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Building Donor Loyalty
Adrian SargeantDirector – Centre for Sustainable Philanthropy
Plymouth University
Is Retention An Issue?
Improving attrition rates by 10% canimprove revenue generated by?
• 50%• 100%• 150-200%
12-Jan-15
Defection Curve
Year
5.004.003.002.001.00.00
Value
% of
dono
r bas
e rem
aining
120
100
80
60
40
20
0
So……...What Drives Donor Value….???
Reasons For Quitting• No longer able to afford support• No memory of ever supporting!!• Still supporting by other means• Feeling that other causes are more (or equally)
deserving• X no longer needs my support• Death/Relocation• Not reminded to give again• X did not inform me how my monies were used• Xs communications were inappropriate• X asked for inappropriate sums
Excellent fundraising for a better world
Measure on a 5 Point Scale
1 = Very Dissatisfied2 = Dissatisfied3 = No Opinion4 = Satisfied5 = Very Satisfied
Excellent fundraising for a better world
Customer Satisfaction
Rating
Donor Satisfaction
%
But what about commitment?
12-Jan-15
Payment Method
Personal Link
Organisation’s Performance
Risk
Tangible Link To Beneficiaries
Multiple Engagements
Choice in Communications
Communication Quality
Trust in Organization
Message Media
ActiveCommitment
PassiveCommitment
Knowledge/Learning
Behaviour
Availability of alternatives
SharedBeliefs
Quantitative Phase
Risk
Trust
Personal Link
Passive Commitment
Active Commitment
Loyalty
+
Service Quality
Shared Beliefs
Learning
Multiple Engagements
.58
.54
.27
.41
.18
.20.27
.11.22.14
.21
.13.11.23
.10
.37
Structural Equation Model
And Trust
Drivers
• Drip feed performance data• Demonstrate role competence• Demonstrate good judgement• Be honest when things go wrong• Develop and promote complaints procedure
So
• Satisfaction• Commitment• Trust
And understand where attrition is occurring and engineer communications accordingly…
Welcome cycles …