Spending On Retention Marketing
Target Marketing magazine conducted a year-end survey of 725 marketers (including readers of FundraisingPro) in December, asking how they would be spending their marketing dollars in 2017.
I looked in particular at expected spending on retention.
Of those surveyed 33% responded they would be increasing their spending on retention in 2017, with 45% holding it the same. [More respondents (50%) expected to increase their spend on acquisition.]
The preferred channels for retention investment were email. social media and direct mail, as this chart indicates:
Nice to see outbound telemarketing hanging in there for retention purposes.
Strongest ROI on retention investment was ascribed to email (cited by 46%) and direct mail (14%).
What about your organization? Which received the biggest percentage boost in 2017 — acquisition or retention? And did that reflect a strategic decision … or just rolling over the spreadsheet from last year?
Tom
P.S. The full results are here.
4 responses to “Spending On Retention Marketing”
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
Read Full Answer
I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
Read Full Answer
Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
Read Full Answer
Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
Read Full Answer
There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
Read Full Answer
I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
Read Full Answer
Thank heavens some people thought spending on retention was important. Geezzzzz…. Since the largest gift most people ever give is a bequest… And the likeliest bequest prospects are loyal donors.
I’m a bit bored with the social media angle for retention. Could someone just please call me on the telephone – and even just leave a voice mail message saying hi and thanks?
How about a cultivation gathering to thank me? Or an insider update (I don’t drink coffee, by the way). Or a personal meeting.
And a great donor newsletter. And a personal letter or an interesting article you’re sending me or a curious postcard.
Interesting. Also keeping in mind that this is traditional marketing. I wonder if the survey was done for charitable folk if we would see a similar report. I think likely not. From my side of the desk, we constantly see lots of plans and money spent on acquisition (esp face to face since you can get quick wins and makes the board feel happy) with little or no consideration given to retention. Or it is considered too long after the fact. If you have no strategy or plans for retention of new donors, especially within the first 3 months, you shouldn’t be out trying to find new donors. I would also suggest that if you aren’t currently loving and working hard at keeping your current donors, you shouldn’t be spending lots of money on finding new donors either.
If you don’t have Roger’s book “Retention Fundraising”, get it now! It will be an outstanding investment
Amen, John. If you’re not going to feed that goldfish, why are you adding more to the tank?
And amen to David as well!
(Simone, you know I always agree with you!)