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

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Bequest

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Child Sponsorship

Regular Gift

Event

Other

Income by Year, By Year of Recruitment

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20082009201020112012201320142015

Volume Recruited

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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

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Face to Face Phone Online Media Direct Mail

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Face to Face Phone Online Media Direct Mail Recruits

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Rec

ruit

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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

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20 K2

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10

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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

•Email

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

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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

Mail

• 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

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F2F - Supplier A F2F - Supplier B TM - Supplier A TM - Supplier B

Source & Supplier Impact

Contact Rate RG % IPB

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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

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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

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$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

THANK YOUFiona.mcphee@paretofundraising.com