The Nonprofit Hero Factory: Episode 45
Email Sequences that Keep Donors Donating, with Rachel Bearbower
In this Episode:
Does it feel like your nonprofit running on a donor treadmill? You’re constantly expending your resources to attract new donors, hoping that you get them quicker than you lose the ones that you had before so that you can do more. It’s exhausting and often demoralizing… and it doesn’t have to be that way.
Improved donor engagement and retention starts with a great welcome experience. Using a combination of personalization and automation, an email welcome sequence can start a conversation and build a relationship that provides value to both sides and lasts for years.
Rachel Bearbower of Small Shop Strategies helps overwhelmed executive directors create simple, effective welcome sequences on autopilot. She joins us this week to share how they work, and the 5-email formula you can use to get started today.
Listen to this Episode
Read the Transcript
[00:00:04.610] – Intro Video
Welcome to The Nonprofit Hero Factory, a weekly live video broadcast and podcast where we’ll be helping nonprofit leaders and innovators create more heroes for their cause and a better world for all of us. Da Ding!
[00:00:20.790] – Boris
Hi, everybody. Welcome to another episode of The Nonprofit Hero Factory. One of our recurring topics is storytelling for fundraising specifically and the different ways that you could tell your story to your funders, to your donors at different times. Today we’re going to focus specifically on what I hope is a pressing issue for you. So if the end of year went well for you, and I really do hope it did, you might have a lot of new donors coming on board, a lot of new supporters in various levels that have not had a lot of contact with you in the past. Maybe they don’t know your organization as well as you’d like them to, and you want to convert them into long-term donors.
[00:00:58.930] – Boris
So we’ve got an expert today that does just that. She helps organizations do that. Her name is Rachel Bearbower. She is the founder and CEO of Small Shop Strategies. Like many of you, Rachel is a fundraiser, former ED, and founder. She has also been in the trenches of an underfunded limited resource system-less organization. And the stress, overwhelm and frustration it can cause. I know we can all relate to that. That’s why Rachel is who folks turn to for systems, structure and a plan.
[00:01:29.870] – Boris
And when all of these are in place, she promises you’ll have more time to serve those who mean most to your organization and raise the funds needed to keep your mission moving forward. Sounds pretty great. Rachel describes her superpower as being really good at seeing a big problem and then being able to drill down into the weeds to create an action plan. She’s also great under pressure and loves taking risks. And she is here with us today to help us with all of our strategies around donor retention. Rachel, welcome to the show.
[00:01:59.850] – Rachel Bearbower
Hey, Boris. It’s so good to be here. Happy New Year.
[00:02:04.480] – Boris
Thank you. Happy New Year. And it is a brand new year. And we’ve got hopefully all these new donors that have signed up wanting to hear from us, wanting to help us with our cause. And I’m really excited that now, I think is a great time, perfect time maybe, to have you on to talk about how to convert them into more sustaining donors. But before we do that, I want to get to know you. And I want the folks at home to get to know you a little bit more. So besides your impressive bio, very re-readable bio, tell us a little bit about yourself. How did you get to be who you are today? What’s your story?
[00:02:39.210] – Rachel Bearbower
Oh, my gosh. Well, I feel like I’ve lived a lot of lives, but I think I can kind of sum it up with: I have moved across the country four times and I’ve tried to walk across the country once. So I’m a big fan of, like big, bold moves. But I really fell into the nonprofit industry. I was actually working in finance, and I didn’t love the corporate world. It was really not my jam. And so moved across the country. And it’s like, can’t be that hard to start a nonprofit. Famous last words.
[00:03:33.350] – Rachel Bearbower
I decided to jump into working with an animal welfare organization and then ended up founding my own organization and spent the greater part of a decade really just learning everything I could about this incredible sector. And when I did eventually decide to leave, there was another cross country move. I decided to move to the Midwest, went ahead and fell in love with a farmer. And we decided to move to the Midwest and become farmers. So—
[00:04:09.071] – Boris
As you do—
[00:04:10.070] – Rachel Bearbower
As you do, yes. So I’ve done every coast now. Now I got to do the Midwest. But I realized, you know, that as an Executive Director, I felt just so isolated in my role. And I would look at—I’d go to these networking events, I’d be like, “How do I be like that person? How do I sit at the big kids table?” And I didn’t know how to get there. And I felt like I was recreating the wheel. I was like, somebody else has done this before. I don’t know what this is, but somebody else has done this before.
