First, why does donor retention matter?
Ah, donor retention. We talk about it often. But why does it matter?
Acquiring new donors is hard and often expensive. (You still need to do it.) So not doing all you can to keep the donors you have is like tossing money out the window. Prioritize retention!
Also… small improvements in overall donor retention can add up.
How do I track retention?
At its most basic, donor retention is a measurement: did the donor give again? But you’ll also want to look at the bigger picture to see how you’re doing. So divide the number of donors who gave again this year by the total number of donors who gave last year.
Some donor management systems track this for you, donor by donor, and across all your donors. And they should – this is an important tracking metric.
So I want to improve donor retention… where do I start?
You need a plan. (You probably guessed that’s what I’d say, right?) Part of this is tracking… What you track, you do.
But let’s talk beyond numbers. How do you keep your donors coming back, year after year? That needs a plan, too. Or call it a donor journey if that feels better. From that first gift, you should know where you want donors to go. And how you can guide them along that path.
A donor’s journey
It begins when something or someone gets their attention. You make a good case for a donor’s support.
The next step is ensuring that this first gift is easy. You want the process to be frictionless. (You’d better believe some donors decide where to give based on how easy it is – or abandon a gift out of frustration!)
Get their information right – and don’t make guesses!
Someone’s name is important to them. And I know data entry can be a chore. Sometimes, it’s not clear how to input the new information. But it’s worth a quick call or email to get things right. (Married couple with two names? Don’t assume “Mr. and Mrs.” they could be Mr. and Ms. Or Mr. and Mr. Or any combination.)
The thank you – here’s where donor retention begins
If your current thank you process involves a receipt (either on paper or autogenerated to send an email), that’s fine.
But it’s not a thank you.
Take the time to create a warm, emotional thank you letter. And change it with every appeal. One your end, it’s another task – but to a donor, it says, “You matter to us. And we think you’re amazing!” The donors who feel that connection are the ones who’ll stick around. If they think they matter to you, it’s more likely that your organization will matter to them.
I think this step is key to donor retention.
Stuck? Here are some tips from me. And you won’t want to miss Lisa Sargent’s book, Thankology. Not out yet, but you sign up for updates!
Donor retention: Keep them in the loop
If you think the thank you is the end of the process, you’ve probably missed chances to retain donors.
Show and tell them how their gift made a difference. This is where donor newsletters can be golden. IF you send an actual donor newsletter. What’s the difference?
Too often, nonprofit newsletters are all about the nonprofit. What they’ve accomplished. How many accolades they’ve received. Me, me, me.
Instead, hand over all the credit to your supporters. (Volunteers and donors.) Your organization doesn’t need the ego boost. And this isn’t the time for PR. Your newsletter should be another thank you, with lots of interesting information about what your donor did.
And when they see they’ve done something good, they’ll want to do it again.
(Don’t shy away from asking for another gift, either. Good donor newsletters can raise money!)
Get personal where you can
Call and thank donors… as many as you can manage. That personal connection can be the start of a real relationship. Or, if you prefer, send a short handwritten note. People who connect with people will feel much closer to your cause. And they’ll stay around.
Personal can go both ways, of course. So think about ways to ask for donors’ opinions. A donor survey? Quick questions at the end of an email?
Treat lapsed donors like old friends
So, not every lapsed donor is going to give again. If you haven’t heard from them in years and years, it’s time to take them out of your active solicitation/thanks/report cycle.
But don’t be too fast. They deserve a few chances to come back. Mention they’re missed! Update them on what inspired their most recent gift.
And keep in mind that someone who has given already is more likely to give again. Call it the Ben Franklin effect: someone who has already done a favor for you is more likely to do so again.
Don’t forget monthly and legacy giving!
People who choose to give every month are less likely to stop giving. Part of it is just habit. Part of it depends on you: take good care of these people. And you don’t have to stop asking them for special gifts, either!
With every appeal, ask for a monthly gift. Not necessarily in the letter, but what about the back of your reply form?
Do your donors even know you’d like them to put you in their will? They need you to tell them why it matters. And how easy it is. And how making that most special gift will mean their good work continues. That’s powerfully emotional stuff… so don’t tail off into legalese. Keep it simple!
Donor retention is the best way to boost your fundraising program, so give it the importance it deserves!
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