While I was doing some research, I came across this interesting study. Brightback’s research is more aimed at the commercial subscription world, but a lot of what happens there can be applied to monthly giving for nonprofits.
What I find interesting is the shift to an online/digital model. Take note: Online consumers expect the experience to be convenient and relevant.
While I’m not a tremendous proponent of having online donor accounts, because they can be so cumbersome, especially if you have to remember a password, there are some advantages to the donor.
What happens next depends on how you as the organization gets notified of updates.
In this study of 1,088 consumers, the vast majority (60%) prefer to cancel online (versus calling or emailing, particularly amongst prized Millennials) while:
- An astounding 80% are more likely to purchase a new subscription that lets them cancel online
- 81% are more likely to refer a friend or colleague
What was most interesting when it pertains to monthly giving:
- 32% of cancelers have changed their mind when offered an incentive not to quit (e.g., discounts, flexibility to accept credit, pause or the ability to switch plans).
Hence, the “monthly giving save” option is very relevant here. That is offering the monthly donor the option to lower their monthly gift or to pause the monthly gift.
This approach has worked extremely well, especially early in the pandemic. And those organizations that used this approach were able to keep some 30% or so of their monthly donors. Very close to the percentage shown in the study!
I’ve only seen nonprofits use this save option when donors call in to cancel. But I’d recommend testing the save option as an option if donors email or use the online cancelation option.
Pausing can be a very powerful and enticing option to monthly donors. What do you have to lose by asking? At a minimum, if you get the email that they canceled online, send a follow-up survey and confirm if the donor wants to continue to hear from you.
If their circumstances change, they may very well be willing to come back.
First posted on NonProfitPRO Today on 3/1/2021.