[00:04:52.150] – Rachel Bearbower
And so when I finally left, I was like, I don’t know what I’m creating, but I’m creating a space for executive directors to not have to recreate the wheel. I’m just going to teach everything I know and just put in place a community where you don’t have to feel so alone. Here I am, middle of Iowa, driving tractors, hanging out with EDs. It’s what we’re doing. So that’s my journey.
[00:05:28.880] – Boris
That’s a pretty great journey. I can relate to a lot of that, including moving coast to coast. I call myself tri-coastal because I lived in LA. My family is in Miami. I’m up in the New York, New Jersey area.
[00:05:40.000] – Rachel Bearbower
I love it.
[00:05:42.350] – Boris
So I can totally relate. And I can totally relate to wanting to help others with the knowledge that you’ve accumulated. I think it’s wonderful what you’re doing. You and I have talked before about what you do and how you do it, and I’m very impressed and think it’s invaluable to all kinds of organizations, executive directors and other senior people in there.
[00:06:00.550] – Boris
Also, you were talking about how you thought, “Hey, how hard can it be to start a nonprofit?” A lot of nonprofit founders, and frankly, for-profit founders think it can’t be that hard. And naivety is a superpower because, without it, I don’t think anyone would ever do anything when it comes to starting anything worthwhile anyway. So the good news is there are folks like yourself and like me in certain situations that are there to help—once you start seeing those roadblocks, help you overcome them.
[00:06:32.540] – Rachel Bearbower
I said that I am so lucky that I was so naïve and so overly ambitious, because that is really how—if I would have had any idea how hard the work was that I was doing, I would have never even started. But you just keep putting one foot in front of the other one and day at a time, and you do it.
[00:06:59.060] – Boris
Yeah. And hope that when you’re putting one foot in front of the other, you do it in the right order and don’t trip. But if you do, you get back up and you keep going.
[00:07:06.260] – Rachel Bearbower
[00:07:07.790] – Boris
So, Rachel, let’s talk then about what’s going on in the nonprofit sector. You’re working with a lot of EDs. Based on your company name, Small Shop Strategies. I’m assuming it’s mostly smaller organizations, smaller shops. What are they experiencing right now? What are some of the issues that they’re facing?
[00:07:29.350] – Rachel Bearbower
Yeah. So limited time. I did a survey. I’m always talking to my EDs. I’m surveying the people that are in my sphere. And I’m like, “What do you need? What’s going on?” Time. It always comes back to time. How do I manage my time? How do I find more time? What are time saving tips? Like always coming back to time. And so, when it comes to working with your donors and so much of what I’m seeing, especially with small shops, the focus is getting new donors. It’s all about getting new donors. Finding them, finding them, finding them. And then… what? And there’s no conversation about after that. There’s like “You should make sure to thank them.” We’ve got that. Okay, so that’s great.
[00:08:38.710] – Rachel Bearbower
But it is so much more than that. It is so much more than that. And that donor retention, there’s a statistic out there that 70% of new donors only give one time to an organization, and it’s probably higher than that. But I mean, that alone, why are you working so hard to get these donors if you’re just going to lose them? So when I heard that, I was like, okay, time out here. We got to be a little more efficient with our time here because we’ve just spent all this time trying to get our donors, and we’re trying to connect with them and do all the things we’re supposed to do. Let’s come up with some systems here. So what I’m seeing in the nonprofit sector right now is limited resources, not enough time, and not enough focus on retaining our donors.
[00:09:43.590] – Boris
That seems so self evident. There may be organizations, though, that still need to hear that, A, that you’re not alone, that you are having these kinds of issues, and B, that it is something that you can compensate for if not even completely overcome. We’ve talked before on this show, actually, you know Ephraim, he’s been on the show and he’s a big—the word advocate is not even enough. He’s a champion and a zealot of, “you’ve got to treat your donors well.” And you’ve got to really connect with them and keep the connection going so that you don’t spend all your time and money, time being the biggest limiting factor, as I think you correctly labeled. You don’t spend all of it just trying to acquire, acquire, acquire. There’s a customer acquisition cost in marketing, but then there’s also customer retention rates and retention costs. And in nonprofits’ case, that often refers to the donor. What does it take to keep them? How much does it cost you to keep them versus losing them and starting another one? I’m pretty sure the stats are clear that it costs a lot less to keep them than to acquire them, am I right there?
