gary hancock

The CRM journey - where do I start?

4 February 2013

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SAY NO TO

CAFFEINE

Talking about CRM: starting points

There is no such thing as the supporter journey

All change

CRM is not just about the ask

Our starting point

• One aim: protect and

increase supporter value

• What we do for the supporter

is as important as what we do

to the supporter

• Start with insight and analysis:

but how are you going to use

it?

• Strategy is important. But no

excuses: you can make small

changes that will increase

supporter value today

• One aim: protect and


• Inspired supporters are

valuable supporters

• To inspire a supporter you

have to know what they are

motivated by

• The world is changing, and we

need to change with it

• People make change happen

Talking about CRM


All change


The supporter journey?

What next, Steve?


You know:

• I have just made a cash

donation

Cash

donor

Thank

you

You should know:

• I have just made a cash donation

• My Dad had Parkinson’s disease

• I made an in memoriam donation in October 2010

• I moved house within the last five years

• In the past I have made monthly donations

• I used to buy Christmas cards from you

What next, Steve?


Cash

donor

Thank

you

Cash

appeal

CG ask Cash

appeal

Raffle Cash

appeal

Source: Sargeant and Jay (2004)


Cash

donor

Thank

you

Cash

appeal

CG ask Cash

appeal

Raffle Cash

appeal

Regular

giver

Thank

you Survey Upgrade

ask

Cash

appeal

Raffle Cash

appeal

Event

participant

Thank

you

Reminder Thank

you

Event

request Event

request

Cash

appeal

Legacy

pledger

Thank

you

Cash

appeal


Cash donor

Regular giver

Event participant

Legacy pledger

What influences the supporter journey?

• Every response can influence propensity

• Every refusal can influence propensity

• Every ask can influence propensity

Action

Yes No

Yes NoYes No

Example: impact of upgrade call on future attrition

• Supporters

who refused

to upgrade

were least

likely to lapse

Source:

Pell & Bales (2012)

What influences the supporter journey?

Every contact has the

potential to change the

direction of the

supporter’s journey

Source:

Pell & Bales (2012)

Starting to take control

• Think about your

supporters in other ways

than their current

product/relationship

• A good starting point: build

a segmentation of your

database

• Analysis can establish your

axes and allocate

supporters to segments

• But what if you don’t have

a budget?

Starting to take control

• Value and engagement are

a good place to start

• Create some simple

business rules:

- The thresholds between

value bands

- Categorising forms of

support

• Simple cross-sell tests will

help you to find the most

productive journeys

No such thing as the supporter journey?

• So there is such a thing as the supporter journey:

– It’s just not as straightforward as many people think

– And it’s not something you design in a workshop

• You need to segment your supporter base:

– But not (just) by product

• Segmentation is not just available to big organisations with big

budgets:

– Everyone can make a start

• But segmentation is the key to understanding your supporter base so

you can unlock its potential value

Talking about CRM


All change


Is this your charity? D

irect

Mark

eti

ng

Even

ts

Tra

din

g

Le

gacie

s

Cam

pa

ign

s

En

ga

gem

en

t

Vo

lun

teeri

ng

Inte

rnet

Your world is changing

A new type of journey

Low value High value

Single product Multi products

Activity Mission

Responding Committed

You need to change

what you’re doing!

People

"Never underestimate the power of a small group of

committed people to change the world. In fact, it is the only thing that ever has."

Margaret Mead

Transforming

Forming

Storming

Norming

Performing Create your

team

Working together

Conflict Conflict

Common

ambition

Working together

Common

ambition

Enable supporters of all types to have an impact on poverty.

To be Britain’s favourite charity

To create an ‘army’ A shared

ambition

Working together

Enable supporters of all

types to have an impact

on poverty.

To create an

‘army’

Membership

Shared

objectives

Change so far

Create your

team

A shared

ambition

Shared

objectives

Insight

Market level Segment level Individual level

Demographics

Trends Behaviours

Connection

Experiential and

emotional

What you really need to know about that connection

Golden

Question

Personal

insight

(connection)

Use the connection

Personalise

Messaging

Segmentation Targeting

Making it all happen

To create an ‘army’

Visit reserves

Membership

Send off for

information

Big Garden

Bird Watch

Merchandise

Online

engagement

Donate

Trading

Campaigning

Volunteering

Events

2 million

members

Engagement

Value

Making it all happen

Clear strategy All touchpoints Value

engagement

One thing that won’t change. Much.

A test plan

Testing

More change

Create your

team

A shared

ambition

Shared

objectives

Personal

insight

(connection)

Personalise

Clear strategy

A test plan

And one last change

All change?

• The most important thing is building a team

– Give them a clear ambition and clear objectives

• Our knowledge of our supporters must improve

– More individual and personal

• Our strategy must be clear

• Our plan must be tested

• And you must love your data analyst!

Talking about CRM


All change


Truths

Our single-minded focus:

protecting and increasing

customer value

What we do for the customer is

at least as important in driving

value as what we do to the

customer

Important

What if?

