What is Churn and why is Churn Important

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Building Donor Loyalty and Reducing Churn
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THE WORK OF UNITED WAY
WHAT
HOW
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What is Churn and why is Churn Important

• Churn -
• Gross replacement rate of our donors
• Percent of last years donors who are lost and
  are not investing in the current year
• Importance -
• The churn rate may not be apparent by looking at
  the absolute donor base
• Number of donors each year may not change but you
  could still have a high churn rate

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Donor Loyalty

• Organizations with unusually loyal donors benefit
  from more funds raised and less cost expended
• It is cheaper to retain an existing donor than it
  is to prospect for new donors to replace one who
  leaves
• Lowering your churn rate (the percent of
  individual donors from last year who are no
  longer donors this year, even if they have been
  replaced by new donors) is the most efficient way
  to improve your fundraising results
• To effectively retain existing (and regain lost)
  donors, it helps if you have a way to profile the
  giving behavior of your (leadership) donors

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Put Loyalty to work for you

• Understand your current donor base. Track
  leadership giving by individual over time, and
  analyze it.
• Examine donor loyalty behavior using Excel tool
  considering
• Total , , and average gift size in each donor
  loyalty behavioral group (defectors, decliners,
  etc.)
• Trends in ( donors, lost) defections
• Differences by giving level, company affiliation,
  time frame
• Identify your goals craft tactics to address.

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Value of Donor Loyalty

• Organizations with unusually loyal donors benefit
  from
• Because loyal donors tend to

More Funds Raised
Less Cost Expended

• Give reliably, year after year
• Increase size of gift over time
• Give in several ways (annually, volunteer,
  in-kind, capital campaign, legacy bequest)
• Recommend that others (like them) give

• Require few/no new marketing expenditures on
  them
• Enable less marketing to others
• Know how to do business with you, so, no/little
  time explaining

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United Way Loyal donors are worth more
Average Gift
It would take on average 2 NEW donors to make up
for the loss of one LOYAL donor
New Donors
Current Donors (lt5 yrs)
Loyal Donors (5 yrs)
AND it is easier (cheaper) to keep/grow an
existing donor than to locate and cultivate new
donors
Source UWA Research
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Leadership Touch Strategy Orange County United Way
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Context Orange Countys Situation Analysis/
Background

• In 2007, the UWA Leadership Churn Resource
  Created An
• Immediate A-Ha
• Over the past 5 years, OCUW lost almost 4
  million in resources under management due to
  churn of 2,100 Leadership and Tocqueville
  Society donors.
• 2.9M lost over 5 years from Leaders Society
  donors
• 1.1M lost over 5 years from TS members
• Including 647 Leadership and 29 Tocqueville
  Society donors in 2006/2007.

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REVAMP of the Orange County Model Shifting the
Focus

• From a THERMOMETER.
• (Total Investments) TO
  
• 
  IMPACT!
  
  (Community Impact
  Investments)

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REVAMP of the Orange Way Model Right-Sizing the
Bucket

• From a BIG BUCKET . to A SMALLER BUCKET
• (With and energy going everywhere) (With
  and energy FOCUSED on Community Impact
  Investments)

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Examples of the Shift in Focus The Crystal Video
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Examples of the Shift in FocusDonor Engagement
and Involvement
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Examples of the Shift in FocusDonor Engagement
and Involvement
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Examples of the Shift in FocusChallenge Match
to Increase Community Impact Investments
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Examples of the Shift in FocusContinued
Relationship Building with Largest Investors in
Community Impact
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2007/2008 Key Strategies As a Result of Shift in
Focus

• All Campaign Goals Set Based on Community Impact
  Investments
• Orange Impact Society and Orange Impact
  Circle Recognition Circles Launched to
  Recognize/Incentivize Community Impact
  Investments
• Tocqueville Society Million Dollar Community
  Impact Challenge Match Launched to Increase
  Community Impact Investments by 500,000
• Board Member Engagement and Agreement to Conduct
  a Set of CEO Calls, Leadership Visits, or
  Presentations
• Leadership Touch Strategy Implemented Engaging
  All Staff in Visits to Leadership Donors, Along
  with Leadership Defector Project

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Orange County United WaysLeadership Touch
Strategy

• Reducing donor attrition is now an ORGANIZATIONAL
  priority in order to increase Community Impact
  investments
• CULTURE has shifted and ALL STAFF and VOLUNTEERS
  are engaged in contacting and meeting with
  Leadership donors to
• Say THANK YOU
• ENGAGE and understand donors, including their
  longevity of giving (loyalty)
• Develop NET PROMOTER SCORE baselines
• INCREASE RETENTION and reduce churn

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Orange County United WaysLeadership Touch
Strategy

• ALL United Way Staff and Volunteers Were ASKED to
  Participate!
• Staff and Volunteers Engaged in Effort TOGETHER
  with specific participation expectations
• Staff Participation
• Manager Level and Above Participate in a min of
  10 meetings
• Non-Manager Level Participate in a min of 5
  meetings
• Volunteer (Board, Cabinet, etc.) Participation
• Participate in a minimum of 5 Leadership Touches,
  CEO Calls, etc.

