Retaining versus replacing donors.
Three decades of donor acquisition, loyalty and pledge programs have taught us volumes about the value of donor retention. For instance; those who donate more than $100 in their first gift are the most likely to upgrade, to give again and to show more serious and sustained interest in supporting your organization.
Another tip? It costs roughly five times more to replace a good donor than to retain an existing one – and those new donors may not provide the same gift value for years, if ever.
It’s vital that you retain your most valuable donors, encouraging their continued support and growth by thanking them and showing them the good their gifts are doing.
Recognize that your donors, old and new, are more than an income stream. See them as the indispensable friends they are, believing in you and your mission and supporting you so that you may support others.
Communicate with your donors on a personal level as often as makes sense for the individual – through thank-you letters, newsletters, birthday cards and even personal phone calls.
Locking in a relationship unlocks its potential, and first-time donors can become long-time supporters, volunteers, advocates and friends of your organization.
Are you missing out on the lifetime value of your different donor groups? Is there a part of your base that never upgrades? We can help.
What’s in our net?
Summit Marketing acquisition strategies are designed to deliver a better overall first-time donor gift mix, higher donor retention and provide greater net resources to fund your programs.
In a test conducted for a nonprofit client, Summit SONAR went head-to-head with another agency’s acquisition strategy by splitting the zip codes in a geographic area where households shared similar demographics.
Applying the principle of targeting value over quantity, Summit SONAR acquired new donors who generated significantly higher net income, demonstrating greater donor loyalty and long-term financial support.
Stewardship is key.
Nonprofit organizations like yours understand stewardship at their core. Commitment to your nonprofit’s goals is also a commitment to prudent financial decisions and responsible investments.
Marketing firms serving nonprofits must also be good stewards, making the most of the resources and opportunities you entrust to us, working in earnest and taking carefully calculated risks to move your organization and its mission forward. Any strategy that excuses failure or squanders time or money is unworthy.
Marketers must, and as Summit Marketing has proven, can do better.
Let’s find out what’s in your net.
Does your acquisition strategy change every year? Are you disappointed with the results? If your acquisition efforts have delivered mostly new donors who make only small, one-time gifts and never upgrade, or you’re having trouble creating retention or building lifetime value with your current donor mix strategy, let Summit Marketing analyze the holes in your net.