From the Acknowledgement to the 2nd Ask

Thursday, March 20, 2014 DMAW Lunch & Learn

City Club Washington, DC

Robin Riggs

Chief Creative Officer

LW Robbins

Welcome to the Session! Your Speaker:

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The power of two little words-

Thank you!

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Thank You Mrs. Sample!

We so appreciate your support today…

We so appreciate your ongoing support…

Your gift today means so much…

With friends like you, we do so much more…

We could not accomplish so much without friends like…

We need new friends like you to go beyond…

Your continued and loyal support is so important…

Your monthly support gives us the confidence to plan ahead…

Your legacy gift gives us the future to look forward to…

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Here’s what we’ll cover today:

Why should you invest in an acknowledgement strategy

Best practices

Creative strategies and examples

Metrics to evaluate your program’s performance

New Donor Welcome Packages

Other techniques to enhance your program

6 tips for improving your acknowledgement program

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Why should you invest in an acknowledgement strategy?

Cultivation, Retention and Revenue!

Prompt, sincere acknowledgements help strengthen the new relationship while the donor’s gift and the warm feelings associated with it are still fresh in their minds.

Acknowledgements can generate significant revenue by encouraging second gifts

Prime audience for monthly giving offer

Opportunity to get email addresses/learn more.

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Best Practices

Acknowledge all gifts no matter how small

Direct mail donors:

• Send thank you’s via mail within 48 hours of gift receipt if possible. Use first class postage to expedite delivery.

• If the donor’s email address is provided or on file, send thank you via email within a few days.

Online donors:

• Send acknowledgement via email immediately

• Consider sending mail acknowledgements to online donors if postal address is available

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Creative Strategies

Should look and feel like a personal letter or thank you note

Recognize the new donor’s status

Welcome them to the organization

Reference gift date and amount and campaign

Be specific if memorial or tribute

Describe how their donation is having a direct, immediate impact

Express deep gratitude for their support

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MAP International Acknowledgement

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MAP International Acknowledgement

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MAP International Acknowledgement

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Humane Society International US Acknowledgement

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Humane Society International US Acknowledgement

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Vietnam Veterans Memorial Fund Acknowledgement

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Vietnam Veterans Memorial Fund Acknowledgement

More strategies…

Include a monthly gift offer/ask

• Before new donors established their giving habits

• Still experiencing the warm glow of their first gift, they are more likely to commit to monthly giving

Email capture for cross-channel communications

• Ask donors to provide their email addresses for a meaningful benefit (e-newsletter, event announcements, important updates, etc.)

• Donors who provide email addresses have higher value

Ask a few “get to know you” questions

• Provides insights into the donor’s personal connection to your organization and their interests – use for more tailored communication strategies in the future

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Metrics to evaluate your program’s performance

Monitor acknowledgement revenue and test to improve it

Email addresses obtained

Monthly donor sign ups

Contact preferences/solicitation codes added: how often and through which channels

Valuable insights into why the donor supports the organization to guide renewal treatment

Affiliation to charity and its cause

Interests: Messages and themes

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Adding a Reply Slip in Acknowledgements

In 2012, organization added an ask to their acknowledgement program

Year 1 = 1% of direct mail appeal revenue

Year 2 = 5% of direct mail appeal revenue

Year 3 = 5% of direct mail appeal revenue

Donors who made a gift through the acknowledgement:

3 gifts per year (average is 1.52)

$190 average value (average is $127)

(source: Schultz & Williams 2014)

How to Kill Retention in 1 Easy Step

In an effort to save money and staff resources, organization:

o Stopped acknowledging gifts under $10

oMoved from a personal letter to a postcard for all other gifts under $50

Retention dropped 13%

(source: Schultz & Williams 2014)

New Donor Welcome Packages

Further reinforces donor’s status as a new and much appreciated friend

Include brochure or newsletter and brief questionnaire

Surprise and delight new donors with a small token of appreciation:

• Membership or supporter card

• Decal or magnet

• Bookmark, charm or keychain

Feature a “soft ask” in the letter, plus a reply card and return envelope

Online versions of New Welcome Kits – engagement techniques: video message, survey, etc.

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The UN Refugee Agency New Donor Welcome Package

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Non-profit Stamp

The UN Refugee Agency New Donor Welcome Package

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The UN Refugee Agency New Donor Welcome Package

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Special Olympics Welcome Package

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Special Olympics Welcome Package

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Special Olympics Welcome Package

More engagement techniques for all donor segments

Develop acknowledgement versions (message, treatment/format) for different audience segments: New

High dollar

“Extra Gifts” – donors whose last gift was from an acknowledgement

Mid-level

Reactivated lapsed donors

Make sure your data is completely accurate: name, address, gift date, amount, status, etc.

If a back-end premium/gift is promised in the original appeal, make sure it is actually sent, and in a timely manner

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Thank you calls are a worthy investment

Proven to increase retention, average gift and elevating retention rates in second and third year

If budget and resources are limited, start with donors with higher value gifts, but try to thank as many donors as you can, even at lower gift levels

A phone conversation is a great opportunity to ask questions and learn more about the donor’s reason for giving

Consider testing thank you calls (without an ask) in all campaigns

One client recognized a 14% increase in retention (a full 3 percentage points) when we integrated their telemarketing Thank You with their paper acknowledgment.

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Thank you calls continued.. Key segments to try:

o New donors

o Significant upgrades

o $500+ donors

o New sustainers

o Milestone gifts – number of gifts, number of years

If kept inside, who should call?

o Good – staff and volunteers

o Better – Executive Director

o Best – Volunteer Leadership (Board member)

(Source: Schultz & Williams 2014)

6 Tips for Improving Your Acknowledgement Program

Emphasize thank you, partnership and

impact

Include gift ask and reply envelope

Include monthly gift option

Engage donor with “get to know you”

questions

Speak to new donors like they’re new donors – a new

relationship should be exciting!

Surprise and delight new donors with a

decal or magnet

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An effective acknowledgement

program can

generate 8-10%

of your program’s revenue!

Retain New Donors with a 2nd Gift Strategy New donors who give a second gift soon after their first gift have:

Higher value

Better retention

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VVMF 2nd Gift Strategy Increases New Donor Retention and Revenue

Strategic Approach:

Used their best package, the Membership Package to convert new donors rather than relying on their “regular” monthly renewal mailing.

Overprinted and sent to new donor audiences.

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Vietnam Veterans Memorial Fund 2nd Gift Strategy

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Membership Package is the Top Performer of the Year. Overprint and send to new donors!

Vietnam Veterans Memorial Fund 2nd Gift Strategy- Results!

New donors giving their second gift in April 2013 increased 113% over previous year

Response rate, gross/net revenue, average gift dramatically higher

Cost Per Dollar Raised dramatically lower

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Final Conversion Tip

Continue with New Donor

and Thank You language

for many months into the

donor’s first year for continuity!

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Thank YOU!

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For more information, please contact: Robin Riggs Chief Creative Officer Tel: 800.229.5972 E: rriggs@lwra.com