No New Donors!
Seth Godin did one of his trademark "short but sweet" — and provocative — posts the other day, titled, No New Customers. Here it is in its entirety …
What if a rift in the time-space continuum changed the universe and it was suddenly impossible to get new customers, new readers, new donors or new viewers?
How would that change what you do all day and how you spend your money and what you measure?
What if you tried acting that way now?
Now, Godin subsequently answered his own questions … and gave the exact answer Roger and I would give …
Start loving your existing customers/donors!
Here’s Godin’s version …
[What I meant: if you can’t get new customers or new friends or new colleagues, perhaps you could take really good care of the ones you’ve got? Cherish them, in fact.]
In his challenge, Godin postulated a scenario where it was "impossible" to get new customers or donors.
But backing off from that extreme a bit, and assuming Step #1 was to focus on retention, retention, retention … what else would we do? Here’s what my process would be …
Step 2: Win a greater share of wallet. Don’t just retain current donors … convince those with potential that you deserve a bigger share of their giving. Use the new tools available to identify which current donors have that potential. You’ll need some extra investment capital to rescue your prospecting program!
Step 3: Generate a pile of thoughtful hypotheses (ideally, testable ones) regarding what is going wrong. Get all the possibilities on the table. Put them in context (e.g., has your entire sector has collapsed, or just your prospecting?). Then sift and prioritize for action.
Step 4: Do some research. What can you learn from how your current donors are thinking and responding? What can you learn from the folks who should be responding?
Step 5: Re-examine your "product." In light of the research, is there some different aspect of your nonprofit’s program that should be emphasized? Or a new strategy or initiative? Has your relevance been eroded in some way? Has a compelling "competitor" entered the scene? If so, what’s the lesson?
Step 6: Test your message. If convinced your "product" is relevant and (should be) compelling, then test alternative messaging to make your case.
Step 7: Re-examine prospecting tactics. Setting aside the message and content, what issues of timing, channel, audience targeting or execution might need to be re-considered and tested?
Step 8: Identify and activate your missionaries. Your most committed donors will know where to find prospective donors like themselves. And they’ll be willing to help do so. Give them the motivation and the tools (especially online).
Step 9: Rekindle the love. Go back to your lapsed members/donors with your refreshed product and message.
Step 10: Prepare for courtship. Be content to attract and engage new prospects as "believers" first. Give them ways to show their support, get involved, sound-off before asking for money. It is called "prospecting" after all!
But remember, it all starts with Step #1 — fix your leaky bucket before trying to pour more water in!
Tom
P.S. What else would you do?
Seth Godin’s post is a wake-up call reminder to all nonprofits who are slogging away looking for NEW donors while they are losing their current ones quickly.
As a fundraising consultant and speaker, I find my clients and audiences are always amazed and shocked at the industry standard attrition statistics. It’s news to them!
I think we will just have to beat it into everyone’s head – over and over- that current donors are far more precious than potential donors. And that it’s far, far easier to get a current donor to renew than it is to sell a totally new person on your cause. Way to go Seth and Tom!
Those are such unbelievable words to live by for non-profits Tom!
After watching the results for the last several years for the AFP and Urban Institute sponsored FEP (Fundraising Effectiveness Report) survey results http://www.afpnet.org/files/ContentDocuments/2009_FEP_FinalReport.pdf it does not take long to see that over the last few year the age old practice of bringing new donors in the front door while just as many old donors walked out the back is now not working.
Based upon last year’s results, which by the way are taken DIRECTLY from the ACTUAL donor databases, just look what would have been gained if they just reduced the defections by 50%! In this case the stats truly do not lie . . .
The survey organizations had sizeable growth in gifts from new, upgraded, and recaptured donors, these gains were more than offset by losses in gifts from downgraded, lapsed new, and lapsed repeat donors. As a result, net gains in the amount of gifts were -1.3%.
Keep up the good work of sharing such insights . . .