Some quick thoughts of the recent Rapidata findings that report August 2011 to be the highest month for Direct Debit (DD) cancelations.
Mark blogged about it brilliantly here.
It’s been very clear to us all for the last couple of years that the source of new regular givers is rapidly changing. A client whose strategy I know very well, 5 years ago recruited over 60% of it’s new monthly givers from the traditional sources of DRTV, direct mail, door drop and inserts. That same client is now recruiting over 65% of its new monthly givers from dialogue based sources like Street, Door to Door and Cold Telemarketing.
We all know that these new dialogue sources of monthly giver deliver higher attrition rates than the more traditional sources of monthly giver.
So, it follows that as the proportion of donors from these sources increases, then the proportion of cancellations has to increase as well.
I’m not denying the impact of the global financial situation on giving at all. It’s clear that there is a growing concern amongst the public that their disposable income is shrinking. But we need to be careful not to blame the economic situation when the biggest driver of increasing cancellations might be channel.
So what to do?
Whatever you do don’t stop recruiting from these higher attrition channels. Of course refine your list selection for the phone and make sure you are managing the key performance indicators in your face to face recruitment (age, value and location).
But put a LOT of focus into understanding how you can reduce the attrition rates of these dialogue recruited donors.
It’s a line I maybe trot out a little too often – but you really need to match the passion of the initial acquisition moment in your subsequent communications with these donors or they will tune out quickly and lapse.
They just will. So, here come the sweeping generalisations...
They are not long copy, print based, detail people.
Or at least they are not at the very beginning of their relationship with you. They will get involved in the detail once you get them past the first month or two.
They are visual, high impact, short copy, demonstrate the need to me now type of people. Think video, infographic, real life stories, SMS and welcome call. Think mobile stewardship.
Like I say, probably drenched in generalisation. But these donors are different and we need to think differently, quickly to keep them.