This document discusses donor data segmentation strategies for retaining donors. It provides examples of segmenting donors based on factors like recency, frequency, amount of gifts, and engagement signals. Key segments discussed include first-time donors, monthly donors, lapsed donors, volunteers who haven't donated, donors who provide feedback, and social media users. For each segment, tailored communication and stewardship strategies are recommended to improve donor retention.
2. About Steven »
@StevenShattuck
Chief Engagement Officer, Bloomerang
Co-founder/ED, Launch Cause
Contributor: Fundraising Principles and
Practice: Second Edition
Member: Fundraising Effectiveness
Project (FEP) Project Work Group, AFP
Center for Fundraising Innovation (CFI)
Fun facts:
• 1st job: producing fundraising videos
• prefers tea to coffee
• allergic to rhubarb
• won the David Letterman scholarship
10. @StevenShattuck
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11. @StevenShattuck
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12. @StevenShattuck
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13. @StevenShattuck
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appeal!
appeal!
appeal!
appeal!
18. # of Donors Attrition
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
1,000 20% 800 640 512 410 328
1,000 40% 600 360 216 130 78
1,000 60% 400 160 64 26 10
Donor attrition over 5 years »
@StevenShattuck
19. Acquisition alone isn’t a good strategy »
# of charities supported annually by household income:
• $50K: 2-3
• $100K: 3-4
• +$100K: 4-5
— One is usually their church
— One is usually their school
Source: Philanthropy Panel Study, IU Lilly School of Philanthropy
@StevenShattuck
21. @StevenShattuck
• 2001 study by
Adrian Sargeant
• Survey to lapsed donors of
10 major U.S.-based
nonprofits
• Respondents were asked to
check each reason for
stopping their contributions
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
22. @StevenShattuck
• 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
• 16% - death
• 18% - poor service or communication
• 36% - others more deserving
• 54% - could no longer afford
Why nonprofit donors leave »
http://www.campbellrinker.com/Managing_donor_defection.pdf
24. @StevenShattuck
• 2011 study
• Survey of 1,200 recent (last 12 months), frequent (more
than 2 gifts to cause based charities) donors from over
250 nonprofit organizations
• Donors were given a list of 32 reasons why they might
continue giving
• Asked to rank them by order of importance
Key drivers of donor commitment »
http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
25. @StevenShattuck
1. Donor perceives organization produces outcomes
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
Key drivers of donor commitment »
28. @StevenShattuck
• Treating donors differently based on:
• recency (how long since their last gift?)
• frequency (how many times have they given?)
• gift channel (how did they give?)
• gift amount (how much did they give?)
• why they gave (ask them!)
• capacity (prospect research/wealth screening!)
• geography (for orgs with regional/national reach)
What is donor data segmentation »
29. @StevenShattuck
• Reporting:
• what has already happened
• LYBUNT
• SYBUNT
• Overdue pledges
• Segmentation:
• creating opportunities to make what you want
to happen — happen!
Segmentation vs Reporting »
30. 1. First-time donors
• </> $100
2. Monthly recurring donors
• monthly gift x12 < average annual gift amount
3. Lapsed donors (+2 years)
4. Volunteers who have not yet donated
5. Donors who share feedback / criticism
6. Donors who have interacted via social media
6 powerful buckets segments »
@StevenShattuck
33. • Arrive within 48 hours
• Utilize their communication preference!
• Thank profusely
• Acknowledge the campaign / channel
• Tell how gift will be used / how others have been
• Preview future communications
• Invite for a tour
• Ask for feedback / send a survey
• Convert into monthly donors (based on gift size) and/or
volunteers
Gift acknowledgement principles »
@StevenShattuck
42. @StevenShattuck
• first-time donors who get a personal thank you within 48
hours are 4x more likely to give a second gift (Tom Ahern)
• a three-minute thank-you call will boost first-year
retention by 30%. (Roger Craver / The Agitator)
• 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)
http://www.nonprofithub.org/fundraising/excuses-need-call-every-new-donor
http://www.guidestar.org/rxa/news/articles/2010/how-to-increase-donations-by-39-percent.aspx
The personal touch »
http://www.clairification.com/thank-you-calls-ebook/
47. Differentiate the acknowledgement »
@StevenShattuck
Above average gift amount
At or below average gift amount
Letter # 1
Phone call
(tour invite)
Letter #2
Handwritten note
Email/Letter #4
(Volunteer request)
Email/Letter #3
(survey)
(monthly upgrade)
48. Segment by giving channel »
@StevenShattuck
Website Direct Mail/Ad Event
54. • Always address them as monthly donors.
• Modest upgrade appeal depending on other
engagement signals
• “Your gift of $x does this. A gift of $x would do
this.”
• Don’t hesitate to make stand-alone gift asks.
• A unique appeal just for them.
@StevenShattuck
Monthly donors: upgrade »
https://bloomerang.co/blog/why-segmenting-your-sustaining-donors-is-crucial-for-growth/
56. • Isolate donors who haven’t given in 2+ years
• Remove from direct mail sends
• Send a lapsed donor survey
• Invest in data services:
• NCOA (they moved)
• Deceased Suppression Processing
(they died)
Lapsed donors »
@StevenShattuck
58. • Memorial donors
• Thank (if you can), then isolate
• Peer-to-peer donors
• Have first gift acknowledgement come from
fundraiser, not benefiting org
• (Re)introduce the charity
• Explain why fundraiser supports it
• Ask for donor to continue support
@StevenShattuck
https://bloomerang.co/blog/3-tips-for-improving-p2p-donor-retention/
2 common “one and dones” »
60. Lowest of low-hanging fruit »
@StevenShattuck
http://www.fidelitycharitable.org/docs/Volunteerism-Charitable-Giving-2009-Executive-Summary.pdf
• Volunteers are 10x more likely to donate than
non-volunteers.
• Get to know their goals for volunteering, then
translate it into donation impact.
• Ask for an appropriate amount (can be a
monthly commitment).
• Convert into fundraisers!
67. • Send a survey to new donors
• Boosts retention even if they don’t respond
• Respondents signify high-engagement
• Email confirmation is a great place to include
• Google Forms or SurveyMonkey
Survey »
@StevenShattuck
http://t.co/XMUTnvjThP
https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
68. • “Why do you give?”
• “What’s your connection to the cause?”
• Group similar answers together into
segments
• Tailor communication accordingly
Secret sub-segment »
@StevenShattuck
77. Other engagement signals »
@StevenShattuck
• Upgrade /
Downgrade + -
• Event attendance +
• Opens email +
• Clicks emails +
• Unsubscribes
from email -
• Volunteers +
• Fundraises for you +
• Changes
communication
preferences +
• Changes contact info +
• Changes payment
method +
• Has soft credits +
• Has inbound
interactions + (calls
you, emails you)
78. • Treat your constituents differently!
• Multiple versions/variations:
• thank you letters (outcomes)
• appeals (uses)
• newsletters (interests)
• stewardship pieces (stories)
• Survey early and often
• Data is king
Final thoughts »
@StevenShattuck