[00:10:59.630] – Rachel Bearbower
Okay. I have a great example of this. So let’s talk about Starbucks. Okay? So the average person… I’m going to just like… Everyone’s going to cringe. So I just need you to all take a deep breath. Okay?
[00:11:21.610] – Boris
Right. I’m with you.
[00:11:21.610] – Rachel Bearbower
Take a deep breath. The average person spends $14,000 at Starbucks on average in their lifetime. $14,000. You’re doing the math in your head. Let’s break this down. So that is over a 20-year period. That’s about like 67 something. It basically works out to two drinks a week. Okay? So when you get down to that, like that’s not that much. Two drinks a week, over 20 years, $14,000. Okay. That’s a pretty good lifetime value for Starbucks. They spend about $1,000 on you…
[00:12:16.950] – Boris
To acquire you as a customer.
[00:12:18.560] – Rachel Bearbower
To acquire you as a customer, to get you on the app, to do the, you know, you get like, well, I guess they don’t really do the cards anymore. But the free drinks and the birthday drink and the things that Starbucks does, they spend about $1,000 on you.
[00:12:36.100] – Boris
So it’s a 14X return. Not bad. I’d invest.
[00:12:39.760] – Rachel Bearbower
Not bad. So let’s think about that with our donors. If you were to have a donor for 20 years and that donor gave, say, $1,000 a year over 20 years, and it cost you maybe because math on video is hard, cost you $1,000 to acquire…
[00:13:10.530] – Boris
Acquire, maintain, yeah.
[00:13:11.790] – Rachel Bearbower
Acquire, maintain, steward them over the lifetime of their time with your organization, $19,000. It’s a pretty good lifetime value, right?
[00:13:24.980] – Boris
Pretty good lifetime value.
[00:13:31.630] – Rachel Bearbower
I think it’s important to continue to find new donors. I think there is a lot of missed opportunity in retaining our donors. And I think one of her biggest mistakes. And I am raising my hand here because I did this. Remember, founder, Executive Director, person who did not know how to fundraise, did not know anything, guessed at everything. I’m a pretty personable person. But then I would go and talk to my donors and I would turn into a robot. An absolute robot. Like, my letters would turn so formal. Dear Sir or Madam, or To Whom It May Concern. And I think that we forget that humanizing this whole thing could make our lives so much easier.
[00:14:37.370] – Boris
Yeah, we do forget that our clients , our supporters they’re people. And that we need to treat them like people at every point possible. And oftentimes we think we are. We think, no, this is a person. So I’m going to send them this update. But it’s an update rather than a conversation, rather than something that a person would say to another person in person.
[00:15:00.770] – Rachel Bearbower
I will say one time I was trying to get some letters out, and I’ve got dogs, and I had a dog. And this is when I worked at the animal welfare organization. I was trying to get these letters out, and one of my dogs stepped on the letter and it was a muddy pot. It was what it was. And I was like, you know what, I’m just going to send this. And I made a little note. I was like, “haha, Grayson got to this. He says hi, too.” The donor loved it.
[00:15:37.930] – Boris
[00:15:39.050] – Rachel Bearbower
And I was like, next time I did notes, I was like, Grayson, come on, get muddy. And it was something that was completely by accident. But that little tiny thing made a big difference. It made that connection of like, oh, yeah. No, totally been there when my dog has gotten something muddy. That’s a human connection.
[00:16:02.870] – Boris
[00:16:03.660] – Rachel Bearbower
And something that we forget.
[00:16:05.810] – Boris
Absolutely. I love the dog print. And instantly, as soon as you said, I’m like, oh, I’m sure that donor loved it. And from now on, Grayson needs to step on a stamp pad and then walk across all your letters. Just lay them all out and then have stamp pads and Grayson, come on, let’s go.
[00:16:20.560] – Rachel Bearbower
[00:16:22.310] – Boris
So at this point, you’ve got us, first of all, reconsidering our Starbucks habits. But second of all, shaking our heads along of, yeah, that does make sense. Donor retention, of course, if we didn’t already know, which I’m sure most organizations did. But again, they’re strapped for time, and they don’t necessarily know how to apply that. Donors drop out for lots of different reasons, but none of them should be you. None of them should be because you didn’t do what you could and should to keep them engaged and happy with the work that you’re doing. So let’s talk about that. And let’s break down how you help organizations, what we can all do to improve our donor retention rates right now today, as we’re listening to this show.
