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Donor retention has always been a way for charitable organizations to maintain and grow their revenue and support. Yet, many have focused more on acquisition than retention over the past several years. And, acquisition is a costlier endeavor.
Keeping donors engaged and supporting the mission isn’t a rocket-science concept. It’s common sense. But, it does cost money. Instead of looking at it as an expense, more nonprofits would benefit from accepting it as an investment.
Why is donor retention so important?
Higher donor retention is associated with increases in charitable receipts. Yet, according to a recent report by The Nonprofit Research Collaborative (NRC), just under half (47%) of those taking its survey said that their nonprofit organization monitors retention rates. Of the orgs that do monitor retention rates, their renewal rates are 60% or more. Proof enough?
The study also indicates the three ways that organizations can retain donors:
- Donor recognition
- Reporting results
- Using multiple channels of disseminating information (What we marketers call, “multichannel marketing”)
One can easily write an entire book on each, that’s how extensive these subjects are. What’s interesting to note is that the more tactics organizations use – within these three categories – the higher their retention rates.
So, what’s next?
Time to develop a marketing-communications plan that focuses on donor retention. As small business marketing guru, John Jantsch says, “Marketing without strategy is the noise before failure.”
