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60 Days to Convert a One-off to a Regular

ChrisMollan
posted this on June 08, 2010 14:26

Earlier today I read an interesting article on the Third Sector website where marketing agency DMS produced new research suggesting that one-off donors are more likely to commit to a more regular donation within 60 days of their original giving.

It states:

The firm analysed data from more than 265,000 people who became regular givers to Cats Protection between 1 January 2009 and 10 March 2010.

It found that just over 6 per cent of the charity's one-off supporters became committed givers within 60 days of making their initial donation.

However, only 2.6 per cent of cash donors became regular supporters between 60 and 120 days after the original gift, and only 1 per cent became regular givers between 121 and 180 days after the cash gift was made.

Don't be fooled by the relatively low percentage figures, the potential income lost where a donor does not commit within the first 60 days is considerable.

Let's put it in more simple terms. 

If a charity has 10,000 new one-off donors per year and if the full 6 per cent commit within 60 days at an average of £5 per month, it's an additional income of £36,000 annually.  However, if the charity waits until after 60 days the additional annual income drops to £15,600.  Finally, chasing donors after 120 days will see additional income from committed regular donors fall to just £6,000 per annum.

Although it's a fairly basic calculation, it does represent the need to follow up one-off donors.  Like any commercial business, maintaining a regular contact with your "customer" is important for repeat income.

Steven Dodds, head of planning at DMS, explains:

"Some charities are concerned about asking people for money too often, but this analysis shows there is no such thing. Charities need to ask for a regular gift soon after a cash gift is given."

He is, of course, right.  Charity organisations need to realise that one-off donors only need a small nudge in the right direction to commit to a more regular giving plan.  What charities need to do is provide the tools for them to do this easily and the regular contact to cement the relationship.