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Orange County United WaysLeadership Touch
Strategy

• Training/Support
• Series of Staff Training Sessions
• Volunteer Training/Role-Playing with Investor
  Relations Cabinet, Leaders Society Steering
  Committee and Board members
• Matched all staff with an Investor Relations
  liaison
• Call Sessions/Phone Banks held to collectively
  make calls, leave thank you messages and
  schedule appointments
• Tools
• Staff Preferences Tool
• Call Scripts (When on Phone)
• Visit Scripts with Specific Engagement
  Questions (Interests, Longevity of Giving, Net
  Promotor Score, etc.)
• Tracking Tools for Visits in Database and Reports
  to Track Success

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Orange County United WaysLeadership Touch
Strategy

• Successes To Date
• Since January 2008
• 385 Leadership Donors Contacted Personally by
  OCUW Staff 21 of our Leadership Donor base!
  (versus 5 in 2006/2007)
• 12 Phone Bank Sessions Held with All Staff
• 130 Leadership Touch Meetings Completed and
  Scheduled
• 160 Thank You Messages Left

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Orange County United WaysLeadership Touch
Strategy
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Learnings/Successes To DateExamples of Feedback

• From the Staff Perspective
• I am excited about this. It is an opportunity
  to visit and get to know our customers and
  provide customer service like the corporate
  sector does!
• -J.P. Castiglione, IT Department Staff
• I am looking forward to getting out there. I
  am ready. Ive been here for 7 years and have
  sat in my little corner the whole time. I cant
  wait to meet some of our donors and help with
  this effort!
• -Liane Lynch, Finance Department Staff

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Learnings/Successes to Date Energized and
Engaged Staff!
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Learnings/Successes To DateExamples of Feedback

• From the Donor Perspective
• I think that saying "thank you" is valuable and
  worth the time. It is not quantifiable, but
  believe me it's very important.  I also liked
  being asked how I would prefer to
  be recognized.... that is personal and if
  followed up on it would be noticed.   
• It gave a chance to ask questions and get a
  little deeper into the latest strategy.
• The visit made me feel good, appreciated, and
  valuable in our quest to help the needy. It made
  me feel as if my leadership donation IS valued! I
  liked it very much!
• -Rob Kent, VP of Sales U.S.
  West, Arrow-ECS

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• SUMMARY
• Orange Countys Top 10!

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• 10

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• Make it a part of a larger organizational
  strategy
• it wont work in a vacuum!

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• 9

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• No Ask is key this is about relationship
  buildingthanking, engaging and informing!

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• 8

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• Should have a script/structure for the
  conversations.

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• 7

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• Provide training and more training to all staff
  and volunteers.

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• 6

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• Ensure buy in from all leadership.

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• 5

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• Provide lots of support and love to all involved,
  including phone banks to make it easy.

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• 4

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• Implement up and down all levels
• Board, Cabinets, Staff, etc.

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• 3

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• Dont underestimate the bonding opportunity for
  staff and volunteers around a common goal.

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• 2

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• Dont expect a quick return
• this is a LONG-TERM engagement strategy

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• 1

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• DO expect investors being surprised and delighted
  ?
• to have staff and volunteers visiting with them
  to say THANK YOU!

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Building loyalty in your best workplace
campaigns United Way of Berks County
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Berks County At A Glance

• Located in Southeastern Pennsylvania population
  is 400,000 people
• Changing demographics in recent years (Latino
  population 50.6)
• Throughout its history, served as a center of the
  railroads, manufacturing hub and Outlet Capital
  of the World
• Recent focus on arts/culture and waterfront
  development
• Primary Industries Agriculture, Tourism,
  Healthcare, Manufacturing, Government/Educatio
  n
• Home of 5 institutions of higher education
• Recently featured in the Washington Post as the
  town that is repurposing or reinventing itself

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United Way of Berks County

• Community Impact Driven United Way
• Partner Agency Concept 37 partner agencies
• Not an open donor option United Way
• 2007 Campaign 9,025,000
• Endowment 4.2 million
• 1,000 entry giving level for Leadership Giving
  Program
• Leadership Giving represents more than 3.9 M and
  over 43 of the total campaign. Includes more
  than 1,450 members

