How would you like to get a 200 percent increase in the lifetime value of your donor database? I bet that got your attention, right? So, what is the secret to doubling the value of your donor database? It’s really a simple concept of focusing on the lifetime value of your donors.
There is a crisis in fundraising and it’s called donor attrition, which is the percentage of donors your organization losses year over year. Depending on which study or survey you read, the current donor attrition rate is right about 60 percent. This means more than half of your donors stop giving to your organization each year, which is quite a scary thing to think about. But, it gets worse if you look at the long-term effects.
If you bring in 1,000 new donors during your end-of-year campaign this year, and have a donor attrition rate of 60 percent, after five years, only 10 of those donors are still donating to your organization. That number should be frightening to you, as it means you’re constantly having to find new donors to make up for these huge loses.
However, all is not lost. It turns out that small improvements in your donor attrition can have huge impacts on your overall fundraising, especially over the long term. According to the work by Adrian Sargeant, a 10 percent decrease in your donor attrition can increase the projected value of your donor database by 200 percent!
So, instead of only thinking about appeals, emails, asks, and donation forms, you need to focus on taking the time to get to know your donors and building true relationships with them. What do they want; what do they need; and what gets them excited, engaged, and invested in your organization over the long term?
It may sound like a daunting task, but remember, you can focus on small improvements and still see those big results.
If you’re looking for ways to make those small improvements in your donor experience, then you’ll definitely want to join me next Wednesday, December 12, at 12 p.m. CT for our next webinar, “End-of-Year to Loyal Donors.”
During the webinar, I’ll review a number of specific strategies you can implement to build loyal donors who are engaged and excited to further support your organization over the long term, and of course, we’ll have plenty of time to answer any of your questions.