Pareto Fundraising Getting The Most By Getting It Monthly 2010 Jg

Getting the most by getting it monthly:monthly:

how ongoing, regular support has transformed the fundraising landscape

Who we work with

Who we work with

What we’ll cover today

1. The power of monthly giving

2. Recruitment: how to get them

3. Engagement: how to inspire them3. Engagement: how to inspire them

4. Retention: how to keep them

5. Growth: how to leverage more value

6. Bringing it all together

One: the power of monthly giving

Changing the fundraising landscape

Growth in Canada

$15

$20

$25

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$0

$5

$10

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2002 2003 2004 2005 2006 2007 2008 2009

Total Income Avg Gift

$15,000,000

$20,000,000

$25,000,000

From different sources

$0

$5,000,000

$10,000,000

1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08

Direct Mail TV Unknown Phone Face to Face Door to Door Online

Unsolicited Press Inserts Email Radio Press Adverts Unaddressed

Monthly vs. cash

$550 net (after 3 years)

Monthly vs. cash

$550 net (after 3 years)

$270 net (after 3 years)

Monthly vs. cash

Our research shows we’ve got some work to do

Our research shows we’ve got some work to do

Two: recruitment

How to get them

• Acquisition

• Conversion

• Reactivation

How to get monthly givers

• Reactivation

• Acquisition

• Conversion

• Reactivation

How to get monthly givers

• Reactivation

Key ingredients for acquisition

• Investment and Risk

• Understanding the channels

• Getting the proposition right• Getting the proposition right

• Singular focus

• Benefits v features

• Testing

• Benchmarking

Key ingredients for acquisition

• Investment and Risk

• Understanding the channels

• Getting the proposition right• Getting the proposition right

• Singular focus

• Benefits v features

• Testing

• Benchmarking

Where do they come from?

Direct mail

• Net value after 3 years

between $500 - $600

• Cost to acquire around

$150 - $200 $150 - $200

• Year 1 attrition around

10%

• Net value after 3 years

between $250 - $300

• Cost to acquire around

$300

Direct Response TV

$300

• Year 1 attrition around

30%

• Net value after 3 years

between $100 - $200

• Cost to acquire around

$200

Face to Face (street)

$200

• Year 1 attrition around 25%

• Net value after 3 years

between $600 - $800

• Cost to acquire between

$0* - $300

Digital

$0* - $300

• Year 1 attrition around 10%

Proposition: the single most

important thing

Proposition: the single most

important thing

Benefits v Features

Singular focus

What should we test?

• Singular focus v multiple options

• Ask prompts

• One stage v two stage recruitment

What should we test?

• One stage v two stage recruitment

• Hand raising

• Creative approaches/messaging

• Multi channel approaches

2nd Gift Strategy – Cash to monthly

Multi channel approach

Stage 1: Prospecting

Stage 1: Prospecting

Stage 1: Prospecting

Stage 2: solicitation

Stage 2: solicitation

Stage 2: solicitation

Multi channel approach

Multi channel approach

How do you stack up?

• Acquisition

• Conversion

• Reactivation

How to get monthly givers

• Reactivation

• Integrated - mail and phone

• Mail used to mop up phone campaign

Key ingredients for conversion

• Integrated - mail and phone

• Mail used to mop up phone campaign

• Should aim for 10% of cash file to become monthly donors

Key ingredients for conversion

monthly donors

• Integrated - mail and phone

• Mail used to mop up phone campaign

• Should aim for 10% of cash file to become monthly donors

Key ingredients for conversion

monthly donors

• Consider different sources

• Onetime cash

• Lottery

• Purchasers/catalogue buyers

• Integrated - mail and phone

• Mail used to mop up phone campaign

• Should aim for 10% of cash file to become monthly donors

Key ingredients for conversion

monthly donors

• Consider different sources

• Onetime cash

• Lottery

• Purchasers/catalogue buyers

• New donors, speed is key

Speed is key

10.0%

12.0%

14.0%

16.0%

18.0%

Co

nv

ert

ed

Speed is key

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2 3 4 5 6 7 8 9 10 11

Weeks since Gift

Co

nv

ert

ed

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

• RFV

– Within last 24 months

– Given more than one gift

– Above $20

Some easy rules to follow

• Ask

– For active donors, monthly amount - last cash gift x 0.1

• Overlays

– Previous credit card usage

– Recruitment/donation source to see whether phone/DM

responsive

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

1. Focus on the benefits, not the ‘product’

2. Explain why monthly so vital

3. Get the targeting right

4. Use compelling and empowering copy

Getting the execution right

4. Use compelling and empowering copy

5. Personalize where possible

6. Break down into daily amounts

7. Focus on changing ‘behavior’

How do you stack up?

Three: engagement

How to inspire them

The Honeymoon period:

What does this look like?