[00:17:05.670] – Rachel Bearbower
I love it. Okay, so automation is one of those things I get very excited about. Now, I realize that this is not something that everyone gets excited about, but I do. So I want to talk to you about a welcome series because it is one of the most efficient and most effective ways to bring someone, whether that someone is a caregiver who is filling out a form looking for information from your organization, or is somebody who just gave a first-time gift. However they are coming into the sphere of your organization, there needs to be a conversation.
[00:17:49.630] – Rachel Bearbower
And actually, whether you’re a small organization or a large organization, having that one on one personal relationship with every single person is just not feasible. And so coming up with strategies to be able to do that in a way that feels one-on-one, but it’s actually an automated way. Okay? So a welcome series is the perfect way to do that. And the idea of a welcome series kind of makes people nervous because they’re like, oh, there’s tech, there’s like lots to do. But what it is, we’re just going to boil it down, is you’re providing value to whoever it is who just came in.
[00:18:41.230] – Rachel Bearbower
So I’m going to use an example of a non-donor. Okay? So you have somebody who just signed up for your newsletter or a caregiver. Because I have an example for this from an organization, I’m going to tell you the story. It’s going to blow your mind. It’s awesome. But this organization, they’re an Alzheimer’s organization. They have caregivers that come into their organization. And, you know, it’s typically maybe young adults or people with aging parents who are looking for more information, looking for support. Okay? And they come in, they get the support, and then what? Okay? And mind you, you can do this with new donors, you can do this with anyone, but you want to provide value.
[00:19:38.600] – Rachel Bearbower
So what’s the first step in a relationship? Acknowledge that a connection was made. “Hey, I’m glad that you are here.” Okay? So the idea is that you provide value. What is it that my audience needs? What is it that my donor needs? What is it that this person needs? And you provide value, provide value, provide value, provide value. Said that four times.
[00:20:04.110] – Boris
[00:20:04.950] – Rachel Bearbower
And then make an ask. Okay? So it’s a five-email welcome series. Okay? I have a couple of tips. But first, I want to tell you about this organization, because this, I knew welcome series worked until I heard this story. So I just got this information yesterday because I knew that this was going to be important. So let me grab these numbers because I do not want to get any of them wrong.
[00:20:36.470] – Rachel Bearbower
So this organization, as I mentioned, it’s an Alzheimer’s organization. Okay? So they implemented a welcome series because they’re like, we have all these people coming in and they’re these caregivers, and we don’t quite know what to do, like how to have a personal relationship with them, how to have this one-on-one. And I was like, “Let’s get them into a welcome series.” Okay? So we created five emails, which I’ll go through those emails, and we automated it. So through their email providers. So whether you have MailChimp or Constant Contact or ConvertKit, all of those have that feature. Okay, the open rate on these emails, 53%. The average open rate, 53%.
[00:21:29.700] – Boris
Is that consistent from email one to email five?
[00:21:31.980] – Rachel Bearbower
Yes. That is the average of all five emails.
[00:21:34.980] – Boris
That’s pretty impressive.
[00:21:36.240] – Rachel Bearbower
53%. The average click rate, 11%. Now, to give you some perspective here, industry standards, like open rate is about 20%. Click rate is 2% to 3%. Okay? So these percentages are blowing it out of the water, like doing an incredible job. So here’s where it gets really, really cool. They started sending this welcome series in April. Okay? They started stewarding this group of people, and there was about 480 people that went through this welcome series, and about 16 of them donated to the yearend campaign, which is about a 3% ROI.
[00:22:40.530] – Rachel Bearbower
When you start thinking about stewarding a brand new group of people and then what can happen, I mean, and we talked about that lifetime value. You know, these people donated for the very first time. They’re starting to see the impact they’re feeling from your organization. And they decided to give a gift. Had they not felt like you were trying to make that connection, you weren’t going to get that gift. You might have gotten a gift, but maybe not. And the organization… they don’t do anything.
[00:23:34.550] – Boris
They just set it on autopilot.
[00:23:36.060] – Rachel Bearbower
It’s on autopilot.
