Are High Dollar Donors More Loyal ?

Have been wondering recently whether high dollar donors are more loyal than low dollar donors, and while pondering this, an email popped up with a link to an article on this very subject from from Gregory Warner of Marketsmart.

Although it doesn’t show New Zealand examples, it’s worth a read and hopefully I’ll soon be able to share some local examples.

Here’s Gregory’s article …

PROOF THAT HIGH-DOLLAR DONORS ARE MORE LOYAL THAN LOW-DOLLAR SUPPORTERS

Recently I made some new friends at The Fundraising Effectiveness Project and they shared some awesome research findings with me.  You can see the first one below proving that high-dollar donors are actually more loyal (stickier) than low-dollar supporters.

I think what this chart implies is this: The fundraising pyramid is dead

The idea that nonprofits should first seek to gain low dollar donors and move them up the pyramid is just not a wise strategy. Low dollar donors are clearly less loyal and don’t repeat at nearly the same rate as high dollar donors $1,000 – $4,999 (at 87%). Plus, low dollar donors are very expensive to acquire yet they are much more fickle. Therefore, they clearly can’t deliver enough returns for the long haul compared to the other givers.

4 things you should do today:

1- Develop a strategy that emphasizes efforts to gain more high-dollar donors instead of low-level supporters.

2- Focus on customer service and retention by providing value everywhere (especially in your engagement offers).

3- Search for ways to move mid-level donors up (again by providing value especially in your engagement offers).

4- Aim for referrals. Encourage your current high-dollar donors to introduce you to other high-dollar donors. This will be the lowest cost marketing you can implement and it will deliver the greatest return for your investment. The ice bucket challenge did this for low-level donors. But most of them never gave again. What can you do to get referrals from major and mid-level donors? Figure that out and you’ll be a fundraising rockstar!

Read the full article here