• Completely satisfied customers six times more likely to repurchase than satisfied customers

• Completely satisfied customers over 40% more likely to be loyal

How much does it cost you to

acquire a new supporter?

Currently active supporters 100,000

Average value £ p.a. £60

Tenure (years) 6

LTV £360

100,000

+5%

+1

£441

100,000

+10%

+1

£462

Source:

Why Satisfied Customers Defect

Jones & Sasser, 1995

Proven

In the first study to address donor satisfaction Sargeant

(2001) identified a positive correlation with loyalty, donors

indicating that they were ‘very satisfied’ with the quality

of service provided being twice as likely to offer a second

or subsequent gift than those who identified themselves

as merely satisfied.

Perceptions of the quality of service

offered to donors are the

single biggest driver of loyalty in the

fundraising context.

Source:

Donor Retention: What Do We

Know and What Can We Do

About It?

Sargeant, 2008

The 4 Ps of effective supporter care

Priority

Process

People

Performance

Supporter care strategy

• Establish your vision for the role of supporter service

• Review your current performance and capability: establish priorities for focus and investment

• Establish SMART objectives, a sound business case and a clear plan for closing the gap between the current situation and your ambition

• Crucially, leadership must demand that supporter service excellence is an organisational priority

Questions:

• Do you have a supporter care strategy?

• What’s your vision: what kind of experience do you want to create?

• Do you know your supporter care strengths and weaknesses?

• Should supporter service be purely responsive? How can it drive value?

Proactive supporter care: Moments of Truth

Every interaction with a supporter is an opportunity to create value or

potential value. They happen in your supporter service team every day

65% of all Moments of Truth activities resulted in a positive outcome, of

which 67% had a direct financial impact

We developed a

programme with one

client, to explore the

potential of Moments

of Truth:

Description Desired outcome

Supporter complains

Supporter confirms

continued support

Supporter calls to cancel

Supporter won back

during call

Anyone makes a product

enquiry

Supporter makes

commitment during call

Supporter calls for any

reason

Check/obtain Gift Aid

declaration

Supporter calls for any

reason

Check/obtain core

supporter data

Proactive supporter care: Fast track win back

• When a supporter cancels their regular gift, do you attempt to save them?

• We helped one client to establish a fast track reactivation programme within their supporter service team

• A dedicated team member contacted all lapsed supporters within three weeks of cancellation, to ask them to continue their support

Over 40% of all supporters contacted by telephone agreed to restart

their regular gift

Supporter care process

• Consistent, reliable service

• Achieving service levels

• Managing resources

• Resolving issues

• Breaking the cycle of errors and

corrections

• Delivering service that

differentiates your organisation…

…is only possible if you fully

understand, document and manage

processes across your organisation

Questions:

• Top down: what do we do and

how do we do it?

• What are your most frequent

and important transactions?

• What’s the customer process

for these transactions? How

can it be improved?

• Tactically: when a problem

occurs, do we seek a quick fix

or do we understand the

process and how it should be

changed?

Supporter care people

• Supporter service teams must recognise that

they have two roles:

– To ‘own’ the supporter’s enquiry and deliver

fast, effective service

– To identify and exploit opportunities to


• But a change of culture requires training & development support, close

ongoing management and motivation

Questions:

• When a supporter calls to cancel, do you process the transaction or save them?

• If a supporter enquires about a product, do you send information or convert their

interest into support?

• Do you exploit quick wins such as obtaining Gift Aid consent from all callers?

• Do you take every opportunity to gather information that will make future

fundraising communications more relevant and effective?

• What skills and resources will you need to develop in your organisation, to make

this change happen?

Supporter care performance - internal measures

• Accurate, current management information is

vital for the effective management of

supporter service delivery

• Establish targets, service levels and KPIs

• Start with your process understanding:

monitor and report your achievement of key

process milestones

• Start to measure what income is generated

through your supporter service team!

Questions:

• Have you established service levels for all your most frequent and important

supporter service transactions?

• Do you know your % achievement of these targets this week/month/year?

• If you fail to achieve your service levels, do you have a procedure for taking

action?

• Does your senior management know how you are performing?

• Is your supporter service team a cost centre or a value centre?

Supporter care performance - supporter measures

• ‘How satisfied are our

supporters?’ is the most

critical measure of your

performance

• Start now, and establish a

baseline

– Continuous research

– A periodic exercise

– Through your contact with

supporters

– Post-experience survey

• Measure satisfaction and

importance

Low

Low

High

High

Satisfaction

Import

ance

Monitor De-prioritise

Invest Sustain

Questions:

• How will you understand how satisfied your supporters are with the

experience you give them?

Matrix adapted fromDonor Retention: What Do We Know and

What Can We Do About It? Sargeant, 2008

[email protected]

linkedin.com/in/garyhancock

@oxfordgary

07918 104500

[email protected]

www.RogerLawsonConsulting.com

@RogerLawson

07929 208848

gary hancock

Documents

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supporter journeyall

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