31st March 2015
April is a fallow month for charities – in fact the worst in the year for the third sector. It is the time of year that committed direct debit donors are most likely to lapse.
Research from Bloomerang reveals that 53 per cent of donors stop their direct debits due to insufficient communication from the causes they choose to support.
- 5 per cent thought the charity did not need them
- 8 per cent received no information on how monies were used
- 9 per cent had no memory of supporting the charity
- 13 per cent felt aggrieved that they were never thanked for donating
- 18 per cent blamed poor service or communication
Statistics reveal that charities have a 60-70% chance of obtaining an additional gift from an existing donor, a 20-40% chance of obtaining an additional gift from a recently lapsed donor and a 2% chance of obtaining a gift from a new prospect. Consequently, a significant percentage of the marketing budget should be apportioned to retention and the reignition of recently lapsed donors. This is often not the case, however, with many charities at this time of year going on an acquisition drive. And yet, the potential in their existing customer database is immense.
At Millennium Data we help our charity clients with their retention rates by ensuring that their communications reach their intended recipient. Within 12 months up to a third of the donorbase data can be wrong, as people have moved house and passed away. Our products mitigate this risk. For more information, please contact Karen Pritchard on 01274 538888