donors?
• Should we ask them to give MORE?• How much to ask?• Should we send the same ask to all donors?
Should we ask them to give MORE?
How much to ask?
Should we send the same ask to all donors?
Right approach
Segmentation of donor database
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Donor Life StagesDonor Life Stages
Prospects
Deeply lapsed Lapsed
1. New
2. Transition
3. Core
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Definitions:Definitions:
Segment your donors
Analyzing house campaign
LTV analysis
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“ The Net Present Value of the income gained from an average new recruit during a given number of years ”“ The Net Present Value of the income gained from an average new recruit during a given number of years ”
What is Lifetime Value?
• LTV is a measure of the long term benefit of a recruited donor
The Lifetime value (LTV) of a donor is defined as:
To convince your board member for investing in fundraising
Why LTV?
One-off or Pledge?
Why LTV?
Evaluate and guide our recruitment programme
Which Channel?
Why LTV?
Understand which media give the most profitable donors over the long term
Income for coming years
Why LTV?
Understand the long term value of our retention programme
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Lifetime Value
LIFETIMEVALUELIFETIMEVALUE
COST TO ACQUIRECOST TO ACQUIRE
HOW MANY YEARS THEY ARE RETAINED
HOW MANY YEARS THEY ARE RETAINED
COST TO RETAIN EACH YEAR
COST TO RETAIN EACH YEAR
HOW MUCH THEY GIVE EACH YEAR
HOW MUCH THEY GIVE EACH YEAR
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Example LTV Calculation
Pledge
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The ‘pledge giving’ framework
Pledge vs
One-off
Things to know about a pledge programme
• Gross IncomeGross Income• ROI (gross income divided by direct “non-ROI (gross income divided by direct “non-
overhead” costsoverhead” costs• Total Number of Active Pledge DonorsTotal Number of Active Pledge Donors• Average Pledge ValueAverage Pledge Value• Pledge Retention Rate (% of pledge donors as of Pledge Retention Rate (% of pledge donors as of
12 months previously who are still active)12 months previously who are still active)• Pledge Fulfillment Rate (average number of Pledge Fulfillment Rate (average number of
months income received)months income received)