[00:23:37.500] – Boris
Love it. That’s awesome. And good for them for getting that set up. I know lots of providers, email newsletter providers do have these sequences that you can create these automations. I know some organizations use their CRM also as their email platform, and I don’t think those are as good with automations in terms of sequences or drip campaigns as they’re sometimes called. So you might want to look if you are using a CRM into a supplementary system and MailChimp, I think still has their free tier. They certainly have discounts for nonprofits. But you could find free or low cost options to get people through that, even if you’re only sending your new donors through that and then keeping them in your CRM and taking them back out so that your email list and rates for subscription doesn’t go up too high what you’re paying monthly.
[00:24:30.960] – Boris
So I love that. I’m not one of those people who doesn’t like automation. I love automation and what technology can do and how technology can still be used to keep things personal. That’s awesome. When you’re talking about these email sequences and how you used to speak to people via letter or email. Today, we are much more used to an informal conversation in the first place. Think about, I would say if you are meeting someone on Zoom, a video meeting, you’re not going to start off with Dear Sir or Madam, and you’re not going to say, I’d like to tell you today about the numbers of people that we have, blah, blah, blah. You know, you’re going to start off with, hi, it’s so good to meet you. Thank you so much for joining me and for the time that you’ve spent, really means a lot to the organization. How are you today? Right? You want it to be more of a dialogue and then come into by the way, I really want to thank you for your gift. And here’s what it’s helping us do.
[00:25:27.520] – Rachel Bearbower
[00:25:28.260] – Boris
[00:25:30.750] – Rachel Bearbower
This is a great opportunity to share the stories of your organization. You are doing incredible work and impacting the lives of so many people or animals or whoever your beneficiary is. But tell the people in your organization. I think sometimes we hold those stories close, but this is a great opportunity to just be like, let me tell you something cool.
[00:26:04.810] – Boris
Yeah. You don’t have to sell me on storytelling.
[00:26:07.100] – Rachel Bearbower
Right. I do know this.
[00:26:10.270] – Boris
Yeah. No, I completely agree with you. So I do want to break down a little bit. And I want to be respectful of your time and folks at home because we are bombarded with so much media these days. I like to make these as packed with info as possible. So I’m just going to try to squeeze a little more out of you, Rachel.
[00:26:27.080] – Rachel Bearbower
Yes, of course.
[00:26:27.900] – Boris
You said five emails where it’s value, value, value, value, ask. Great. Love the sequence in those terms. How frequently are those emails sent? Because you said that one organization started in April. But are you talking about one a month? Are you talking about one a week or daily? How often do you send those out?
[00:26:48.650] – Rachel Bearbower
So it really depends on the frequency that you are sending emails. Like, if you’re an organization that’s only sending an email maybe once a month, then the frequency might be a little bit further apart. It really depends. But ideally, once a week, once every couple of days, that would be ideal.
[00:27:16.090] – Rachel Bearbower
Okay, let’s dig into these emails. I’ll quickly go through them. So the first email, first thing that you want to do when somebody enters into your sphere is align the value. So introduce you. When I say you, I mean you Executive Director, whoever is sending that email, you are a person. And while you do run an organization and we like to introduce ourselves as like, the face of the organization or whatever. But introduce yourself as a person. It’s okay to say, like, hey, I’m the person behind this organization. You’re talking to a real person. So introduce yourself and align values.
[00:28:05.050] – Rachel Bearbower
So then the second thing is, second email is to spark a conversation. So start with maybe sending some kind of article, podcast that’s interesting. I don’t know. Boris, do you have any recommendations for great podcasts? Send some podcasts that are interesting. Ask a thought-provoking question. Okay?
[00:28:32.060] – Rachel Bearbower
So then you want to move on to sharing a little bit more about what your nonprofit does. So a great, you know… do a show and tell. This might be sharing a story. Ask for the donor or whoever the audience is for their feedback. What do you think about that? Okay? Engagement, continuing that conversation. Okay?
[00:28:58.620] – Rachel Bearbower
So then the fourth one is to ask for feedback, get advice. So if you have an opportunity to do some sort of survey or get a little bit more information about who it is that you are talking with. So if it’s a donor, why did you give? And it doesn’t need to be a 20-question survey. This could be two questions like, why did you give and what’s your name? Very simple so that you can really understand why is it that people are coming into your sphere.
