Donor Retention Strategies For Cause Marketing Partnerships & Beyond

My inspiration today is this well-reasoned 1/14/13 blog post by Mathew Mielcarek of Charity Dynamics, which Ashley Halligan, a nonprofit analyst at Software Advice, recently shared with me: 5 Ways to Validate Giving Decisions & Drive Retention. Be sure to read the entire article as Matthew does a nice job explaining his rationale. Below, I showcase some of Matthew’s key points along with my spin on thinking about applying these donor retention strategies within your cause marketing partnerships. But first, a little “retention” humor courtesy of the beloved comedy, “When Harry Met Sally:”

Harry: [after he has run into his ex-wife] She looked weird didn’t she? She looked really weird. Sally: I don’t know, I’ve never seen her before. Harry: Trust me, she looked weird. Her legs looked heavy. Really, she must be retaining water. Sally: Harry. Harry: Believe me, the woman saved everything. -Source: When Harry Met Sally 1989 movie written by Nora Ephron (one of the best movies of all time, in my opinion)

Heehee. OK, let’s talk retention…the good kind, donor retention:

1. CONSIDER THAT FIRST GIFT AN ACQUISITION GIFT

Key Points From Blog Post:

• First time donors are qualified leads.
• The value proposition for retaining donors is much greater than finding new ones.
• Ensure that budget and a plan is set aside for first-time donor conversion.

Applied To Cause Marketing Partnerships:

• Build user-friendly donor data-collection tactics into partnership activation strategies.
• Increase ROI by including meaningful follow-up communications to extend/increase the partnership’s halo effect (or other specific goals) for the corporate partner and to build the donor relationship for the nonprofit.

2. LISTEN TO WHAT YOUR NEW DONOR IS TELLING YOU

Key Points From Blog Post: First gift amount, billing city/state, giving channel and solicitation campaign can help you hone in on an effective new constituent messaging strategy.

Applied To Cause Marketing Partnerships:

• Plan and budget for campaign follow-up communications, but allow for some flexibility to develop the most effective communication based on post campaign data analysis.
• Include post-campaign donor/consumer analysis in a follow-up report to the corporate partner, leveraging the analysis to support/inform further partnership strategy development.

3. THANK YOUR DONOR

Key Points From Blog Post:

• A tax receipt is not necessarily enough of a “Thank You.”  Go the extra mile.
• Clearly showcase the impact of the donation on the mission of the organization.
• According to Nonprofit Donor Engagement Benchmark Report: 30% of donors reported being thanked immediately after giving a donation, and 18% reported that organizations reiterated their gratitude several times per year, or at least annually (17%). Surprisingly, a significant number of donors (21%) reported that they were never thanked.
• Example: Goodwill Industries International’s website features a patent-pending donation impact calculator that allows donors to translate goods donations into real-world programs impact. In donating six pairs of blue jeans at my local Goodwill, I’m told that my gift is worth a 46-minute financial planning class for services recipient Candace Cameron to teach her how to clear debt and start saving. Now that’s stewardship! This offers immediate validation for a donor who has completed a giving decision.

Applied To Cause Marketing Partnerships:

• Report on the specific results of the partnership and, if possible, convey the impact of the individual donor’s contribution/participation.
• Consider using storytelling and images to maximize the emotional connection, halo effect and to solidify the partnership in the mind of the donor.
• Long term cause partnerships offer the opportunity for annual goals, cumulative impact reporting, and individual relationship building over time.

4. ENGAGE RELEVANTLY

Key Points From Blog Post:

• Use initial gift donor insights to tailor follow-up communications for best stewardship results.
• Challenge all teams within your organization to tailor message content based on donor program interest and affinity.
• Localization can help to communicate services available from a national organization within the donor’s community.
• Time is of the essence: Open rates can fall as much as 50% within the first three months of joining an online file. Get to your constituents while you can.
• Choose appropriate marketing channel for follow-up.  Nonprofit Donor Engagement Benchmark Report offers useful insights on this topic.

Applied To Cause Marketing Partnerships:

• Gain an understanding of which programs, regions, marketing channels or other “segments” of engagement with a cause are generating the most consumer interest, engagement and results…and why.
• Look for ways to activate a national campaign at the local level by providing incentives, ideas and marketing support to engage local corporate and nonprofit staff to support the campaign and to communicate the results of the partnership at the local level.
• To increase positive results, use timely communications and the spirit of competition to inspire employee and consumer engagement in the cause partnership.

5. CONVERT TO THE NEXT STAGE OF GIVING

Key Points From Blog Post:

• Have a strategy to convert new donors to the “next stage of giving” (e.g. renewal gift, or an upgrade or graduation to a monthly or mid-level giving program).
• Drive action and response for the best program suited to a new donor’s needs or affinity.

Applied To Cause Marketing Partnerships:

• Optimally, partnership activation strategies should include tactics to continue consumer engagement and partnership marketing beyond an initial touch-point or donation.
• Cause partnerships, when done properly, engage consumers where they are through relevant experiences that express brand values while supporting business and nonprofit goals. Establish an authentic and meaningful partnership commitment, support it with solid analysis, strategy and execution and you are on your way to creating brand evangelists, committed donors and true impact.

BONUS MATERIAL:

A selection of findings from 2011 donorCentrics™ Internet and Multichannel Giving Benchmarking Report:

• Although direct mail remains the dominant channel for new donor acquisitions, it has become increasingly common for new donors to give their first gift online.
• Online-acquired donors are significantly younger and tend to have higher household incomes than mail-acquired donors.
• Robust direct mail programs drive up the retention and long-term value of new donors acquired online. Without the ability to become multichannel givers by renewing their support via direct mail, this group of donors would be worth far less. Other than monthly recurring giving programs, established direct mail programs are the best method for gaining repeat gifts from online-acquired donors.

A selection of key take-aways from Nonprofit Donor Engagement Benchmark Report:

• Seek to become your donor’s favorite charity
  • Donation Concentration: Most donors (78%) give to more than one charity. Nearly half of the survey respondents (47%) give a majority of their annual total donation amount to the charity to which they feel most connected.
  • Engagement Activities: Respondents supported their favorite charity using digital media to participate in engagement activities ranging from donating to volunteering to spreading the word about their favorite charity.
• Increase engagement with strategy and tactics built for your audience
  • Donors engaged with their favorite charity are motivated by mission and connecting with others.
  • Donors (55%) reported that they donate once or a few times per year. Many (36%) said they volunteer at least once per year, and perhaps more often. A significant group (32%) said they participate in fundraising events at least once per year. Finally, 29% fundraise on behalf of the charity at least once per year for their favorite charity.
  • Donors are less likely to participate in advocacy activities and to share their story with their favorite charity.
  • Age had a significant impact on the ways in which a donor is willing to engage their favorite charity.
• Meet your donors where they are
  • Demographic Differences: Among respondents, age was a significant indicator of the media and devices through which donors preferred to support and interact with their favorite charity
• Consider the right mix for your audience
  • Donors reported that mail (79%) was the most common medium through which they received information. Online, more than half of donors received information from their favorite charity’s Web site (51%) and by email (52%) or eNewsletter (51%).
  • With regard to social media, nearly 30% of donors report both visiting their favorite charity’s Facebook and liking it. Only 21% of donors report having received information about their favorite charity on Twitter.
  • Preferred Media: Respondents who are involved with their favorite charity prefer to find out information about the organization and its programs on its Web site (36%), via email (28%) and Facebook (6%).
• Target the right three segments first: age, donation volume, engagement level