NPS 0823 WBR Slides

1. AUGUST 23rd, 2022
5 Ways to Build
Relationships and
Increase Donor
Retention
Scott Moran, Product Marketing Specialist

2. Scott Moran
Scott Moran is a Product Marketing Specialist
at Bloomerang. He has an eclectic
background in communications, visual media,
and technology and enjoys putting his skills
to good use by assisting our nonprofit
friends.
Outside of Bloomerang, Scott enjoys playing
drums, biking, and cracking jokes with his
dog, Rocko.
Product Marketing Specialist

3. Agenda
Tuesday, August 23rd
1.
2.
3.
4.
Welcome
Quick Glance at Donor Retention
Why Donors Lapse & Why Donors Stay
5 Donor Retention Strategies
5. How Bloomerang Can Help
6. Q&A

4. A study of donor retention

5. Donor Retention Breakdown
# of Returning Donors
in Year 2
# of ALL Donors
in Year 1
Donor
Retention
%

6. Average Donor Retention Rates
As of Jan 1, 2021
Source: Fundraising Effectiveness Project http://afpfep.org
43.6% 19.3% 59.6%
AVERAGE FIRST-TIME REPEAT

7. Why donor retention is important
It’s typically easier and cheaper to retain a donor than it is to acquire one
● Spend fewer marketing dollars and effort on donor acquisition
● Devote more time to securing legacy gifts
● Access to more committed volunteers
● More donors ready to engage in your capital campaigns
● More invigorating to work with long-term donors

8. Why donor retention is important
Higher lifetime value = higher revenue

9. Why donors lapse

10. Why donors stop giving
2001 study by Adrian Sargeant
5% - thought charity did not need them
8% - no info on how monies were used
9% - no memory of supporting
13% - never got thanked for donating
18% - poor service or communication
36% - others more deserving
54% - could no longer afford
16% - death

11. Why donors stay

12. Why donors keep giving
2011 study by DonorVoice
1. Donor perceives organization to be effective
2. Donor knows what to expect with each interaction
3. Donor receives a timely thank you
4. Donor receives opportunities to make views known
5. Donor feels like they’re part of an important cause
6. Donor feels his or her involvement is appreciated
7. Donor receives info showing who is being helped

13. Why donors keep giving
2021 study by IU Lilly School of Philanthropy
Types of communication and content that subscription donors
would prefer to receive from nonprofit organizations they support:
52% - Stories and experiences shared by the people my gifts have helped
32% - Frequent updates about organization’s programs and services
32% - Emails with my donation’s impact and heartfelt thank you(s)
25% - Educational and interactive webinar series related to the organization’s
mission and impact areas

14. 5 Donor Retention
Strategies

15. 1. Segmentation

16. Strategy 1: Segmentation
$17,000 generated from one email campaign split three ways

17. Our favorite segments…
● First-time donors
● Monthly donors
● Lapsed donors
● Volunteers who have never donated
● Donors who have shared feedback
● Social media followers who interact with you
● Long-term donors
Develop a message theme for each segment

18. 2. Personal Touch

19. Strategy 2: Personal Touch
Personal emails, phone calls, or video

20. Phone calls work
Research into the efficacy of phone calls to first-time donors
First-time donors who get a personal thank you within 48 hours are
4x more likely to give a second gift.
(McConkey-Johnston International UK)
A thank-you call from a board member to a newly acquired donor
within 24 hours of receiving the gifts will increase their next gift by 39%.
(Penelope Burk)

21. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

22. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

23. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

24. The personal touch works
Stewardship buoyed YoY customer growth in 2020

25. 3. Cultivation

28. 4. Feedback

29. Strategy 4: Feedback
Understand your donors

30. 5. Ask Earlier

31. Strategy 5: Ask Earlier
Don’t be afraid to ask again!
We saw that the vast majority of donors who ever give
again do so within the first 18 months:
87% of donors who make a second gift do so in the first 18 months.
70% do so within the first year.
45% do so within the first 6 months.

33. Donor Retention Success Story
Coburn Place Safe Haven
35% Donor retention rate before Bloomerang
48% Donor retention rate now

34. Donor Retention Success Story
Coburn Place Safe Haven
“Quality of constituent communication has definitely
improved! We are able to record notes and see who
donors are and their histories with the organization.
It’s led to better segmenting and personalizing of the
donor experience.”
Julie H., Assistant Development Director.