[00:29:35.250] – Rachel Bearbower
And then that last email, that’s where you have this opportunity to make an ask. So something you’ve probably heard on this podcast is that, the best time to make an ask, if you have steward your donors really, really well, the best time to make an ask is six to 12 weeks after the first ask. So do it. Time to make an ask. You’re like, hey, we’ve got this problem. This is what’s going on. You are clearly a supporter and you are interested in what we’re doing. Would you consider making a gift? Bam. So, five emails.
[00:30:22.030] – Boris
Love it. And thank you for bringing all those down. We’re going to have all that written out in the show notes as well as links to any additional resources which we’ll talk about in a second. But that 6-to-12-week-cycle, I think is great. The ask at the end of that is right on point. You got someone for the first time, chances are they’re dipping their toe in the water. They aren’t fully committed to your organization yet. So now you’ve stewarded them. You’ve provided them all that value, as you so eloquently and correctly said, four times at least you’ve provided that additional value to them. And then you’ve explained that there’s a bigger problem or a new problem or more that they can do in a way that is tangible to them or feasible for them to actually do. And then you ask them to please help you with that problem. I think that’s great. And I do agree that that six-to-twelve week period. I think you said eight to twelve. Sorry, I want to pick that right.
[00:31:22.940] – Rachel Bearbower
Six to twelve, eight to twelve somewhere in there. It kind of all depends.
[00:31:27.250] – Boris
I think that’s the longest you want to go with the sequence. I think regardless, and it’s totally fine if you and I don’t see this part of the strategy the exact same way. It is definitely subjective, but I don’t think it even matters how often your newsletters go out. This is something that’s separate from your newsletters and something that should feel personal and really establish that relationship. I know when I meet someone at an event, I might hit it off with them for a few minutes, but two weeks later I might not remember their name. I might not know who they are. So you really want to get that connection solid in their minds between their gift and what they’ve been able to do with their gift, how they become a hero and how your organization has helped them become that hero.
[00:32:14.600] – Rachel Bearbower
So really quick because I know that going and writing five emails. Right? Like just lifting them off is really hard. Something that you might want to try, especially as we’re in kind of first quarter after year-end giving, write one of those emails a week for the next four or five weeks, and then take each one of those emails and after you’ve written them, then turn them evergreen. So what I mean by that is make it sound like it could go out at any time and put those emails into that automated series. So then anyone after—that comes in after then receives those emails. So then you don’t feel that pressure of having to write all five of those emails right away. Great way to get it done.
[00:33:11.770] – Boris
I also did want to highlight that you said survey them, ask them some questions. You do want it to feel interactive. You don’t want them to feel like… And this should be the reality. You care about them and what their concerns are, the reasons why they gave. It’s not about you, the organization. It is about a human being. As you said, identify yourself in that first email. And it is about the person who is supporting you, why they’re supporting you, and what is it that they’re hoping to achieve. So hopefully you could deliver on their promise. I think later on it’s great to send a bigger survey asking for more information about them. I think quarterly is actually a good cadence for major donor surveys, especially to new donors, to update your own stats. But that initial couple of questions survey is a great idea to make them feel like you care.
[00:33:59.010] – Rachel Bearbower
Yeah, totally agree.
[00:34:01.000] – Boris
Alright, Rachel, I feel like I extracted some great stuff out of you, and now I want to help people take the next steps. So you’ve already told them how to get started. Write one email. This doesn’t have to be overwhelming. And then, by the way, when you’re finished with the fifth email the following week, go back and tweak maybe your first email because you’ll have some feedback. You’ll see how it’s working. So start playing with the copy, start playing with the headline, whatever it is that you want to start tweaking. Maybe if you’ve gotten some feedback, I’m going a little too far maybe now. But if you’ve gotten some feedback in those surveys, incorporate that into the email sequence to use their own language.
[00:34:36.680] – Rachel Bearbower
Okay. Can I say one more thing that’s really cool. So that example…
[00:34:40.890] – Boris
No more value, Rachel! No more value!
[00:34:42.050] – Rachel Bearbower
I know. I’m sorry. I’m not sorry. This is awesome. So that first email, the example from the Alzheimer’s organization. So in the first email that they sent when the organization, the Executive Director was introducing herself and kind of aligning those values, she asked, “How can I best support you right now?” Because remember, it was going out to caregivers. So how can I best support you and provide you with the resources that you need? The responses—she couldn’t really quantify the responses that she received, but she received enough responses that she had to get another staff person involved in answering emails. Because that many people were responding to her emails. I think that is really powerful. Really, really powerful.
