You know the numbers: Acquiring a donor is six to seven times more expensive than retaining

one.1 And lowering attrition rates just 10 percent can improve the lifetime value of a donor

base by up to 200 percent.2

A strong retention program stems from donors feeling appreciated by and connected with an

organization. One way to achieve this connection is by implementing a data, feedback and

service strategy.

As outlined in a new CDS Global white paper, “Donor Data, Feedback & Service: The Key

to Retention,” there are several steps you should take to effectively implement this strategy:

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cds-global.com/nonprofits 16 Steps to Boost Donor Retention

16 Steps to Boost Donor Retention USING DATA, FEEDBACK & SERVICE

DATA Collect data purposefully, with clear goals for what you want to learn.

Include options on forms and letters that let donors write in their interests and values.

Augment your data to gain a more complete picture of donors: • Cross-reference against other databases containing information about your donors, and append that information to your file. • Using the donor data you already have, implement predictive response modeling to identify persons most likely to donate again.

Keep track of the programs that your donors engage with the most, the events in which they have participated and the campaigns to which they have responded.

Feed information from all channels – online and offline – into a central CRM database, whether the information is from face-to-face meetings, a donation form or other means.

Tailor messaging to resonate with the donor’s values – values uncovered by the data that has been collected.

FEEDBACK Assign more value to donor feedback – start soliciting your donors for their opinions and experiences. The act of collecting donor feedback alone is enough to help reduce attrition.

Establish a donor feedback strategy based on the following best practices: • Collect feedback at key touchpoints, such as when an agent receives a call or when a donor is filling out an online form. • Apply business rules to determine the next-best action based on the feedback, such as escalating and resolving an issue or thanking a donor. • Follow up to resolve a donor’s negative experience with the organization or to build upon a donor’s positive experience.

Develop a comprehensive profile of donors’ demographics, values and donation habits.

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Collect feedback on both diagnostic and relational measurements: • Diagnostic – the customer service/feedback interaction itself • Relational – how the donor feels about the nonprofit

Make sure the marketing and fundraising teams are behind your feedback strategy – not just customer service/operations. Feedback should be a core part of donor communications.

Use the information gathered from feedback to know when to appeal to your donors; the best time to ask for a donation is on the heels of a great experience the donor had with the organization.

SERVICE Reach out to dissatisfied donors. You’ll recover some, ensuring a strong donor base. And you’ll learn why some donors leave, giving you an opportunity to minimize that risk in the future.

Invest in service recovery using tools you already have – even if only time and attention.

Use an interactive voice response (IVR) system to automate surveys and speed up donor service interactions. • Example IVR use case: Callers are greeted by a recorded voice thanking them for calling and asking them to take a survey after speaking with an agent. Following the conversation with a sponsor care representative, the IVR system launches the survey.

cds-global.com/nonprofits 16 Steps to Boost Donor Retention

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Identify satisfied and unsatisfied donors and determine appropriate follow-up depending on status. • Follow up with a thank-you email or other correspondence to satisfied donors, solidifying the relationship. • For dissatisfied donors: Analyze the situation to determine the problem and assess how to get things back on track. Follow up quickly – within hours – to resolve their issues and restore them as donors.

Watch and improve your service processes over time, and plan for integration; be prepared to use service data in other areas of the organization.

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The act of giving feedback changes donors’ behavior and increases retention rates. So what exactly is donor feedback?

• A product of structured listening

• Useful information organizations usually get only if they ask for it

• A donor providing an organization with something they consider valuable

Watch the webinar “Donor Data: The Key to Retention” at www.cds-global.com/resources/webinar-key- donor-retention.

Read the white paper “Donor Data, Feedback & Service: The Key to Retention” at www.cds-global.com/ resources/ whitepaper -key-donor-retention.

1 Chuck Longfield, “SlideShare: Donor Retention Fundraising Ideas from 14 Nonprofit Experts,” Blackbaud, 2014, http://www.slideshare.net/blackbaud/donor-retention-fundraising-ideas-from-14-nonprofit-experts.

2 Adrian Sargeant and Jen Shang, “Growing Philanthropy in the United States: A Report on the June 2011 Washington, D.C. Growing Philanthropy Summit,” Blackbaud, 2011, https://www.blackbaud.com/files/ resources/downloads/WhitePaper_GrowingPhilanthropyReport.pdf.

CALL HANDLING WITH AN IVR SYSTEM

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02REVISED: 04.01.15