By Amy Phipps
We all know how much work goes into donor acquisition. It’s an investment of thought, time and resources. But after you do that work, it’s just as important to keep donors in the fold – what we call donor retention or donor loyalty.
You probably have thoughts and strategies behind keeping your donors engaged and involved with your organization. But you may not know about a research study by Dr. Adrian Sargeant, professor of fundraising at Indiana University. His inquiry into donor loyalty was motivated by the fact that little research existed in the area, and what had been done showed a very poor mean retention rate for donors after one year — only 26%.
Focusing on the motivation behind donor behavior, Dr. Sergeant utilized traditional marketing drivers of customer loyalty in his inquiries. In the end, he identified four key drivers of donor loyalty: Trust, Satisfaction, Identification, and Commitment. Briefly, those boil down to:
- Trust: Did the organization do what it said it would?
- Satisfaction: Did the donor get what he or she expected?
- Identification: Did the donor believe in the mission and brand of the organization?
- Commitment: Did the donor feel connected to the work, and that his or her involvement made a difference?
We’re going to talk about the first two drivers – Trust and Satisfaction — in this article, and next month we’ll discuss Identification and Commitment, along with some recommendations you can put into practice.
Trust: Donors want to know that they can rely on you to keep your promises. Whether you say that a donation will provide meals, scholarships or housing, they want to be confident that, in fact, their money will be used for those purposes.
Dr. Sergeant recommended promoting trust by:
- Communicating the impact of the donation on clients or beneficiaries.
- Honoring your promises on how donations will be used.
- Being seen to exhibit good judgment in your activities.
- Making your values clear by communicating not only your services but also the philosophy behind their delivery.
- Making sure that communications match donor expectations — in content, frequency and quality.
- Engaging in two-way conversations with donors about their expectations.
- Ensuring that staff that interface with donors are trained in customer service and have the knowledge and skills to manage these relationships effectively.
Satisfaction: Donors experience satisfaction when their expectations are met. Think about it in terms of customer service, in two areas: Service to the donor, and service to the client.
Service to the donor involves two major questions:
- Did the nonprofit get my gift? Prompt, accurate acknowledgements are key. Don’t make your donors wonder whether the donation has been lost in the mail or is floating in cyberspace.
- How was my money spent? Make sure the donor understands where those dollars are going, whether designated or undesignated.
Service to the client also involves two questions:
- Does my giving really matter? Let your donors know how lives were changed, before you ask for another gift.
- Do you really need my gift? This one involves financial transparency. Donors must understand that you truly need their dollars to continue your work.
You can accomplish all these things with well-written, concise, sincere communications that acknowledge the gift, describe the use to which it will be put, and include impact statements describing how lives have been changed by the donation.
Stay tuned next month for more about Donor Loyalty.