Date post: | 11-Jul-2015 |
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Business |
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ROI on Donor Relations & Stewardship
Programs
Definition
Definition of 'Return On Investment - ROI'
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
Courtesy of investopedia.com
CalculationTo calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
(Gain on Investment – Cost of Investment)
ROI = Cost of Investment
Family Talk
What is your leadership really asking for when they talk about ROI and metrics?
It’s More than Measuring Quantity
It’s More Than Tracking Activity
Measuring Impact, Affect, Change
• Track what you do• Observe affect; Observe donor behavior• Measure results• Apply the ROI formula• Supplement with qualitative returns
Survey says…
Three Key Areas for DR&S ROI
• Retention• Upgrades• Lifetime Value
Story Time
Know Your Value
What is your leadership really asking for when they talk about ROI and metrics?
• Start Small• Set aside Time at Weekly or Monthly Intervals• Make it a Personal Priority• Get Buy In and Feedback from Leadership• Be Strategic!
Questions? Comments
• Lynne Wester
www.donorrelationsguru.com
Follow me on Twitter @donorguru
• Colleen A. Brade, CFRE