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 …