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Developing Donor Loyalty in the Digital Age Colin Habberton Director: Global Partnerships GivenGain Foundation [email protected] +27 71 401 2434 @relatomics

Developing Donor Loyalty in the Digital Age IFC 2013

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This presentation covers the principles of loyalty economics in the context of fundraising and relationship management in the digital age. Theory, tools and practice will be presented. It should encourage the building of strategy addressing donor loyalty as an organisational objective.

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Page 1: Developing Donor Loyalty in the Digital Age IFC 2013

Developing Donor Loyaltyin the Digital Age

Colin HabbertonDirector: Global PartnershipsGivenGain [email protected]+27 71 401 2434@relatomics

Page 2: Developing Donor Loyalty in the Digital Age IFC 2013

Introduction to the Session

This session will cover the principles of loyaltyeconomics in the context of fundraising andrelationship management in the digital age.

Theory, tools and practice will be presented.

Outcomes will include the ability to build strategyaddressing donor loyalty as a strategic imperative.

Page 3: Developing Donor Loyalty in the Digital Age IFC 2013

Overview of the Session

IntroductionSetting ObjectivesThe Digital AgeLoyalty EconomicsRelationship ManagementDonor LoyaltyCase StudiesInsights Q&A

Page 4: Developing Donor Loyalty in the Digital Age IFC 2013

Introduction to the Speaker

Page 5: Developing Donor Loyalty in the Digital Age IFC 2013

Introduction to the Speaker

Page 6: Developing Donor Loyalty in the Digital Age IFC 2013

Setting Objectives

• The principles of loyalty economics • How they apply to donors, both individual and

institutional• How these principles can be understood and

applied using digital tools• The opportunities and challenges of developing

donor loyalty in the 21st Century• Others?

Page 7: Developing Donor Loyalty in the Digital Age IFC 2013

The Digital Age: In 60 Seconds…

(Source: Qmee & My Clever Agency, 2013)

Page 8: Developing Donor Loyalty in the Digital Age IFC 2013

The Digital Age: Macro Themes

1. ‘Smart’ Devicing2. Real-time Access3. Timeless Time4. Placeless Space5. The Cloud6. Flexibility7. Social Networks8. Global Village9. Millenials?!

Page 9: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty

Page 10: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty: Steps of Commitment

(Source: CIMS UK, 2004)

Page 11: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty Economics?

(Source: Reichheld, 2006,2011)

Page 12: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty Economics: Lifetime Value

(Source: Adapted from Reichheld 1996, 2001)

Page 13: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty Economics: Value Chains

(Source: Habberton, 2005)

Page 14: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty: A Virtuous Value Chain

Employee

Business

Partner

Customer

Cost E

ffici

enci

es &

Innova

tion

Custom

er

Inte

lligen

ce

Superior

Service

Feedback

Fulfilment

Turnover

Training

& Incentives

Compensation &

Opportunities

Superior

ProductivityS

pen

d &

Pro

file

Su

perio

r

Pro

du

cts

Lo

yalt

y &

Ref

erra

l

Valu

e Ad

ded

Ben

efits

Quality

Assurance

Investor

Competitor

returns/reinvestment

marketing/mindshare

Community

Responsibilities

Environmental

Concerns

Market & Industry

Conditions

Legal & Ethical

Regulations

(Source: Habberton, 2005)

Page 15: Developing Donor Loyalty in the Digital Age IFC 2013

Loyalty: Virtuous Value Chain for Causes

(Adapted: Habberton, 2005)

Team

Your Cause

Partner

Donor

Cost E

ffici

enci

es &

Innova

tion

Donor

Inte

lligen

ce

Superior

Service

Feedback

Fulfilment

Impact

Training

& Incentives

Compensation &

Opportunities

Superior

ProductivityD

on

atio

ns

&

Pro

file

Su

perio

r

Pro

du

cts

Lo

yalt

y &

Ref

erra

l

Valu

e Ad

ded

Ben

efits

Quality

Assurance

Board/Trustees

Other Causes

delivery/governance

marketing/mindshare

Community

Responsibilities

Environmental

Concerns

Market & Sector

Conditions

Legal & Ethical

Regulations

Page 16: Developing Donor Loyalty in the Digital Age IFC 2013

Intermission

Q&AStretchBody Break(Please don’t ;-) Smoke

Page 17: Developing Donor Loyalty in the Digital Age IFC 2013

Relationship Management

(Source: http://www.youtube.com/watch?v=avHnr3tFJNs)

Page 18: Developing Donor Loyalty in the Digital Age IFC 2013

Relationship Management

(Source: http://www.youtube.com/watch?v=VTbbYLvhDSM)

Page 19: Developing Donor Loyalty in the Digital Age IFC 2013

Relationship Management

Page 20: Developing Donor Loyalty in the Digital Age IFC 2013

Relationship Management: Lessons

Recency, Frequency, ValueDonor Lifetime ValueCommunicationSegmentationPersonal DialogueSolving ProblemsBuilding TrustThen, AdvocacyMaybe, Funding

Page 21: Developing Donor Loyalty in the Digital Age IFC 2013

Donor Loyalty?

Page 22: Developing Donor Loyalty in the Digital Age IFC 2013

Donor Loyalty vs Customer Loyalty

Promise vs ProductPersonal vs PracticalEmotional vs RationalROI?ROE?CommunicationEngagementProblem SolvingTrust

Page 23: Developing Donor Loyalty in the Digital Age IFC 2013

Case Studies: Charity Water

Charity Water

Page 24: Developing Donor Loyalty in the Digital Age IFC 2013

Case Studies: WWF Rhino Raid

Cause GamificationLaunched April 2013555 000 downloads3 million gameplays5 minute sessionsUsers: 18-25Asia not AfricaShift of PurposeImpact Objectives

Page 25: Developing Donor Loyalty in the Digital Age IFC 2013

Case Studies: GreenPop

Greenpop

Page 26: Developing Donor Loyalty in the Digital Age IFC 2013

Insights

PersonalAuthenticRelationalSystemicTransparentAccountableRecognitionParticipationMeasurable

Page 27: Developing Donor Loyalty in the Digital Age IFC 2013

Opportunities & Challenges

TrustRelevanceCommunicationDesignStorytellingEngagementConnection(s)MetricsTangibility

Page 28: Developing Donor Loyalty in the Digital Age IFC 2013

Learning Review• The principles of loyalty

economics?• How they apply to individual and

institutional donors?• How these principles can be

understood and applied using digital tools?

• The opportunities and challenges of developing donor loyalty in the 21st Century?

Page 29: Developing Donor Loyalty in the Digital Age IFC 2013

Tools & Resources• Your Community• Connected Team• Donor Lifetime Value• Reputation Management• Sentiment Analysis

• Communicating Impact• Social Media Strategy• Digital Storytelling• Video Production Skills• Designers & Writers

Page 30: Developing Donor Loyalty in the Digital Age IFC 2013

Farewell - A Little Local Promotion…

(Source: http://www.youtube.com/watch?v=a6W2ZMpsxhg)

Page 31: Developing Donor Loyalty in the Digital Age IFC 2013

Developing Donor Loyaltyin the Digital Age

Colin HabbertonDirector: Global PartnershipsGivenGain [email protected]+27 71 401 2434@relatomics