donor retention and loyalty strategy

In the previous post we mentioned that it is easier and more cost effective to retain an existing donor than to acquire a new donor.  This highlights the importance of developing a donor retention strategy.  Furthermore, the more loyal your donors become then the greater the benefit for your organisation and for the cause you support.

What should you consider as part of your donor retention and loyalty strategy?
  • Just as customer satisfaction is important for commercial organisations, donor satisfaction is important for charities and not for profit organisations.  For example, as part of your interaction with your donors show respect, say thank you, respond to any issues and provide a quality service.  It sounds like an obvious point but you might be surprised at how many not for profit organisations forget those “minor” things.
  • Develop donor commitment through active engagement.  While some donors are happy to make a regular donation and have no more involvement with the organisation, other donors may want more.  Donor commitment can be developed and made stronger through:
    • Information that educates and allows the donor to learn about the cause they are making a donation for.  Provide details on websites, newsletters or even information sessions where donors are invited to attend and hear updates.
    • Participation as a volunteer in the office or even at an event.
    • Asking for feedback on relevant issues.
  • Increasing the level of trust.  This can be achieved through good communication and accountability as discussed in previous posts.  If you prove that you are achieving what you said you would then that will increase the level of trust that the donor will have in your organisation.
  • Create a welcome pack. When a donor makes their first contribution send them a welcome pack that may include details about the organisation, a copy of the annual report, key contacts to the fundraising team, membership details if applicable or any other relevant information.

These are some of the important issues to consider as part of your strategy but it is also critical you manage each donor to meet their needs. 

For example, a donor may not want to receive a monthly newsletter so make sure they don’t receive one.  That’s one of the reasons that maintaining an accurate database plays an important role in the strategy.

Value your donors and treat them with respect as their support is often what keeps your organisation going.  Do this well, develop a strong donor retention and loyalty strategy that will build trust and your organisation will continue to be viable, grow and move forward.