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Top 100 Workplace Focus

• Representative of the workplace community
  (manufacturing, banking, healthcare, educational
  sector, etc.)
• Employee staffing levels 15 to over 5,000
  employees
• Dollars Raised Within Top 100 Ranges from
  13,000 to more than 650,000
• Top 100 represents 72 of total campaign, or more
  than 6.5 million
• Leadership Giving in Top 100 represents 81 of
  total membership and 70 of total dollars

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Donor Churn

• On annual basis, gross loss averages 1 million
• In 2006, for all individual givers, donor churn
  rate 29
• Top 100 Churn Rate
• 2006 22.2
• 2005 25.7
• 2004 30.2
• Leadership Giving Churn Rate
• 2006 7.5
• 2005 8.4
• 2004 8.5

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Strategic Goals

• Increase Donor Retention with focus on Top 100
  workplaces and Leadership Giving
• In 2008, reduce Top 100 donor churn to 20
• In 2008, maintain Leadership Giving donor churn
  rate at 7.5
• Increase dollars raised through workplace
  campaign by strengthening relationships with the
  Top 100 workplace accounts.
• In 2008, raise additional 200,000 from Top 100
• Increase the Campaign Coordinator NPS from 41 to
  44

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Strategies (Traditional New)

• Company Leadership Relationship Management
• Top 100 CEO Sessions/Corporate Calls
• - CEO Sessions held in May
• - Strive to conduct Corporate Call with EVERY
  Top 100 organization
  currently achieve 80
• Recruit volunteer involvement from Top 100
  CEOs/Senior Management
• - Board Level 56
• - Campaign Cabinet 61
• - Community Impact Cabinet 44

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Strategies (Traditional New)

• Campaign Coordinator Relationship Management
  Program
• Key Objectives
• Show appreciation
• Strengthen relationships
• Show support to have coordinators wanting to be
  involved
• Keep ideas simple and low cost

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• Campaign Coordinator Relationship Management
  Program
• Developed Formalized Coordinator
  Activity/Communication Schedule
• Includes scheduled touch points throughout the
  year, including events, communication materials,
  give-away items and end of year recognition
  event

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• Campaign Coordinator Relationship Management
• Created Top 100 Council
• Comprised of experienced and motivated
  coordinators from Top 100
• Promotes collaboration and increased awareness
• Top 100 Council meetings concentrate on key
  elements
• Focused Education
• Feedback/Advice
• Group Share
• Opportunities

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• Campaign Coordinator Relationship Management
• Top 100 Council Efforts
• Developing a communication program to thank and
  recognize loyal donors in Top 10
• Based on Council feedback, initiate a year-round
  communication plan for coordinators to use within
  workplace
• Establish Thank You Programs within the workplace

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• Campaign Planning Workshop
• Utilized since 1993 and continues to serve
  significant role
• Last year, participating organizations
  experienced an 8 increase in giving
• Participating organizations collectively
  experienced a 11.5 increase in Leadership Giving
  dollars

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• Campaign Planning Workshop
• 2008 Workshop Agenda
• Incorporating Input from Top 100 Council
  Coordinators
• Encouraging Coordinators to bring along one
  example of best practice to share, as well as
  one new member of their workplace committee
• Continue to introduce donor churn information
• Focus on thanking loyal donors
• Challenge the Coordinators to offer new/different
  company incentives to appeal to various market
  segments
• Feature Leadership Giving strategies
• Consider incorporating selling techniques as
  part of CPW agenda

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• Survey Activities for Top 100 Companies
• Focus Groups
• Online Surveying

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• Top 100 Companies Leadership Giving Focus
• Focus on Leadership Giving with Top 100 CEOs via
  CEO Sessions and Corporate Calls
• Encourage Leadership Giving recognition/appreciati
  on programs within companies particularly off
  campaign-time
• Invite CEOs to help with retention of Leadership
  Givers post retirement

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• Top 100 Companies Leadership Giving Focus
• Year-round communication plan
• Shared UWA Valentine email
• Leadership Giving Appreciation Event
• Survey Leadership Givers
• Promote Planned Giving opportunities

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• Launching LIVE UNITED

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• Questions ?

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Reason for Not Giving to United Way This Year
(Lapsed Donors)
Over half the reasons for not giving (53) focus
on the lack of reach/contact with United Way or
WP campaign
Base 111
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In general, the research tells us

• Be sure to ASK for a contribution (which means
  knowing who your donor is and how to reach them)
• Have a year-round communication strategy with as
  much of your donor base as practical
• At least communicate once a year with everyone
• And THANK them
• And INFORM them about what you did with their
  gift

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Retention made simple its easier to plug the
hole than to keep filling the bucket
AND
right about now that hole is extra big as many
past donors (boomers) leave the traditional
workplace
AND
that makes the quality of those donors very
difficult to replace. They represent a
multi-year stream of growing s, the prospect
of a (large) planned gift.

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