Are you effectively engaging with your alumni?
Lisa Eickoff (not her real name) is browsing your university website. Lisa is an alumna from the Class of 1968 and we know from previous research she has a giving capacity of $1.2 Million. Right now, she is browsing the “1968 class reunion” page but hasn’t clicked on any registration or donation links. And as you are reading this, she signs off and is no longer looking at your website.
What happened here? Will we see a gift from Lisa in the future? For most universities, non-profits, and other donor-funded organizations, Lisa would be a missed opportunity. She was a well-qualified donor with a good propensity to donate, but she didn’t complete the process. And in most cases, you don’t know she was browsing your website and you don’t know she was very close to donating or attending a class reunion.
Universities and colleges lose $4.2 billon annually. Under-utilized data and analytics can recover 30-40% of that amont.
Use Analytics to solve the awareness problem
At Archetype, our people bring ideas and solutions from their experiences with industry leaders and use their creative talents to solve problems. In the case of donor relations, we are leveraging our insights from across industries to bring solutions that match the challenges you face – connecting with your donors at the right time with the right message. Archetype understands this challenge and is applying solutions that are supporting the growth of online retailers to support the goals of Development professionals. It’s the same technology that allows Amazon or Crate and Barrel to email you when you left something in your cart and did not buy it.
Let’s revisit Lisa on your website. Let’s say, hypothetically that you could know she abandoned the page in near real-time. Your university might have a gift officer within a 20-minute drive of Lisa’s house who could grab coffee with her to “say hello.” Without the awareness of the event, you can’t act on it.
According to a 2016 study called “Fundraising Effectiveness Project (FEP)” by the Association of Fundraising Professionals, universities & colleges lose $4.2Billion annually. Under-utilized data and increased awareness through analytics can account for 30-40% of that. The awareness of key events and the ability to act upon it can recover lost donations. We find a 3-step approach is crucial to recovering that 30-40% and the following illustrates our approach:
Firstly, clean and prepare the information you do have about your alumni, donors, and fans. Bring the information into one place so it is easy to analyze. Second, use third-party data sources to build an up-to-date and comprehensive profile of your donors so you know who has the ability to donate so you can focus your efforts on those individuals and organizations. Thirdly, using statistical modelling and your own donation history data, donors can be segmented to identify those individuals or organization who have the ability and the willingness to donate. These are the people you target.
Donor Registration And Abandonment
At Archetype, we have a passion for applying technology to solve problems and improve customer experiences. A local Boston-based university studied 2 years of abandonment data, they identified the lost opportunities below:
During a pilot project, they discovered that 30% of the abandoners, if contacted by a gift officer 24-48 hours after abandonment, made much larger than expected donations. Converting just 10% of those lost opportunities would have been, conservatively, an ROI of $9,622,600 realized-return on investment for this university. This rate of return has also been substantiated at other universities, such as Dickinson College* in Pennsylvania. (See * From “Winning Donor Mindshare in the Attention Economy” by the EAB. )
“It usually costs less to retain and motivate an existing donor than to
attract a new one. For most organizations—and especially those that
are sustaining losses or achieving only modest net gains in gifts and
donors—taking positive steps to reduce gift and donor losses is the
least expensive strategy for increasing net fundraising gains.”
– Association of Fundraising Professionals
Retention is a lower-cost solution than acquisition. Donor Abandonment is the first line of defense in your retention strategy
Web intelligence meets human intelligence
At Archetype, it’s our desire to help you maximize your return on relationships with donors and alumni. As a result, we’ve created a platform to help development teams, colleges, universities, or non-profits benefit from the wealth of technology that exists today. However, the awareness gained by using this technology needs to be paired with the relationship-building efforts of your gift-officers and advancement staff. With the awareness that is gained through the technology and the human interaction of a follow-up call or coffee, your organization can see the incremental 30-40% return.
With awareness gained through the technology, your organization can see the incremental 30-40% return.
And coming back to Lisa, she was contacted 24 hours after abandoning the website. The gift officer called her at home, and when Lisa answered the phone, her response was “I am so glad you called. I was just thinking about you…” The story ends well, Lisa ended up donating $3,000 while on the call.
It would be our pleasure to assist you in your fundraising efforts, capital campaigns, or event registration efforts. We are an analytics company with a passion for using data and technology to help our clients work smarter and make room for bigger and better ideas. We seek organizations who want to trial an analytics solution to achieve improved donor reach, engagement, and giving. All we ask as part of this no-risk involvement is the ability to work with your staff, a testimonial of how great we did, and compensation only if you realize the ROI we specified. To learn more, please contact the members of the Archetype team.