[00:35:36.990] – Boris
It’s connection and it’s investment. Someone is now not just giving you money or doing something, but they’re also investing their time in communicating with you, in giving you feedback, and in feeling like they’re actually talking to somebody like they’re having a conversation. That’s amazing. And taking on that extra person will pay for itself in multiples, I’m sure.
[00:35:59.620] – Rachel Bearbower
Absolutely. For sure.
[00:36:01.810] – Boris
Rachel, I always ask if people have any tools or resources that they’d like to share. And when I asked you this, you actually sent me a whole lot that I’m going to share on the show notes. Are there any that you kind of want to highlight specifically while we’re on the air and then we’ll share the rest in the show notes?
[00:36:18.380] – Rachel Bearbower
Okay. I have so many tools and resources, so please go and look in the show notes because it’s like my favorite thing. I think that my favorite… I’m going to just kind of put this all together. I think my favorite resources are the ones that can simplify my life. And I say that generally because I know that I tried MailChimp and then I tried Constant Contact and then I found ConvertKit, and ConvertKit worked with my brain. Some people love MailChimp, some people…
[00:36:56.940] – Rachel Bearbower
So I’m not going to recommend a specific email service or a certain social media scheduler because we all work a little bit different. But if you can find some tools that you can use to automate the system or automate the work that you are doing and create systems in your organization, it’s going to save you a lot of time and allow you to move away from doing that system work and allow you to focus on building relationships and raising more money. Okay? So finding those tools.
[00:37:41.510] – Rachel Bearbower
I also love, love, love, love Brene Brown. So anything by her, I think really getting into understanding just who you are as a leader. Dare to Lead is a great book. And then Essentialism is a fantastic book to just start shedding, like all the extra crap that we are all doing just because we’re doing it. You are too busy. You are too busy. So let’s eliminate that in this new year and just start doing the things that are most important and bring us the most joy.
[00:38:23.690] – Boris
I love all of it. I love some of the tools, specific tools that you did recommend that we could list. But I agree the tool that you’ve got at your disposal and can use quickly and comfortably is the best one. Can you later upgrade? Sure. But sometimes I have a problem of I’m looking for the perfect tool and I spend too much time doing that.
[00:38:42.940] – Rachel Bearbower
Those don’t exist.
[00:38:44.220] – Boris
They don’t exist and even just the perfect tool for you isn’t necessary. The perfect tool for you is the one that you can use right now, and then later you can upgrade or do whatever it is to transition to another one. I’ve also read three out of the four books that you listed in the notes, which we’ll share as well.
[00:39:00.380] – Rachel Bearbower
Which one didn’t you read?
[00:39:01.770] – Boris
[00:39:02.950] – Rachel Bearbower
[00:39:05.150] – Boris
Okay. Yes. Assigned and downloaded on Audible already.
[00:39:08.950] – Rachel Bearbower
Excellent. Excellent. It’s a good one, actually, every nonprofit should read that one because I think finances is one of our… I think if everyone read Profit First that the nonprofit industry would completely turn around. But that is a different podcast episode, so we will save that for next time.
[00:39:28.160] – Boris
We’ll have to do another one then. So thank you so much for all of the value and stories that you’ve shared with us today. What is your call to action for our heroes at home who are slaving away, working away at their nonprofits and need some help? What’s your call to action to them today?
[00:39:47.230] – Rachel Bearbower
Oh, my gosh. Okay, so gratitude. First step, you get that first donor, you got to thank them or just any donor. So I do have a thank you template that is like mad libs for nonprofit. So go and grab that. It’s on my website. It’s smallshopstrategies.com/freethankyou. I just had somebody reply back to me and she was like, “Wow, that was like powerhouse little template.” I was like, “Well, thank you.” So there you go. Random review, sending that out into the internet.
[00:40:26.770] – Boris
Social proof is invaluable. We talk about it all the time. If other people are enjoying it, then chances are you will, too. So thank you for sharing that little social proof right there. And of course, we will have that link linked up in our show notes so anyone can head on over to The Nonprofit Hero Factory at nphf.show and find Rachel’s episode right there and get all of the stuff that we talked about and more.