• Kill off cognitive dissonance

• Thank, welcome and reaffirm

• Ensuring excitement of sale doesn’t wear off• Ensuring excitement of sale doesn’t wear off

• Focus on key cancellation periods

• Relevant and regular communications

What does it look like?

Killing off cognitive dissonance

© Pareto Fundraising 2009

Example email

Ensure the excitement doesn’t wear off

CanTeen:

Thank you message fromThank you message from

CanTeen Member: Sam

Key cancellation periods

Regular, relevant communications

It works

Four: retention

How to keep them

• Keep it personal

• Give and get feedback

• Understand drivers of attrition

How to keep them

Keep it personal

Keep it personal

Keep it personal

Keep it personal

It’s worth it

Knowing Bilbo’s name increases

upgrade rate by 43%

Giving feedback

Giving feedback

Giving feedback

Getting feedback

What really drives attrition of street recruits?

• Recruitment Source

• Gender

• Amount• Email Provided• Home Phone

What really drives attrition of street recruits?

• Gender• Payment Method• Payment

Frequency• Age

• Home Phone • Work Phone• Mobile Phone

Category % n

No 76.00 12012

Yes 23.00 3793

Total (100.00) 15805

Node 0

Year2 attrition

Some really ugly, but useful analysis

Category % n

No 76.06 6730

Yes 23.94 2118

Total (55.98) 8848

Node 16

Category % n

No 75.92 5282

Yes 24.08 1675

Total (44.02) 6957

Node 15

Gender

Adj. P-value=1.0000, Chi-square=0.0412, df=1

M;UF

• Age is the most significant factor in predicting Year 1 attrition

• Payment type is significant, with credit card payers more likely to attrite

Insights: what we found

payers more likely to attrite

• Predict future value of supporters

• Prioritize spend

• Identify high risk supporters and treat them

What this allowed Amnesty to do

• Identify high risk supporters and treat them differently

Five: growth

How to leverage more value

• Continuing to ask

• Understand relative value

• Upgrading

Leveraging more value

Continuing to ask

No. of

donorsTerminated

Attrition

Rate

Total months

since 2008/09

Avg months

given

Total Value since

2008/09

Included 3,434 287 8.36% 54,510 15.87 $14,334,329

Continuing to ask

Included 3,434 287 8.36% 54,510 15.87 $14,334,329

Excluded 3,433 295 8.59% 53,979 15.72 $13,176,515

$200

$300

$400

Ave VTD by Channel by Year

Getting the real lowdown: Net Value to Date

-$200

-$100

$0

$100

$200

Ave Year 1 Net

Ave Year 2 Net

Ave Year 3 Net

Ave Year 4 Net

• Say things like:

“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”

What this allowed SickKids to do

2005 by <insert channel> is worth $200”

• Say things like:

“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”

What this allowed SickKids to do

2005 by <insert channel> is worth $200”

• Focus on areas generating the best real return

• Say things like:

“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”

What this allowed SickKids to do

2005 by <insert channel> is worth $200”

• Focus on areas generating the best real return

• Understand implications of future program decisions

• Phone the most effective medium

– Use mail to ‘mop up’ and consider testing online

• Testing between 4 and 9 months after

Upgrading

recruitment

• Serial upgrade rejecters – auto upgrade

Aim for 70% after 5 years

2,000

2,500

3,000

40%

50%

60%

70%

Nu

mb

er

of

up

gra

de

rs

Up

gra

de

%

0

500

1,000

1,500

0%

10%

20%

30%

40%

2004 2005 2006 2007 2008 2009

Nu

mb

er

of

up

gra

de

rs

Up

gra

de

%

Bringing it all together

Final takeaways

• Acquisition not cheap, need to balance investment and risk with expected outcomes

Bringing it all together

• Acquisition not cheap, need to balance investment and risk with expected outcomes

• To maximize acquisition and conversion, you must:

Bringing it all together

must:

– Keep it singularly focused

– Understand and explain why monthly so vital

– Kill off cognitive dissonance

• Focus on partnership and benefits, not product names

Bringing it all together

• Focus on partnership and benefits, not product names

• Honeymoon period essential, don’t let excitement of joining you wear off

Bringing it all together

excitement of joining you wear off

• Focus on partnership and benefits, not product names

• Honeymoon period essential, don’t let excitement of joining you wear off

Bringing it all together

excitement of joining you wear off

• Continuing to ask will help leverage more value and keep more donors

• Focus on partnership and benefits, not product names

• Honeymoon period essential, don’t let excitement of joining you wear off

Bringing it all together

excitement of joining you wear off

• Continuing to ask will help leverage more value and keep more donors

• Use net long term value as key measure, not just CPA

Thank you and Questions

.

jonathon.grapsas@paretofundraising.com

www.jonathongrapsas.blogspot.com

twitter: jonathongrapsas

www.paretofundraising.com