Sustainer Majority I An Outside Perspective Dane Grams, Director of Membership, HRC Gina VanderLoop, Founder & CEO, ROI Solutions

Transcription

1 Sustainer Majority I An Outside Perspective Dane Grams, Director of Membership, HRC Gina VanderLoop, Founder & CEO, ROI Solutions August 11, 2016

2 envisions a world where lesbian/gay/bisexual/transgender/queer people are ensured of their basic equal rights and can be open, honest and safe at home, at work, in the community and around the world EQUALITY FOR EVERYONE EVERYWHERE

3 Meet HRC.

4 Passed Federal Hate Crime Legislation Defeated Don t Ask Don t Tell Mobilized For Fair Employment Elected LGBT-Friendly Candidates Achieved Marriage Equality

5 HRC consists of: SUPPORTERS ARE People who have taken an action online within a two year period MEMBERS ARE Anyone who gives a gift of $5 or more in a two year period

6 But it didn t happen overnight

7 Launched Partners in the mid-90 s Relied Heavily on the Greenpeace Model 2,000 Monthly Donors

8 Monthly Donors Give More Money Monthly Giving Builds Stronger Relationships Monthly Donors Are More Loyal Monthly Giving Provides a Solid Foundation Monthly Giving Lowers Fundraising Costs

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12 *Our largest source of monthly donors *Goal: 22,000 new Partners this year

13 3,000 new Partner Conversions Partner Upgrades/Renewals 7,500 responses $672,000 in annualized monthly revenue recouped 13

14 HRC has strong overall donor retention because such a large percentage of donors give monthly. Many supporters are renewing by becoming HRC Partners making smaller automatic monthly gifts rather than a larger annual gift On average, HRC donors give 3.4 gifts per donor!

15 *Works best with 0-12 month donors in renewals 400+ new Partners (2x as many as FY15) 15

16 3-fold increase in new Partners in December 2015 campaign!

17 3 s Urgent and to the point 444 New Partners $63,000 annualized revenue $35,000 additional 1x revenue 17

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19 Connect with Partners at Key Moments: Welcome 1x Members Welcome Partners Partner 6 months Birthday s! Retain/Convert 695 Partners Accounts for $128,000 Annualized 19

20 Our Delinquent Process: 1. Decline and Expiry s sent each month, mail follows (decline statements) 2. Reactivation calls and texts go bi-monthly 3. Reinstatement calls and s are sent after 7 months

21 Each year 350 sustainers convert to major donors Also prime prospects for planned giving

22 Our culture of sustaining giving at HRC means the large majority of our revenue including 85% of our mid-level donors and 97% of our major donors are sustainers. This represents nearly 60% of all of our individual giving. Sustainers

23 ROI Solutions Founded: 1999 Largest client: 26+ million individual records, with 250 total users. PCI-Level 1 Payment processing $10,000,000/month).

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26 60/20/50 + Plan + Execute + Manage p = Success!

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28 The CRM

29 The CRM

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32 Understanding your Sustainer Credit Card Ecosystem: The Simple Version Payment Gateway Payment Processor Merchant Services

33 Understanding your Sustainer Credit Card Ecosystem: The Simple Version Payment Gateway Payment Processor Merchant Services

34 Credit Card Processor Fee Structure Maintaining cardholder information/tokens One Time Integration Model Fee Per Transaction Model ($0.08 to $0.41) Sometimes volume-driven

35 Merchant Services - Fee Structure Card Mix (Visa 60%, MC 20%, Amex 15%, Discover 5%) Variable Interchange Rates by Card MC and VISA Published Rates 1.35% + $0.10 charity rate Variable Merchant Services Mark-up per transaction and % of gift Volume Driven Always negotiable! Other Costs

36 Calculating your All-in Cost What does it truly cost your organization to process a monthly gift? We have seen from 3.5% to as high as 6.5% 25,000 recurring donors at $28 avg change 1% = $84,000 per year

37 Revenue Recovery Why Are You Losing Card Based Donation Revenue?? Failed Credit Card Attempts with a typical Nonprofit Organization: 3%-12% Reasons for Failure Lost/Stolen Card Type Portfolio Swap (USAA, Fidelity, JetBlue, CostCo) Security Breach EMV Expiry Date Manipulation

38 Revenue Recovery Why Are You Losing Card Based Donation Revenue?? Failed Credit Card Attempts with a typical Nonprofit Organization: 3%-12% What A Typical Nonprofit Is Doing Today To Recapture Some account updating Maybe a re-attempt or two this can be limited by the CRM /DM/TM Attempts Nothing?

39 EMV debit nearly done, breaches % of account update requests returning new account numbers continue! Wendy s EMV Debit

40 Revenue Recovery How To Make It Happen Intelligent Recycling Modeling and predictive analytics per card type determines optimal reattempt schedule Shifts the burden of retry attempts from nonprofit to processor/gateway Minimal IT investment to adopt solution 8xs is the max # of xs to recycle if predictive analytics are unavailable

41 Issuing Banks and Account Updater It s getting better. 70% Current Issuer Participation Rate As of April 2016, all issuers must participate in Visa and Mastercard Account Updater programs.

42 Recovered $ as Percentage (%) of Total Revenue 3.2% 4.0% 2.9% CONSUMER MONITORING ONLINE SERVICES SPECIALTY/NON-APPAREL INTERNET & MULTICHANNEL RETAIL ONLINE MEMBER CLUBS BEVERAGES -MEMBERSHIP 4.2% 6.0% 6.8% SOCIAL NETWORKING DATING ONLINE SERVICES SOCIAL NETWORKING COMMUNITY ONLINE SERVICES Nonprofit

43 The Future you know, big data. Revenue Recovery: How Can I Make That Happen?? The future of credit card decision making Use card type in your models Real-time decision making based on Card Insights

44 Three Questions to Ask Yourself Why does my money take so long to get to me? Who owns your recurring donors credit cards? If you leave can you get your donors credit card information?

45 Speaker Information Dane Grams HRC Director of Membership Gina M. VanderLoop ROI Solutions, Inc. Founder & CEO LinkedIn: gvanderloop

46 Special thanks to our Platinum Sponsors:

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54 High Participation Rate Plus we learned Preferred channel = Top issue = State Legislation and Electing proequality candidates 54

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56 Test to see what works for you! 56

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59 A picture is worth a thousand words The case evokes lots of emotion No bombardment of statistics Asked for a specific dollar amount increase Made it easy to say YES just click the link Thanked donor for ongoing support