Retain Or Renew?
Roger and I bang and bang and bang away at ‘retention’. We think it’s supremely important. Any organization worth a reply card or ‘Donate’ page can entice a new donor to part with some cash. Hey, just throw them a chotski.
The real challenge of fundraising is hanging on to that donor and nurturing their lifetime value.
So I was really captured by the issue raised by wordsmith Tom Ahern in his recent newsletter … should we be using the word ‘retention’ — replete with negative connotations — when ‘renewal’ rings with positive vibes?
Actually, Tom was riffing off comments he’d heard from Penny Harris at Renewable Philanthropy.
Penny suggests that ‘retention’ smacks of bars, cages, tight grip, even organizational constipation. Or as Tom put it: “Locking up donors in the prison of your database.”
‘Renewal’ on the other hand is really cool … like a trip to the spa. Refreshment of commitment and mission.
I was all ready to side with Tom and Penny on this.
But then Roger slapped me on the side of the head, hoping to bring me back to my senses.
Yes, in any transaction with the donor, you might want to put yourself — and the donor — in the emotional mindset of renewal, with all its positive connotations. Of course you’re not going to email or write to the donor and say: “We’d like to retain you!”
But, says Roger, don’t confuse that proper communications voice with your organizational fundraising imperative, which is to build the lifetime value of the donor, which entails retaining them, which in turn involves a heap of organization-wide activities that reach far beyond the singular transaction that most fundraisers call ‘renewing’ the donor.
To my simple mind, ‘renewal’ is about an attitude toward your donor, while ‘retention’ is about a marketing objective.
But I do see the point that Penny and Tom make … thinking about retention (and its many requirements) can make you lose the plot with respect to how you need to view each donor.
Here’s how Tom concludes:
“…’renewal’ puts the focus on the donor’s desire to continue finding meaning through your mission. Penny feels — and this message is not approved by her; it’s my interpretation — that charities sometimes lose their way when they pursue ‘retention.’
Whereas, if you focus on donor ‘renewal,’ then you’re focusing on what the donors need: a sense that their values have been refreshed and moved forward.”
What do you think? Just semantics?
Tom
I love that discussing the use of various words brings attention to this critical matter. The truth is most fundraisers do not yet think that retention or renewal are a problem yet.
Case in point, in the last few months I have had the honor to speak at 5 different fundraising conferences with audiences totaling around 750 people. In all five presentations, my very first question to be answered by a show of hands raised, is if they knew their current retention rate. The total number of hands raised from all 5 groups was 17! Perhaps this is a key part of the crisis . . .
Jay – glad to know I was one of those 17!
I’m not sure it is entirely semantics, but I do agree with you, Tom (Belford), in that I think ‘retain’ is a better word to use than ‘renewal’. When I think of ‘renewal’, I think of a pending expiration date. I would like to work towards never having that expiration date. When I hear ‘retain’, I think of not putting them in a prison cell (that would be ‘DEtain”), but rather having a staying power of doing all we can to prove that the impact of the donation and our cultivation of that donor is worth their time and money – where they would never need to renew.
Just my two cents.