Relationship helps maximize revenue

Gwen ChapmanDirector of Membership and MarketingWorld Wildlife Fund (Canada)Cannot afford to miss:What Every Direct Marketer Should Know About the New Techniques in ModellingSunday, Oct. 24, 3:15 p.m. - 4:30 p.m.Retention Management in the Decade of the '90sWednesday, Oct. 27, 3:15 p.m....

Gwen Chapman

Director of Membership and Marketing

World Wildlife Fund (Canada)

Cannot afford to miss:

What Every Direct Marketer Should Know About the New Techniques in Modelling

Sunday, Oct. 24, 3:15 p.m. – 4:30 p.m.

Retention Management in the Decade of the ’90s

Wednesday, Oct. 27, 3:15 p.m. – 4:30 p.m.

We have been using rfms – recency, frequency and monetary values – for quite some time to target our donor list, but we have been accumulating additional data as well, and we would like to be able to use that more effectively.

If we can do better targetting, that means we will have more money to develop our relationships with our donors. That will give us more money for relationship fundraising, which will help us maximize our revenues.

The second session, retention management, is also about targetting to some extent. The two kind of go hand-in-hand. We believe that a long-term relationship with the donor is important if we are going to maximize revenue from that donor.

In fundraising, arguably more so than in any other aspect of the direct marketing industry, this concept of maximizing revenue from a particular customer is more easily explained, because we talk about a donor pyramid.

At the pinnacle of the pyramid, you have the ultimate customer. In fundraising, the ultimate gift at the top of the pyramid is a bequest, when the person dies and they leave a large sum of money in their will to a charity.

So from a fundraising point of view, the long-term relationship with the donor is critical, because you have to build them up through the various stages of the pyramid, to the point right up to the top – the bequest.

If we can get higher retention rates, it would mean a greater net growth as well to our database, so instead of just recruiting new donors to replace the ones we have lost, we will be recruiting ones to increase the size of our database, which ultimately means that the bottom of the pyramid is wider. So retention management is a very important issue.

We would far prefer to see our new donors increasing the net growth of the file or the donor base, rather than replacing people who are perhaps lapsing in their support.