How to Salt Your Donor’s Oats: Boosting Retention and Engagement
You’ve probably heard the saying, “You can lead a horse to water, but you can’t make him drink.” But what if you could make him want to drink? Enter the concept of “salting the oats.” In fundraising, this idea translates to motivating your donors to stay engaged, give again, and become long-term supporters. So how do you “salt their oats” and inspire continued generosity? Why Do Donors Stop Giving? Before we can motivate donors to stay, let’s consider why they leave. One of the top reasons is poor communication, especially a lack of proper thanks and follow-up. According to a Bloomerang study, 53% of donors stop giving due to inadequate communication — including never being properly thanked. This begs the question: how well is your organization communicating with donors? Are you expressing gratitude and maintaining strong stewardship? Steps to Salt the Oats and Boost Donor Retention Here are some practical ways to increase donor retention and lifetime value: 1. Prompt and Personalized Thank-Yous A simple, sincere thank-you goes a long way. Ensure that donors are thanked immediately after their contribution. Whether through handwritten notes, phone calls, or personal emails, make the donor feel valued and appreciated. 2. Welcome Packet for New Donors First-time donors need an extra push to return. Consider sending a welcome packet that includes a personalized thank-you, information about how their gift is making a difference, and details on future opportunities to engage. 3. Ongoing Communication Don’t let the relationship end with a thank-you. Keep donors engaged by providing updates on how their contributions are being used. Regular newsletters, progress reports, or personalized updates can maintain their interest and make them feel like a valued part of your mission. 4. Build a Strong Brand Your brand is what sets you apart. It helps donors feel connected to your organization. A strong, consistent brand keeps you top of mind and helps foster loyalty. Just as Costco or Chick-fil-A can attract repeat customers through their strong branding, your organization can build lasting relationships with donors by standing out and staying consistent. The Cost of Not Retaining Donors Let’s break it down: if your first-time donor retention rate drops from the average of 50-65% to just 35%, you’re not only losing immediate funding but also sacrificing long-term major gifts. A well-thanked and well-cared-for donor is much more likely to become a repeat donor—and possibly even a major gift contributor. Conclusion: Salt the Oats for Long-Term Success Donor retention doesn’t happen by accident. It requires a thoughtful approach to gratitude, communication, and stewardship. By taking steps to “salt the oats,” you can inspire your donors to stay engaged and keep supporting your cause.
The Power of a Thoughtful Thank-You: Building Donor Lifetime Value
Have you ever received a thank-you note that really made an impression? A genuine, thoughtful message that stayed with you long after you read it? That’s the kind of thank-you that builds Donor Lifetime Value. In fundraising, your first interaction with a new donor is incredibly important—but the follow-up is what cements the relationship. Saying “Thank you!” promptly and sincerely can be the difference between a one-time gift and a long-term partnership. Why Gratitude Matters Donor acquisition is tough. With countless organizations vying for attention, it takes a lot to stand out, secure a first-time gift, and make your donor feel confident in their decision to support you. But the work doesn’t stop once they give. Studies show that 50% or fewer first-time donors give again, which means you need to take extra steps to retain them. A heartfelt thank-you is the first step in ensuring that your donors feel valued and confident in their decision to support your cause. Creating a Strong Thank-You Program So, how do you build a thank-you program that truly resonates with donors? Here are some key components to consider: Be Prompt: Timing is everything. Send your thank-you as soon as possible after receiving a gift, while the donor’s generosity is still fresh in their mind. Personal Touch: Personalize the message—whether through a handwritten note, a signed letter with a thoughtful P.S., or a quick phone call. The personal connection makes all the difference. Involve Others: Don’t be the only one saying thank you. Involve others in your organization—board members, beneficiaries, or team leaders—to show how widespread the gratitude is. Special Welcome for First-Time Donors: For new donors, consider something special to welcome them into your organization. This could be a standout publication, a progress report, or a small token that sets you apart. Follow-Up with Progress: Show your donor how their contribution is making a difference. A few weeks after their gift, send an update on how their funds are being used. The Cost of Not Saying Thanks Consider this: if you’re too busy to say thank you, what message does that send to your donors? It tells them that their contribution isn’t as important as it should be. In turn, they may choose not to give again. The cost of acquiring new donors is high, so investing in retaining the ones you already have is crucial. Without a strong thank-you program, you risk losing your most valuable asset—your donors. Conclusion: First Impressions Matter If you haven’t already, now’s the time to build or strengthen your thank-you program. Start with simple steps, such as immediate thank-you letters, personal phone calls, or handwritten notes. Your donors will appreciate the thought, and you’ll set the stage for long-term relationships that help you Go Big! in your fundraising efforts.
The Power of Brand Loyalty: How Costco Wins Big
What if your organization had 125 million loyal supporters, paying $60 to $120 annually, and 90% of them renewed their commitment year after year? That’s the kind of success we’re talking about when we look at Costco—a brand that has mastered the art of cultivating raving fans. Let’s dive into what makes Costco’s brand so powerful and how these lessons can transform your fundraising efforts. The Costco Approach: Strong Branding, Loyal Fans Costco’s brand success isn’t just about selling goods. It’s about delivering an experience that keeps people coming back. Here’s what we can learn from them: Category Ownership: Costco has carved out a unique space in the marketplace. When people think of high-quality products at low prices, they think of Costco. Their membership model ensures that customers feel part of something exclusive. Consistency and Trust: Whether you visit a Costco in Bozeman or Kailua Kona, you’ll find the same reliable experience. This consistency builds trust with customers, who know they can count on the brand to deliver value. Brand Differentiation: Costco isn’t just another retailer. Their friendly staff, bulk deals, generous return policy, and even their famous $1.50 hot dogs create a customer experience that’s hard to match. Now, think about your organization. How’s your brand working for you? Are your supporters passionate enough to talk about your cause to others? How to Apply Costco’s Success to Your Fundraising Costco’s approach to building brand loyalty can inspire your fundraising strategy. Here’s how: Define Your Unique Category: What’s your organization’s special offering? What makes you different from others in the nonprofit space? Identify your unique value and communicate it clearly to your donors. Consistency is Key: Just like Costco delivers the same experience at every location, your donors should recognize your organization’s work and feel the same impact across all your communications and events. Create an Experience: Beyond asking for donations, provide your supporters with an experience that shows their contributions matter. Whether it’s through personalized thank-yous, impact stories, or exclusive updates, make them feel like they are part of something bigger. Build Raving Fans: When your brand is strong, your donors become your biggest advocates. Encourage your supporters to share their experiences and bring others into your cause. Their word-of-mouth endorsement can be a powerful tool for growing your donor base. Conclusion: It’s Time to Build Your Brand If you want to Go Big! with your fundraising, start by focusing on building a brand that inspires loyalty and trust. Look at how Costco, Chick-fil-A, and other top brands have created raving fans by delivering consistent value and an unforgettable experience.
