Lens Donor Phase Strategies

Transcription

1 Lens Donor Phase Strategies Informed Communications Group Version 3 Prepared By: Informed Communications Group Inc.

2 TABLE OF CONTENTS 1 INTRODUCTION THE LENS DONOR LIFE CYCLE Life Cycle Phases Graph Life Cycle Phases Detailed Table STRATEGIES BY LENS LIFE CYCLE PHASE Phase: Welcome Description Strategies Study and Observation Description Strategies OTG Growth Descriptions Strategies OTG Maturity Description Strategies Welcome Monthly Description Strategies Monthly Growth Description Strategies Monthly Maturity Description Strategies EFF (Exit From File) Description Strategies P age

3 1 INTRODUCTION This document contains the strategies for each Lens Donor Life Cycle Phase. Fundraisers can use the phases/sub-phases to select donors and use this document to match donors with their phase strategy. 3 P age

4 2 THE LENS DONOR LIFE CYCLE The Lens donor life cycle phases show the progression of a donor through different behaviour stages over time. Some donors progress rapidly through each phase; others may take longer. It is donor behaviour that dictates when and how they leave one phase for another. 2.1 Life Cycle Phases Graph 4 P age

5 2.2 Life Cycle Phases Detailed Table Donor_level Phase Sub-Phase 1_OTG 10_Welcome Welcome OTG 20_Study and Observation 30_OTG Growth 40_OTG Maturity First Gift Given Second Gift Given Third Gift Given Fourth Gift Given New OTG Pre-Churn OTG Growth Entry OTG Growth Reactivated OTG OTG Maturity OTG Maturity At Risk Reactivated OTG Maturity Reactivated OTG Maturity At Risk 2_Monthly 50_Welcome Monthly Welcome Monthly Welcome Monthly Reactivated 60_Monthly Growth Monthly Growth Monthly At Risk Monthly Lapsed Reactivated Monthly Reactivated Monthly At Risk 70_Monthly Maturity Monthly Mature Monthly Mature At Risk Monthly Mature Lapsed 3_Churned 99_EFF Churned 4_Non-donor 10_Welcome Welcome Non-donor Non-donor 99_EFF Churned_Non-donor 5 P age

6 3 STRATEGIES BY LENS LIFE CYCLE PHASE This section contains a description for each phase as well as the most appropriate strategies to apply. 3.1 Phase: Welcome Description The Welcome phase contains individuals who are new to the organization and need to be welcomed aboard. These individuals can be financial donors (i.e. with a first donation) or non-financial individuals (i.e. volunteers, subscribers ) Strategies The strategy for donors in Welcome is: Stewarding new donors and maximize their engagement Building a relationship with donors Get to know us (the organization) 3.2 Study and Observation Description This phase is, as its name implies, an opportunity to study and observe new donors behaviours. Organizations expose donors to all available (and appropriate) strategies and tactics to observe what they respond to Strategies Fourth gift or convert to monthly Maximize knowledge about what Peers respond to Support, substantiate and validate the strategies developed by the organization 6 P age

7 3.3 OTG Growth Descriptions As donors exit S&O they enter OTG Growth with some behavioural history. While in OTG Growth, these behaviours are monitored on a period-by-period basis, with segments reflecting the change in donors behaviours. In this way, organizations can adapt communications to encourage/reward positive behavioural changes and deter/diminish negative ones Strategies Monthly conversion Apply learning to-date to maximize gross revenue and stabilize donor giving Monitor donors closely to detect any change in giving behaviour that needs to be addressed 3.4 OTG Maturity Description Donors enter OTG Maturity when their behaviour has stabilized to a point where organizations are better able to anticipate their response. In this way, organizations can adapt their communication strategy (contact frequency, timing, ask amount, narrative ) to maximize returns while minimizing communication costs. The ultimate goal of organizations is to advance their donors to Maturity, where they generate the greatest returns for the least costs. 7 P age

8 3.4.2 Strategies Maximizing net revenue (optimizing communication frequency to maximize the return) Monitor donors in a more long-term manner Attempt monthly conversion strategy for donor lifecycle extension Pre-EFF strategy (intervention) Use understanding of how donors became mature donors to enhance Welcome, S&O and Growth strategies Re-capture and foster lapsed mature monthly donors that reactivate as OTG 3.5 Welcome Monthly Description Donors who convert to monthly donation are advanced to this phase, where they stay for a fixed period of time before moving automatically to Monthly Growth. Donors can only occupy this segment once in their lifecycle, as they can only be welcomed as a new monthly donor once. This phase is meant to either rest the donor (stabilize their monthly giving) and/or thank them for becoming monthly donors Strategies Welcome sequence for first time monthly donors Stabilize monthly giving Rest period for reactivated monthly donors Preparation for Monthly Growth phase 8 P age

9 3.6 Monthly Growth Description In this phase monthly donors are monitored very closely to detect any movement that would indicate the need for organizational intervention (churn risk, upgrade opportunity, donor maturity ) Strategies Monitor closely for signs of churn Upgrade monthly gift Get additional OTG gifts Reactivate recently lapsed monthly donors asap 3.7 Monthly Maturity Description Current monthly donors eventually advance to Monthly Maturity. In this phase, organizations are able to anticipate the giving behaviour of these mature donors: give additional OTG gifts, churn risk, monthly upgrades Strategies Maximizing net revenue (optimizing communication frequency to maximize the return) Monitor donors in a more long-term manner Attempt monthly upgrades Use understanding of how donors became mature monthly donors to enhance Welcome, S&O, Growth and monthly conversion strategies 9 P age

10 3.8 EFF (Exit From File) Description Non-financial individuals who have not given a gift in their first 24 months since joining the organization are moved into this phase. Donors that do not give a gift over a period of 24 months, anywhere in their lifecycle, are moved into this phase Strategies Exit interview find out why the donor stopped giving and whether there is anything the organization can do to bring them back (for those who the organization chooses as viable targets for reactivation) Lapsed reactivation for desirable groups For non-donors, alternate communication strategies for non-financial engagements Non-financial individuals: data distribution strategies (which departments could benefit from these contacts that are no longer viable for fundraising?) 10 P age