CBA: Retention = Growth

Retention = Growth
When should you stop trying to renew the support of a current member or donor?

By Dave Johns

Remember that old adage about the bucket emptying through a hole in the bottom faster than one can fill it from the top? It’s old but how true.

As direct marketers and fundraising we invest valuable energy and large sums of money to attract new members and donors. We test creative, formats, offers, premiums and much more. We search for new prospect lists and pour over response analyses.

And while we’re hard at work finding new supporters, our best donors could be slipping quietly away. Loyalty programs can help and relationship marketing efforts should be an ongoing commitment. But what about the annual renewal program? How well is yours working? Are you doing everything you can – and doing it right – to keep your members and annual givers in the fold?

Our advice is to be tenacious in your renewal efforts. Don’t say “uncle” before you’ve tried everything that is reasonable to convince a member to give that next annual gift – and keep giving every year. It starts with a series of renewal mailings and reminders that don’t stop too soon.

How many notices should you send? Our advice is: Don’t stop mailing renewals until the results fall below the returns on a prospect mailing. If fact, you should consider going even further because you know you’re chasing someone who’s a friend, not a stranger. Some organizations stop mailing after three or four notices to avoid offending their donors. We think that’s the wrong approach. Remember that people lead very busy lives and have to deal with set priorities. And the procrastinators often just need one more reminder to get them back on track.

It’s likely that your donors also give to other organizations. This means that you’re always competing for their contributions. Don’t treat a renewal mailing like a simple annual notice of money due. Always make sure to thank people for their support and explain why their next gift is so important. You don’t have to write a long-winded letter, but make sure you cover clearly the most important reasons for giving and the benefits to donors. The first renewal notice can be more matter-of-fact. You can include a temporary member card as with the CBA Auto Renewal package or another device to suggest the continuation of their support. Make it very easy for someone to say “Yes” and send their gift.

Response will be very good to the first and second notices, but when the going gets tougher, be ready for the longer haul. Vary the design of subsequent notices, change the copy, make your message more urgent to non-responders, even change colors. And don’t be worried about offending people who are ignoring your letters.

If you keep the message upbeat and tell donors how important they are, why should they be offended? Don’t expect people to keep responding when you send them the same notice over and over. As you get deep into the renewal series, consider asking for a lower gift amount. Some donors might not be interested in membership renewal, but will give you a smaller gift. That’s fine, too. Whatever it takes to keep the giving habit alive will pay dividends in future years. You need members to stay on your file to be able to ask for additional gifts later. Keep the bond intact and then concentrate on building loyalty.

Your retention program is the payoff for all your successful acquisition work. It’s the profit maker after you’ve invested in prospecting. And it’s the real key to achieving growth in your donor file. Don’t save your best, innovative creative work and your marketing intelligence for cold mail. Make your renewal program a priority and watch your donor file grow.

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