1. MAXIMIZING THE LIFETIME VALUE OF YOUR DONORS FOR FUNDRAISING SUCCESS Jay Love, Co-founder & CEO, Bloomerang

2. Maximize The Lifetime Value of Your Donors for Fundraising Success

3. Jay B. Love 30 Years of Technology Leadership Over 20,000 Database Installations Former Founder & CEO of eTapestry Former CEO of Master Software/Fund-Master AFP Board Member AFP Ethics Committee Chairman Center on Philanthropy at IU Board Member Innovation Fund at Butler University Board Member Gleaners Food Bank Board Member Co-Chair of Indianapolis YMCA Capital Campaign 3 Your presenter »

4. Agenda » The importance of donor retention Your database: Your Best Friend in Maximizing Value Data Management 101 Segmenting 101 Appeals Acknowledgement Engagement Tracking/Scoring Reporting

5. What is the key purpose of a database?

6. “ To enable and insure the proper funding of your organization ’ s mission. ”

7. What is the key purpose of a database? “ To enable and insure the proper funding of your organization ’ s mission. ” (Is there a secret to achieving this purpose?)

9. Calculating Your Retention Rate » # of Donors in Current 12 Months (from the previous years pool) divided by # of Donors in Previous 12 Months

10. Fundraising Effectiveness Project (FEP) A project to help nonprofit organizations measure and compare Who is Studying Donor Retention?

11. The 2014 results are in » Nearly 6 out of every 10 donors do not give again!

12. New donor retention is even worse »

13. Who to focus on »

14. Donor Attrition Over Five Years # of DonorsAttrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,00020%800640512410328 1,00040%60036021613078 1,00060%400160642610 So what?

15. Improving donor retention rates by just 10% can increase the lifetime value of your database by 150- 200%! -Dr. Adrian Sergeant, Bloomerang Chief Scientist

16. 10% of your donors in the previous year multiplied by your average gift amount EQUALS Potential first-year increase! The hidden “ math ” of your database »

17. “ The total net contribution that a customer/donor generates during his/her lifetime in your database ” Defining Lifetime Value »

18. $1000 + $500 - $1000 $100 - $500 $25 and under annually $25 - $100 Value Value Segments » Time

19. ”Proper database usage is the key to donor retention and lifetime value!

20. The 3-Legged Stool » 1.Record keeping 2.Outbound communications 3.Interactions

21. 1. Record Keeping » The original reason to replace 3x5 cards in the 1980s! Everyone in the organization should use the database Everyone in the organization should benefit from data

22. 2. Communications » The “ secret sauce ” of retention success! Offline Appeals Acknowledgements Newsletters Handwritten notes (magical!) Online Email Website interactions All must be integrated!

23. 3. Interactions » Types Phone calls Texts Meetings Emails Chat Notes The institutional memory of your organization Enables the highest levels of engagement All must be integrated!

24. Data Management » Can you have too many names in your database?

25. 0 / 10 / 90 Rule » 0% of your funding 10% of your funding 90% of your funding

26. 0 / 10 / 90 Rule » 0% of your funding 10% of your funding 90% of your funding What should you do with each segment?

27. 0 / 10 / 90 Rule » 0% of your funding remove all but: previous above-average donors/sponsors previous board members previous top volunteers alumni survey respondents 10% of your funding handle in an automatic manner, but research 90% of your funding focus the majority of your efforts here

28. Segmenting » Seattle ’ s Lakeside Upper School counts … Bill Gates among its alumni. Rumor has it a fundraiser for the high school called Gates, who asked: “ How much is everyone else giving? ” About $75 he was told. “ So put me down for $75, ” said Gates. -- Forbes, Jan 22, 1996, p. 16

29. Appeal segmenting »

30. Appeal principles » Design a “ style ” for each segment Consider calling and mailing segments 2, 4 and 6 Handwritten notes and/or P.S. are powerful Test, test, test! Personalize as much as possible (database fields) More than once a year Always aim for monthly donors!

31. Acknowledgement segmenting »

32. 48-72 hour rule Call ALL first-time donors (if possible) Handwritten notes Be different than the rest State exactly how donation will be used Fully map a track for each segment Acknowledgement principles »

33. Donor communications » “Successful donor communications are quite simple. At heart, they are love letters to donors & prospects, woven through with clear cries for help.” -Tom Ahern, Bloomerang Donor Communications Head Coach http://aherncomm.com

37. Engagement factors »

38. 40

39. The number of charities supported annually Income 50K – 2-3 Income 100K – 3-4 Income >100K – 4-5 One is usually there church Second is most likely their school Importance of Being a “Chosen” Charity »

40. Where Does This Leave Your Cause?

42. Reporting »

43. 1.Record keeping Hone in on what is truly needed Reporting »

46. 1.Record keeping 2.Communication-related (plus results!) The key to proper testing Reporting »

49. 1.Record keeping 2.Communication-related (plus results!) 3.Big picture for board (YTD and vs budget) Dashboards and graphics Reporting »

51. 1.Record keeping 2.Communication-related (plus results!) 3.Big picture for board (YTD and vs budget) 4.KPIs Metrics that make a difference Reporting »

52. KPISeptember GoalSeptember Actual New Donors 500831 New Volunteer Signups 460652 Web Sessions 17,50022,253 Email Signups 12,50016,794 Cost per New Donor $1.00$1.39 Cost per Return Donor $0.25$0.27 Budget YTD $61,745.09$61,638.94

53. 1.Record keeping 2.Communication-related (plus results!) 3.Big picture for board (YTD and vs budget) 4.KPIs 5.Funnel Moves the funding needle the most! Reporting »

56. Free educational resources » https://bloomerang.co/resources Daily blog post Weekly webinar Downloadables Nonprofit Wrap-Up Bloomerang TV

57. Questions? Jay B. Love jay.love@bloomerang.co @JayBarclayLove