[00:40:52.520] – Boris
Rachel, thank you so much. I do actually hope to have you on again talking about some of the other things that you help organizations do, because frankly, if we could just keep extracting everything out of you, I think we’re going to help a whole lot of people really quickly.
[00:41:03.570] – Rachel Bearbower
Thank you. It was wonderful. I really appreciate being on, and I look forward to connecting with you soon.
[00:41:11.720] – Boris
Awesome. Thank you, everybody, for joining us today. I’m sure you got some great value out of this conversation today. And Rachel’s insights and her five-email sequence for welcoming or onboarding new donors so that they become longer retained donors on your books. If you did, then please, please, please leave us a review on iTunes or your favorite podcast platform. And tell a friend, because chances are you’ve got friends who are also nonprofit and can learn about marketing, about communications, storytelling, technology, all of the things fundraising, of course, that we talk about on the show every single week. Thank you, everybody. We’ll talk to you soon.
[00:41:53.810] – Outro Video
Thank you all for watching and listening to the Nonprofit Hero Factory. We hope this episode has given you some ideas and strategies for creating more heroes for your cause and a better world for all of us. Please be sure to subscribe to this show on YouTube, Facebook, iTunes, Spotify or your favorite podcast platform and let us know what you think by leaving a review.
Concepts and Takeaways:
- Sometimes, naivete is a superpower. If nonprofit founders new all of the work that goes into starting and running a nonprofit, many would never start. (6:00)
- The biggest challenge small-shop nonprofits are facing today is limited time, and the focus tends to be on getting new donors. (7:30)
- Statistically, 70% of new donors only give one time to an organization. It seems that not enough focus is being put on donor retention. (8:38)
- It costs less to keep an existing donor than it does to acquire a new one. (9:48)
- Starbucks spends an average of $1,000 on acquiring and keeping their customers. The average 20-year return on investment from those customers is $14,000. (11:00)
- We forget that our donors are people, not abstract money-givers. We have to treat them like people at every point possible and engage them in conversation, not just one-way updates and requests for money. (13:41)
- Rachel shares a story about a muddy dog print that changed her view of donor communications. Little things that make a human connection can make a big difference. (15:48)
- Donors drop out for different reasons, but none of them should be you. (16:22)
- One of the most effective tools for donor engagement and retention is an email welcome series, which can be automated. The key is to personalize and provide value. (17:05)
- Rachel recommends a five-email welcome series. (19:38)
- The first step in a relationship is acknowledging that a connection was made.
- Then, “provide value, provide value, provide value, provide value… and then make an ask.”
- Welcome series have much higher open and click rates than average email. More importantly, they nurture people to give again. And once they’re set, they can be put on autopilot in your email/newsletter system. (21:36)
- Automation shouldn’t mean losing personal connection. Think of the emails as parts of a conversation, much like you’d have In a meeting. Connect personally and share stories. (24:31)
- The frequency of your email sequence may vary depending on your other communications, but Rachel recommends one per week or so. (26:48)
- Rachel’s 5-part donor welcome sequence: (27:17)
- 1. Introduce yourself, as the executive director. Make a personal connection.
- 2. Spark a conversation, share a story and ask a thought-provoking question.
- 3. Share more about what your nonprofit does with a little show-and-tell and ask for feedback to continue the conversation.
- 4. Ask for feedback. Send a short survey to learn more about them.
- 5. This is your opportunity to make an ask.
- You don’t have to feel overwhelmed at the thought of writing 5 emails. You can start by writing one per week, then turn them into evergreen elements of your welcome series. (32:14)
- When you’ve completed the series, go back and tweak them as you get feedback and see how they’re working.
- There’s no such thing as the perfect tool. Use what you can now, and upgrade later. (38:44)
Action Steps: What Now?
About this week’s guest
Rachel BearbowerFounder/CEO, Small Shop Strategies
Like you, Rachel Bearbower is a fundraiser, former ED, and founder. She has also been in the trenches of an underfunded, limited resource, systemless organization. And the stress, overwhelm and frustration it can cause.
This is why Rachel is the one you turn to for systems, structure and a plan. And when all of these are in place, she promises you’ll have more time to serve those who mean most to your organization and raise the funds needed to keep moving your mission forward.