Is Text-to-Give a Donor Retention Strategy?
Did you know that the average American sends and receives 32 texts every day? Each month, that’s 960 messages!
There’s no question your donors are using text messaging. But are they reading texts from nonprofits? Amazingly, 98 percent of text messages are read within 3 minutes and 45 percent respond. That’s three times the engagement rate of nonprofit emails!
So, you know text messaging is an effective way to reach donors to solicit donations, but you might be wondering, is Text-to-Give a donor retention strategy? In the rest of this article, we will seek to answer this question.
Finding vs. Keeping Donors Via Text Messaging
Donor acquisition has its own unique set of challenges. One of the most significant acquisition hurdles Text-to-Give helps donors overcome is the inconvenience factor. Many don’t give simply because they don’t want to go out of their way. With Text-to-Give, donors can contribute on their smartphone in as little as three clicks. Donor acquisition will continue to be necessary for nonprofits during this pandemic, and Text-to-Give will certainly help.
However, donor retention is even more critical for nonprofits during this uncertain time. Simply put, donor retention is the all-important fundraising strategy that seeks to hold on to its donors. Many refer to it as a “stewardship strategy.” Compared to donor acquisition, donor retention strategies are far more cost-effective, especially in the long-run. In 2017, every $100 gained was offset by $96 in losses through donor drop-off. The challenge with retraining donors is that it takes an incredible amount of creativity, energy, and consistency. For the last decade, the average nonprofit has retained less than 50 percent of donors year after year. Donor retention strategies rely on cultivating personal connections with donors. In a time of quarantine, this is more complicated – but not impossible.
Retain Donors With Text-to-Give
One study found that monthly donors have a retention rate of 90 percent. What causes such a dramatic difference in donor retention among monthly donors? Ease-of-use and consistent communication. Monthly donors are more likely to have automated payment methods and be opted in to emails, newsletters, text messages, and social media.
At ZGIVE, we have an exclusive feature called Text-to-Engage, which allows nonprofits to continue the conversation post-donation through SMS messaging. With Text-to-Engage, nonprofits can securely send brief updates about their program with engaging pictures and videos. Unlike emails, nonprofits can be sure that these text messages are being read, and consequently, increasing donor retention.
See how ZGIVE can help you maximize your donor retention strategy with text-to-give during this pandemic. Schedule a demo to learn how our digital auction platform works.