Measuring The Impact Of Your First Impression

Over the next couple of weeks will most likely read in many of the LinkedIn groups thoughts on creative ways to raise money. This is especially for those that have a fiscal year-end on June 30. I read one such post just the other day and it got me thinking.

For many organizations this time of year means a laser beam focus on the finish line and implementing strategy to squeeze as much as possible out of their remaining prospects.

I've been wondering if while we're looking ahead at the finish line our prospects are looking backwards and reflecting on how they've been treated leading up to the last minute ask. Is it another example of our industry being out of sync with the people that were looking to engage.

While it's true that opposites attract I imagine if a restaurant only served what you didn't enjoy you

wouldn't go back let alone try it to begin with.

I do wonder if the time to strategize the last minute gifts is actually at the moment when someone makes their first gift. Is the rate of return on our year end solicitations related to the quality of the first and lasting impression we create when someone first supports our organization. What is the old saying about one chance?  :-)

This summer a few friends and I are going to take a deep dive into the business of designing donor experiences and what metrics are required to stay on top of in order to create lasting impressions. 

Einstein-Frank Capra-Donor Retention

 I was recently at a conference and decided to attend a session that was going to focus on donor retention. The presenter spoke about all the current realities regarding retention as outlined in the AFP Fundraising Effectiveness Report. The solutions he was recommending were focused on getting the second gift within 90 days of the first gift or getting a donor set up to give monthly. These strategies he suggested were key aspects of a strategy to improve donor retention.

As I walked out of the session I was hearing one of Albert Einstein's famous quotes circling in my head. “No problem can be solved from the same consciousness that created it.”

The reason why we are struggling with donor retention is because of our relentless focus on the transaction related to the gift. The suggested solution of focusing on the gift is the very reason there is retention issue in the first place. It simply comes from the same consciousness that created the problem.

Donors will choose to stay when the experience of giving is designed for them to want to stay. The feeling of accomplishment and being of value are key elements in driving customer satisfaction. Focusing on the timing of gifts will do very little in creating a satisfying donor experience or keeping them.

Imagine if you will the 1946 movie classic it's a wonderful life had two different story lines, and

your job was to pitch the two options and get the Studio to back the movie.

The first option is the one we all know, when faced with financial ruin George Bailey is given the opportunity by Clarence Odbody, his guardian angel, to see what the world around him would have been like had he never existed. In the movie George has the extraordinary opportunity to see the impact that he has actually had in the world.

The second option you get to pitch is a little different then the original movie.  The premise with this script is that on Christmas Eve when George is at his lowest emotional point because of his business challenges his

guardian angel comes to him to speak about the financials of the building and loan. For the next hour Clarence helps George understand where to cut expenses and how to generate more revenue by creating new opportunities for customer transactions. I'm sure that most audiences would be spellbound with the magical spreadsheet work of Clarence Odbody, Angel Second Class.

Which movie do you think would make it to the big screen?

So remember, every time you hear a donor retention solution a bell should ring in your head.

Looking forward to working with many of you this summer at the grand opening!

Culture = Donor Retention

A little bit more on the topic of improving donor retention by focusing on your internal culture. A recent survey, conducted by MSW Research,  discovered that employees ask themselves these three questions.
 1. Do I feel valued?
 2. Do I value the organization where I work?
 3. Do I feel I belong?

The responses to these questions become indicators regarding the engagement level of an organization's employees.

Any guesses on the results and how engaged employees really are?

If your environment looks anything like the above chart how could you possibly increase donor retention by focusing on increasing retention by a certain percent.

These findings are indeed sobering, however  if we peek into the DNA of an organization we may begin to see a correlation between employee satisfaction and donor retention. The level of an employee's engagement is impacted dramatically by feeling a number of key positive emotions ( inspired, enthusiastic, empowered, confident or valued).  70% of all surveyed felt at least one of these five key positive emotions, but only 12% felt three of them. Based on the number of positive emotions felt the findings looked like this:

What happens if employees feel negative emotions:

 To help understand the steps of designing a culture that creates donor retention check out the Donor Retention Boot Camp.  




Research & Charts: Dale Carnegie & MSW Research

Engagement: The Donor Retention Myth

I know all the rage currently is to discuss both communication/giving channels and engagement as key

tools for donor retention. If you've never been responsible for creating and delivering a strategy that resulted in donor retention then these items would be incredibly logical to focus on. The problem is it doesn't really work that way. You can't create something new and different with an old mindset, ie the dude on the right :-)

If donor retention is a desired outcome for you it begins with your organizational structure and culture , characteristics of your staff and the environment that is created for them to perform within. Retention is not an outcome as a result of doing X to another person. There are a couple of accounting phrases worth a closer look: FIFO and LIFO are keys to what creates extraordinary increases in both donor satisfaction, their sense of connection and ultimately their decision whether to stay longer. Retention is a direct result of the environment that is created for the workforce responsible for delivering the donor experience. What goes in is what comes out.

If you want to begin to understand what steps that you need to take in order to increase the lifetime value of a donor to your organization start with walking out of your office door. What is the environment with the staff and how is their energy? is there laughter? are people talking about getting together after work? is there any highly engaged group having a conversation about creating something extraordinary for their customers?

Suggesting that engagement is the focus of generating retention is the equivalent of suggesting you need plates in order to have a great restaurant. Of course you need engagement, just like you need plates. However, if there isn't a spirit of creativity, sense of pride and commitment to an extraordinary dining experience in the kitchen and with the wait staff that dining experience will not create a desire for the customer to return. 

Start devouring information on creating extraordinary teams and begin the process of understand the unique talents of each person that works in your fundraising operation. Dorothy put it best in the final scene when leaving the city of Oz. It really starts with understanding your own backyard and developing an appreciation for the unique talents of your team. These are the first gifts you need to cultivate in order for others to decide doing the same.

Do You Create Like A Rock Star?

My friend Tony Michaelides, during his Ted Talk, discusses his days with U2, David Bowie and other well known rock stars. I love one of the life lessons: "We don't remember days, we remember moments"

What is your organizations ability to create memorable moements?